Domestic stocks are likely to see a cautious start to Wednesday's trade ahead of a speech by the US Federal Reserve Chair Jerome Powell, where he could give hints about the pace of future interest rate hikes. Asian markets were trading cautiously on Wednesday. The Uniparts India IPO would be the focus of all eyes. The daily chart shows the bullish belt hold candle on Tuesday by the Nifty. Chandan Taparia of Motilal Oswal Securities said it has been making higher highs for the past five sessions and supports are gradually shifting higher. The index needs to hold above 18,500 for an up move towards 18,700 and 18,881, he said. Taparia said that the support for the index is 18,442 and 18,350.
The Singapore Exchange futures quoted 11.50 points, or 0.06 per cent, lower at 18,747, suggesting a muted start for the domestic market on Wednesday.
Asian stocks were trading cautiously in Wednesday's trade due to China developments ahead of the speech by US Federal Reserve Chair Jerome Powell later in the day. Japan's Nikkei declined 0.6 per cent, while South Korea's Kospi rose 0.5 per cent, while China's Shanghai Composite was flat. Hong Kong's Hang Seng and Taiwan's TWSE increased by 0.3 per cent.
The US stock market was flat on Tuesday, ahead of a speech by US Federal Reserve Chair Jerome Powell that could give hints about the pace of future interest rate hikes going ahead. The Dow Jones Industrial Average went up 0.01 per cent to 33,852. The S&P 500 index declined by 0.16 per cent to 3,957. Nasdaq Composite declined by 0.59 per cent to 10,983. Oil gained steam on Tuesday as a result of hopes for a loosening of China's strict COVID 19 controls was later offset by concerns that OPEC would keep its output unchanged at its upcoming meeting, according to reports. The price of crude oil was up 48 cents at $83.67 a barrel. US West Texas Intermediate WTI crude futures were 53 cents higher at $77.77.
Shares of Milk Food will go ex-dividend on Wednesday. The shares of Chandra Prabhu International will go ex-split from face value of 10 to 2 per share. Dharani Finance will reveal its quarterly results on Tuesday. Apollo Hospitals Enterprise, Syschem India and Eighty Jewellers have board meetings today. The board of Indo Cotspin is going to consider a proposal for a stock split.
The IPO of Uniparts India, which is a global manufacturer of engineered systems and solutions, is scheduled to open on November 30. The IPO price band has been fixed at Rs 548 -- 577 apiece. The asking valuation comes in at 14.52 -- 15.29 times FY 22 earnings per share, given the price band. The industry's average PE range is 27.36 times. Balkrishna Industries, Bharat Forge and Ramkrishna Forgings are among the listed peers of Uniparts India.
The shares of BHEL, Delta Corp, Indiabulls Housing and Punjab National Bank are banned from the F&O segment. Derivative contracts in a security are banned when they cross 95 per cent of the market-wide position limit MWPL. No new positions can be created in the derivative contracts of the security. The prohibition is lifted when the open interest in the stock drops below 80 per cent of the MWPL across exchanges.
Provisional data available with the NSE shows that FPIs were net buyers of domestic stocks to the tune of 1,241. On Tuesday, there were 57 crore. Domestic institutional investors DIIs sold equities to the tune of 744.42 crore.
The rupee dropped 3 paise to close at 81.71 against the dollar on Tuesday as rising crude oil prices in the international market weighed on forex market sentiment. A strong trend in domestic equities and a weak American currency overseas capped the losses in the local unit, forex traders said. It had an intra-day high of 81.57 and a low of 81.74 against the dollar.