In a highly volatile session,
Indian equity markets recovered most of their early losses and ended around
flat line on Monday on the back of weak global cues ahead of the FOMC meet.
Markets opened gap down, as traders were concerned as the government data
showed the growth of eight core infrastructure industries slowed down to 4.3
per cent in March against 12.6 per cent in the year-ago period due to a decline
in the output of coal and crude oil. Sentiments remained down-beat with the
Reserve Bank of India (RBI) in the Report on Currency and Finance for 2021-22
stated that the India's economy may take more than a decade to overcome the
losses emanating from the COVID-19 pandemic. The report has estimated the
output losses during the pandemic period at around Rs 52 lakh crore. Some
concern also came as India's foreign exchange (forex) reserves dipped by $3.27
billion to $600.42 billion for the week ended April 22, registering the seventh
straight week of fall, as the Reserve Bank of India (RBI) appears to keep
selling dollars to prevent a slide in the value of rupee amid the ongoing
Russia-Ukraine conflict. Additionally, continuing its selling spree for the
seventh consecutive month, foreign investors have pulled out Rs 17,144 crore
from the Indian equity market in April amid fears of an aggressive rate hike by
the US Fed that haunted such investors and dented sentiments. However, the
benchmark indices were able to erase most of the intraday losses, as some
optimism remained among traders with the Finance Ministry stated that Goods and
Services Tax (GST) collection in April 2022 touched the highest ever level of
about Rs 1.68 lakh crore, up 20 percent from the year-ago period, on improved
compliance. In April 2022, 1.06 crore GST returns in GSTR-3B were filed. The
gross GST collection in April 2022 is an all-time high and Rs 25,000 crore more
than the previous highest collection of Rs 1.42 lakh crore recorded in March.
Some solace also came as after India's manufacturing sector activities
witnessed faster growth in April amid quicker increases in production as well
as factory orders, and renewed expansion in international sales. The seasonally
adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI)
rose from 54.0 in March to 54.7 in April, as a retreat of COVID-19 restrictions
continued to support demand. Some support also came in as Department for the
Promotion of Industry and Internal Trade (DPIIT) secretary Anurag Jain said
foreign direct investment (equity) inflows into manufacturing surged 78% until
February last fiscal to $20 billion, far exceeding the pace of rise in overall
FDI, despite the pandemic blues. Finally, the BSE Sensex fell 84.88 points or
0.15% to 56,975.99 and the CNX Nifty was down by 33.45 points or 0.20% to
17,069.10.
The US markets ended higher on
Tuesday as investors looked forward to a pivotal Federal Reserve decision. The
Fed is widely expected to raise interest rate by 50 basis points, the sharpest
rate hike in about 22 years. The accompanying statement is eyed for clues about
how aggressively the central bank plans to tighten monetary policy. Further,
some support also came in as new orders for US manufactured goods spiked by
more than expected in the month of March, according to a report released by the
Commerce Department. The report showed
factory orders surged by 2.2 percent in March following a revised 0.1 percent
uptick in February. Street had expected factory orders to jump by 1.1 percent
compared to the 0.5 percent drop originally reported for the previous month. The
sharp increase in factory orders came as orders for non-durable goods soared by
3.2 percent, while orders for durable goods shot up by 1.1 percent. The report
also showed shipments of manufactured goods spiked by 2.3 percent in March
after jumping by 1.1 percent in February. Inventories of manufactured goods
also shot up by 1.3 percent in March following a 0.9 percent increase in
February. With orders jumping by inventories, the inventories-to-shipments
ratio dropped to 1.43 in March from 1.45 in February. Meanwhile, data showed
the number of job openings in the US rose by 205,000 from a month earlier to a
series high of 11.549 million in March of 2022.
Crude oil futures ended lower on
Tuesday on account of rising concerns about the outlook for energy demand due
to the economic slowdown in China amid stringent coronavirus lockdowns in
Shanghai and elsewhere. Meanwhile, as EU leaders firm up plans to announce a
sixth tranche of sanctions against Russia this week, Slovakia is seeking an
exemption against approving a ban on Russian oil. Hungary also said it will not
support sanctions on Russian oil and gas shipments. Besides, Markets looked
ahead to a meeting of ministers from OPEC and its allies for directional cues. Benchmark
crude oil futures for June delivery fell $2.76 or 2.6 percent to settle at
$102.41 a barrel on the New York Mercantile Exchange. Brent crude for July
delivery dropped $2.61 or 2.4 percent to settle at $104.97 a barrel on London's
Intercontinental Exchange.
Indian rupee ended marginally
weaker against the US dollar on Monday, on increased demand for the greenback
from importers and banks. Traders were worried as government data showed that
the production of eight infrastructure sectors slowed down to 4.3% in March
against 12.6% in the year-ago period. However, downfall remain capped as
India's manufacturing sector activities witnessed faster growth in April amid
quicker increases in production as well as factory orders, and renewed
expansion in international sales. On the global front, dollar rose back towards
a 20-year high on Monday as the euro struggled around the $1.05 mark, with
investors preparing for a busy week of central bank meetings including a likely
Federal Reserve interest rate hike. Finally, the rupee ended at 76.52
(Provisional), weaker by 2 paise from its previous close of 76.50 on Friday.
The FIIs as per Monday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 8887.36 crore against gross
selling of Rs 12211.86 crore, while in the debt segment, the gross purchase was
of Rs 573.86 crore against gross sales of Rs 296.07 crore. Besides, in the
hybrid segment, the gross buying was of Rs 58.95 crore against gross selling of
Rs 66.79 crore.
The US markets ended higher on
Tuesday after a choppy session in which each of the major indices fluctuated
between gains and losses as a key meeting of the Federal Reserve gets underway.
Asian markets are trading mixed on Wednesday amid thin trade due to Labour Day
holidays, despite positive cues from Wall Street overnight. Indian markets fell
for a second straight session on Monday but ended off their day's lows,
tracking gains in U.S. stock futures and a retreat in oil prices. Markets
remain closed on Tuesday for Ramzan Eid. Today, markets are likely to open in
green as trading resumes after a day's holiday, amid positive cues from global
markets. The crucial US Fed interest rate decision to be announced later
tonight will be closely monitored. Some support will come as India's merchandise
exports in April grew 24.2 per cent year-on-year to their third-highest level
ever of $38.2 billion on the back of higher commodity prices amid the ongoing
Russia-Ukraine war, the preliminary trade data released by the commerce
ministry showed. Besides, India may only become a $5-trillion economy in FY29,
according to the International Monetary Fund (IMF). According to data from the
IMF's World Economic Outlook Database, updated last month, India's nominal GDP
is seen rising to $4.92 trillion in FY28. As such, it will only be in the
following year, or FY29, that the GDP will cross the $5-trillion mark. Traders
may take note of an SBI research report stating that the share of incremental
bank credit in incremental nominal GDP is likely to cross the 50 per cent mark
in the current financial year, from a decade low of 27 per cent in FY2022. A
higher credit-to-GDP ratio indicates aggressive and active participation of the
banking sector in the real economy, while a lower number shows the need for more
formal credit. There will be some buzz in the coal industry stocks as India's
coal output soared by 28 per cent to 66.1 million tonnes (mt) in April amid
high demand from thermal power plants as several parts of the country grappled
with power shortage. Housing finance company stocks will be in focus with
Icra's report that Affordable housing finance companies' (AHFCs) loan book is
likely to expand by 17-20 per cent in the current financial year, supported by
the government's higher focus on housing and a favourable tax regime. There
will be some reaction in consumer durable industry stocks with a private report
that India's consumer durables market has been affected because the supply of
components used in manufacturing goods ranging from television panels to
refrigerators and washing-machines is stuck in Shanghai owing to the
Covid-induced lockdown there. Meanwhile, Life Insurance Corporation's (LIC)
maiden initial public offer -- India's largest IPO till date opens for
subscription today. The LIC IPO priced in the range of Rs 902 to Rs 949 will be
accepting bids till May 09. There will be lots of earnings reaction to keep the
markets buzzing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,069.10
|
16,960.15
|
17,135.15
|
BSE
Sensex
|
56,975.99
|
56,574.33
|
57,215.94
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil & Natural Gas Corporation
|
234.05
|
157.10
|
155.59
|
158.94
|
Wipro
|
219.11
|
495.50
|
485.74
|
512.14
|
Coal India
|
212.89
|
187.60
|
181.34
|
191.39
|
ITC
|
189.65
|
263.80
|
259.06
|
266.51
|
Tata Motors
|
189.45
|
432.85
|
426.59
|
441.04
|
Coal India has posted 15.6 percent growth in its supplies to the power sector in April 2022 compared to same month last year.
Tata Motors is looking to drive a range of electric vehicles across various price points with multiple body styles and features to cater to a wide range of customers across segments.
IOC has rolled out M15 petrol -- 15 per cent blend of methanol with petrol -- on a pilot basis in Assam's Tinsukia district.
HDFC has reported a rise of 21.57% in its consolidated net profit at Rs 6,892.16 crore for Q4FY22 as compared to Rs 5,669.38 crore for Q4FY21.