Sensex up, Nifty approaches 16,250

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Contrary to mixed global signals, Indian stock markets opened higher on May 11.

Benchmarks were in the green at the opening bell. As of 9:16 a.m., the Sensex was up 150.10 points or 0.28% at 54,514.95. The wider Nifty rose 48 points or 0.30% to 16,288. About 840 stocks were up, 574 stocks were down and 117 stocks were unchanged.

Among Nifty’s top winners were UPL, Tata Motors and HDFC.

As of the May 10 close, the Sensex was down 105.82 points or 0.19% at 54,364.85. The wider Nifty was down 61.90 points or 0.38% at 16,240

Rupee opens higher

The rupiah opened 10 paise higher at 77.22 to the dollar on Wednesday against Tuesday’s close at 77.32.

Asian stocks rally nearly two years

Asian stocks edged higher on Wednesday after hitting near two-year lows in the previous session and the dollar held steady, ahead of much-anticipated US inflation data that will offer a guide to how aggressively the Fed will raise rates.

MSCI’s broadest Asia Pacific ex-Japan equity index rose 0.45%, trading slightly above its lowest level since July 2020 touched the previous day. The Japanese Nikkei gained 0.3%. China’s blue chips led the gains, rising 1.5% after producer prices in the world’s second-largest economy rose at the slowest pace in a year in April, leaving room for more than stimulus to support an economy facing pressure from COVID-19 restrictions.

US stocks close mixed

Major U.S. equity benchmarks ended on a mixed note on Tuesday, with the Dow Jones Industrial Average posting a fourth consecutive day of losses, on the eve of a key inflation reading. The S&P 500 and Nasdaq ended higher on Tuesday, with major growth shares rising after the previous day’s sell-off as Treasury yields fell.

The Nasdaq rose 0.98% and the S&P 500 gained 0.25% but the Dow Jones Industrial Average fell 0.26%. US Treasuries were also quiet ahead of the data. The yield on the benchmark 10-year note was flat at 2.9869%, after falling overnight from a three-year high.

Uncertainty surrounding the economic outlook as the Fed continues an aggressive cycle of rate hikes and other measures to contain inflation at its highest in more than four decades has unsettled investors.

April’s consumer price index report is expected to show inflation has already peaked – a development that some investors believe could temporarily calm markets.

Chinese producer prices rise at slowest pace

China’s producer prices rose at the slowest pace in a year in April, despite soaring global commodity prices, making room for more stimulus to support the flagging economy, which is making facing the pressure of heavy COVID-19 restrictions.

The producer price index (PPI) rose 8.0% year-on-year, the National Bureau of Statistics (NBS) said in a statement on Wednesday, following an 8.3% rise in March and faster than the 7.7% growth announced by a Reuters poll. . The consumer price index (CPI) gained 2.1% from a year earlier, the fastest pace in five months, accelerating from March’s 1.5% growth and beating expectations of a 1.8% rise.

Indian Commodity Exchange ceases to be a recognized exchange: Sebi

Sebi derecognized Indian Commodity Exchange Ltd on Tuesday, saying the exchange did not have sufficient numbers of experienced staff and financial capacity.

Therefore, “ICEX will cease to be a recognized exchange,” Sebi said in an order. ICEX (Indian Commodity Exchange) was recognized as a futures exchange by a notification issued in October 2009 by the central government on a permanent basis.

SBI Board Approves $2 Billion FY23 Bond Fundraising

The Board of State Bank of India (SBI) on Tuesday approved the bank’s proposal to raise up to $2 billion through debt securities in the international market in FY23. The approval applies to the raising of long-term funds in one or more tranches under Reg-S/144A, through a public offering or private placement of senior unsecured notes in US dollars or any other convertible currency.

Petrol and diesel prices unchanged

Fuel prices remain stable on Wednesday, May 11, 2022, with gasoline and diesel prices unchanged for 35 days. Fuel prices were last increased on April 6 by 80 paise per liter each.

According to a price notification from fuel retailers, petrol in Delhi costs Rs 105.41 per liter and diesel Rs 96.67 per litre. In Mumbai, the prices of petrol and diesel per liter are Rs 120.51 and Rs 104.77 respectively. In Chennai, petrol costs Rs 110.85 per liter and diesel Rs 100.94 per litre. In Kolkata, petrol is at Rs 115.12 per liter and diesel at Rs 99.83 per litre.

Gold and silver prices should recover

Gold and silver prices continued to deteriorate despite some relief in US dollar and US bond yields. On Tuesday, gold and silver rallied a bit in the morning session but were unable to hold their gains and slid to close below the important $1840 support levels for gold. and $21.30 for silver. In international markets, gold settled at $1,841, down 0.95%, and silver ended at $21.42, down 1.81%. Bullion prices also settled on a low note domestically, with gold closing at Rs 50,586, down 0.73%, and silver closing at Rs 60,618, down 0.73%. 1.43%.

Rahul Kalantri, Vice President of Commodities, Mehta Equities Ltd., said: “Gold and silver prices crashed on Tuesday after the US Federal Reserve Board member said aggressive increases in interest rates could be undertaken to control inflation. The dollar was choppy on Tuesday, swinging between modest gains as traders braced for Wednesday’s U.S. consumer price index data, which could provide guidance on the likely path of the Reserve’s monetary policy. federal. Investors were in a risk-taking mood as the yield on the benchmark US 10-year note fell back below the psychological level of 3% and from the highest levels since 2018 at 3.20% marked on Monday. .

Today, bullion prices could show some recovery from the lows, Kalantri said. Gold has support at $1822-1810, while resistance is at $1850-1862. Silver has support at $21.10-20.80, while resistance is at $21.58-21.70. In INR terms, gold has support at Rs 50,330-50,110, while resistance is at Rs 50,880-51,050, while silver has support at Rs 60,140-59,750 and resistance is at Rs 61,150-61,510.

USDINR

The dollar index saw high volatility and prolonged gains to settle at 103.935, a gain of 0.15% on Tuesday. The USD-INR futures contract for May 27 settled on a slightly lower note at 77.4450 (LTP) with a loss of 0.28% on the national exchange. Rahul Kalantri, vice president of commodities, Mehta Equities Ltd, said the dollar index extended its gain after a member of the US Federal Reserve said rate hikes of 75 basis points could be observed during the next political meetings. “We expect the Rupee to remain volatile during today’s session ahead of the US inflation data and may face strong resistance around the 77.00 levels, while upside support is at 78 .10 Looking at the technical setup, if a pair holds above the 77.55 levels, it could see a further rise towards the 77.80-78.05 levels,” Kalantri said.

Results today

The following companies will release their quarterly results today: Adani Ports, Punjab National Bank, Indian Bank, Petronet LNG, Balaji Amines, Birla Corporation, HSIL, JSW Ispat Special Products, Kalyan Jewelers India, Kennametal India, KSB, Lakshmi Machine Works, Lloyds Steels Industries, NCC, Skipper, Prism Johnson, Relaxo Footwears, Sagar Cements, SKF India, Butterfly Gandhimathi Appliances, Century Enka, Cholamandalam Financial Holdings and DIC India.

(With contributions from Reuters, agencies)

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Posted: Wednesday May 11th 2022, 09:24 IST

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