The benchmark indices opened lower on April 22. At 09:16 AM, the Sensex was down 545.85 points or 0.94 percent at 57,365.83. The broad-baded Nifty was down 165.80 points or 0.95 percent at 17,226.80. About 859 shares have advanced, 1100 shares declined, and 97 shares are unchanged. Among major laggards on the Nifty at the opening bell were Hindalco, Bajaj Auto, M&M, HDFC and Maruti Suzuki. HCL Technologies, ONGC and Coal India were among major gainers.
Asian stocks slide
Asian stocks tumbled on Friday after Federal Reserve Chair Jerome Powell toughened his stance on fighting inflation, spurring traders to brace for more aggressive monetary-policy tightening, Reuters said.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1 percent in morning trade, its sharpest decline in six weeks. Pulling it lower was a 1.6 percent loss for Australia's resource-heavy index, a 1.1 percent drop in Hong Kong stocks and a 0.3 percent retreat for blue chips in mainland China .
Japan's Nikkei lost about 2 percent. Overnight, U.S. Federal Reserve Chairman Jerome Powell said a half-point interest rate increase will be "on the table" when the Fed meets in May, adding it would be appropriate to "be moving a little more quickly."
US stocks suffer sharp losses
US stocks swung to sharp losses Thursday, losing a grip on earlier gains, as bond yields rose and energy, communications and technology stocks led the way lower.
Declines intensified after Fed Chair Powell added his support to “front-end loading” of interest rate increases, including with a potential 50 basis point hike in May.
The Dow Jones Industrial Average ended down 1.05 percent, while the S&P 500 lost 1.48 percent and the Nasdaq Composite dropped 2.07 percent. barrel.
The euro and German bond yields rose after multiple ECB officials suggested the first eurozone rate hike of the cycle could come as early as July. The benchmark 10-year US Treasury yield rose about 8.1 basis points to 2.917 percent, the highest since December 4, 2018.
Crude prices down
Oil prices wobbled on Friday as concerns about supply due to a potential European Union ban on Russian oil were offset by demand worries. Brent crude fell 1percent to $107.17 per barrel, while US crude fell 1 percent to $102.68 a barrel.
Crude oil futures tumbled in Friday morning session, giving up some gains from the overnight session as financial markets turned jittery after US Federal Reserve chair Jerome Powell signalled aggressive interest rate hikes in the months ahead.
We expect crude oil prices may range bound in today’s session. Crude oil is having support at $101.20-$99.40 and resistance is at $105.10–107.00, In INR terms crude oil has support at Rs7,680-7,520; while resistance is at Rs7,980–8,140.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd said, We expect crude oil prices may range bound in today’s session. Crude oil is having support at $101.20-$99.40 and resistance is at $105.10–107.00, In INR terms crude oil has support at Rs 7,680-7,520; while resistance is at Rs 7,980–8,140.
On Thursday , gold and silver were settled on a weaker note after Federal Reserve Chair Jerome Powell at an International Monetary Fund, signalled that the US central bank will have to move more aggressively to counter US inflation, and explicitly said a half-point interest rate increase is "on the table" for next month's policy meeting.
Gold June futures contract were settled at $1,951 per troy ounce, down by 0.40 percent and silver May futures contract were settled at $24.62 per troy ounce, down by 1.50 percent. Domestic markets were also settled on a weaker note. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, Gold June futures contract settled at Rs 52,413per 10 grams with a loss of 0.40 percent and silver May futures contract settled at Rs 67,125 per kilogram with a loss of 1.90 percent. On April 21, US unemployment claims data was supportive for bullion.
Gold has support at $1934-1922, while resistance at $1962-1972. Silver has support at $24.200-23.88, while resistance is at $24.74-25.05. In INR terms gold has support at Rs52,220–52,050, while resistance is at Rs52,650–52,820. Silver has support at Rs66,550- 66,270 while resistance is at Rs67,710–68,120.
USDINR 27April futures contract showed profit taking at higher levels. On the daily technical chart a pair is trading above its resistance level of 76.1000. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, "We observed that a pair is unable to cross its resistance level of 76.70 and plunged again. Looking at the technical set-up, a pair is facing steep resistance around 76.70 levels and only sustain above these levels could show further strength. However, support is placed at 76.06 levels. We expect a pair could trade in the range of 76.06-76.70 and either side breakout of the range will give further directions".
Results on April 22, 23
Aditya Birla Money, Hindustan Zinc, Sundram Fasteners, Tata Metaliks, Tejas Networks, MMTC, Wendt (India), Bhakti Gems and Jewellery, Eiko Lifesciences, Jhandewalas Foods, Khaitan Chemicals & Fertilizers, Quest Capital Markets, RS Software India, and Sharad Fibres & Yarn Processors will release quarterly earnings on April 22.
ICICI Bank, Bhansali Engineering Polymers, and Indag Rubber will release quarterly earnings on April 23.
(With inputs from Reuters)