Sensex down more than 200 points, Nifty holds more than 17,700

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Benchmark equity indices opened on a low note on April 11, the first day of the week. As of 9:16 a.m., the Sensex was down 202.91 points or 0.34% at 59,244.27. The wider Nifty was down 46.10 points or 0.26% at 17,738.20. About 1,730 stocks were up, 584 stocks were down and 141 stocks were unchanged.

Among the Nifty’s biggest losers at the opening bell were Infosys, Kotak Mahindra Bank, HDFC Bank, SBI Life Insurance and HDFC. Tata Motors, Tech Mahindra, Grasim Industries, Cipla and NTPC were the first scholarship winners.

Asian stocks slide

Asian stocks fell on Monday ahead of a week filled with central bank meetings and inflation data in the United States, while the euro gained on relief that the far right did not win the first round of the French presidential elections.

The mood in equity markets was cautious, with MSCI’s broadest Asia Pacific ex-Japan equity index losing 1.0%. The Japanese Nikkei fell 0.6%, after losing 2.6% last week, while Chinese blue chips lost 1.8%.

S&P 500 stock futures were down 0.4% and Nasdaq futures were down 0.6%. EUROSTOXX 50 futures lost 0.4% and FTSE futures lost 0.3%. Earnings season kicks off this week with JP Morgan, Wells Fargo, Citi, Goldman Sachs and Morgan Stanley all due to report.

US stocks close mixed

U.S. stocks ended a lackluster Friday, with the tech-laden Nasdaq Composite and S&P 500 closing lower as investors continued to digest the Federal Reserve’s plans to aggressively raise interest rates and to reduce its balance sheet. Key inflation data and corporate earnings reports loom next week. For the week, the Dow Jones fell 0.3%, the S&P 500 fell 1.3% and the Nasdaq 3.9%.

The yield on the 10-year U.S. Treasury rose 5.9 basis points on Friday to 2.713%, the highest since March 5, 2019. The 10-year yield climbed 33.9 basis points this week and increased in four of the last five weeks.

Gross tax receipts point to stable economic recovery

India’s gross tax revenue for the last fiscal year exceeded budget and revised estimates, indicating a steady economic recovery. The provisional tax revenue stood at Rs 27.07 lakh crore for FY22, Revenue Secretary Tarun Bajaj told the media on Friday. This is 34% more than the FY21 collections. The budget and revised estimates for FY22 were Rs 22.17 lakh crore and Rs 25.16 lakh crore, respectively. In addition, the tax-to-GDP ratio of 11.7% in FY22, according to Bajaj, was the highest since 1999.

Inflation in China

Chinese producer inflation for the month of March was higher than expected. The producer price index jumped 8.3 percent from a year ago, official data showed on Monday, above expectations for a 7.9 percent increase in a Reuterssurvey. Chinese consumer inflation also rose more than expected in March, with the consumer price index rising 1.5% year-on-year. That was above expectations from a Reuters poll for a 1.2% increase.

REITs become net buyers in April

After a six-month selling spree, overseas investors turned net buyers in April so far by pumping Rs 7,707 crore into Indian stocks as a market correction provided them with a good buying opportunity. According to the latest data from custodians, Foreign Portfolio Investors (REITs) made a net investment of Rs 7,707 crore in Indian stocks from April 1-8.

Besides equities, REITs invested Rs 1,403 crore in debt markets during the review period, after withdrawing Rs 8,705 crore net in the last two months (February and March).

Gold imports climb to $46.14 billion in 2021-22

India’s gold imports, which impact the country’s current account (CAD) deficit, increased by 33.34% to $46.14 billion in fiscal year 2021-22 due to higher demand, according to official data.

Gold imports were worth $34.62 billion in 2020-21. The surge in gold imports over the past fiscal year contributed to the widening of the trade deficit to $192.41 billion from $102.62 billion in 2020-21.

Bullion Outlook

On Friday, gold and silver settled on a positive note in international markets. Sentiment in the gold market remains bullish as the precious metal continues to consolidate on rising bond yields as the Federal Reserve seeks to aggressively tighten monetary policy through 2022.

Despite all this bearish news, gold has managed to consolidate between $1,900 and $1,950 per ounce, while silver is holding within the range of $24 and $25.65. Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said: Although we do not expect a breakout yet, we expect prices to continue testing the high end. Gold and silver are attracting safe-haven demand amid Russian-Ukrainian conflicts, slowing global growth prospects and fears of rising global inflation.

Gold has support at $1928-1912, while resistance at $1951-1962. Silver has support at $24.55-24.40, while resistance is at $25.05-25.30. In INR terms, Gold has support at Rs 51,780–51,550, while resistance is at Rs 52,340–52,510. Silver has support at Rs 66,540-66,220 while resistance is at Rs67 690–68050.

Results today

Tata Consultancy Services, Birla Tires, Delta Corp, Elnet Technologies, Kesoram Industries and Lasa Supergenerics, etc.

Crude prices down

Brent fell $1.51 to $101.27, while U.S. crude lost 1.48 cents to $96.78.

On Friday, crude oil prices recovered from their lows and settled on a positive note, but on a weekly basis, the price of oil fell for a second week. Also on Monday, at the start of Asian trading, crude is trading at 2% negative after the massive release of strategic reserves by many countries and as lockdowns in China continue. However, the price is supported on the downside due to supply problems from Russia due to the ongoing war between Russia and Ukraine and strict sanctions imposed by Western countries.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said: “We expect crude oil prices to remain volatile to negative during today’s session. Crude oil has support at $92.80-$90.50 and resistance is at $98.20-$100.50 In INR terms, Crude Oil has support at Rs7,140-6,960 while resistance is at Rs 7,550– 7,770.”

Fuel prices unchanged

Gasoline and diesel prices remained unchanged for the fifth consecutive day on Monday. Thus, in Delhi, the price of gasoline and diesel remains at Rs 105.41 per liter and Rs 96.67 per liter respectively. Mumbai, the price of petrol remained unchanged at a record high of Rs 120.51 per litre. The price of diesel also continues to be at Rs 104.77 per litre, the highest among metros.

In Chennai, petrol costs Rs 110.85 per liter and diesel Rs 100.94 per litre. In Kolkata, petrol is Rs 115.12 per liter and diesel Rs 99.83 per litre.

Petrol and diesel prices were last raised by 80 paise per liter each on Wednesday, bringing the total tariff increase in 16 days to 10 rupees per litre.

Foreign exchange outlook

USDINR April 27 futures failed to hold above 76.0600 and slipped again. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, “On the weekly technical chart, a pair is trading above its resistance level of 75.8000. According to the weekly technical chart, we have observed that a pair is holding above the 75.8000 levels and the technical indicators are showing positive momentum in the pair. Looking at the technical setup, if a pair crosses and holds above 76.0600; may show more strength towards 76.3500-76.5500 in the coming sessions. We suggest keeping a close eye on the 76.0600 level in today’s session to take positions in the pair.

Stock under F&O ban on NSE

RBL Bank has been under the F&O ban since April 11.

(With contributions from Reuters)

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Posted: Monday April 11th 2022, 09:23 IST

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