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NSE Intra-day chart (05 April 2022)
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Market Commentary 06 April 2022
Markets likely to get gap-down opening amid weak global cues


Indian equity benchmarks snapped a two-day winning run and ended over half percent lower on Tuesday amid cautious gains across most global markets. Investor focus returned to the Russia-Ukraine war and rising oil prices. Markets made a cautious start and soon slipped into red as traders got anxious with the Ministry of Commerce and Industry in its latest data has stated that India's trade deficit rose 87.5 per cent to $192.41 billion in 2021-22 as against $102.63 billion in the previous year. The trade deficit in March 2022 was $18.69 billion. It showed that while total exports during last fiscal year increased to a record high of $417.81 billion, imports too soared to $610.22 billion, leaving a trade gap of $192.41 billion. Some concern also came as a private report stated that petrol and diesel prices have been hiked by 80 paise a litre each on April 05, taking the total increase in the last two weeks to Rs 9.20 per litre. However, markets erased all the losses and were trading marginally higher in afternoon deals, as traders took some support with Finance Minister Nirmala Sitaraman's statement that Foreign Direct Investment (FDI) staying in the country and creating jobs and prospects, and not the outflow of Foreign Institute Investors (FIIs) and Foreign Portfolio Investors (FPIs), should be assessed to measure robustness of the Indian economy. Some support also came with a report that the government is committed to supplying fertilisers at affordable prices to farmers with required subsidies despite rising international market rates due to the Russia-Ukraine conflict, huge procurements by China and other global factors, which may push the annual fertiliser subsidy to up to Rs 2 lakh crore in the current financial year. But, buying proved short-lived as markets once again fell into negative terrain in late afternoon deals, as some pessimism remained among traders with a private report stating that Indian manufacturers are running out of capacity to absorb rising input costs, with an increasing number passing it along to consumers in an economy already grappling with Asia's third-fastest inflation and an uneven recovery. Finally, the BSE Sensex fell 435.24 points or 0.72% to 60,176.50 and the CNX Nifty was down by 96.00 points or 0.53% to 17,957.40.


The US markets ended lower on Tuesday as Federal Reserve Governor Lael Brainard indicated the central bank could take a more aggressive approach to its tightening policy. Brainard described inflation as much too high and predicted the Fed would start reducing its balance sheet at a rapid pace as soon as the May meeting. She added the reduction in the balance sheet will contribute to monetary policy tightening over and above the expected increases in the policy rate reflected in market pricing and the Committee's Summary of Economic Projections. On the sectoral front, Semiconductor stocks pulled back sharply after turning in a strong performance in the previous session, resulting in a 4.5 percent nosedive by the Philadelphia Semiconductor Index. On the economic data front, after reporting a slowdown in the pace of growth in US service sector activity over the past few months, the Institute for Supply Management (ISM) released a report showing growth in the sector reaccelerated in the month of March. The ISM said its services PMI rose to 58.3 in March from 56.5 in February, with a reading above 50 indicating growth in the sector. Street had expected the index to rebound to 58.0. Meanwhile, a report released by the Commerce Department showed the US trade deficit was nearly unchanged in February, as imports and exports both increased. The Commerce Department said the trade deficit narrowed by less than $0.1 billion to $89.2 billion in February. Street had expected the deficit to narrow to $88.5 billion from the $89.7 billion originally reported for the previous month.


Crude oil futures ended lower on Tuesday on concerns about the outlook for energy demand due to a surge in coronavirus cases in China. According to private report, lockdown has been extended in Shanghai, where asymptomatic coronavirus cases rose by a record 13,086 on Monday, up from 8,581 cases a day earlier. Meanwhile, Traders looked ahead to weekly inventory reports from US Energy Information Administration (EIA), due on Wednesday. Benchmark crude oil futures for May delivery fell $1.32 or 1.3 percent to settle at $101.96 a barrel on the New York Mercantile Exchange. Brent crude for June delivery dropped $1.59 or 1.48 percent to settle at $105.94 a barrel on London's Intercontinental Exchange.


Continuing previous session gains, Indian rupee ended substantially stronger on fresh selling of American currency by banks and exporters. Investors took support with Finance Minister Nirmala Sitaraman's statement that Foreign Direct Investment (FDI) staying in the country and creating jobs and prospects, and not the outflow of Foreign Institute Investors (FIIs) and Foreign Portfolio Investors (FPIs), should be assessed to measure robustness of the Indian economy. She added that India continues to remain the highest receiver of the FDI. On the global front, sterling strengthened marginally against the euro on Tuesday, clinging to gains made on Monday while pulling away from a three-month low hit last week. Finally, the rupee ended at 75.29 (Provisional), stronger by 24 paise from its previous close of 75.53 on Monday.


The FIIs as per Tuesday's data were net buyers in both equity and debt segments. In equity segment, the gross buying was of Rs 7821.67 crore against gross selling of Rs 6371.01 crore, while in the debt segment, the gross purchase was of Rs 1180.44 crore against gross sales of Rs 833.98 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.56 crore against gross selling of Rs 8.00 crore.


The US markets ended lower on Tuesday as investors faced up to the possibility of aggressive monetary tightening by the U.S. Federal Reserve to fight inflation. Asian markets are trading in red on Wednesday following weakness over Wall Street overnight. Indian markets put an end to a two-day winning run on Tuesday, retreating from 11-week peaks scaled in the previous session, amid weakness across financial stocks as HDFC Bank and HDFC took a breather. Today, markets are likely to make gap-down opening tracking losses in global peers. Continuous rise in petrol and diesel prices likely weighed down on the market sentiments. Oil companies increased the price of petrol and diesel in Delhi by 80 paise each, marking the 14th such hike in two weeks. Petrol costs Rs 105.41 and diesel Rs 96.67 per litre after the hike. There will be some cautiousness with a private report that the Reserve Bank of India will delay its first interest rate rise by at least four months to August at the earliest, as the central bank must now start worrying about inflation. However, some respite may come later in the day as Asian Development Bank projected a seven per cent collective growth for South Asian economies in 2022 with the subregion's largest economy India growing by 7.5 per cent in the current fiscal year before picking up to eight per cent the next year. Traders may take note of report that India and the EU are set to soon expedite formal negotiations for a free trade agreement (FTA), with commerce secretary BVR Subrahmanyam visiting Brussels this week to set the stage for the talks. Besides, the government has extended the timeline for disbursement of loan for ethanol projects under different schemes till September 30 this year, as part of its efforts to boost domestic production and achieve ethanol blending of 20 per cent by 2025. There will be some buzz in banking stocks as rating agency Icra Ratings said the outlook for banks is expected to be stable amid improvement in credit growth of 8.9-10.2 per cent and decline in provisions in the current fiscal. Auto industry stocks will be in focus as automobile dealers' body FADA said domestic passenger vehicle retail sales in March declined by 4.87 per cent to 2,71,358 units, as compared to the same month last year. There will be some reaction in real estate industry stocks with a private report stating that the residential housing industry showed robust growth in January-March 2022 as demand rose 4.6 per cent quarter-on-quarter (QoQ) across 13 Indian cities. Aviation industry stocks will be in limelight as the government has started discussions with airlines on the removal of price bands for passenger fares.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



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Tata Motors















Adani Ports and Special Economic Zone





Oil & Natural Gas Corporation






  • TCS has signed a material multi-year contract with a large American company expanding its long-standing partnership to accelerate their cloud transformation journey. 
  • L&T's Transportation Infrastructure business has secured various orders from prestigious clients. 
  • Dr. Reddy's Lab has launched Methylprednisolone Sodium Succinate for Injection, USP, in the U.S. Market approved by the USFDA. 
  • IndusInd Bank's deposits grew 15% to Rs 2,93,685 crore as of March 31, 2022 (Q4FY22), as compared to Rs 2,56,205 crore on a yearly basis.
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