SGX Nifty indicates weak start for Indian equity markets

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Domestic equity markets are likely to open lower on Thursday tracking weak global cues. SGX Nifty, an early indicator of the Nifty50 index performance, also indicates a negative start for the index in India. The Nifty futures were trading 61 points or 0.40% lower at the 15,077 level at around 8.30 am (IST).

Global markets:

Overseas, Asian stocks are trading lower on Thursday as multiple major markets in the region are closed for holidays. Markets in China, Japan, South Korea and Taiwan are closed for holidays.

In the US, the S&P 500 and the Nasdaq edged slightly lower on Wednesday as big tech stocks slid amid an ongoing rotation of portfolio holdings that gave a boost to energy shares and kept the overall market near record highs. The S&P 500 and Nasdaq both opened at record highs but soon drifted lower, while the Dow set a new peak during the session.

House Democrats unveiled the details of a relief proposal that included $1,400 direct checks with faster phase-outs than previous bills. President Joe Biden and Treasury Secretary Janet Yellen met with CEOs of JPMorgan, Walmart and Gap Tuesday to discuss additional economic relief.

In economic developments, U.S. Federal Reserve Chairman Jerome Powell said Wednesday that policy will need to stay “patiently accommodative.” The Fed chair said the U.S. is “a long way” from where it needs to be in terms of employment despite the economy having reclaimed more than 12 million jobs since the early days of the Covid pandemic.

Domestic markets:

Back home, the domestic equity benchmarks ended almost flat after a volatile session on Wednesday. The barometer index, the S&P BSE Sensex, slipped 19.69 points or 0.04% to 51,309.39. The Nifty 50 index lost 2.80 points or 0.02% to 15,106.50.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,786.97 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,075.68 crore in the Indian equity market on 10 February, provisional data showed.