The stock market indices opened on a buoyant note on January 12. At 09:15 AM, the Sensex was up 380.57 points or 0.63 percent at 60,997.46. The Nifty was up 111 points or 0.61 percent at 18,166.80. About 17,73 shares have advanced, 343 shares declined, and 70 shares are unchanged.
At the opening bell, the major gainers on the Nifty were Hindalco Industries, JSW Steel, Coal India, Tata Steel and Sun Pharma.
On January 11, Nifty closed higher for the third consecutive session. At close, Nifty was up 0.29 percent or 52.5 points at 18055.7.
Nifty has shown deceleration in the upward momentum on January 11 with advance decline ratio turning slightly negative. This could be an indication of the trend getting mature. However there are yet no reversal signs. 17,945-1,8210 could be the band for the Nifty in the near-term.
Gold edges up
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said, COMEX gold trades little changed near $1820/oz after a 1.1 percent gain yesterday. Gold edged up as US bond yields and US dollar index came under pressure following Fed Chairman’s comments which were largely in line with expectations. Fed Chairman reiterated that the central bank may end bond buying and start interest rate hike this year. However, weighing on price is recovery in equity market and weaker investor interest as is evident from ETF flows. Gold continues to trade in the $1780-1830/oz range amid mixed factors and this trend may continue however Fed’s tightening expectations may keep pressure on prices.
Crude up
NYMEX crude traded higher above $81/bbl after a sharp 3.8 percent gain yesterday which marked its first gain in three sessions. Crude oil has surged to fresh November highs gaining support from recovery in US equity market and weakness in US dollar index and expectations of another decline in US crude oil stocks, said Rao of Kotak Securities. Crude oil has managed to gain despite disappointing API weekly report, improving supply situation relating to Libya and Kazakhstan and rising virus cases. Crude oil has continued to set fresh highs indicating strong momentum however the rally may not sustain if US EIA report is in line with API.
Asian stocks rebound
Asian stocks followed a rebound in the US after Federal Reserve Chair Jerome Powell reassured investors the central bank will tackle inflation to extend the economic expansion. Investors were relieved that Federal Reserve Chair Jerome Powell's testimony to Congress did not include any major surprises.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent to a one-month high, led by a 3.5 percent jump for tech stocks in Hong Kong. Japan's Nikkei rose 1.9 percent.
US stocks close higher
US stocks ended higher Tuesday, with tech-related shares extending a bounce from the previous session, as investors appeared to take testimony by Federal Reserve Chairman Jerome Powell in stride as they looked for clues to the pace of future rate increases and other plans for tightening monetary policy in 2022.
The Dow Jones Industrial Average rose 183.15 points, or 0.51 percent, to 36,252.02, the S&P 500 gained 42.78 points, or 0.92 percent, to 4,713.07 and the Nasdaq Composite added 210.62 points, or 1.41 percent, to 15,153.45, Reuters said. The Nasdaq and S&P 500 recorded their best sessions of 2022, rising 1.4 perand 0.9 percent, respectively.
US economy can handle COVID-19 surge, says Fed Chairman
Major US stock benchmarks ended higher after investors digested Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee in a hearing on his nomination to serve a second term. Powell told a congressional hearing on his confirmation for a second term at the helm of the central bank that the economy could handle the COVID-19 surge and tighter monetary policy.
Powell painted a picture of a soft landing for the economy as the Fed moves to remove emergency stimulus measures and begin raising interest rates, even as market participants increasingly expect the central bank to move much more aggressively than previously anticipated after inflation proved hotter and much more persistent than policy makers had predicted.
The yield on the US 10-year Treasury note fell 3.4 basis points to 1.745 percent.
China inflation up
China's factory-gate inflation rose more slowly than expected in December as the government took steps to contain lofty raw material prices. The producer price index (PPI) climbed 10.3 percent from a year earlier, the National Bureau of Statistics (NBS) said in a statement. Economists in a Reuters poll had expected the PPI index to gain 11.1 percent after a 12.9 percent rise in November. China's consumer price index (CPI) grew 1.5 percent year-on-year in December. Economists in a Reuters poll had expected a 1.8 percent uptick, after a 2.3 percent increase in November.
Dollar declines to weakest level since November
The dollar slid to its weakest since November against major peers on Wednesday, after Federal Reserve Chairman Jerome Powell said it may take several months to make a decision on running down the central bank's $9 trillion balance sheet, Reuters said. In testimony at his renomination hearing, Powll said the US economy was ready for higher interest rates and a runoff of its asset holdings - dubbed quantitative tightening (QT) - to combat inflation.
Stocks to watch out for
India's top three IT companies i.e., Tata Consultancy Service, Wipro and Infosys will announce their Q3FY2022 results today. The three IT heavyweights are announcing their results on the same day for the first time in their operating history. Good numbers can be expected on the back of robust client demand, Nigam said.
Results today
Infosys, Tata Consultancy Services, Wipro, Indbank Merchant Banking Services, Ind Bank Housing, KD Leisures, Kome-On Communication, NB Footwear, Pradhin, Roselabs Finance, Tinna Rubber and Infrastructure, and Virinchi will release quarterly earnings today on January 12.
Four stocks under F&O ban
Four stocks – Delta Corp, Indiabulls Housing Finance, Vodafone Idea, and RBL Bank – are under the F&O ban for January 12.
