The benchmark stock market indices opened lower on April 25, the first day of trading this week amid negative global cues. At 09:16 IST, the Sensex was down 710.77 points or 1.24 percent at 56,486.38. The broader Nifty was down 226.20 points or 1.32 percent at 16,945.80. About 737 shares have advanced, 1,553 shares declined, and 127 shares are unchanged.
Among major laggards at the opening bell on the Nifty were Britannia Industries, Apollo Hospitals, HUL, BPCL and IndusInd Bank. Among major gainers were ICICI Bank, Power Grid Corp and NTPC.
Results today
Companies posting earning today includes Century Textiles, Mahindra CIE Automotives, Tatva Chintan etc.
Asian equities decline
Asian equities and US Futures declined on Monday following Wall Street’s weak performance overnight and a spike in US Treasury yields and as strong tightening signals from the US Federal Reserve Chair Jerome Powell and European Central Bank undermined risk appetite.
Asian stocks fell the most in two weeks on Monday as concern about rapid US rate rises and slowing growth rattled investors, while the euro found support after Emmanuel Macron won a second term as French president. MSCI's broadest index of Asia-Pacific shares outside Japan slid 1.6 percent to a six-week low, and a nudge from authorities extended steep losses for the Chinese yuan.
Japan's Nikkei fell 1.9 percent. Hong Kong's Hang Seng fell 3 percent. S&P 500 futures dropped 0.8 percent while FTSE futures and European futures were off by more than 1 percent. Oil fell 2.7 percent. The euro was broadly steady at $1.0802, compared with broad dollar gains elsewhere, and it touched an almost two-month high against a struggling sterling.
US stocks fell sharply on Friday
US stocks fell sharply on Friday to suffer their biggest one-day drop since 2020, as investors continued to weigh hawkish comments on interest rates a day earlier by Federal Reserve Chairman Jerome Powell, as well as a fresh batch of corporate earnings that largely disappointed. The Dow suffered a 1.9 percent weekly decline, its fourth straight loss. The S&P 500 dropped 2.8 percent and the Nasdaq tumbled 3.8 percent for their third consecutive weekly drops.
The Cboe Volatility Index VIX, an options-based measure of expected volatility over the next 30 days, was up 19.5 percent at 27.1 on Friday, moving above its long-term average just below 20.
Meanwhile, traders of fed funds futures have priced in a 94 percent chance that the Federal Reserve will deliver a 75 basis point rate hike in June, up from 70 percent on Thursday and 28 percent a week ago, according to the CME FedWatch Tool.
The US oil benchmark fell $1.72, or 1.7 percent, to settle at $102.07 a barrel on the New York Mercantile Exchange, falling 4.1percent for the week. Gold fell $13.90, or 0.7 percent, to settle at $1,934.30 an ounce, leaving a 2.1 percent weekly fall.
FPIs pull out $17.5 bn
Investors pulled $17.5 billion out of global equities over the past week, making for the biggest weekly outflow so far this year. Investors also pulled $8.7 billion out of bonds and $55.4 billion from cash, pouring $900 million into gold. That was before Friday’s (22-04-21) stock-market rout.
Investors poured $19.8 billion into hedge funds in the first quarter, the biggest inflow of money since the second quarter of 2015, lured by gains some funds are posting amid volatile markets, according to data provider HFR.
ICICI Bank Q4 profit surges by 59% to Rs 7,019 cr
ICICI Bank on Saturday reported a 59 percent jump in standalone net profit to Rs 7,019 crore for the fourth quarter of FY2021-22. The bank had earned a profit of Rs 4,403 crore in the corresponding January-March quarter of the last year.
The total income of the bank rose to Rs 27,412 crore in the January-March period from Rs 23,953 crore in the year-ago quarter,ICICI Bank said in a regulatory filing.
Mcap of 8 of top-10 most valued firms tumble Rs 2.21 lakh cr
Eight of the top-10 most valued firms together lost Rs 2,21,555.61 crore from their market valuation last week in-line with the weak trend in the broader market, with Infosys and HDFC Bank suffering the biggest hit.
The 30-share benchmark index, Sensex, lost 1,141.78 points or 1.95 per cent last week. From the top-10 pack, only Reliance Industries and Adani Green Energy emerged as the gainers.
The market valuation of Infosys tumbled Rs 68,548.8 crore to Rs 6,67,062.55 crore. The market capitalisation (mcap) of HDFC Bank dived Rs 60,536.97 crore to reach Rs 7,51,801.60 crore.
Bullion outlook
Gold fell on Friday and was set for its biggest weekly decline since mid-March as signs of faster policy tightening by the Federal Reserve lifted Treasury yields and the dollar. Speaking at an IMF meeting, Powell said that “Inflation is much higher now and our policy rate is still more accommodative than it was then so it is appropriate, in my view, to be moving a little bit more quickly.”
After his comments the dollar index crossed two year highs and 10-year bond yields are also trading at three year highs.The dollar index crossed 101 marks and pushed precious metals lower.
However, higher global inflation prospects and slower economic growth outlook due to Russia-Ukraine crisis and higher inflation is supporting precious metals at lower levels.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, "We expect some more weakness in bullion price in today’s session. Gold has support at $1917-1905, while resistance at $1940-1948. Silver has support at $23.80-23.62, while resistance is at $24.34-24.55. In INR terms gold has support at Rs51,920–51,770, while resistance is at Rs52,420–52,550. Silver has support at Rs66,050- 65,710 while resistance is at Rs66,890–67,270".
Crude oil extends losses
Last week, Crude oil lost nearly 5 percent on demand concerns. Oil prices extended losses on Monday amid persistent worries that prolonged COVID-19 lockdowns in Shanghai and potential US rate hikes would dent global economic growth and fuel demand. Natural gas fell hastened by a larger-than-expected weekly storage build.
However, banning Russian oil by European Union and decline in crude oil inventories in the United States supported oil prices at lower levels. IMF revised down global growth due to Russia-Ukraine crisis and Federal Reserve Chairman also gave signal for aggressive rate hikes last week.
The dollar index crossed two year highs and hit 101 marks. Strength in the dollar also pushed oil prices lower.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said, "We expect crude oil prices may show some more pressure in today’s session. Crude oil is having support at $97.20-$95.40 and resistance is at $103.10–105.00, In INR terms crude oil has support at Rs7,650-7,520; while resistance is at Rs7,920–8,050".
USDINR
USDINR 27 April futures contract showed very high volatility last week and slipped again. On the weekly technical chart a pair is trading above its resistance level of 76.15. We observed that a pair is showing positive momentum on the technical chart and if it continues to sustain above 76.15 could test 76.70-76.85 levels again; 76.06 acts as major support on daily closing basis. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, We suggest buying in the pair above 76.35 with a stop loss below 76.06 on a daily closing basis for the targets of 76.70-76.85.
(With inputs from Reuters, Agencies)
