Sensex up over 300 points, Nifty above 16,100

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Major laggards included Apollo Hospitals, ITC, Shree Cements, BPCL and Divs Labs / Representative Image |

Benchmarks opened positive on May 26 amid mixed global signals. As of 9:16 a.m., the Sensex was up 315.56 points or 0.59% at 54,064.82. Nifty rose 91.10 points or 0.57% to 16,116.90. About 1,160 stocks were up, 499 stocks were down and 77 stocks were unchanged.

Among the main winners of the Nifty are Hindalco, Tata Steel, Wipro, ICICI Bank and Adani Ports. Major laggards included Apollo Hospitals, ITC, Shree Cements, BPCL and Divs Labs.

On May 25, at the close, the Sensex was down 303.35 points or 0.56% at 53,749.26. The wider Nifty was down 99.40 points or 0.62% at 16,025.80.

Rupee opens flat

The Indian rupee opened flat at 77.53 to the dollar on Thursday versus Wednesday’s close at 77.52.

Asian stocks stumble

Asian stock markets fell on Thursday after minutes from the Federal Reserve’s early May meeting showed a majority backed half-percentage-point rate hikes in June and July, and lingering concerns about global growth undermined confidence.

Chinese blue chips fell 1.11% despite a further drop in daily COVID-19 cases in the country, where lockdowns aimed at curbing the spread of the virus threaten to undermine recent economic support measures. Chinese blue chips fell 1.11% despite a further drop in daily COVID-19 cases in the country, where lockdowns aimed at curbing the spread of the virus threaten to undermine recent economic support measures.

US stocks close higher

U.S. stocks closed higher on Wednesday as investors took a message of flexibility from the release of minutes from the Federal Reserve’s meeting in early May on its path to higher interest rates.

Stocks closed higher after the Federal Reserve released minutes from its meeting in early May, which signaled the central bank remained open to rethinking aggressive rate hike plans to rein in high inflation.

The Dow Jones Industrial Average rose 0.6%, the S&P 500 0.95% and the Nasdaq Composite 1.51%.

Minutes from the May meeting showed support for the Fed’s half-point moves as it seeks to cut its key rate “rapidly toward neutral” over the next two meetings and high inflation remains a key objective.

The market found some relief as the minutes showed broad consensus for 50 basis point hikes in June and July and the possibility of a break later in the year.

US factory orders for durable goods such as machinery and electronics rose 0.4% in April, signaling that the economy was continuing to grow at a strong pace in early spring. Economists polled by the Wall Street Journal had expected an increase of 0.7%.

US Fed raises interest rates by 50 basis points

The Federal Reserve’s latest monetary policy meeting showed policymakers unanimously believe the U.S. economy is very strong as they strive to rein in inflation without triggering a recession. Minutes from the May meeting of the Federal Open Market Committee, which resulted in a 50 basis point hike in the target federal funds rate – the biggest jump in 22 years – showed that most Committee members felt that further rate hikes would be “probably appropriate” at its upcoming meetings in June and July.

In its statement, the Fed said the committee was looking to achieve a maximum employment and inflation rate of 2% over the long term. With an appropriate firming of the monetary policy stance, the Committee expects inflation to return to its 2% target and the labor market to remain strong.

Crude prices up

Oil prices rose on Wednesday, supported by tight supplies and as U.S. refiners push processing activity to their highest level since the start of the coronavirus pandemic. In international markets, WTI crude settled at $110.33 and Brent at $114.03. In domestic markets, crude prices settled on a positive note at Rs 8,549, up 0.43%. According to the US EIA, crude oil inventories fell by 1.0 million barrels last week and gasoline inventories also fell drastically due to rising demand.

Crude oil prices have risen amid weak Russian oil production since its invasion of Ukraine. Russian crude producers are struggling to get all their oil to market, especially European oil, and domestic refinery throughput is also plummeting amid falling demand. Despite this, rising oil and gas prices have resulted in record oil and gas revenues for Russia. US natural gas futures have soared above the $9/MMBtu mark for the first time since August 2008 and have more than doubled in value since the start of 2022, the increase domestic and international demand being the main driver.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd., said, “We expect crude oil prices to remain volatile during today’s session. Rs8.410-8.280, while resistance is at Rs8.690-8.820″.

Fuel prices unchanged

Fuel prices remained unchanged for the fourth consecutive day on Thursday May 26, 2022.

In the nation’s capital, petrol is sold at Rs 96.72 per liter while the cost of diesel is Rs 89.62, according to data available on the Indian Oil Corporation website.

In Mumbai, petrol costs Rs 111.35, while diesel sells for Rs 97.28, following the reduction in excise duty and VAT. In Chennai, petrol and diesel prices are Rs 102.65 and Rs 94.24 per litre. In Kolkata, the price of petrol is Rs 106.03 and diesel is Rs 92.76 per litre.

Gold and silver will remain volatile

Gold and silver prices fell after a positive five-session close on Wednesday, weighed down by a rebound in the dollar after minutes from the Federal Reserve’s May meeting showed most participants thought rate hikes of half a percentage point would probably be appropriate in June. and July. In international markets, gold stood at $1,846.30, down 1.02%, and silver at $21.87, down 0.86%. On the domestic market, gold stood at Rs 50,819, down 0.66% and silver at Rs 61,534, down 0.71%. On the sentiment side, market participants ignored fears that the Federal Reserve’s tightening cycle could trigger a recession.

The gold market is holding support above $1,850 an ounce, but disappointing manufacturing data provides no further bullish momentum for the precious metal as prices remain in negative territory early in the session. Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, “We expect gold and silver to remain volatile during today’s session. Gold has support at $1834-1822, while resistance is at $1862-1874. Silver has support at $21.55-21.40, while resistance is at $22.10-22.38. In INR terms, gold has support at Rs 50,740–50,510, while resistance is at Rs51,140–51,350. Silver has support at Rs 60,980-60,650, while resistance is at Rs 61,680–62,110.

USDINR

The dollar index recovered from a four-week low after the US Federal Reserve signaled further interest rate hikes. The dollar index settled on a positive note at 102.145 with a gain of 0.38% on Wednesday. The May 27 USD-INR futures contract also settled on a slightly positive note at 77.65 with a gain of 0.05% on Wednesday.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said, “We expect the Dollar Index to remain volatile during today’s session and may hold its support level at 101.20 on a closing basis. On the other hand, the rupiah traded sideways on Wednesday and failed to gain strength amid rallying dollar index and rising global energy prices. Besides, the Rupee is also struggling due to rising domestic inflation and rising imports. We expect the Rupee to remain volatile this week and may hold its main support level of 78.1000 against the US Dollar. We suggest watching the 77.30-78.10 levels closely to take new positions in the pair, a breakout on either side of the range would give new directions, Kalantri added.

Results today

The following companies will release their quarterly results today: Hindalco Industries, Motherson Sumi Systems, Muthoot Finance, Zee Entertainment Enterprises, Aarti Surfactants, Oberoi Realty, Aban Offshore, AllCargo Logistics, Ansal API, Astrazeneca Pharma, Berger Paints, Colgate Palmolive India, Cummins India, Good Year India, Gujarat State Fertilizers Corporation, India Glycols, Jet Airways, Kirloskar Industries, Chemcon Specialty Chemicals, NMDC, Page Industries, Prestige Estate Projects, Quess Corp, Shalimar Paints and Sudarshan Chemicals will be featured on May 26. of their March quarter earnings.

(With contributions from Reuters, agencies)

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