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Stock market indices open positive: Sensex jumps nearly 300 points, Nifty nears 1,720

Among early gainers on the Nifty were HUL, Sun Pharma, UPL, Apollo Hospitals and Hindalco Industries

FPJ Web Desk | Updated on: Thursday, April 28, 2022, 09:27 AM IST

Among Sensex gainers, Reliance Industries and HDFC were among gainers. 
/Representative image | ANI Photo
Among Sensex gainers, Reliance Industries and HDFC were among gainers. /Representative image | ANI Photo
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At 09:16 AM, the Sensex was up 295.96 points or 0.52% at 57,115.35, and the Nifty was up 93.20 points or 0.55% at 17,131.60. About 1525 shares have advanced, 398 shares declined, and 78 shares are unchanged.

Among early gainers on the Nifty were HUL, Sun Pharma, UPL, Apollo Hospitals and Hindalco Industries. Early laggards on the Nifty were HCL Technologies, Bharti Airtel, Britannia Industries, Bajaj Auto and Kotak Mahindra Bank.

On April 27, the Sensex was down 537.22 points or 0.94 percent at 56,819.39. The broader Nifty was down 162.40 points or 0.94 percent at 17,038.40.

Asian stocks trade high

Asian stocks were mildly higher on Thursday amid improved investor sentiment following a surge in Facebook parent Meta Platforms Inc. and more pledges of economic support from China. The latest development came from China’s cabinet, which vowed to stabilize employment. Officials have already committed to more infrastructure projects and signaled further support from monetary-policy.

US stocks close with modest gains

The Dow and S&P 500 finished with modest gains Wednesday, as investors sized up a mixed batch of results from Boeing Co., Microsoft Corp. and Alphabet Inc. among others, a day after the Nasdaq Composite’s lowest finish in more than two years.

Stocks finished mostly higher Wednesday, even as investors juggled several concerns at once, including fears the Federal Reserve could knock the economy into recession as it raises interest rates to battle high inflation, mixed U.S. corporate earnings and worries about China’s COVID outbreak, which is slowing economic growth. Investors also were keeping watch on tensions surrounding the war in Ukraine, with signs of escalation after Russia’s Gazprom said Wednesday that it is halting gas deliveries to Bulgaria and Poland due to a failure by those countries to pay in rubles.

The US trade deficit in goods jumped 17.8 percent in March to a record $125.3 billion, government data showed.

Euro drops to weakest since 2017

The euro dropped to its weakest since 2017 after Russia halted gas supplies to Bulgaria and Poland, and investors fretted more about the region's economy. The dollar continued its surge, on course for its biggest monthly gain since January 2015.

The hedge fund industry attracted its largest inflows in seven years during the first quarter as investors sought downside protection amidst a volatility spike triggered by fears of inflation and rising rates as well as geopolitical tensions. The $4-trilion community saw total capital inflows of $19.8 billion during the first three months of 2022, the highest quarterly inflow since the second quarter of 2015, according to hedge fund data firm HFR.

US economy still 'very, very strong'

US data due out Thursday is expected to show slower economic growth in the first quarter, mainly due to a less robust jump in business inventories, but the overall economy remains strong, a senior Biden administration official said on Wednesday. The Commerce Department's advance reading of first-quarter gross domestic product, due out at 8:30 AM ET (1230 GMT), should not be interpreted as a sign that the economy is headed in a bad direction, the official said.

Meta records slowest quarterly revenue growth in 10 years

Fcebook parent Meta Platforms Inc on Wednesday recorded its slowest revenue growth in a decade, singed by advertisers trimming marketing budgets in the face of global economic growth uncertainties and the war in Ukraine, Reuters said. The company's total revenue, the bulk of which comes from ad sales, rose 7 percent to $27.91 billion in the first quarter, but missed analysts' estimates of $28.20 billion, according to IBES data from Refinitiv.

Tesla Loses $126 bn value amid Musk's Twitter deal funding concerns

Tesla Inc lost $126 billion in value on Tuesday amid investor concerns that Chief Executive Elon Musk may have to sell shares to fund his $21 billion equity contribution to his $44 billion buyout of Twitter Inc.

Tesla is not involved in the Twitter deal, yet its shares have been targeted by speculators after Musk declined to disclose publicly where his cash for the acquisition is coming from. The 12.2% percent drop in Tesla's shares on Tuesday equated to a $21 billion drop in the value of his Tesla stake, the same as the $21 billion in cash he committed to the Twitter deal.

Crude prices lower in Asian trade

Oil prices edged lower in early Asian trade on Thursday as concerns about rising coronavirus cases in China, the world's biggest oil importer, weighed on futures markets. The corona virus has now entered in China's capital Beijing. Crude oil prices remained largely unchanged today after the US Energy Information Administration reported a modest crude oil inventory build of 700,000 barrels.

Supply concerns from Russia are also supporting oil and gas prices. Natural gas prices jumped around 5 percent on Wednesday after Russia halted gas supplies to Poland under the Yamal contract on Wednesday.

On the other hand, the US dollar hit fresh two-year highs and euro plunged to five-year lows and restricted gains of energy commodities.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said, "We expect crude oil prices to remain volatile and trade in pressure in today’s session. Crude oil is having support at $98.20-$95.40 and resistance is at $102.50–105.10, In INR terms crude oil has support at Rs7,550-7,380; while resistance is at Rs 8,050–8,174".

Bullion outlook

Gold hit a two-month trough on Wednesday as the dollar rallied on expectations of aggressive monetary policy tightening by the US Federal Reserve. Gold and silver plunged after strong gains in the dollar index and U.S. bond yields. The dollar index hit fresh two year highs i.e 103 level. The Euro zone is badly hitting as skyrocketing jump in energy costs as Russia halted gas supplies to Poland under the Yamal contract on Wednesday.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, Gold and silver are trading very near to its crucial support level gold at $1800 & Silver at $23, sustain below this will put gold and silver in bearish zone & would see some more pressure. Gold has support at $1,872-1860, while resistance at $1,900-1912. Silver has support at $23.00-22.78, while resistance is at $23.62-23.80. In INR terms gold has support at Rs 50,880–50,720, while resistance is at Rs 51,380–51,550. Silver has support at Rs 63,940-63,415, while resistance is at Rs 65,120–65,610.

USD-INR

USDINR 27May futures contract showed high volatility due to monthly expiry of the previous contract. USDINR remained in range amid concerns about slowing growth in China and expectations the Federal Reserve will aggressively hike rates. On the daily technical chart, a pair is trading above its resistance level of 76.40. Looking at the technical set-up, a pair is in firm trend from last few months and showing strength on the technical charts. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, "We expect a pair continue to hold its key support level of 76.10 on a daily closing basis. We suggest buying in the pair on dips around 76.55 with a stop loss of 76.20 on a daily closing basis for the targets of 77.00-77.20".

Results today

The following companies will release quarterly earnings today (April 28): Axis Bank, Bajaj Finserv, Ambuja Cements, SBI Life Insurance Company, Vedanta, Agro Tech Foods, Biocon, Coromandel International, Embassy Office Parks REIT, Fineotex Chemical, IIFL Finance, IndiaMART InterMESH, Laurus Labs, Motilal Oswal Financial Services, Mphasis, Procter & Gamble Hygiene & Health Care, PNB Housing Finance, Shoppers Stop, Shriram Transport Finance, Sterlite Technologies, and Varun Beverages.

(With inputs from Reuters, Agencies)

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Published on: Thursday, April 28, 2022, 09:27 AM IST