Indian indices are likely to snap 2 sessions of losses to open in the green on Tuesday despite weakness in global peers. At 8:30 am, the SGX Nifty was trading 74 points or 0.44 percent higher at 16,947, indicating a positive start for the Indian markets.
Bears hugged the Indian markets on Monday, shedding 3 percent following a massive sell-off across global markets. This was fuelled by escalating geopolitical tensions between Russia and Ukraine as well as the emergency US Fed meet. Back home, all the sectors contributed to the losses with banking, financials and metals dragging the most. The Sensex ended 1,747 points lower at 56,405 while the Nifty lost 532 points to settle at 16,842.
Let's take a look at some key market cues before the market opens today:
US Markets
Two of the three main Wall Street indices -the Dow Jones and the S&P 500 fell in overnight trade on Monday, amid concerns about the Fed’s plan for rate hikes, and tensions between Russia and Ukraine. Investors have been monitoring headlines related to the Russia-Ukraine crisis closely. The S&P500 was down 0.4 percent and the Dow Jones shed 0.5 percent while Nasdaq Composite was flat.
Asian Markets
Asian shares fell on Tuesday amid a potential Russian invasion of Ukraine. The US has warned Russia of severe consequences in case its forces invade Ukraine and insisted on a diplomatic solution to the issue. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 percent in early trade after stock markets in the United States and Europe lost ground on Monday.
Japan's Nikkei was down 0.2 percent while Australia's S&P/ASX200 was down 0.32 percent. China's CSI300 bucked the trend and was up 0.2 percent, while Hong Kong's Hang Seng shed 0.52 percent early in the session.
Oil
Oil prices surged over 2 percent on Monday to their highest in more than seven years as Ukraine's president declared a "day of unity" for Feb. 16, a date that some Western media have cited as a possible start of a Russian invasion. Russia is one of the world's largest oil and gas producers, and fears that it could invade Ukraine have driven the rally in oil closer to $100 per barrel, a level not seen since 2014.
SGX Nifty
At 8:30 am, the SGX Nifty was trading 74 points or 0.44 percent higher at 16,947, indicating a positive start for the Indian markets.
Rupee
The rupee slumped further by 24 paise to close at over a nine-week low of 75.60 against the US currency on Monday in line with deep losses in the stock markets and a stronger dollar as investors rushed for safe-haven assets amid geopolitical tensions.
Gold
Prices of the yellow metal held their ground on Monday near a three-month high touched in the previous session, as lingering concerns surrounding the Ukraine impasse kept the metal's safe-haven appeal intact. At the MCX, gold contracts were trading higher by 0.79 percent at ₹49,501 for 10 grams.
CPI
India's CPI rose to 6.01 percent in January breaching the RBI's upper tolerance level due to higher prices of certain food items. The CPI was 5.66 percent in December 2021 and 4.06 percent in January 2021.
Stocks in News
Reliance Industries, Coal India, Graphite India, Paytm, Cipla, Eicher Motors, NBCC are some of the stocks in the news today.
Russia-Ukraine Conflict
Russia has deployed over 100,000 troops near the Ukraine border. US President Joe Biden has warned that the US and its allies would respond decisively and impose swift and severe costs if Russia invades Ukraine.