NSE Intra-day chart (21 April 2022) | | | Top Gainers | | | Top Losers | | | World Indices | | | Indices | | | FII Activity(Rs. Cr) | | | DII Investments(Rs. Cr) | | |
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Market Commentary | | 22 April 2022 | |
Markets likely to get gap-down opening amid weak global cues
Extending
gaining streak for second straight session, Indian equity benchmarks made
healthy gains on Thursday, with the help of strong buying support in Mahindra
& Mahindra, Maruti Suzuki and Bajaj Finserv amid positive global cues.
After a fabulous start, key indices remained under grip of bulls throughout the
session, as Managing Director of the International Monetary Fund Kristalina
Georgieva said a high growth rate for India, as projected in the latest World
Economic Outlook, is not only healthy for the country but also positive news
for the world. Adding enthusiasm among traders, Service Export Promotion
Council (SEPC) stated that services sector exports are likely to touch $350
billion in the current fiscal. It said the target has been revised from $300
billion to $350 billion for 2022-23 and is set in consideration to the sectors
which couldn't perform in the last 2 years due to the pandemic and hopefully
will bounce back in FY23, like travel and tourism, hospitality, education and
entertainment. Markets remained strong during second half of the session,
taking support from Union minister Nitin Gadkari's statement that the PM Gati
Shakti National Master Plan (NMP), aimed at improving multi-modal connectivity
and last-mile connectivity across the country, is important for achieving the
prime minister's dream of making India a $5 trillion economy by 2024-25. The
street was also positive with retirement fund body EPFO said it added 14.12
lakh subscribers in February 2022, 14 per cent more than 12.37 lakh enrolled in
the same month a year ago. Meanwhile, the government is likely to take a call
on the timing of LIC initial public offering within this week. The sale of 5
per cent stake or 31.6 crore shares in the country's largest insurer was
originally planned for in March, but was postponed in view of the geopolitical
tension. Finally, the BSE Sensex rose 874.18 points or 1.53% to 57,911.68 and
the CNX Nifty was up by 256.05 points or 1.49% to 17,392.60.
The US markets ended deeply lower
on Thursday as Treasury yields showed a notable move back to the upside after
giving back ground on Wednesday. The yield on the benchmark ten-year note more
than offset yesterday's drop, reaching its highest closing level since December
2018. Concerns about the outlook for interest rates contributed to the rebound
by Treasury yields, with traders keeping an eye on comments by Federal Reserve
Chair Jerome Powell. Powell said he believes it would be appropriate to raise
rates a little more quickly and predicted a 50 basis point rate hike would be
on the table at the Fed's May meeting. Powell said our goal is to use our tools
to get demand and supply back in synch, so that inflation moves down and does
so without a slowdown that amounts to a recession. On the economic data front,
the Labor Department released a report showing a slight decrease in first-time
claims for US unemployment benefits in the week ended April 16th. The report
showed initial jobless claims edged down to 184,000, a decrease of 2,000 from
the previous week's revised level of 186,000. Street had expected jobless
claims to dip to 180,000 from the 185,000 originally reported for the previous
week. Meanwhile, a separate from the Federal Reserve Bank of Philadelphia
showed growth in Philadelphia-area manufacturing activity slowed more than
expected in the month of April. The Philly Fed said its diffusion index for
current activity slumped to 17.6 in April from 27.4 in March. While a positive
reading still indicates growth, Street had expected the index to show a more
modest drop to 21.0.
Crude oil futures settled higher
on Thursday on concerns about global crude supply and strong demand in the US.
Reports saying the European Union is mulling a potential ban on Russian oil
imports, and supply interruptions in Libya, where blockades at major fields and
terminals reportedly result in the loss of over 550,000 barrels per day of oil
output, pushed up oil prices. Meanwhile, the demand outlook in China continues
to weigh on the market, as the world's biggest oil importer slowly eases strict
Covid-19 curbs that have hit manufacturing activity and global supply chains. Benchmark
crude oil futures for June delivery gained $1.60 or 1.6 percent to settle at
$103.79 a barrel on the New York Mercantile Exchange. Brent crude for June
delivery rose $1.66 or 1.55 percent to settle at $108.46 (Provisional) a barrel
on London's Intercontinental Exchange.
Indian rupee ended higher against
dollar on Thursday amid weak greenback overseas and a rally in domestic
equities. This is the second consecutive session when the rupee is traded
higher against dollar. Sentiments were upbeat as Managing Director of the
International Monetary Fund Kristalina Georgieva said a high growth rate for
India, as projected in the latest World Economic Outlook, is not only healthy
for the country but also positive news for the world. In another positive
development, Service Export Promotion Council (SEPC) stated that services
sector exports are likely to touch $350 billion in the current fiscal. On the
global front, series of hawkish comments amplified bets that the European
Central Bank would soon hike interest rates, lifting the euro to a one-week
high on Thursday amid expectations French President Emmanuel Macron would win
his reelection bid on Sunday. Finally, the rupee ended at 76.17 (Provisional),
stronger by 13 paise from its previous close of 76.30 on Wednesday.
The FIIs as per Thursday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 6331.33 crore against gross selling of Rs 8670.94 crore, while
in the debt segment, the gross purchase was of Rs 432.02 crore with gross sales
of Rs 1379.94 crore. Besides, in the hybrid segment, the gross buying was of Rs
13.97 crore against gross selling of Rs 20.50 crore.
The US markets sharply lower on
Thursday after the US Federal Reserve chief, Jerome Powell, suggested that the
central bank would move aggressively to curb inflation and a 50 basis points
rate hike was seen on the table in May 2022. Asian markets are trading mostly
in red on Friday following overnight losses on Wall Street. Indian markets
continued to recover for a second straight session on Thursday amid buying
across sectors, boosted by strength in heavyweights Reliance, Infosys and the
HDFC twins. Today, the markets are likely to get gap-down opening as global
mood turned sour overnight. Rising crude oil prices may dent domestic market
sentiments. Crude oil prices rose buffeted by concerns about tightened supply
as the European Union mulls a potential ban on Russian oil imports that would
further restrict worldwide oil trade. There will be some cautiousness as
foreign institutional investors (FII) net sold Indian shares worth Rs 713.7
crore -- a tenth straight day of outflow for the Street. However, some support
may come later in the day as the RBI data showed bank credit grew by 10.09 per
cent to Rs 119.88 lakh crore and deposits by 10.06 per cent to Rs 167.42 lakh
crore in the fortnight ended on April 8. In the fortnight ended on April 9,
2021, bank advances stood at Rs 108.88 lakh crore and deposits at Rs 152.11
lakh crore. Traders may take note of report that government think tank Niti
Aayog released a draft battery swapping policy under which all metropolitan
cities with a population above 40 lakh will be prioritised for development of
battery swapping network under the first phase. Meanwhile, an Emirati minister
said the historic Comprehensive Economic Partnership Agreement between India
and the UAE will come into effect on May 1. The agreement will provide
significant benefits to Indian and UAE businesses, including enhanced market
access and reduced tariffs. There will be some buzz in gems and jewellery
industry stocks as industry body GJEPC said gems and jewellery exports
rebounded in 2021-22 to touch $39.15 billion, showing a nearly 55 per cent jump
compared to the previous financial year. The gross gems and jewellery exports
stood at $25.40 billion during 2020-21. There will be some reaction in
fertilizer industry stocks with Crisil's report that the fertiliser subsidy is
likely to touch an all-time high of Rs 1.65 lakh crore this financial year
against the budget estimate of Rs 1.05 lakh crore due to an unprecedented rise
in the cost of raw materials and fertilisers globally. Steel stocks will be in
limelight as Steel Minister Ram Chandra Prasad Singh said India produced 120
million tonne (MT) of crude steel during financial year ended March 31, 2022.
At 120 MT, the output was about 18 per cent higher compared to the country's
production in the preceding fiscal year.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
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Previous close
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Support
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Resistance
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NSE
Nifty
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17,392.60
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17,267.16
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17,466.36
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BSE
Sensex
|
57,911.68
|
57,485.19
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58,164.86
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Nifty Top volumes
Stock
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Volume
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Previous close (Rs)
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Support (Rs)
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Resistance (Rs)
|
(in Lacs)
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Coal India
|
436.83
|
207.05
|
202.74
|
209.64
|
HDFC Bank
|
262.23
|
1377.70
|
1,360.74
|
1,387.24
|
ITC
|
234.12
|
260.25
|
258.41
|
263.26
|
NTPC
|
219.66
|
163.00
|
161.10
|
164.15
|
Tata Motors
|
141.24
|
447.40
|
442.51
|
450.81
|
Dr. Reddy's Laboratories has launched Posaconazole Delayed-Release Tablets, 100 mg, the therapeutic generic equivalent to NOXAFIL (posaconazole) Delayed-Release Tablets, 100 mg approved by the USFDA. HDFC Bank has opened its first branch in Keylong, becoming the first private sector bank to open a branch in the Lahaul and Spiti district of Himachal Pradesh. ITC has entered into Share Subscription agreement, Share Purchase agreement and shareholders' agreement to acquire up to 10.07% of the share capital of Blupin Technologies (Mylo) subject to completion of conditions precedent. IOC has issued 25000, 5.84% Unsecured, Listed, Rated, Taxable, Redeemable, Non-convertible Debentures (NCDs) (Series - XXII) of Rs 10,00,000 each aggregating to Rs 2500 crore on Private Placement basis on April 21, 2022.
News Analysis
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