Live stock market: Sensex down 500 pts, well below 17,600; Drop in metal stocks
All eyes are now on US inflation data for March, expected at over 8%. There are fears that price pressures will remain high, with the war in Ukraine disrupting flows of essential goods and lockdowns in China straining supply chains.
Rupee drops 14 paise to 76.05 against US dollar in early trade: PTI
Astute Viewpoint: Sameet Chavan, Lead Analyst – Technical & Derivatives, Angel One
Right now, the index’s placement on the daily chart represents lost traction due to the truncated week followed by the earnings season. However, the market nuance should remain in favor of the Bulls, until the 17500 levels remain intact. Looking at recent price action in the index, 17600 should act as a cushion for any falls, followed by the hallowed support zone at the 17500 mark. On the contrary, bullish momentum could be seen once the 17900-18000 critical resistance zone has broken through decisively.
Some traction was seen in midcaps and selective banking which kept traders active throughout the day. Going forward, the market is expected to remain volatile during the earnings season, and thus traders are advised to continue to follow the stock-centric approach for better trading opportunities.
Infosys launches its Living Lab Ecosystem in Melbourne to advance digital co-creation in Australia: BSE filing
Skymet Weather predicts a normal monsoon for India in 2002
Skymet expects the next monsoon to be 98% normal, with a margin of error of +/- 5%, of the long term average of 880.6mm for the June to September period.
The first part of the season should do better than the latter. The monsoon is likely to get off to a decent start in early June.
Rainfall will be moderate during the key monsoon month of August.
Food prices likely pushed India’s inflation to a 16-month high in March: Reuters poll
Retail price inflation in India likely accelerated to a 16-month high of 6.35% in March, well above the Reserve Bank of India’s upper tolerance range for a third consecutive month. , in part due to a sustained rise in food prices, according to a Reuters poll.
The full effect of the surge in crude oil and global energy prices following Russia’s invasion of Ukraine in late February is unlikely to show up in consumer prices until April, as the impact on consumers at fuel pumps has been delayed.
The April 4-8 Reuters poll of 48 economists suggested that inflation, as measured by the consumer price index (CPI), hit 6.35% in March on an annual basis, from 6 .07% in February. That would be the highest reading since November 2020.
CBI brings back Nirav Modi’s close aide Subhash Shankar from Cairo: Agencies
US and India will maintain ‘close consultation’ on Ukraine, Biden says: Bloomberg
US President Joe Biden and Indian Prime Minister Narendra Modi had a candid discussion on Monday about how to counter the fallout from Russia’s invasion of Ukraine, a senior US administration official said.
White House press secretary Jen Psaki said Biden had indicated the United States was ready to help India diversify its energy imports, which would make it less dependent on Russia.
“The president has made it clear that he does not believe it is in India’s interest to accelerate or increase imports of Russian energy and other raw materials,” Psaki told reporters. Monday.
Top Winners/Losers on Sensex in Opening Bids
Nifty opens lower, slips below 17,600
Sensex opens more than 300 points less
Nifty drops below 17,600 pre-open
Sensex drops more than 200 points in global pre-open tracking indices
TCS net profit up 7.4%, revenue hits ₹50,000
Tata Consultancy Services Ltd (TCS) reported a 7.4% rise in quarterly profit from a year earlier, slightly below analysts’ estimate, as rising labor costs weighed on profits as even though demand remained robust.
The net profit amounts to ₹9,926 crore during the quarter ended March 31 from ₹9,246 crores the previous year.
Trai suggests 36% reduction in 5G auction rates
The telecoms regulator on Monday recommended a 36% drop in the base price of the 5G spectrum band (3300-3670MHz band) for ₹317 crore on a pan-Indian basis of the ₹492 crore, it suggested in 2018, offering major relief to telecom operators and setting the stage for them to secure prized airwaves at a government auction.
The Telecom Regulatory Authority of India (Trai) has also suggested a reduction in reserve prices in the 700 MHz band, where basic prices have been reduced by 58% and 45% in key circles of Mumbai and Delhi, to ₹470 crores and ₹509 crore, respectively, for the matched spectrum for a term of 20 years. (Read here)
“I am looking to list Godrej Capital over the next five to six years”
Godrej Capital, which will house the group’s non-banking arm and housing finance business, has announced a series of steps aimed at becoming a world-class retail financial services company and building a ₹Balance sheet of 30,000 crores by 2026. GIL will invest ₹5,000 crores to Godrej Capital over the next four years. In an interview, Pirojsha Godrej, Chairman, and Manish Shah, Managing Director of Godrej Capital, said that although the group is a late entrant, it sees significant growth opportunities. (Read here)
Stocks to Watch
Shares of TCS, telecom operators, ZEE Entertainment, Ruchi Soya, Adani Green, among others, could be in focus on Tuesday.
Anand Rathi Wealth, GM Breweries, Hathway Cable & Datacom, Tinplate Company of India, Evexia Lifecare and Gayatri Bioorganics will announce their fourth quarter results on Tuesday
Oil opens higher as OPEC warns of tight supply and Russian sanctions loom
Oil futures rose early on Tuesday, reversing steep losses the day before, as the market weighed the potential for further sanctions on Russia’s energy sector and OPEC warned it would be impossible to raise enough production to compensate for the loss of supply.
Brent futures were up 85 cents, 0.9%, at $99.33 a barrel, and US West Texas Intermediate contracts were up $1.04, or 1.1%, at 95, $33 a barrel.
Both contracts had stabilized at around 4% on Monday, amid fears China’s coronavirus shutdowns could dampen fuel demand and ahead of a massive release of oil reserves by members of the International Energy Agency. energy (IEA).
Some banks halt credit for oil imports by Indian refiner Nayara, owned by Rosneft: Reuters
Indian bank HDFC and some foreign banks have stopped offering trade credit for oil imports to Nayara Energy, a Russian-backed refiner, and some suppliers are asking for payment up front to avoid potential problems from sanctions against Moscow, said four banking and industry sources.
Nayara was not sanctioned as part of the international response to Russia’s invasion of Ukraine, but Russian energy giant Rosneft, which owns 49% of the Indian refiner, was.
To avoid needing credit to finance foreign trade, the Mumbai-based company is selling more of its refined fuels in India, two of the sources said.
SGX Nifty is trading lower
Nifty futures on the Singapore Stock Exchange traded 174 points, or 0.98%, down to 17,568, indicating a weak start for Indian benchmarks on Tuesday.
On Monday, Sensex fell 483 points, led by losses in IT, banking and capital goods stocks, to close at 58,964.57. The Nifty lost 109.40 points to end the day at 17,674.95.
Asian stocks plunge on inflation, Fed tightening, China covid outbreak
Stocks in Asia fell on Tuesday and bonds extended a sell-off – leaving the 10-year Treasury yield at its highest since 2018 – as economic threats from high inflation, monetary policy tightening and lockdowns Covid in China ripple through markets.
Stocks fell in Japan, Australia and South Korea, while US futures fell slightly.
The benchmark Nikkei 225 lost 0.8% to 26,607.29, while the broader Topix index slipped 0.45%. The S&P/ASX 200 Index fell 0.42%.
Hong Kong contracts earlier weathered the gloom, potentially reflecting China’s approval of the first batch of new video game licenses since July. This step could allay some of the worst concerns about Beijing’s gaming sector restrictions.
Overnight, tech companies have led a large drop in stocks on Wall Street as investors anticipate the next corporate earnings season and what it will reveal about the impact of inflation on corporate earnings. companies. The S&P 500 fell 1.7%, adding to its recent losses. The Dow Jones Industrial Average fell 1.2% and the tech-heavy Nasdaq fell 2.2%. The benchmark S&P 500 and the Nasdaq just suffered their first weekly losses in four weeks.
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