Bulls made come back after two
days of continuous drubbing as traders opted to buy beaten down but
fundamentally strong stocks. Key gauges made a gap up opening taking
encouragement with CII President TV Narendran's statement that India's economy
is expected to grow 7.5-8 per cent this fiscal year with exports playing a key
role in the country's success story. Some support also came with report that
India and the EU will return to the negotiating table to start serious talks
for a free trade agreement (FTA) in June after a gap of nine years. Sentiments
remained eminent throughout the day after the Ministry of Commerce and Industry
said that there is a five-fold increase in the grant of patent annually, and a
four-fold rise in trademark registration every year since 2014. It said that to
modernise the Intellectual Property (IP) office and reduce legal compliances,
along with facilitating filing of IP applications, the government has adopted
several administrative and legislative measures. Markets extended gains in
final hour of trade to end near intraday highs as trader remained optimistic,
amid a private reports stating that real-time payments are forecast to boost
India's GDP by $45.9 billion in 2026 as real-time payments transaction volumes
are set to exceed 206 billion by that time. Also, street took a note of a
private report that the government has begun discussions on bringing parity
between long-term capital gains (LTCG) tax on debt, listed equities and unlisted
equities. Finally, the BSE Sensex rose 776.72 points or 1.37% to 57,356.61 and
the CNX Nifty was up by 246.85 points or 1.46% to 17,200.80.
The US markets ended deeply lower
on Tuesday as investors dumped equities on fears of an economic slowdown. The
sell-off on Wall Street came as elevated inflation, Covid-19 lockdowns in China
and the ongoing war in Ukraine continued to weigh on investors' minds as they
digest the latest earnings news. Tech stocks led the decline as investors did
not wait around for Microsoft and Alphabet first-quarter results after the
bell, fearing more blow-ups like the one seen in Netflix earlier in the
earnings season. Microsoft and Google parent Alphabet both saw shares close
down more than 3% ahead of reporting earnings. Facebook parent Meta, Amazon and
Apple also finished lower, with earnings results slated for later this week.
Netflix shares dropped nearly 5.5% and hit a new multi-year low. Last week, Netflix
plunged 35% in a single day after reporting a surprising subscriber loss for
the first quarter. On the economic data front, a report released by the
Commerce Department showed new orders for US manufactured durable goods
rebounded in the month of March. The report showed durable goods orders climbed
by 0.8 percent in March after tumbling by a revised 1.7 percent in February.
Street had expected durable goods orders to jump by 1.0 percent compared to the
2.2 percent slump originally reported for the previous month. Excluding orders
for transportation equipment, durable goods orders surged by 1.1 percent in
March after falling by 0.5 percent in February. Ex-transportation orders were
expected to increase by 0.6 percent. A separate report released by the Commerce
Department showed a steep drop in US new home sales in the month of March. The
Commerce Department said new home sales plunged by 8.6 percent to an annual
rate of 763,000 from an upwardly revised rate of 835,000 in February.
Crude oil futures ended sharply
higher on Tuesday as concerns about outlook for energy demand eased a bit after
the Chinese central bank announced that it would support small businesses and
industries affected by the pandemic. The People's Bank of China said it will
step up the prudent monetary policy's support to the real economy, especially
for industries and small businesses hit hard by the pandemic. The central bank said it will promote healthy
and stable development of the financial markets and provide a good monetary and
financial environment. Further, short-covering after recent sharp losses
contributed as well to the rise in oil prices. Benchmark crude oil futures for
June delivery surged $3.16 or $3.2 percent to settle at $101.70 a barrel on the
New York Mercantile Exchange. Brent crude for June delivery gained $2.67 or 2.6
percent to settle at $104.99 a barrel on London's Intercontinental Exchange.
Indian rupee ended stronger
against dollar due to fresh selling of the American currency by banks and
exporters. The rupee also derived its strength from strong gains in the local
equity markets. Sentiments got boost with the Confederation of Indian
Industry's (CII) President TV Narendran stating that the country's economy is
likely to grow 7.5-8 per cent this fiscal year (FY23) with exports playing a
key role in the country's success story. Some optimism also came with report
that India and the EU will return to the negotiating table to start serious
talks for a free trade agreement (FTA) in June after a gap of nine years. On
the global front, dollar soared to a two-year high on Tuesday and the euro hit
its weakest since March 2020 amid concerns about the economic impact of China's
COVID-19 lockdowns. Finally, the rupee ended at 76.56 (Provisional), stronger
by 8 paise from its previous close of 76.64 on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 4947.17 crore against gross selling of Rs 7591.17 crore, while
in the debt segment, the gross purchase was of Rs 512.16 crore against gross
selling of Rs 1213.85 crore. Besides, in the hybrid segment, the gross buying
was of Rs 69.04 crore against gross selling of Rs 9.14 crore.
The US markets ended lower on
Tuesday as investors worried about slowing global growth and a more aggressive
Federal Reserve. Asian markets are trading in red on Wednesday tracking
overnight gains on Wall Street. Indian markets moved higher on Tuesday, as bulls
attempted a comeback with IT, auto, FMCG and financial stocks leading the
surge. Today, markets are likely to get gap-down opening as an uptick in oil
prices and the Russia-Ukraine conflict continued to weigh on market sentiment.
Traders may take note of Acting Director of the IMF's Asia and Pacific
Department stating that the surge in oil prices due to the Ukrainian war has
pushed up inflation in India, which needs monetary tightening and measures to
address structural weaknesses to improve growth potential. However, some
support may come later in the day with CBDT Chairman J B Mohapatra's statement
that the net direct tax collection has registered a whopping 49.02 per cent
growth to over Rs 14.09 lakh crore in the 2021-22 fiscal as the country's
economy bounced back after being hit by the COVID-19 pandemic. The net direct
tax mop-up was Rs 9.45 lakh crore in the previous financial year. Besides, a
private report stated that the monthly collection under the Goods and Services
Tax (GST) is likely to peak to another all-time high of Rs 1.45-1.50 lakh
crore. Meanwhile, Finance Minister Nirmala Sitharaman held a meeting with
representatives of the semiconductor industry of the US and invited them to
make further investments in India. There will be some reaction in edible oil
industry stocks with private report that India's palm oil imports in May are
set to rise above 600,000 tonnes despite the restriction imposed by Indonesia
on exports as most of the contracted quantity will be loaded before Jakarta's
ban becomes effective. In the primary market, Multispecialty pediatric hospital
chain Rainbow Children's Medicare initial public offering (IPO) will open for
public subscription on April 27. It has fixed a price band of Rs 516-542 a
share for its Rs 1,581-crore IPO. Moreover, Life Insurance Corporation (LIC)
has fixed the price band for its initial public offer (IPO) at Rs 902-949 a
share. The issue, which will remain open for retail investors from May 4 to 9.
Investors are likely to react to a slew of earnings reports.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,200.80
|
17,102.21
|
17,261.61
|
BSE
Sensex
|
57,356.61
|
57,026.66
|
57,564.39
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Adani Ports and Special Economic Zone
|
210.10
|
912.30
|
880.80
|
928.40
|
Coal India
|
208.19
|
191.85
|
189.44
|
193.29
|
ITC
|
205.36
|
258.85
|
256.50
|
260.95
|
Oil and Natural Gas Corporation
|
200.86
|
166.15
|
164.00
|
170.00
|
ICICI Bank
|
187.27
|
753.65
|
747.35
|
764.25
|
L&T has signed an agreement with the Indian Institute of Technology Bombay to jointly pursue research and development work in the Green Hydrogen value chain.
Tata Motors has entered into partnership with Lithium Urban Technologies, an EV-based urban transportation service provider.
Bharti Airtel's subsidiary -- Airtel Payments Bank has partnered with IndusInd Bank to offer fixed deposit facilities to its customers.
Tata Steel's Jharia Colliery division has set up a Continuous Ambient Air Quality Monitoring System in its Sijua Area for measurement of air quality in the region.