Sensex climbs 600 points, Nifty above 17,800

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Benchmark equity indices open higher on April 4, the first day of trading beginning this week.

BSE Sensex jumped 600 points while the Nifty50 was above 17,800 at the opening bell.

As of 9:17 a.m., the Sensex was up 599.50 points or 1.01% at 59,876.19. The wider Nifty rose 150.40 points or 0.85% to 17820.90. Around 2018 stocks were up, 347 stocks were down and 106 stocks were unchanged.

Among the Sensex pack, 24 stocks were in the green while 6 scrips were in the red. Besides the HDFC twins, other major winners of the 30-stock pack include Bajaj Finance, Kotak Mahindra Bank, Tech Mahindra, Titan, Larsen & Toubro.

On the other hand, Infosys, M&M, Maruti, ITC, UltraTech Cement were among the laggards.

Along with the RBI policy announcement, scheduled for April 8, developments related to the Russian-Ukrainian war, the movement of crude oil, foreign funds flows as well as PMI data for the manufacturing and services sectors should influence investor sentiment.

On Friday, the first trading day of 2022-2023, the Sensex climbed 708.18 points or a gain of 1.21% to close at 59,276.69 points. The Nifty also climbed 205.70 points or 1.18% to end the day at 17,670.45 points.

Last week, the Sensex jumped 1,914.49 points or 3.33%, while the Nifty gained 517.45 points or 3.01%.

FII

On Friday, foreign portfolio investors injected just over Rs 1,909 crore into shares.

HDFC and HDFC Bank Announce Transformational Merger

HDFC and HDFC Bank have announced a transformational merger. HDFC will own 41% of HDFC Bank.

Following the merger, subsidiaries/associates of HDFC Ltd will become subsidiaries/associates of HDFC Bank, according to a regulatory filing. HDFC will own 41% of HDFC Bank.

Shares of HDFC and HDFC Bank rise

Shares of HDFC climbed 8.37% to Rs 2,656.10, while shares of HDFC Bank rose nearly 8% to Rs 1,623.65.

Asian stocks trade mixed

Asian stocks were mixed on Monday as traders weighed the prospect of aggressive Federal Reserve interest rate hikes and tougher sanctions on Russia.

Japan’s benchmark Nikkei 225 was slightly in the red, while key indices Hong Kong’s Hang Seng and South Korea’s Kospi were in positive territory.

US stocks close higher

All three major U.S. stock indexes closed higher on Friday, after a March jobs report bolstered the picture of a healthy economy, but also underscored expectations that the Federal Reserve should be more aggressive in raising interest rates in an effort to contain persistent inflation. For the week, the Dow Jones fell 0.1%, while the S&P 500 rose 0.1% and the Nasdaq 0.7%.

The unemployment rate drops in the United States

The US economy added 431,000 healthy jobs in March and the unemployment rate fell to 3.6% from 3.8%. Economists polled by The Wall Street Journal had forecast a total payroll gain of 490,000 jobs in March and a drop in the unemployment rate to 3.7% from 3.8%. Hourly wages rose sharply, pushing the increase over the past 12 months to 5.6. percent, the highest rate since the early 1980s.

In other U.S. economic data on Friday, the S&P Global U.S. Manufacturing Purchasing Managers’ Index final reading for March was 58.8, down from 57.3 in February. However, the Institute for Supply Management’s manufacturing PMI, a closely tracked index of US factory activity, fell to 57.1% in March from 58.6% a month earlier.

The yield on the 10-year US Treasury rose 5 basis points on Friday to 2.374%. For the week, the 10-year yield fell 11.7 basis points, the biggest weekly drop since the period ending March 4.

Two-year US Treasury yields jumped to 2.4503% from 2.284%, topping benchmark 10-year US Treasury yields, which also rose to 2.3767% from 2.325%.

Global industrial activity slows after Russia invades Ukraine

Global industrial activity slowed in March as Russia’s invasion of Ukraine tightened supply chain bottlenecks, dampened demand and undermined confidence, while soaring manufacturing costs energy drove prices higher, surveys showed on Friday.

S&P Global’s final Manufacturing Purchasing Managers’ Index (PMI) for the eurozone fell to a 14-month low of 56.5 in March from 58.2 in February, below a ‘flash’ estimate initial 57.0 but still well above the 50 mark that separates growth from contraction.

Indian exports hit record high

India’s merchandise exports hit a record high of $418 billion in FY 2021-22 on rising shipments of petroleum products, engineering goods, gemstones and jewelry and chemicals, according to official data released on Sunday. Outbound shipments reached an all-time high of $40 billion in one month in March 2022.

Raw Surges

The international oil benchmark, Brent, jumped 0.15% to $104.55 a barrel.

Oil prices fell early in Asian trade on Monday after the United Arab Emirates and the Iran-aligned Houthi group welcomed a truce that would end military operations on the Saudi-Yemeni border, easing some concerns about potential supply issues.

This week’s first losses come after oil prices stabilized at around 13% last week – their biggest weekly falls in two years – when US President Joe Biden announced the biggest release of oil reserves ever. made in the United States. Member countries of the International Energy Agency (IEA) have committed to another coordinated release of oil at a special meeting, according to Japan’s Ministry of Industry.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said crude oil prices are likely to remain volatile to negative during today’s session. Crude Oil has support between $94.40 and $92.10 and resistance is between $101.20 and $104.50. In INR terms, Crude Oil has support between Rs 7,380 and 7,220; while resistance is at Rs 7,820-8,050, he said.

Fuel prices on the rise

Petrol and diesel prices increased on Monday by 40 paise per liter each, bringing the total tariff increase over the past two weeks to 8.40 rupees per litre.

Petrol in Delhi will now cost Rs 103.81 per liter from Rs 103.41 previously, while diesel tariffs have risen from Rs 94.67 per liter to Rs 95.07, according to a price notification from fuel retailers of State. In Mumbai, the price of petrol remained unchanged at a record high of Rs 118.83 per litre. The price of diesel also continues to be at Rs 103.07 per litre, the highest among metros.

Rising Gas Prices: ONGC Expected to See $3 Billion Rise in Profits

The state-owned Oil and Natural Gas Corporation (ONGC) is expected to see its annual revenue increase by $3 billion (about Rs 23,000 crore) thanks to more than doubling the price of the natural gas it produces, while Reliance Industries could get $1.5 billion. (Rs 11,500 crore) more revenue, according to a report.

Gold and Silver Should Remain Volatile This Week

Last week, gold ended under significant pressure despite the 2-year and 10-year Treasury yields reversing for the first time since 2019. Many market participants see this as a possible red flag that recession could be imminent. Gold and silver also stabilized last week on strong US jobs data, a strong dollar and rising US bond yields. The unemployment rate fell to 3.6%, the lowest since February 2020. However, the Russian-Ukrainian conflicts and the confinement in China due to the increase in covid-19 cases supported gold and l money at lower levels.

Rahul Kalantri, vice president of commodities, Mehta Equities Ltd., said both precious metals are expected to remain volatile this week ahead of the FOMC meeting minutes. Gold has support at $1910-1895, while resistance at $1940-1950. Silver has support at $24.35-24.00, while resistance is at $24.95-25.24. In INR terms, Gold has support at Rs 51,240–50,950, while resistance is at Rs 51,950–52,220. Silver has support at Rs 67,150-66,680 while resistance is at Rs68,100–68,550.

M-cap of 10 most valued companies soars Rs 2.61 lakh cr

The 10 most valued domestic companies added a whopping Rs 2,61,767.61 crore to their total market valuation last week, alongside a sustained trend in stocks, with HDFC Bank and Reliance Industries emerging as the biggest gainers.

Last week, the Sensex zoomed 1,914.49 points or 3.33%.

Posted: Monday 04 April 2022, 09:23 IST

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