Contrary to mixed global cues, the Indian bourses opened higher on May 11.
The benchmark indices were in the green at the opening bell. At 09:16 AM, the Sensex was up 150.10 points or 0.28 percent at 54,514.95. The broader Nifty was up 48 points or 0.30 percent at 16,288. About 840 shares have advanced, 574 shares declined, and 117 shares are unchanged.
Among top Nifty gainers were UPL, Tata Motors and HDFC.
At close on May 10, the Sensex was down 105.82 points or 0.19 percent at 54,364.85. The broader Nifty was down 61.90 points or 0.38 percent at 16,240
Rupee opens higher
The rupee opened 10 paise higher at 77.22 per dollar on Wednesday versus Tuesday's close of 77.32.
Asian stocks inch up from near two-year lows
Asian stocks edged higher on Wednesday from close to two-year lows hit in the previous session and the dollar held steady, ahead of keenly awaited US inflation data that will offer a guide to how aggressively the US Fed will raise rates.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.45 percent, trading marginally above its lowest level since July 2020 touched the day before. Japan's Nikkei gained 0.3 percent. Chinese blue chips led the gains, rising 1.5 percent after producer prices in the world's second largest economy rose at the slowest pace in a year in April, leaving room for more stimulus to shore up an economy facing pressure from COVID-19 restrictions.
US stocks close mixed
Major US stock benchmarks ended mixed Tuesday, with the Dow Jones Industrial Average booking a fourth straight day of losses, on the eve of a key inflation reading. The S&P 500 and Nasdaq ended higher on Tuesday, with big growth shares rising after the previous day's selloff as Treasury yields tumbled.
The Nasdaq rose 0.98 percent and the S&P 500 gained 0.25 percent but the Dow Jones Industrial Average fell 0.26 percent. U.S. Treasuries were also quiet ahead of the data. The benchmark 10-year note yield was steady at 2.9869 percent, having fallen overnight from a three-year high.
Uncertainty around the economic outlook as the Fed pursues an aggressive cycle of rate increases and other measures aimed at reining in inflation running at its hottest in more than four decades has unsettled investors.
April’s consumer price index report is expected to show inflation has already reached a peak — a development that some investors say could temporarily soothe markets.
China's producer prices rise at slowest pace
China's producer prices rose at the slowest pace in a year in April, despite the surge in global commodity prices, leaving room for more stimulus to shore up the flagging economy, which faces pressure from heavy COVID-19 curbs.
The producer price index (PPI) rose 8.0 percent year-on-year, the National Bureau of Statistics (NBS) said in a statement on Wednesday, following an 8.3 percent rise in March and faster than the 7.7 percent growth tipped by a Reuters poll. The consumer price index (CPI) gained 2.1 percent from a year earlier, the fastest pace in five months, speeding up from March's 1.5 percent growth and beating expectations for a 1.8 percent rise.
Indian Commodity Exchange ceases to be recognised bourse: Sebi
Sebi on Tuesday derecognised Indian Commodity Exchange Ltd saying the bourse does not have sufficient number of experienced staff and requisite financial capacity.
Consequently, ''ICEX shall cease to be a recognised stock exchange,'' Sebi said in an order. ICEX (Indian Commodity Exchange) was recognised as an exchange under forward contracts through a notification issued in October 2009 by the central government on a permanent basis.
SBI board approves $2-billion fundraise via bonds for FY23
The board of State Bank of India (SBI) on Tuesday approved the bank’s proposal to raise up to $2 billion through debt securities in the international market in FY23. The approval applies to long-term fundraising in a single or multiple tranches under Reg-S/144A, through a public offer or private placement of senior unsecured notes in US dollar or any other convertible currency.
Petrol, diesel prices unchanged
Fuel prices remain steady on Wednesday, May 11, 2022 with the petrol, diesel prices staying unchanged for 35 days. Fuel prices were last hiked on April 6 by 80 paise a litre each.
According to a price notification from fuel retailers, petrol in Delhi costs Rs 105.41 per litre and diesel Rs 96.67 per litre. In Mumbai, petrol and diesel prices per litre are at Rs 120.51 and Rs 104.77 respectively. In Chennai, petrol costs Rs 110.85 per litre and diesel Rs 100.94 per litre. In Kolkata, petrol is at Rs 115.12 per litre and diesel Rs 99.83 per litre.
Gold, silver prices likely to recover
Gold and silver prices continued to deteriorate despite some relief seen in the US dollar and US bond yields. On Tuesday, Gold and Silver rallied a bit in the morning session but couldn't hold on to their gains and slipped to close below the importance support levels of $1840 for gold and $21.30 in case of silver. In the international markets, gold settled at $1,841, down by 0.95 percent, and silver ended at $21.42, down 1.81 percent. Bullion prices also settled on a weak note in the domestic market, as gold settled at Rs 50,586, down 0.73 percent, and silver closed at Rs 60,618, down 1.43 percent.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, Gold and silver prices crashed on Tuesday after the US Federal Reserve member said aggressive interest rate hikes could be undertaken to control inflation. The dollar was choppy on Tuesday, fluctuating between modest gains as traders were getting ready for Wednesday's US Consumer Price Index data, which could provide hint on the likely path of the Federal Reserve's monetary policy. Investors have been in a risk-on mood, as the yield on the benchmark US 10-year note eased back below the 3 percent psychological level and from the highest levels since 2018 at 3.20 percent scored on Monday.
Today, bullion prices might show some recovery from the bottom, Kalantri said. Gold has support at $1822-1810, while resistance is at $1850-1862. Silver has support at $21.10-20.80, while resistance is at $21.58-21.70. In INR terms gold has support at Rs 50,330–50,110, while resistance is at Rs50,880–51,050, while silver has support at Rs 60,140-59,750, and resistance is at Rs 61,150–61,510.
The dollar index witnessed high volatility and extended gains to settle at 103.935, a gain of 0.15 percent on Tuesday. The USD-INR 27 May futures contract settled on a slightly weaker note at 77.4450 (LTP) with a loss of 0.28 percent on the National Stock Exchange. Rahul Kalantri, VP Commodities, Mehta Equities Ltd said, the dollar index extended its gain after a US Federal Reserve member said that 75 basis point rate hikes could be seen in the next policy meetings. "We expect the rupee to remain volatile in today’s session ahead of the US inflation data and could face steep resistance around 77.00 levels, while upside support is at 78.10. Looking at the technical set-up, if a pair sustains above 77.55 levels, it could witness further strength towards 77.80-78.05 levels", Kalantri said.
The following companies will release their quarterly earnings today: Adani Ports, Punjab National Bank, Indian Bank, Petronet LNG, Balaji Amines, Birla Corporation, HSIL, JSW Ispat Special Products, Kalyan Jewellers India, Kennametal India, KSB, Lakshmi Machine Works, Lloyds Steels Industries, NCC, Skipper, Prism Johnson, Relaxo Footwears, Sagar Cements, SKF India, Butterfly Gandhimathi Appliances, Century Enka, Cholamandalam Financial Holdings, and DIC India.
(With inputs from Reuters, Agencies)
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