INDIA: The trend of markets opening flat or slightly lower is likely to continue today as well, with the SGX Nifty signalling a somewhat negative start for the broader index with a loss of 32 points after the Nifty closed 46 points lower at 17,660 on Tuesday. The SGX futures were 17,689.
The BSE Sensex dropped 183 points to close at 59,727 in the previous session, while the Nifty50 dropped 46 points to settle at 17,660. The index heavyweights Reliance Industries and HDFC Limited drove the sell-off. While comfortably trading above its 200-day moving average of 17,320, the Nifty50 will attempt to consolidate on the recent momentum.
The pivot charts suggest that 17,619, followed by 17,582 and 17,523, may serve as the Nifty’s first support point. If the index rises, 17,739 is the first significant resistance level to watch, followed by 17,776 and 17,835.
We have compiled a list of significant headlines from news outlets that may have an impact on both Indian and global markets:
SGX Nifty
After the Nifty ended Tuesday’s trading session 46 points lower at 17,660, the SGX Nifty indicates a modestly bearish start for the broader index with a loss of 32 points. SGC futures were at 17,689.
European Markets
Tuesday’s European market close was higher as investors continued to assess the state of the global economy and company profits. After temporarily reaching a 14-month high earlier in the session, the pan-European Stoxx 600 index finished up 0.4%.
Banks climbed 1.3 per cent as they awaited U.S. results, and mining stocks gained 1.4 per cent as China’s GDP expanded more than anticipated, at 4.5 per cent year over year, beating the Reuters poll’s prediction of 4 per cent growth. With a 0.7 per cent decline, telecoms stocks led the losers. The FTSE 100 increased 0.38 per cent to end the day at 7909. The DAX closed at 15,882.67, up 0.59 per cent.
U.S. Markets
As traders considered the most recent round of earnings, Tuesday night, stock futures saw a little decline. S&P 500 futures were down 0.1 per cent, while Dow Jones Industrial Average futures dropped 47 points or 0.1 per cent. Futures for the Nasdaq 100 decreased by 0.1%.
The overnight activity follows a day of erratic trading. On Tuesday, the Dow lost 0.03 per cent, or 10.55 points, while the S&P 500 edged up 0.09 per cent. The Nasdaq Composite finished with a 0.04 per cent decline.
Asian markets
Early trade saw the S&P/ASX 200 in Australia rise 0.11 per cent, the Nikkei 225 in Japan declined 0.27 per cent, and the Topix dropped 0.3 per cent. The Kospi in South Korea increased by 0.29 per cent, and the Kosdaq increased by 0.12 per cent.
Raphael Bostic, president of the Atlanta Federal Reserve, told CNBC that he expects one more rate increase of 25 basis points before pausing to assess its effects on the economy. As a result, the U.S. Federal Funds rate would increase from 5% to 5.25 per cent.
Windfall tax on domestic crude revised
The government has revised the windfall tax on domestic crude oil output to Rs 6,400 per tonne as part of its efforts to streamline the tax structure in the petroleum industry and encourage investments. When specific industries earn unexpected and above-average profits, the government imposes a higher tax known as a “windfall tax.”
Dollar declines after upbeat China data as the euro
The dollar index, which measures the dollar’s value against six major currencies, fell 0.362 per cent, while the euro increased by 0.38 per cent to $1.0968 following two days of losses of more than 0.5 per cent. Over the last two trading days, the index increased by more than 1%. Offshore Chinese currency rose by 0.02 per cent to $6.8824 per dollar.
Oil prices edge higher on declining U.S. inventories
Early on Wednesday in Asian trading, oil prices increased as dropping U.S. crude stocks and positive Chinese economic statistics suggested fuel demand was rising. At 00:20 GMT, Brent crude futures increased 7 cents to $84.84 a barrel. A West Texas Intermediate U.S. crude barrel increased by 3 cents to $80.89.
U.S. Treasury Secretary to lay out U.S. economic priorities for China
Janet Yellen, US Treasury Secretary, will lay out the Biden administration’s main goals for the US-China economic relationship in a speech on Thursday in Washington, the Treasury stated on Tuesday, as tensions between the two largest economies in the world have prevented high-level meetings.
DII and FII
On April 18, according to preliminary data from the National Stock Exchange, foreign institutional investors (FII) sold shares worth Rs 810.60 crore, while domestic institutional investors (DII) purchased shares worth Rs 401.66 crore.
Gold rebounds above $2,000
As the dollar and bond yields declined on Tuesday, gold prices fought their way back above the crucial $2,000 mark as investors debated whether the U.S. Federal Reserve will pause its cycle of interest rate increases following the May meeting.
After a two-week low of $1,981.19 in the previous session, spot gold was up 0.5 per cent at $2,005.41 per ounce. At $2,019.70, U.S. gold futures closed 0.6 per cent higher.’
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