Sensex jumps over 700 points, Nifty approaches 16,050


Stock market indices opened positive on May 20. As of 9:16 a.m., the Sensex was up 773.08 points or 1.46% at 53,565.31. The Nifty rose 240.40 points or 1.52% to 16,049.80. About 1,547 stocks were up, 257 stocks were down and 64 stocks were unchanged.

Among the main winners of the Nifty were JSW Steel, Hindalco Industries, Tata Steel, Tata Motors and Hero MotoCorp.

Rupee opens lower

The rupee opened at 77.51 against the dollar on May 20. On Thursday, the rupee closed at Rs 77.73 against the dollar.

Asian stocks rise in early trade

Stocks in Asia and U.S. futures rose on Friday amid relative calm in markets, though worries about a darkening economic outlook and China’s struggles with COVID could still fuel more volatility.

US stocks close lower

U.S. stocks gave up earlier gains to end lower on Thursday, after the S&P 500 index fell the worst in nearly two years in the previous session, leaving it down nearly 19% from its all-time high. , or close to a bear market. The S&P 500 ended closer to bear market territory as the Russia-Ukraine war, a slowing Chinese economy, high inflation and rising interest rates have investors worried about corporate earnings and economic growth. Investors dumped equities for fear of sluggish growth and bought safe-haven assets such as government debt and the Swiss franc.

Cisco was the latest major company to dip in earnings with a 13.7% drop on Thursday. Cisco said after the bell on Wednesday that quarterly revenue was below analysts’ expectations and it warned that revenue will be disappointing in the current quarter.

Japan’s consumer inflation beats central bank’s target

Core consumer inflation in Japan in April exceeded the central bank’s 2% target, hitting a more than seven-year high, as rising energy and commodity costs dragged down broader price increases that put pressure on households. The national core consumer price index (CPI), which excludes volatile fresh food costs but includes those of energy, jumped 2.1% in April from a year earlier.

Oil prices rebound

In a highly volatile session on Thursday, oil prices rebounded after two days of losses, buoyed by dollar weakness and expectations that China could ease some lockdown restrictions that could boost demand. In international markets, WTI crude settled at $109.89 per barrel and Brent at $111.52 per barrel. The domestic market also settled on a positive note at Rs 8,464 per barrel, up 1.73%.

The dollar index fell about 1% after pessimistic US economic data supported global commodity prices. Crude oil prices have also recovered amid a recovery in Chinese oil demand. The possibility of an easing of Covid-19 restrictions in China’s most populous city from June 1 could boost Chinese demand for oil.

After the drop in COVID-19 cases, lockdown restrictions are starting to ease in Shanghai from June 1 and could increase Chinese demand for oil. Crude oil prices were also supported by a possible ban on Russian oils by the European Union. US oil demand is also rising and gasoline prices have hit record highs this week.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said: “We expect crude oil prices to remain volatile in today’s session as US President Joe Biden may meet Mohammed bin Salman, or MbS, from Saudi Arabia as early as next month, sources say.” Crude Oil has support at $106.20-$104.40 and resistance is at $110.40-$112.65 . In INR terms, Crude Oil has support at Rs8,250-8,120; while resistance is at Rs 8,550–8,640, Kalantri said.

Gold and silver will remain volatile

On Thursday, gold and silver posted significant gains, boosted by a sharp drop in the US dollar index and a slight drop in US Treasury yields. Amid growing weakness in the US labor market, a higher than expected number of US workers filing for unemployment benefits for the first time also appears to be contributing to gold’s bullish technical momentum. On Thursday, the US Department of Labor said weekly jobless claims rose by 21,000 to 218,000, up from the previous week’s revised estimate of 197,000 claims.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said, “We expect bullion prices to remain volatile during today’s session. Gold has support at $1822-1810, while resistance is at $1850-1862. Silver has support at $21.48-21.20 and resistance at $22.05-22.30. In INR terms, gold has support at Rs 50,330–50,110, while resistance is at Rs 50,740–50,950. Silver has support at Rs61,140-60,750, while resistance is at Rs 61,950-62,410, he said.

The dollar index will remain volatile today

The dollar index showed very high volatility and slumped after pessimistic US economic data. The dollar index settled on a lower note at 102.918 with a loss of 0.99% on Thursday. The USD-INR futures contract for May 27 settled on a slightly positive note at 77.7000 (LTP) with a gain of 0.03%. The dollar index also struggled due to a smart rally in the Japanese yen and Swiss franc. However, weakness in US equity markets and possible Fed rate hikes in upcoming meetings supported the dollar at lower levels.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said: “We expect the Dollar Index to remain volatile during today’s session and may maintain its support levels of 102.55 at the close On the other hand, the Rupee also showed high volatility but is receiving support from a weaker Dollar We expect high volatility in the pair and expect it to continue is trading within the range of 77.30 to 78.10 either side of the breakout of the range, which would give new directions.”

Economic growth expected to be robust at 8.9% for the current fiscal year: FM

India’s economic growth is expected to be robust at 8.9% for the current financial year, reflecting the country’s strong resilience and rapid recovery, Finance Minister Nirmala Sitharaman said on Thursday. Sitharaman also expressed confidence that India will continue to achieve high growth rate in the next fiscal year as well, the finance ministry said in a statement.

China cuts borrowing rate again

China cut its benchmark mortgage benchmark rate by a surprisingly wide margin on Friday, its second cut this year as Beijing seeks to revive the struggling housing sector to support the economy. Senior officials have promised new measures to tackle the slowdown in the world’s second-largest economy, hit by COVID-19 outbreaks that have led to stringent measures and mobility restrictions, causing huge disruptions to economic activity.

US dollar heading for worst week since early February

The dollar index, which measures it against six major rivals, fell 1.5% for the week to 102.96, on track to snap a six-week winning streak. A week earlier, it had hit its highest level since January 2003 at 105.01. The benchmark 10-year Treasury yield fell overnight to an over-three-week low of 2.772%, from a 3.5-year high of over 3.2% earlier this month. .

US weekly jobless claims continue to rise

New claims for unemployment benefits in the United States rose unexpectedly last week, but the labor market remains tight due to the shortage of workers, with the number of unemployed Americans at its lowest since 1969 may’s beginning. Initial claims for state unemployment benefits rose 21,000 to a seasonally adjusted 218,000 for the week ended May 14, the highest level since January, the Labor Department said Thursday. Economists interviewed by Reuters had forecast 200,000 requests for the last week.

eMudhra IPO Opens Today

Digital signature certificate provider eMudhra Ltd said on Thursday it had raised Rs 124 crore from anchor investors ahead of its initial public offering which opens for subscription today. The company reduced the size of the new issue from Rs 200 crore to Rs 161 crore. In addition, there will be an offer for sale (OFS) of 98.35 lakh shares by the promoters and existing shareholders. It has set a price range of Rs 243-256 per share for its initial public offering (IPO) of Rs 413 crore. The initial share sale will open to the public on May 20 and close on May 24.

Results today

The following companies will release their quarterly results today: NTPC, One 97 Communications (PayTM), Amara Raja Batteries, Gati, HeidelbergCement India, Indiabulls Housing Finance, IDFC, Indigo Paints, Indian Railway Finance Corporation, JK Tire and Industries, CE Info Systems, Metro Brands, Narayana Hrudayalaya, Nuvoco Vistas Corporation, Paras Defense and Space Technologies, Pfizer, SML Isuzu, Sobha, Thermax and Zydus Lifesciences.

Shares under F&O ban

Four stocks – Delta Corp, GNFC, Indiabulls Housing Finance and Punjab National Bank – are today under the F&O ban.

(With contributions from Reuters, agencies)

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Posted: Friday May 20th 2022, 09:23 IST


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