The stock markets opened on a positive note on March 30. At 09:16 AM, the Sensex was up 343.12 points or 0.59 percent at 58,286.77. Nifty was up 90 points or 0.52 percent at 17,415.30. About 1,593 shares have advanced, 417 shares declined, and 77 shares are unchanged.
Among major gainers on the Nifty were Tata Consumer Products, Bajaj Finance, Bharti Airtel, Tata Motors and Cipla. ONGC, Hindalco, Tata Steel, JSW Steel and Tech Mahindra were top laggards at the opening bell.
Asia shares rally
Stocks in Asia outside of Japan rose Wednesday as investors weighed prospects for a de-escalation in the war in Ukraine that sent Treasury yields lower.
Asia shares joined a global rally on Wednesday as hopes rose for a negotiated end to the Ukraine conflict, while bond markets signaled concern overnight that aggressive rate hikes could damage the US economy after 10-year yields briefly dipped below two year rates, Reuters said.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent and touched its highest level since March 4, with most Asian stock markets in positive territory. Japan's Nikkei bucked the trend however, falling 1 percent, as observers pointed to profit taking heading into the end of the fiscal year. The benchmark hit a two-month closing high on Tuesday.
US stocks close sharply higher
US stock benchmarks ended sharply higher Tuesday, with the S&P 500 exiting correction territory, buoyed by optimism over negotiations on a cease-fire in Ukraine and a decline in some commodity prices.
The Dow Jones Industrial Average rose 0.24 percent, the S&P 500 gained 0.40 percent, and the Nasdaq Composite climbed 0.94 percent, MSCI's gauge of stocks across the globe gained 0.98 percent.
Russia’s military said Tuesday it would “fundamentally” cut back operations near Ukraine’s capital and a northern city, potentially a significant concession by Moscow since it invaded its neighbor more than a month ago.
West Texas Intermediate Crude for May delivery declined 1.6 percent on Tuesday to settle at $104.24 a barrel, the lowest finish for a front-month contract since March 17. The yield on the US 10-year Treasury note fell 7.7 basis points to 2.399 percent.
Oil prices were trading down on Tuesday as it appeared that Ukraine and Russia had made some progress in their peace talks, but oil price recoups losses as API reports large crude oil inventory draw. Crude oil prices also slipped amid lockdowns in the biggest commercial city of China due to rising covid cases.
As per the API report released on Tuesday, crude oil inventories in the U.S. are declined by 3 million barrels against an expected decline of 1.6 million barrels. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, crude oil prices to remain volatile in today’s session ahead of the Thursday’s OPEC+ meeting. Crude oil is having support at $101.70–98.40 and resistance is at $107.00–110.20, In INR terms crude oil has support at Rs 7,740-7,550; while resistance is at Rs 8,100–8,240.
10-year US Treasuries retreat
Benchmark 10-year U.S Treasuries retreated to 2.391 percent while the equivalent 2-year yields were at 2.367 percent. More than 200 basis points of U.S. interest rate rises are also now priced in for 2022 which, if realised, would be the most in a calendar year since 1994.
The difference between 2 and 10-year Treasury yields, which is tracked as a harbinger of recession, briefly fell as low as minus 0.03 of a basis point on Tuesday.
GDP growth forecast pared to 7.2% from 8.0%: ICRA
ICRA has reduced its forecast of the year-on-year (YoY) growth of the Indian GDP (at constant 2011-12 prices) in FY2023 to 7.2 percent from 8.0 percent.
The rating agency projects the GDP expansion in FY2022 at 8.5 percent, modestly lower than the National Statistical Office’s (NSO’s) second advance estimate of 8.9 percent.
Bullion prices ease
Bullion price eased further on Tuesday after declining on Monday but bounced from its support said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. Gold moved lower on Tuesday as Russia-Ukraine peace talks pointing towards progress dimmed bullion's safe-haven demand, though a weaker dollar and a drop in yields limited losses. Gold April futures contract settled at Rs 50,813 per 10 grams with a loss of 1.47 percent and silver May futures contract settled at Rs66,947 per kilogram with a loss of 1.70 percent.
Gold moved lower on Tuesday but bounced near support. Support is seen near the 50-day moving average at $1,892. Resistance is seen near the 10-day moving average at $1,934. Kalantri said, both precious metals to remain volatile in today’s session ahead of the U.S. GDP and ADP non-farm data. Gold has support at $1900-1882, while resistance at $1930-1940. Silver has support at $24.42- 24.00, while resistance is at $25.05-25.24. In INR terms gold has support at Rs50,720–50,550, while resistance is at Rs51,240–51,520. Silver has support at Rs66,550- 66,120 while resistance is at Rs 67,620–68,140.
USDINR 27 April futures contract unable to cross its resistance level of 76.5500 and slipped again. On the daily technical chart a pair is unable to cross its resistance level of 76.5500 and plunged again. MACD is showing negative divergence on the daily technical chart and RSI is also fetching below 50 levels. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, As per the daily technical chart, we observed that a pair slipped below 76.3500 levels and technical indicators are showing weakness on the chart. Looking at the technical set-up, a pair is looking weak and could test its next support level of 76.0600-75.9500 again.
Stocks under F&O ban
Three stocks - Vodafone Idea, PVR, and Sun TV Network - are under the F&O ban for March 30.