Stock Market Today: SGX Nifty rises 49 points, Asian markets edgy amid inflation fears; dollar hits one-year high

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Dollar holds near one-year high

The dollar held near a one-year high versus major peers on Wednesday, amid rising expectations the Federal Reserve will announce a tapering of stimulus next month, potentially following with interest rate hikes by mid-2022. The dollar index, which measures the greenback against six rivals, eased slightly to 94.460 from Tuesday, when it touched 94.563 for the first time since late September 2020.

SGX Nifty signals a positive start

Nifty futures on the Singapore Exchange traded 48.5 points, or 0.27 per cent, lower at 18,053, signaling that Dalal Street was headed for a positive start on Wednesday.

Tech View: Nifty50 support seen at 17,860

Nifty50 on Tuesday rose for the fourth straight session, but failed to close above the 18,000 level. It formed a bullish candle on the daily chart, but negated the higher highs it was making since the last three sessions. Analysts said the index needs a close above the 18,000 level to instill confidence among traders. They see strong support for Nifty in the 17,860-17,880 range.

Asian shares edgy amid inflation fears

Asian shares were on edge on Wednesday as worries about soaring power prices fuelling inflation weighed on sentiment and drove expectations the United States would taper its emergency bond buying programme, holding the dollar at a one-year high. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent in early trading. Chinese blue chips were flat, Australia eeked out a 0.06 per cent gain, while Japan’s Nikkei shed 0.2 per cent.

US stocks drop on stagflation woes

US shares slipped on Tuesday in choppy trade, as investors waited for businesses to report how rising prices have hit their latest earnings, while bond yields spiked and the dollar shone on bets that monetary policy will soon be tightened. The Dow Jones Industrial Average fell 0.34 per cent, the S&P500 index lost 0.24 per cent, and the Nasdaq Composite dropped 0.14 per cent.

Rupee declines 16 paise to 75.52; extends losses for third day

Falling for the third day in a row, the rupee weakened further by 16 paise to end at 75.52 against the US currency on Tuesday, weighed down by a strong greenback in the overseas market and firm crude oil prices. At the interbank foreign exchange market, the local currency opened at 75.41 and witnessed an intra-day high of 75.16 and a low of 75.66 against the US dollar in the day trade.

Sensex, Nifty on Tuesday

Rising for the fourth straight session, equity benchmarks Sensex and Nifty marked their new closing highs on Tuesday due to participants’ continued buying interest in banking, consumer durables and auto stocks. After a volatile trading session, the 30-share Sensex ended 148.53 points or 0.25 per cent higher at 60,284.31. The Nifty rose 46 points or 0.26 per cent to its fresh closing peak of 17,991.95.

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