The Indian market is set for a negative start, tracking weak global cues as the shares were affected by the hike in the US Fed rate and the US top bank's plan to continue its balance sheet reduction.
Indian investors were also cautious after the government on Thursday sought Parliament nod for Rs 41,000 crore additional recap bonds for Public Sector Banks.
At 07:26 AM, SGX Nifty, an early indicator of the Nifty 50's trend in India, was down 0.11 percent at 10,982, indicating a weak opening for the Indian market.
Here's what you need to know before the opening bell Wall Street: US stocks slid on Thursday, with the Nasdaq on the cusp of confirming bear market territory, as the Federal Reserve's plan to continue its balance sheet reduction and the threat of a partial government shutdown fuelled investor anxieties. At its session low, the Nasdaq had tumbled 2.85 percent, pushing the tech-heavy index more than 20 percent below its Aug. 29 closing high. The index, along with the Dow and the benchmark S&P 500, pared losses as the session continued. The Nasdaq ended down 19.5 percent from its closing high, just shy of confirming a bear market. Asia stocks: Early Friday, E-Mini futures for the S&P 500 were off another 0.25 percent, while MSCI’s broadest index of Asia-Pacific shares outside Japan went flat. South Korean stocks slipped 0.3 percent and Japan's Nikkei 0.5 percent. The Nikkei had already hit a 15-month low on Thursday when the U.S. Federal Reserve largely retained plans to increase interest rates despite mounting risks to growth. Oil: Oil prices slid just over 4 percent overnight, bringing Brent’s losses since its October top to 37 percent. And the dollar suffered its biggest one-day drop on the yen since November 2017 as investors stampeded to safe havens. Dollar: The dollar hovered near a one-month low against its peers on Friday, weighed down by a subdued outlook toward US interest rates and the economy, while risk aversion in the broader markets boosted the yen. The dollar index against a basket of six major currencies stood near 96.30 after falling to 96.168 overnight, its lowest since Nov. 20. The index has lost roughly 1.2 percent this week. Market close: The Indian equity market erased most of its losses on Thursday, recovering from the day's lows with the Nifty closing above 10,950 level. The Sensex was down 52 points, or 0.14 percent, at 36,431 at close, while the broader Nifty50 was down 15 points, or 0.14 percent at 10,951. The BSE index recovered more than 240 points from the day's lows, while the Nifty bounced back by around 80 points. Midcaps ended in the green. Rupee: The rupee closed at 69.70 against the US dollar. Here are the top stocks to watch out for PSU Banks: Finance Minister Arun Jaitley on Thursday said the government will infuse Rs 83,000 crore in public sector banks in the next few months of the current fiscal. Earlier in the day, the government sought Parliament's approval for infusion of an additional Rs 41,000 crore in the state-owned banks through the second batch of Supplementary Demands for Grants. RBI ECB limit: The Reserve Bank of India (RBI) on Thursday announced a cap on the outstanding stock of external commercial borrowings (ECB) at 6.5 percent of GDP at current market prices. Based on the gross domestic product (GDP) figures at March-end 2018, the soft limit works out to $160 billion for the current financial year, the RBI said in a statement. RBI governor to meet private sector banks: After completing his consultations with heads of state-run banks, Reserve Bank of India (RBI) governor Shaktikanta Das will meet top officials from private sector lenders and cooperative banks next week. On Thursday, Das said that he has completed his consultations with heads of state-run banks. EPFO data: Employment generation in the formal sector nearly trebled to 8.27 lakh in October 2018 as compared to 2.81 lakh in the same month a year ago, while 79.16 lakh jobs added in 14 months since September 2017, according to EPFO payroll data released on Thursday. (With inputs from agencies)
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