The benchmark stock market indices opened in the red on April 18, first day of trading in the week. At 09:17 AM, the Sensex was down 1,129.62 points or 1.94 percent at 57209.31. The Nifty was down 299.20 points or 1.71 percent at 17176.50. About 950 shares have advanced, 1611 shares declined, and 142 shares are unchanged.
Infosys, Tech Mahindra, HDFC, HDFC Bank and HCL Tech were among major laggards on the Nifty. Gainers were ONGC, Tata Steel, NTPC, Coal India and Bajaj Auto.
WPI inflation for March is scheduled to be announced today.
China Q1 GDP expands 4.8% YoY
China's economy grew at a faster than expected clip in the first quarter, official data showed on Monday, expanding 4.8 percent year-on-year, but the risk of a sharp slowdown over coming months has risen as sweeping COVID-19 curbs and the Ukraine war take a toll, Reuters said. Gross domestic product (GDP) had been forecast to expand 4.4 percent from a year earlier, according to a Reuters poll of analysts, picking up from 4.0 percent in the fourth quarter last year.
Tesla stockholders ask judge to silence Musk in fraud case
A group of Tesla shareholders suing CEO Elon Musk over some 2018 tweets about taking the company private is asking a federal judge to order Musk to stop commenting on the case.Lawyers for stockholders of the Austin, Texas-based company also say in court documents that the judge in the case has ruled that Musk's tweets about having “funding secured” to take Tesla private were false, and that his comments also violate a 2018 court settlement with US securities regulators in which Musk and Tesla each agreed to pay $20 million fines.
Oil prices rise on supply concerns
Oil prices rose on Monday as concerns grew about tighter global supply, with the deepening crisis in Ukraine raising the prospect of heavier sanctions by the West on top exporter Russia.Brent futures were up $1.50, or 1.3 percent, at $113.20 a barrel at 0030 GMT, and U.S. West Texas Intermediate futures rose 98 cents, or 0.9 percent to $107.93 a barrel.
Last week, Crude oil prices jumped nearly 9 percent amid Russia-Ukraine war continues and decline in natural gas inventories. Despite demand destructions from China due to rising COVID-19 cases, global energy prices jumped again last week. News of proposed ban on Russian oil by the European Union lift crude oil prices again in the international markets. The U.S. natural gas inventories also fell to three year lows due to record export and higher demand of heating oil because of this Natural gas prices crossed $7 per btu last week and also supported crude oil prices.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, "We expect crude oil would trade in positive zone in today’s session. Crude oil is having support at $103.20-$101.50 and resistance is at $109.80–112.50, In INR terms crude oil has support at Rs7,980-7,760; while resistance is at Rs 8,210–8,350."
Tata Steel to consider proposal to split equity shares
The board of Tata Steel Ltd will on May 3 consider a proposal to split the stock and also recommend a dividend, the Indian steel maker said in a statement on Sunday, Reuters said. Without specifying the ratio of the stock split, it said the meeting on May 3 would consider a sub-division of the shares with a nominal value of 10 Indian rupees each.
The split would be subject to regulatory and statutory approvals.
Bullion outlook
Gold eased on Thursday after the dollar strengthened and yields rose as investors geared up for US interest rate hikes, but safe-haven demand triggered by the Ukraine crisis and mounting inflation kept bullion on track for a weekly gain, although a firmer US dollar capped bullion's gains. Gold and silver slipped on Friday after record gains in the dollar. The dollar index surged to two year highs and triggered profit taking in precious metals. The USinflation reached 40 year highs and UK inflation also crossed 30 year highs. Higher energy prices continue to fuel global inflation is boosting to gold and silver.
On Monday morning, gold and silver are showing positive opening and could test its resistance levels of $2000 per troy ounce and $27 per troy ounce respectively, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. Gold has support at $1956-1940, while resistance at $1984-2000. Silver has support at $25.40- 25.10, while resistance is at $25.95-26.18. In INR terms gold has support at Rs 52,670–52,410, while resistance is at Rs53,220–53,450. Silver has support at Rs 68,550- 67,980 while resistance is at Rs69,980–70,410.
Currency outlook
USDINR 27April futures contract breached its major resistance level of 76.06 again on a daily closing basis. On the daily technical chart a pair is trading above its resistance level of 75.85. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, As per the daily technical chart, we observed that a pair is sustaining above 75.85 levels and technical chart is showing positive momentum. Looking at the technical set-up, if a pair continues to sustain above 76.06; could show further strength towards 76.40-76.55 in the upcoming sessions.
Results today
Mindtree, Star Housing Finance, Earum Pharmaceuticals, DRC Systems India, Mishtann Foods, Ramsarup Industries, Sheetal Cool Products, SE Power, SM Gold, and Swiss Military Consumer Goods will release quarterly earnings today.
Stock under F&O ban
RBL Bank is under the F&O ban for April 18.
(With inputs from Reuters and Agencies)
