Before Market Opens: 9 things to know at 9 am on November 3, 2022

US stocks ended sharply lower on Wednesday, as comments from Fed Chair Jerome Powell shattered initial optimism over a Fed policy statement that raised interest rates by 75 basis points but signalled that smaller rate hikes may be on the horizon. The Dow Jones Industrial Average fell 505.44 points, or 1.55 percent, to 32,147.76, the S&P 500 lost 96.41 points, or 2.50 percent, to 3,759.69 and the Nasdaq Composite dropped 366.05 points, or 3.36 percent, to 10,524.80.

Asian share markets slid on Thursday after the US Federal Reserve laid the groundwork for a protracted tightening campaign that torpedoed market hopes for a pause, sank bonds and lifted the dollar. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.9 percent, with South Korea down 1.5 percent. Japan's Nikkei was closed for a holiday, but futures were trading around 350 points below Wednesday's cash close.

The Federal Reserve pumped up its benchmark interest rate Wednesday by three-quarters of a point for a fourth straight time but hinted that it could soon reduce the size of its rate hikes. The Fed’s move raised its key short-term rate to a range of 3.75 percent to 4 percent, its highest level in 15 years. It was the central bank’s sixth rate hike this year — a streak that has made mortgages and other consumer and business loans increasingly expensive and heightened the risk of a recession.

At 8:20 am, the SGX Nifty was trading 173 points or 0.95 percent lower at 17,989, indicating a gap-down opening for the Indian markets.

The 30-share index closed 215 points, or 0.35%, lower at 60,906.09. The Nifty50 closed with a loss of 63 points, or 0.34%, at 18,082.85. BSE Midcap index also ended lower by 0.12%, but the Smallcap index rose 0.23%.

Oil futures fell early on Thursday as the dollar firmed on the Federal Reserve's hawkish stance, but concerns over looming supply risks kept a floor under prices. Brent crude shed 44 cents, or 0.5%, to $95.72 a barrel at 0146 GMT, while US West Texas Intermediate (WTI) crude futures retreated 59 cents, or 0.7 percent, to $89.41.

The rupee ended 8 paise lower at 82.79 per dollar in the previous session amid weakness in the equity market. However, buying by foreign portfolio investors (FPIs) capped the losses of the domestic currency. As per NSE data, FPIs bought Indian equities worth ₹1,436.30 crore on November 2.

Foreign institutional investors (FIIs) have net-bought shares worth ₹1,436.30 crore, whereas domestic institutional investors (DIIs) net-sold shares worth ₹1,378.12 crore on November 2, as per provisional data available on the NSE.

Gold prices saw an uptick in international markets on November 3 due to a dip in the dollar. However, hawkish comments of the US Federal Reserve Chair Jerome Powell capped gains of the yellow metal.