Sensex up over 200 points, Nifty around 17,700 ahead of RBI policy announcement today

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Stock markets opened on a positive note on April 8. Benchmarks opened higher from yesterday’s close at the opening bell.

As of 9:16 a.m., the Sensex was up 219.99 points or 0.37% at 59,254.94. The Nifty rose 76.60 points or 0.43% to 17,716.10. About 1,677 stocks were up, 297 stocks were down and 53 stocks were unchanged.

Among the Nifty’s top winners are Coal India, BPCL, Tata Consumer Products, IOC and UltraTech Cement. The main laggards were HDFC, Cipla, M&M, Nestlé and HDFC Bank.

There was heavy selling pressure on shares of Sun Pharmaceutical which fell 0.97% to Rs 921.30. HDFC Bank fell by 0.85% to Rs 1,504. Dependency jumped by 0.90% to Rs 2,594.80. Tata Steel, Wipro and Titan were among Sensex’s main winners.

On April 7, the benchmarks closed lower for the third day in a row. The Sensex was down 575.46 points or 0.97% at 59,034.95 against the previous day’s close at 59,610.41 points. The broader Nifty was down 168.20 points or 0.94% at 17,639.50.

Asian stocks stable

Asian stocks and U.S. equity futures were flat Friday in cautious trading as investors digested the Federal Reserve’s plan for aggressive policy tightening and watched for COVID lockdowns in China. Shanghai has reported more than 20,000 daily COVID cases and the city’s lockdown threatens to become one of President Xi Jinping’s biggest crises.

MSCI’s broadest index of Asia-Pacific stocks outside of Japan was flat in morning trade and down about 1.5% for the week so far. The Japanese Nikkei fell 0.2% on Friday to head for a weekly loss of almost 3%. A late rally had lifted the Wall Street indexes slightly, but they are also all down for the week, led by a 2.5% loss for the rate-sensitive Nasdaq. US futures were flat.

MSCI’s broadest index of Asia-Pacific stocks outside of Japan was flat in morning trade and down about 1.5% for the week so far. The Japanese Nikkei fell 0.2% on Friday to head for a weekly loss of almost 3%. A late rally had lifted the Wall Street indexes slightly, but they are also all down for the week, led by a 2.5% loss for the rate-sensitive Nasdaq. US futures were flat.

US stocks close higher

U.S. stocks recouped earlier losses to end higher on Thursday, limiting declines to two days, as investors digested the Federal Reserve’s monetary tightening plans, while yields on longer-dated Treasuries rose.

The US 10-year yield was back up on Thursday to 2.654%, its highest yield since March 6, 2019.

Crude futures flat

Brent crude futures were flat at $100.56 a barrel and U.S. crude futures held steady at $96.17. There were also bright spots, with Australia’s heavy bank and miner stock market hanging on for a flat week and European and FTSE futures posting gains of around 0.8% on Friday.

Crude oil settled on a weaker note in international markets on Thursday, with WTI crude trading at $96.62 a barrel and Brent at $100.58 a barrel. Domestic markets settled on a lower note at 7,250 rupees a barrel, down 1.99%. Oil settled lower adding to weekly losses on uncertainty that the euro zone will be able to effectively sanction Russian energy exports and after consumer countries announced a huge release of oil from emergency reserves. India, the world’s third-largest oil importer, said on Thursday it was examining ways to support International Energy Agency (IEA) member countries’ decisions to release crude from their domestic stockpiles to calm the rise. world prices.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said: “We expect crude oil prices to remain volatile to negative in today’s session after consuming countries announced a huge release of oil from emergency reserves resistance is at $98.20-100.50, in INR terms Crude Oil has support at Rs 7,050-6,860 while resistance is at Rs 7,440-7,610”.

Gasoline and diesel prices remain unchanged

Gasoline and diesel prices remained unchanged for the second straight day on Friday. As a result, the price of petrol continues to remain at Wednesday’s level of Rs 105.41 per liter and diesel at Rs 96.67 per liter in Delhi.

Gasoline and diesel prices remained unchanged for the second straight day on Friday.

As a result, the price of petrol continues to remain at Wednesday’s level of Rs 105.41 per liter and diesel at Rs 96.67 per liter in Delhi.

The first monetary policy of the new fiscal year will be announced today

Reserve Bank of India (RBI) Governor Shaktikanta Das will unveil the first monetary policy of the new fiscal year on April 8, after a two-day review amid concerns over accelerating inflation due to rising crude oil and other commodity prices.

Pharma expected to grow 8-10% in FY22: ICRA

Revenues from ICRA’s sample of 21 Indian pharmaceutical companies are expected to grow by 8-10% in FY2022; and moderate to 6-8% in fiscal year 2023, partly attributable to the high base in fiscal year 2022. Operating profit margin for the entire sample was 21.7 % in the third quarter of fiscal 2022 and 23.2% in the 9 months of fiscal 2022, in line with the corresponding period of the previous fiscal year.

However, headwinds from pricing pressures and rising raw material costs will cause some margin contraction for the sample set at 22.5% in fiscal 2022 and further to pre-levels. -COVID 21-22% in FY2023, although this will remain healthy. The extent of the impact on margins will vary from company to company depending on the product portfolio, the share of revenues coming from the US market and new product launches.

Indian economy in good shape: Bimal Jalan

India’s economy is in good shape as the country’s GDP growth rate and foreign exchange reserve are high, former RBI Governor Bimal Jalan said on Thursday. Despite the economic uncertainties triggered by the Russian-Ukrainian war which is also impacting the global supply chain, Jalan said it will not affect India’s economic performance.

India’s current macroeconomic situation is quite positive in the sense that the growth rate is high. India’s foreign exchange reserve is also very high,’ he said. PTI in an interview. ”India (the Indian economy) is in good shape,” Jalan added.

Bullion Outlook

On Thursday, gold prices rose but continued to face headwinds as the dollar hit a new high in 2022. With gold prices quoted in dollars, the currency’s gain weighs on the yellow metal. Due to the weak Rupee, domestic markets have also settled on a positive note.

Stronger-than-expected jobless claims pushed Treasury yields higher. The 10-year yield hit new highs following the Labor Department’s report on initial U.S. jobless claims data. Initial jobless claims fell to 166,000, well below expectations of 200,000. Once inflation starts to heat up again, which I think, it will work in (gold’s) favor, even against the Fed’s aggressive monetary policy. Inflationary pressures and the war in Ukraine are creating bull market sentiment for the safe-haven asset class, especially gold. In contrast, reactions to the Federal Reserve’s monetary policy, which includes a series of rate hikes and a trickle down of their balance sheet assets, led to bearish sentiment in the bullion market.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said gold has support at $1912-1900, while resistance at $1939-1948. Silver has support at $24.20-23.90, while resistance is at $24.72-24.98. In INR terms, Gold has support at Rs51,550–51,360, while resistance is at Rs52,050–52,240. Silver has support at Rs66,210-65,820 while resistance is at Rs67,190 –67550.

USD-INR

The USDINR futures contract for April 27 holds its support level at 75.90 and is recovering again. USDINR looks supported amid rising expectations that the Fed will tighten monetary policy more quickly to combat rising inflation. On the daily technical chart, a pair broke through its resistance level of 76.10 again. According to the daily technical chart, we have observed that a pair is holding its crucial support level of 75.90 and has rallied again. Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said looking at the technical pattern, if a pair crosses and holds above 76.10; may show more strength towards 76.35-76.55 in the coming sessions. Today’s RBI credit policy announcement will provide clear direction for USDINR. Kalantri suggested watching the 76.10 level closely in today’s session to take positions in the pair.

(With contributions from Reuters)

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Posted: Friday 08 April 2022, 09:20 IST

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