10 things to know before the opening bell on March 18

SUMMARY

The Indian market is likely to open higher on Thursday tracking gains in global markets after the US Federal Reserve kept interest rates unchanged and projected a rapid jump in US economic growth this year. At 7:10 am, the SGX Nifty was trading 172.00 points or 1.16 percent higher at 14,943.50, indicating a positive start for the Sensex and Nifty50.

By CNBCTV18.comMar 18, 2021 8:06:47 AM IST (Published)

1. Wall Street: Futures contracts tied to the major US stock indexes rose in the overnight session after the Federal Reserve said hours prior that it does not currently expect to hike interest rates through 2023. The upswing pushed the Dow Jones Industrial Average to its first close above 33,000 with a gain of 189 points. The S&P 500 also notched a record close and rose 0.3 percent to 3,974 after falling 0.7 percent earlier in Wednesday’s session. The Nasdaq Composite, which had fallen as much as 1.5 percent, wiped out its early losses and ended the day 0.4 percent higher.

2. Asian stocks: Shares in Japan and South Korea advanced Thursday as investors reacted after theUS Federal Reserve’spolicymaking committeevoted to keep short-term borrowing rates near zeroin a widely expected move. TheNikkei 225in Japan rose 1.4 percent. South Korea’sKospiclimbed 1.17 percent. Australian shares wavered between gains and losses, with the benchmarkASX 200slipping 0.26 percent as most sectors traded lower.

3. D-Street: The Indian indices ended over a percent lower on Wednesday, tracking losses in global peers, as most investors stayed on the sidelines ahead of the US Federal Reserve’s policy decision.TheSensex ended 562 points lowerat 49,801 while the Nifty fell 189 points to settle at 14,721. Meanwhile, broader markets underperformed benchmarks with the midcap and smallcap indices down over 2 percent each.

4. Crude oil: Oil prices dropped for a fifth day on Thursday after official data showed a sustained rise in US crude and fuel inventories, while the ever-present pandemic clouded the demand outlook. Brent crude was down 0.2 percent, at $67.88 a barrel by 0119 GMT after dropping by 0.6 percent on Wednesday. US oil was also down 0.2 percent, at $64.48 a barrel, having fallen 0.3 percent the previous session.

5. Rupee: The rupee on Wednesday closed flat at 72.55 against the US dollar in a restricted trade ahead of the final outcome of the US Federal Reserve meeting. Losses in the domestic equity markets and a strengthening dollar against major currencies overseas weighed on the rupee sentiment, forex dealers said. At the interbank forex market, the rupee opened almost flat at 72.56 against the greenback and witnessed an intra-day high of 72.51 and a low of 72.62. It finally ended unchanged at 72.55 against the American currency.

6. Gold: Gold rose by Rs 60 to Rs 44,519 per 10 gram in the national capital on Wednesday supported by strength in global precious metal prices and rupee depreciation, according to HDFC Securities. In contrast, silver declined by Rs 200 to Rs 66,536 per kilogram from its previous close of Rs 66,736 per kilogram.

7. Fed meeting: The Federal Reserve on Wednesday projected a rapid jump in US economic growth and inflation this year as the COVID-19 crisis winds down, and repeated its pledge to keep its target interest rate near zero for years to come. The US central bank now sees the economy growing 6.5 percent this year, and the unemployment rate falling to 4.5 percent by year's end, compared to growth of 4.5 percent and unemployment of 5 percent projected at its December policy meeting.

8. US Treasury Yields: US Treasury yields pushed lower immediately after the Fed meeting. 10 year yields moved from an intraday high of 1.69 percent to settle at 1.64 percent.

9. Vehicle registration: The Centre is proposing to waive off new vehicle registration charges for customers who have scrapped their older vehicles and are submitting a scrapping certificate. The draft rules can come into effect from October 1, 2021.

10. COVID-19: "If we don't stop this pandemic right now, then there could be a nationwide outbreak. We have to immediately stop the emerging second peak and take big and decisive steps," PM Modi told the Chief Ministers.