Sensex down more than 400 points, Nifty below 17,100

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Indian indices opened lower on April 27 with Nifty below 17,100, reflecting weak global signals.

As of 9:16 a.m., the Sensex was down 430.11 points or 0.75% at 56,926.50. The wider Nifty was down 116.10 points or 0.67% at 17,084.70. About 772 stocks were up, 1203 stocks were down and 114 stocks were unchanged.

At the opening bell, the stragglers were Bajaj Finance, L&T, Bajaj Finserv, Grasim Industries and Infosys. Early Nifty winners included Adani Ports, ONGC, HDFC Life, Apollo Hospitals and Sun Pharma.

On April 26, at the close, the Sensex was up 776.72 points or 1.37% at 57,356.61. The wider Nifty rose 246.80 points or 1.46% to 17,200.80.

Asian stocks fall

Asian stocks fell on Wednesday amid mixed corporate earnings, fears that Russia is choking off gas flows to Europe, China’s pandemic struggles and the prospect of aggressive monetary tightening from China. Federal Reserve

US stocks close sharply lower

Benchmarks for U.S. stocks ended sharply lower on Tuesday, with the Nasdaq Composite posting its lowest close since 2020, as investors scrutinized a series of corporate results and awaited earnings reports that are came after the bell from tech giants including Microsoft Corp. and Google parent Alphabet Inc. COVID-19 curbs in China and fears of aggressive US Federal Reserve tightening continued to dampen risk appetite. The CBOE Volatility Index jumped to around 33 on Tuesday. The yield on the 10-year US Treasury fell 5.2 basis points to 2.773%.

The collection of direct taxes recorded an increase of 49.02%h

India’s net direct tax collection recorded a phenomenal growth of 49.02% to over Rs 14.09 lakh crore in the financial year 2021-22 as the country’s economy “has bounced back” after being hit by the COVID-19 pandemic.

IPO LIC Price Range Set at Rs 902-Rs 949

The price range for the initial public offering of Life Insurance Corporation of India (LIC) has been set at Rs 902 to Rs 949, with a discount of Rs 60 for policyholders, according to reports. For retailers and employees, the rebate will be Rs 40. The IPO is expected to open on May 4 and will likely close on May 9. The IPO could fetch up to 210 billion rupees ($2.7 billion) at the high end. of the price range. This is far less than the 500 billion rupees targeted earlier.

Chinese industrial profits on the rise

China’s industrial profits rose 8.5% year-on-year in the January-March period.

Crude prices up

Oil prices rose on Tuesday after Monday’s brief selloff as China’s central bank promised to provide monetary support to its economy after the lockdown. Price movements remain a testament to the hyper volatility that exists in the market after covid and the post-Russian invasion.

In international markets, crude oil prices rose 5% again, with WTI crude at $101.70 a barrel and Brent crude at $105.13 a barrel. Domestic markets also settled on a positive note at Rs 7,869 per barrel, up 5.64%. Crude oil prices also showed strength amid escalating tensions between Russia and Ukraine. The Russian Foreign Minister also warned Western countries for their support for Ukraine. Natural gas prices also rose and crossed $7 per BTU on Tuesday due to supply issues from Russia, which is supporting natural gas prices.

However, concerns over demand weighed on the future, as authorities in Beijing raced to stamp out an incipient outbreak of COVID-19 and avoid the same debilitating citywide lockdown that enveloped Shanghai for a month.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said, “We expect Crude Oil prices to remain volatile during today’s session. Crude Oil has support at $98.20-$95.40 and resistance is at $102.50-$105.10 In INR terms, Crude Oil has support at Rs 7,550-7,380, while resistance is at Rs 8,050 –8,174″.

Bullion Outlook

Gold and Silver prices were slightly higher on Tuesday and are back above $1900.00, $23.50 respectively as the bulls bounced back from the recent downtrend that has saw the market hit a nine-week low on Monday. Short hedging in the futures market and some perceived bargain hunting in the spot market were featured. Gold and silver bulls still have some work to do to break the short term declining price trend lines that are now in place on the daily bar charts. Internationally, gold futures rose $6.50 to $1,902.50 while silver fell $0.125 to $23.545 an ounce. On the domestic market, gold also rose by Rs 176 to Rs 51,569 and silver fell by Rs 166 to Rs 64,950.

Gold and silver gained in early trading on Tuesday, but prices lost their early morning gain after better-than-expected U.S. durable goods orders and core durable goods orders data. After strong US data, the dollar index extended its gain and put more pressure on bullion.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said gold has support at $1,888-1,876, while resistance is at $1,914-1,928. Silver has support at $23.31-23.07, while resistance is at $23.88-24.10. In terms of INR, Gold has support at Rs 51,220–50,960 while resistance is at Rs 51,820–52,050. Silver has support at Rs 64,620-64,365 while resistance is at Rs 65,650–66,050.

USD-INR

USDINR fell as easing oil prices, inflows into local equities and expected inflows related to the PFR IPO created demand for rupees. On the daily technical chart, a pair is trading above its resistance level of 76.35. Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said: “We expect the pair to continue holding its key support level of 76.0600 on a daily closing basis. buy the pair on lows around 76.3500 with a stop loss of 76.0500 on a daily closing basis for targets at 76.7000-76.8500″.

Results today

The following companies will release their quarterly results today (April 27): Hindustan Unilever, Bajaj Auto, HDFC Asset Management Company, Hatsun Agro Product, Indian Energy Exchange, 5paisa Capital, Indian Hotels Company, Persistent Systems, Syngene International, Trent, Mahindra Lifespace Developers, Chennai Petroleum Corporation, KPR Mill, MPL Plastics, Shree Digvijay Cement, Supreme Petrochem and Swaraj Engines.

(With contributions from Reuters)

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Posted: Wednesday April 27th 2022, 09:23 IST

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