Benchmark indices open flat: Sensex down, Nifty holds above 18,000

FPJ Web DeskUpdated: Tuesday, April 05, 2022, 10:34 AM IST
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Among major gainers on the Nifty were Adani Ports, NTPC, ONGC, Tata Motors and M&M. Among major laggards at the opening bell were HDFC, Bajaj Finance, HDFC Bank, Kotak Mahindra Bank and UltraTech Cement. | ANI Photo

The benchmark indices opened flat amid positive global cues.

At 09:16 AM, the Sensex was down 20.30 points or 0.03 percent at 60591.44. The broader Nifty was up 4.90 points or 0.03 percent at 18,058.30. About 1,795 shares have advanced, 366 shares declined, and 67 shares are unchanged.

Among major gainers on the Nifty were Adani Ports, NTPC, ONGC, Tata Motors and M&M. Among major laggards at the opening bell were HDFC, Bajaj Finance, HDFC Bank, Kotak Mahindra Bank and UltraTech Cement.

Meanwhile, shares of HDFC plummeted 1.66 percent to Rs 2634.35 at 9:50 am, while HDFC Bank traded 2.58 per cent higher at Rs 1613.65.

On April 4, HDFC and HDFC Bank stocks rallied after the duo announced merger deals. The Board of Directors of HDFC Ltd and HDFC Bank at a meeting held on Monday morning approved a proposal for a merger of the two leading financial institutions.

As per the terms of the deal, shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 per cent of HDFC Bank. Post the merger, HDFC Bank will be 100 per cent owned by public shareholders and existing shareholders of HDFC Limited will own 41 per cent of HDFC Bank. (ANI)

At close on March 4, the Sensex was up 1,335.05 points or 2.25 percent at 60,611.74. The Nifty50 was up 382.90 points or 2.17 percent at 18,053.40.

Asian stocks mildly high

Stocks in Asia were mildly higher Tuesday and crude oil climbed as investors evaluated the prospect of tougher sanctions against Russia for alleged atrocities during its war in Ukraine.

Japan's Nikkei traded flat, the S&P/ASX 200 index was 0.5 percent higher while South Korean stocks shed 0.2 percent. S&P 500 stock futures eased 0.08 percent and Nasdaq futures slipped 0.06 percentafter Wall Street rose on Monday, Reuters said.

Markets in mainland China and Hong Kong were closed for a public holiday on Tuesday.

US stocks close higher

The Nasdaq Composite booked its best day in more than a week on Monday, after investors snapped up technology and communications shares on Elon Musk’s disclosure of a large stake in social media platform Twitter Inc.

Twitter shares surged 27.1 percent on news that Tesla Inc Chief Executive Officer Elon Musk has built a 9.2 percent stake in Twitter Inc.

The Dow Jones Industrial Average rose 0.3 percent on Monday, the S&P 500 gained 0.81 percent and the Nasdaq Composite rallied 1.9 percent. Twitter shares surged 27 percent on news that Tesla Inc CEO Elon Musk has built a 9.2 percent stake in the micro blogging site Reuters said.

Traders also were monitoring the latest developments in Ukraine. German Chancellor Olaf Scholz said on Sunday that Western nations will impose additional sanctions on Russia in the coming days.

The Federal Reserve also remains a key focus, with minutes from the central bank’s March policy meeting due on Wednesday.

The yield on the US 10-year Treasury note rose 3.5 basis points to 2.409 percent.

Crude futures gain

Brent crude futures gained 1.6 percent to $109.25 a barrel, while US West Texas Intermediate futures were also up 1.6 percent. Gold prices ticked down, with spot gold easing 0.1 percent to $1,929.6 per ounce.

On Monday, crude oil settled on positive note as the US and Europe prepared to impose a fresh wave of sanctions on Russia for alleged atrocities committed by its forces against civilians in Ukraine. The possibility of new sanctions is offsetting the impact in the global crude market of a vast release by the US from the nation’s strategic petroleum reserves in a bid to tame prices, ease the burden on consumers, and peg back inflation. Other countries have said that they’ll also make oil releases.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, crude oil prices are likely to remain volatile but in broader range i.e WTI crude oil $98-$107. Crude oil is having support at $100.20-$98.10 and resistance is at $104.90–107.50, In INR terms crude oil has support at Rs 7,550-7,420; while resistance is at Rs 7,920–8,120, Kalantri said.

Fuel prices hiked by 80 paise

Petrol and diesel prices were on Tuesday hiked by 80 paise a litre each, taking the total increase in rates in the last two weeks to Rs 9.20 per litre.

This is the 13th increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22. In all, petrol and diesel prices have gone up by Rs 9.20 per litre.

Following the latest price revision, petrol in Delhi is now retailing at Rs 104.61 a litre while diesel is selling at Rs 95.87. In Mumbai, the price of petrol was held unchanged at an all-time high of Rs 119.67 per litre. Diesel price also continues to be at Rs 103.92 a litre, the highest among metros.

In Kolkata, petrol is being retailed at Rs 114.28 while diesel costs Rs 99.02 per litre. In Chennai, petrol is available at Rs 110.09 and diesel for Rs 100.18.

Bullion outlook

On Monday, gold and silver were settled on a flat to positive note as in the international markets it shown higher gain then domestic due to rupee strengthening. Gold and silver strength in the dollar and gains in the global equity market but after recovery in crude oil prices gold also recovered in the later evening sessions. Bullion prices gained amid talks of more economic sanctions including oil and gas on russia by the US and European countries.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, Gold has support at $1917-1905, while resistance at $1938-1949. Silver has support at $24.20- 23.92, while resistance is at $24.65-25.00. In INR terms gold has support at Rs 51,220–50,980, while resistance is at Rs 51,880–52,085. Silver has support at Rs 65,850- 65,280 while resistance is at Rs 67,100–67510.

Trade deficit up

India’s trade deficit rose 87.5 percent to $192.41 billion in 2021-22 as against $ 102.63 billion in the previous year, the government data showed on Monday. 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.

Currency outlook

USDINR 27April futures contract extended its fall on Monday and tested its support level of 75.70. On the daily technical chart a pair is sustaining below its resistance level of 76.06. MACD is showing negative divergence on the daily technical chart and RSI is also fetching below 45 levels.

On March 4, at the interbank forex market, the local unit opened at 75.77 against the greenback and witnessed an intra-day high of 75.42 and a low of 75.79. It finally ended at 75.55, registering a rise of 19 paise over its previous close.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, As per the daily technical chart, we observed that a pair is sustaining below 76.06 and technical indicators are also showing weakness in the pair. Looking at the technical set-up, if a pair continues to sustain below 76.06; could test 75.55-75.35 levels. "We suggest selling in the pair around 76.00 with a stop loss of 76.36 for the target of 75.55-75.35," Kalantri said.

(With inputs from Reuters)

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