Before Market Opens: From Adani Enterprises FPO to US markets; 9 things to know at 9 am on January 31, 2023

A gauge of global stocks retreated on Monday after six sessions of gains while US Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation. The Dow Jones Industrial Average fell 260.99 points, or 0.77 percent, to 33,717.09, the S&P 500 lost 52.79 points, or 1.30 percent, to 4,017.77 and the Nasdaq Composite dropped 227.90 points, or 1.96 percent, to 11,393.81.

Asia-Pacific shares traded mixed on Tuesday as investors look ahead to a range of economic data and a potential interest rate hike from the Federal Reserve. Australia’s S&P/ASX 200 was up 0.33 percent as investors await retail sales data for December. Japan’s Nikkei 225 traded slightly above the flatline and the Topix gained 0.28 percent. South Korean benchmark Kospi dipped 0.4 percent.

Equity benchmarks the Sensex and the Nifty ended in the green, snapping their two-day losing run on January 30, supported by gains in shares of select index heavyweights, including Bajaj Finance, Infosys and Reliance Industries. The sentiment of the market, however, remained weak due to the Ambani-Hindenburg saga and caution ahead of the Union Budget and Fed outcome. The Nifty50 closed at 17,648.95, up 45 points, or 0.25 percent. 

At 8:20 am, the SGX Nifty was trading 83 points or 0.5 percent higher at 17,788, indicating a positive opening for the Indian markets. 

Oil prices dipped 2 percent on Monday, extending losses as looming increases to interest rates by major central banks weighed on demand and Russian exports remained strong. Brent futures for March delivery fell $1.76, or 2.03 percent, to $84.90 a barrel. US crude fell $1.78 to $77.90 per barrel, a decline of 2.23 percent - its steepest decline in nearly four weeks.

The International Monetary Fund (IMF) has retained its GDP growth forecasts for India for 2022-23 and 2023-24 at 6.8 percent and 6.1 percent, respectively. Released on January 31 – a day before Finance Minister Nirmala Sitharaman presents the Union Budget for 2023-24 – the IMF said while the economy will slow down next year, it will subsequently pick up the pace. Growth in India is set to decline from 6.8 percent in 2022-23 to 6.1 percent in 2023-24 before picking up to 6.8 percent in 2024-25, with resilient domestic demand despite external headwinds, the IMF said in an update to its World Economic Outlook report.

Foreign institutional investors (FII) have net-sold shares worth ₹6,792.80 crore, the highest ever outflow in a single day since March 8, 2022, whereas domestic institutional investors (DII) have net-bought shares worth ₹5,512.63 crore on January 30, as per provisional data available on the NSE.

The rupee rose 2 paise to end at 81.50 in the previous session as the weak dollar index and decline in crude oil prices saved the rupee from suffering losses. Meanwhile, the dollar looked set for a fourth monthly loss on Tuesday as investors await the Federal Reserve meeting outcome.

Gold prices were flat on Tuesday, as market participants held back from making large bets ahead of the US Federal Reserve policy decision. Traders mostly expect the US central bank to scale back rate hikes to 25 basis points (bps) at its two-day policy meeting that ends on Wednesday, reported Reuters.