Stock market indices open higher amid positive global cues

The stock markets opened higher amid positive Asian and US stock markets. At 09:16 IST, the Sensex was up 442.07 points or 0.81 percent at 54694.60, and the Nifty was up 138.30 points or 0.86 percent at 16308.50. About 1,409 shares have advanced, 336 shares declined, and 66 shares are unchanged.

Among major winners at the opening bell were Apollo Hospitals, HCL Technologies, Tech Mahindra, Hindalco Industries and Infosys were among major gainers on the Nifty. Among laggards were NGC, Asian Paints, BPCL, NTPC and Power Grid Corporation.

On May 27, the benchmark Sensex was up 503.27 points or 0.94 percent at 54,252.53. The Nifty was up 144.40 points or 0.90 percent at 16,170.20

Asian stocks advance

Asian shares extended overnight global gains thanks to strong results from regional tech firms and US retailers, while investors also took comfort from Federal Reserve minutes showing a pause to its rate hikes is on the cards later this year.

The swing in sentiment left the dollar wallowing at one-month lows, with the euro rising to its highest since April 25. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5 percent in early trading, the biggest gain in a week, buoyed by a 1.2 percent rebound in resources-heavy Australian shares, a 2.8 percent jump in Hong Kong stocks and a 0.7 percent rise for blue chips in mainland China.

Japan's Nikkei advanced 1.0 percent. The Hang Seng tech index opened 4.5 percent higher, as first quarter revenues from tech giant Alibaba and Baidu beat

US stocks close sharply higher

US stocks closed sharply higher on Thursday, led by consumer and technology stocks, after a batch of better earnings reports from retailers and mostly benign economic data helped assuage investor concerns about a slowing economy. Solid outlooks from retailers bolstered confidence in the economy despite supply-chain snags and inflationary pressures.

The Dow Jones Industrial Average rose 1.61 percent, the S&P 500 gained 1.99 percent, and the Nasdaq Composite 2.68 percent.

Federal Reserve minutes released Wednesday also stoked speculation about a pause to reassess interest rate hikes later in the year. Traders placed a 60 percent chance on the fed-funds rate target getting between 2.5 percent and 2.75 percent by December, up from 35 percent a week ago. The likelihood that policy makers would get to a target between 2.75 percent and 3 percent by year-end, from a current level between 0.75 percent and 1 percent, dropped to 27 percent from 51 percent on May 19. Analysts at Bank of America said the Fed could pause its tightening in September if the economy deteriorates.

A view has emerged that after interest rate hikes this summer, the Fed could have more wiggle room to reassess its planned rate rises this year, particularly if economic growth shows signs of sputtering or the labor market starts to falter.

Crude prices up

Oil futures gained, with West Texas Intermediate crude for July delivery up 3.4 percent to settle at $114.09 a barrel. Gold for June delivery closed up 0.1 percent at $1,847.60 an ounce.

Petrol and diesel price unchanged for fifth day

Fuel prices remain unchanged for fifth day today. Finance Minister Nirmala Sitharaman had announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel on Saturday.

Petrol price in Delhi from today cost Rs 96.72 a litre as against Rs 105.41 a litre currently, while diesel will cost Rs 89.62 a litre as opposed to Rs 96.67 now.

In Mumbai after the reduction of excise duty and VAT, petrol is being retailed at Rs 111.35 and diesel Rs 97.28 per litre each. The Maharashtra government reduced VAT on one per litre petrol by Rs 2.08 and diesel by Rs 1.44 per litre.

In Chennai, petrol is available at Rs 102.65 and diesel at Rs 94.24 per litre each. In Kolkata, the price of petrol is Rs 106.03 and diesel Rs 92.76 per litre each.

Dollar sinks to one-month low

The US dollar sank to a one-month low versus major peers on Friday as traders lowered Federal Reserve rate hike expectations amid signs the central bank might slow or even pause its tightening cycle in the second half of the year.

The dollar index, which measures the greenback against a basket of six major peers, fell as low as 101.43 for the first time since April 25. A rally in Asian stocks also sapped demand for the greenback as a haven. Against the euro, the UScurrency also slipped to the weakest since April 25 at $1.0765, and dropped to the lowest against sterling since April 26 at $1.2607.

RBI to hike repo rate by 50 basis points: Barclays

The Reserve Bank will opt for a larger, 0.50 percent, hike in key rates at its next monetary policy review in June to protect medium term economic stability in face of the uncomfortable inflation situation, a British brokerage said on Thursday. The central bank will likely revise its inflation estimate to 6.2-6.5 percent, which is way above the upper end of its tolerance band of 2-6 percent, the economists at Barclays said. On the growth front, it said the RBI will do a downward review of its FY23 GDP expansion to 7 percent from the earlier 7.2 percent.

Results today

The following companies will release their quarterly earnings today: JSW Steel, FSN E-Commerce Ventures (Nykaa), GAIL, Glenmark Pharma, Godrej Industries, India Cements, PB Fintech (Policy Bazaar), Ruchi Soya, Jubilant Pharmova, Jubilant Industries, Aarti Industries, Ion Exchange, Info Edge India, JP Power, Aegis Logistics, Akzo Nobel India, Apar Industries, Arvind Fashions, Astral Pipes, Atul Auto, Balmar Lawrie, BEML, Crompton Greaves Consumer Electricals, City Union Bank, Edelweiss Financial Services, Engineers India, ESAB India, Everest Industries, Exxaro Tiles, Future Consumer, Force Motors, Heritage Foods, HT Media, Inox Wind, IRCON International, Kalyani Forge, Karnataka Bank, Lemon Tree Hotels, Man Industries, Oil India Ltd, Ramky Infrastructure, Sun TV, Tarsons Products, TCNS Brands, United Spirits, and VRL Logistics.

(With inputs from Reuters, Agencies)

Published on: Friday, May 27, 2022, 09:22 AM IST