The Fed is expected to raise rates by 50 basis points Wednesday and detail plans for the reduction of its balance sheet. Key for markets will be whether Chair Jerome Powell’s commentary contains any hawkish surprises that could stoke concerns about the threat of US slowdown as borrowing costs climb.
Rupee surges 8 paise to 76.40 against US dollar in early trade: PTI
Gainers/losers on Sensex at this hour
Weekly Technical Picks: Axis Securities
Nifty started the week on a flat note and traded with extreme volatility on either side throughout the week. Nifty closed at 17110 with a loss of 69 points on a weekly basis
Bank Nifty started the week with a downward gap and selling pressure throughout the week led the index to end on a positive note. Bank Nifty closed at 36064 with a gain of 43 points on a weekly basis
Ami Organics has a buy call at range 1120-1100. Holding period is 3 to 4 weeks.
HBL Power Systems has a buy call at range 85-80. Holding period is 3 to 4 weeks.
Nifty pairs opening gains to trade flat
Sensex opens higher
Nifty lower in pre-open
Sensex marginally up in pre-open
South Korea says North Korea has fired an unidentified projectile: AP
Market views: Mitul Shah, head of research at Reliance Securities
US equities ended higher on healthy corporate earnings. The S&P 500 gained 0.48%, the Nasdaq gained 0.21%, while the Dow Jones rose 0.17%. The yield on 10-year Treasury note close to its multi-year high levels and ended at 2.957%. The Fed is also likely to approve plans to begin shrinking its $9 trillion asset portfolio starting in June, at a much faster pace than previously expected.
The much-awaited biggest IPO of LIC will open for subscription today. GST has peaked to an all-time high of Rs1.68 lakh crore in April 2022. For FY22 as a whole, total GST collections amounted to Rs14.83 lakh crore, up 30%. For equities, inflation remains a key overhang, coupled with the multi-sided impact of Russia’s lingering war with Europe and strict lockdowns in Shanghai. Meanwhile, markets await on the next batch of quarterly results in the coming weeks. The Indian economy has shown signs of growth and recovery across the board, despite elevated input and labor costs and ongoing supply chain disruptions. Moreover, trend in global stock markets and the movement of rupee and crude oil prices, will dictate market trend in the near-term.
Indian stock markets are likely to see gap down opening, SGX nifty is largely flat compared to Monday’s spot Nifty closing. Asian markets trading in red with Nikkei is down 0.1%, while Hang Seng is down 1.2%.
Oil gains 1% after US crude stocks signal tighter supply
Oil prices rose at the start of Asian trade on Wednesday after industry data showed drawdowns in US crude and fuel stockpiles, raising supply concerns.
The gains come on the back of news from Tuesday that the European Union is working on new sanctions against Russia for waging war on Ukraine that will target Moscow’s oil industry.
European Commission President Ursula von der Leyen is expected to spell out the plans on Wednesday, officials said.
Brent crude futures rose 90 cents, or 0.9%, to $105.87 a barrel in Asian deals. WTI crude futures rose $1.00, or 1%, to $103.41 a barrel.
Stocks to Watch
Shares of Tata Steel, Titan, Future Retail, SpiceJet, Kotak Mahindra Bankamong others, will be in focus today.
Kotak Mahindra Bank, Tata Consumer Products, Adani Green Energy, CarTrade Tech, Adani Total Gas, Equitas Small Finance Bank, Havells India, Rain Industries, EIH, IIFL Wealth Management are among the key companies scheduled to announce quarterly earnings today
LIC IPO to open today
The initial public offering (IPO) of Life Insurance Corp. of India will open for retail and institutional investors today and will close on 9 May.
The government aims to rake in as much as ₹21,000 crore in total at the upper end of the price band of the offering – India’s biggest till date.
LIC has fixed the IPO price band at ₹902-949 per equity share for the issue.
Retail investors and eligible employees will get a discount of ₹45 per equity share and policyholders will get a discount of ₹60 per share.
SGX Nifty rises
Nifty futures on the Singapore Exchange rose 86.50 points, or 0.5%, to 17,071 on Wednesday, indicating a positive start for Indian benchmark indices.
On Monday, the Sensex fell 84.88 points, or 0.15%, to end the day at 56,975.99, while Nifty fell 33.40 points to 17,069.10.
Asian markets subdued; Fed rate hike in focus
Asian markets were cautious as investors braced for the biggest Federal Reserve interest rate-hike since 2000 and awaited more clues on how pugnaciously it will tackle inflation.
S&P 500 and Nasdaq 100 contracts pushed higher after a second straight daily advance in US shares during a choppy Tuesday. Stocks wavered in Asia amid a slide in Chinese technology firms in Hong Kong. Japan and China are closed.
Half-point Fed moves are fully priced in by swaps traders for June, July and September — the most aggressive trajectory in three decades. Any indications that a bigger, 75-basis-point increase is a possibility could roil markets.
The latest US data showed record levels of job openings and workers quitting in March, pointing to the prospect of higher wages feeding into price pressures.
S&P 500 futures rose 0.3% while Nasdaq 100 futures rose 0.4%.
Australia’s S&P/ASX 200 Index rose 0.1%, South Korea’s Kospi index added 0.1%, and Hong Kong’s Hang Seng Index fell 0.7%.
Overnight on the Wall Street, stocks eked out modest gains after a choppy day of trading investors wait to find out how aggressively the Federal Reserve will raise interest rates at its latest policy meeting on Wednesday.
The S&P 500 ended 0.5% higher after briefly slipping into the red earlier in the day. The Dow Jones Industrial Average rose 0.5% and the Nasdaq inched up 0.2%.
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