Stock Market Today: Top 10 things to know before the market opens today

Stock Market Today: Top 10 things to know before the market opens today

Stock Market News: Trends in SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 186 points.

Tharket is expected to open in the green as trends in SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 186 points.

TBSE Sensex plunged 509 points to 56,598 yesterday while the Nifty50 fell 149 points to 16,859 and formed a Doji kind of pattern on the daily charts, indicating indecisiveness among bulls and bears about future market trend.

As per the pivot charts, the key support level for the Nifty is placed at 16,773, followed by 16,688. If the index moves up, the key resistance levels to watch out for are 16,991 and 17,123.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

Global equities staged a partial comeback on Wednesday -- with Wall Street stocks surging around 2% -- as the Bank of England said it would step in to the bond market in an attempt to dampen investors' fears of contagion across the financial system.

The Dow Jones Industrial Average jumped 548.75 points, or 1.88%, to 29,683.74. The S&P 500 gained 1.97% to 3,719.04. The Nasdaq Composite was 2.05% higher at 11,051.64 at the close.

Shares in the Asia-Pacific rose at the open on Thursday following a rebound on Wall Street overnight. The rally in the US came after the Bank of England said it would intervene in the bond market to stabilise conditions.

The Nikkei 225 in Japan advanced 1% and the Topix index gained 0.31%. Australia’s S&P/ASX 200 jumped 1.38%. In South Korea, the Kospi added 1.5%. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.72%.

SGX Nifty

Trends in SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 186 points. The Nifty futures were trading around 17,075 levels on the Singaporean exchange.

Oil prices jump on drops in supply, weaker dollar

Oil prices jumped higher on Wednesday for a second day, rebounding from recent losses as the US dollar eased off recent gains and US fuel inventory figures showed larger-than-expected drawdowns and a rebound in consumer demand. US crude rose 4.5% to $82.06 per barrel and Brent was at $89.22, up 3.4% on the day.

Sebi rolls out framework for credit rating agencies

Markets regulator Sebi on Wednesday came out with a new framework for credit rating agencies (CRAs), involving ratings of securities having explicit credit enhancement features. The new framework, applicable from January 1, 2023, is aimed at enhancing transparency and improving the rating process, the Securities and Exchange Board of India (Sebi) said in a circular.

Under the rule, CRAs can assign the suffix 'CE' (Credit Enhancement) to the rating of instruments having explicit credit enhancement. To enable investors to understand the extent of credit enhancement provided by a third party or parent or group company and support considerations specified by the regulator, including debt backed by a pledge of shares and a letter of comfort, Sebi said that the press release for credit ratings, with or without the CE-suffix, backed by such support considerations need to contain certain disclosures.

Automobile dealers to clock their fastest revenue growth in three fiscals: Report

Automobile dealers are set to clock their fastest revenue growth in three fiscals with sales accelerating 20-25 percent year-on-year on the back of 12-14 percent volume growth, a report said on Wednesday. This will be aided by increasing preference for personal mobility, higher economic activity, easing supply-side constraints, shift in product mix towards higher priced vehicles, and price hikes of 5-7 percent, Crisil Ratings said in its report.

According to the report, higher vehicle sales and greater contribution of the more-profitable ancillary revenue to 10-12 percent of total income in the current fiscal from 8-9 percent last fiscal will help stabilise operating margin at 3-5 percent as compared to 4 percent in fiscal 2022. This could lead to healthier credit risk profiles, a study of 113 automobile dealers rated by Crisil Ratings showed.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 2,772.49 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 2,544.17 crore on September 28, as per provisional data available on the NSE.

Bank of England to start unlimited bond purchases to stabilise market

The Bank of England said on Wednesday that it would buy as many long-dated government bonds as needed between now and Oct. 14 to stabilise financial markets, and added that it would postpone next week's start of its gilt sale programme.

"Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability," the BoE said. "This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy."

It said the purchases were designed to restore orderly market conditions. "The purchases will be carried out on whatever scale is necessary to effect this outcome."

India forex reserves set to shrink further, stir memories of 2008 crisis - Reuters Poll

India's depleted foreign exchange reserves are likely to drop further, falling to their lowest level in over two years by end-2022, as the Reserve Bank of India continues to defend the rupee from the mighty dollar's rise, a Reuters poll found.

In a battle that has so far failed to staunch the rupee's fall to a record low against the greenback, the RBI has drawn down its foreign exchange reserves by nearly $100 billion to $545 billion from a peak of $642 billion a year ago, and more is coming.

Those reserves are forecast to fall another $23 billion to $523 billion by the end of this year, according to the median forecast from a Sept. 26-27 Reuters poll of 16 economists. If realised, that would be the lowest level in over two years.

Stocks under F&O ban on NSE

The National Stock Exchange has retained Vodafone Idea in its F&O ban list for September 29. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.