Before Market Opens: 9 essential things to know at 9 am on March 14, 2024

Before Market Opens: Indian markets are likely to open on a muted note on Thursday as Asian markets traded cautiously following a mixed action on Wall Street overnight. Meanwhile, Gift Nifty was trading 15 points higher, indicating a flat start for benchmark Nifty. Let's take a look at some key cues before the market opens today:

On Wednesday, the S&P 500 and Nasdaq experienced slight declines as investors opted to take profits in chipmaker stocks ahead of key economic data and insights into inflation trends preceding the Federal Reserve meeting scheduled for the following week. The semiconductor index dipped by 2.5% after enjoying robust gains recently, although it remained up by 17% year-to-date. Nvidia, a prominent player in the chip industry, saw its shares decrease by 1.1%, despite having previously spearheaded the market surge driven by optimism surrounding artificial intelligence. In contrast, the Dow Jones Industrial Average exhibited a modest uptick of 37.83 points, equivalent to 0.1%, reaching 39,043.32. Conversely, the S&P 500 encountered a loss of 9.96 points, or 0.19%, settling at 5,165.31, while the Nasdaq Composite saw a decline of 87.87 points, or 0.54%, closing at 16,177.77.

Japan’s Nikkei 225 fell 0.45% and the Topix declined 0.21%. South Korea’s Kospi gained 0.22%, while the Kosdaq index was marginally higher. Hong Kong’s Hang Seng index futures indicated a stronger opening.

On Wednesday, the Indian stock market witnessed a significant decline, with the indices experiencing a drop of over 1%, driven by widespread selling across various sectors. The mid and small-cap segments were particularly hard hit, facing continued downward pressure. The Sensex, a key benchmark index, saw a substantial fall of 906.07 points, or 1.23%, closing at 72,761.89. Similarly, the Nifty 50, another major index representing broader market sentiment, recorded a notable decline of 338.00 points, or 1.51%, settling at 21,997.70.

At 8:15 am, Gift Nifty was trading 15 points or 0.07 percent higher at 22,072, indicating a flat opening for the Indian markets.

Oil prices continued their upward trajectory, building on previous gains fueled by several factors. A surprise decline in U.S. crude inventories suggested a strengthening demand scenario, contributing to the bullish sentiment in the market. Additionally, concerns over potential disruptions in the oil supply emerged following attacks on Russian refineries by Ukraine, further supporting prices. Brent futures saw an increase of 10 cents, or 0.12%, reaching $84.13 per barrel at 0115 GMT, while U.S. West Texas Intermediate (WTI) crude rose by 7 cents, or 0.9%, to $79.79 per barrel. Both contracts had surged approximately 3% to a four-month high the previous day, driven by optimism surrounding the U.S. demand outlook and heightened geopolitical tensions.

Gold prices traded flat in early Asian trade hours on Thursday, within close range of record-high levels on a broadly weaker dollar, as traders awaited more economic data that could steer hopes for a mid-year rate cut by the U.S. Federal Reserve. Spot gold was flat at $2,173.89 per ounce, as of 0147 GMT. U.S. gold futures dipped 0.1% to $2,178.20.

Foreign institutional investors (FIIs) net sold shares worth ₹4,595.06 crore, while domestic institutional investors (DIIs) purchased ₹9,093.72 crore worth of stocks on March 13, provisional data from the NSE showed.

The rupee declined by 5 paise to settle at 82.85 (provisional) against the US dollar on Wednesday, tracking a broad-based selloff in domestic markets. Forex traders said the rupee is likely to trade with a slightly negative bias on recovery in the greenback and concerns over elevated crude oil prices. At the interbank foreign exchange market, the local unit opened at 82.82 and witnessed an intra-day low of 82.91 and a high of 82.82 against the greenback during the trading session. The local unit finally settled at 82.85 (provisional) against the dollar, registering a loss of 5 paise from its previous close.

State Bank of India (SBI), the largest lender in the country, has forged a partnership with One97 Communications, the entity behind the Paytm brand and app, to facilitate consumer UPI payments. Previously, Paytm's UPI services were operated through Paytm Payments Bank Limited (PPBL). However, following regulatory actions by the Reserve Bank of India (RBI) against PPBL, Paytm has been compelled to seek collaborations with banks to function as a third-party application provider (TPAP), aligning with the strategies adopted by its major rivals such as PhonePe and Google Pay.