Trade Setup for Thursday 22 Sept: Stock Market News
Trade setup for Thursday 22 Sept– Good morning and welcome to the morning reports, the top things to know before the stock market opens today
Asian stock market indexes are trading in the deep red on Thursday, tracking negative cues from Wall Street overnight. Nikkei and Hang Seng are trading lower by 1.22 percent and 2.25 percent respectively while Shanghai is trading lower by 0.27 percent at 7.15 am IST, recovering some early losses. SGX Nifty is also trading lower by 135 points or 0.76 percent at 17580 levels.
The indication getting from the Asian markets is negative today, Indian stock markets are likely to follow the same. Nifty may open around17600 levels today.
The US and European market indexes update
The US stock market indexes were volatile and fell sharply on Wednesday after Federal Reserve hiked the interest rate by 75 basis points. This is the third consecutive interest-rate hike of 75 basis points and the Fed signaled additional large increases likely at upcoming meetings to curb inflation. The Estimates for economic growth in 2023 were marked down to 1.2% and 1.7% in 2024, reflecting a bigger impact of tighter monetary policy.
The key US market index, Dow Jones fell 522.45 points or 1.7%, the S&P 500 lost 66 points, and the Nasdaq dropped 204.86 points, or 1.79%, to 11,220.19 on Wednesday.
European stock market indexes ended higher on Wednesday ahead of the US Federal Reserve’s likely third straight king-size interest rate hike later in the day. At the same time, Russia has accelerated the geopolitical tension after the announcement of partial military mobilization.
The pan -European Stoxx 600 index ended 0.9% higher, bouncing back after hitting its lowest level since early July earlier. The key European stock market indexes CAC and DAX gained 0.87 percent and 0.76 percent respectively while FTSE was up by 0.63 percent at the close.
Indian stock market updates
Indian stock markets closed in the red on Wednesday amid negative cues from global markets. Sensex and Nifty ended lower by 0.44 percent and 0.55 percent respectively on Wednesday. The market breadth turned weak with the Advance-Decline indicating a ratio of 1:2 at the close. FIIs were the net sellers, they sold Rs 461.04 crore while DIIs were the buyers they bought Rs 538.53 crore in the equity cash segments on Wednesday.
News you should read before the trade setup for today 22 Sept
On Wednesday, the Asian Development Bank (ADB) trimmed India’s GDP growth forecast for FY22 to 7% from the previous estimates of 7.5% on the back of sluggish global demand and a tight monetary policy. The growth outlook for 2023 is also revised down to 7.2% from 8.0%.
The government of India is expecting significant investment to the tune of at least $25 billion to increase support for new semiconductor and display facilities, according to the report quoted by Rajeev Chandrasekhar, MoS for electronics and technology. On Wednesday, the cabinet approved the changes in the production-linked incentive (PLI) scheme for the manufacturing of semiconductors.
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