Markets extended gains from the last three days with Sensex crossing the 50,000 mark and Nifty topping the 15,000 mark tracking global cues. Traders were positive globally as US President Joe Biden laid out a $1.8 trillion social-support plan and after the US Federal Reserve said it was too early to consider rolling back emergency support for the economy.
The Indian Rupee surged 16 paise to 74.20 against the US dollar in early trade on Thursday.
ONGC up 1%
The state-owned oil and gas producer said it is seeking foreign partners for yet-to-be-developed fields in lesser prospective areas but is shackled by uneconomic gas prices and tax structure. It has also said any “potential” restructuring of the company would not significantly affect
Nifty slips below 15000 mark; as banks turn red
Domestic gold prices rise
Gold prices today edged higher in Indian markets after a five-day decline. Gold futures on MCX were up 0.4% to ₹47,265 per 10 gram while silver futures rose 1.1% to ₹68534 per kg.
India Inc wary of second covid wave’s impact on business
India Inc fears the second wave of the covid pandemic could set back the gains made by the Indian economy in the last two quarters following the ending of the lockdown measures imposed last year.
“As a consumer and businessman, I am worried about what the economy would look like in a few years going forward, considering that the impact of first wave one was already in a negative way. But we will get to know by the end of May, because right now we are in a rising tide of what we have to handle,” said Vijay Shekhar Sharma, founder and CEO of Paytm, speaking at the Mint India Investment Summit 2021, which kicked off on Wednesday. (Full report)
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The markets are performing just as expected. Beyond the level of 14700, it is now headed to 15000-15100 which should be the first pit stop. If we can sustain there, the next level should be the previous high of 15300-15350. A strong support for the Nifty is 14300 now and any downward correction can be utilized to enter the index for higher targets.
Sensex Contributors: Reliance, Bajaj Finance
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services on markets
“The favorable global market scenario is playing an important role in this vaccine-powered hope trade. The FOMC meet, as expected, has kept rates and the bond-buying program unchanged, reiterating the accommodative stance. Sustained bond-buying has the risk of higher ‘ asset price inflation and froth in the market… Even while enjoying the bull run investors have to be guarded against potential froth and bubbles. The localised lockdowns & curfews have not impacted industrial activity much but there is a downside risk to GDP growth & earnings estimates. The pain in segments like aviation, hotels, restaurants and retail trade will linger for some time. Financials have emerged stronger after the initial good Q4 results.”
Nifty Bank up 1.5% led by Indusind Bank, Axis Bank
Nifty above 15,000 for the first time since 16 March
Sensex reclaims 50,000 after 12 trading sessions
Sensex, Nifty zoom at open
Sensex soared 500 points to cross the 50,000 mark and Nifty gained 1% to top the 15,000 mark tracking global cues. Bajaj Auto, HUL and Titan are in focus as they will report their quarterly earnings today.
Sensex hits 50,000 at pre-open
Consumers rein in spending amid covid
The virulent second covid-19 wave that is wreaking havoc in India is prompting consumers to cut back on discretionary spending, prioritize their health, shop online, and buy only essential goods, a trend that could take months to normalize, according to companies.
Consumers in India have once again turned to “cautious consumption”, Deloitte said on Wednesday after it released findings of a 30-day global consumer survey. Indians accounted for the most number of people who reported feeling anxious during the second wave, among 18 countries surveyed by Deloitte.
Retail borrowers make the most of recast plan
Retail loans restructured under a central bank scheme announced last year were more than thrice the corresponding figures for corporate loans, initial numbers released by top private sector lenders showed.
HDFC Bank Ltd, ICICI Bank Ltd and Axis Bank Ltd collectively implemented retail debt recasts of ₹6,603 crore and just ₹2,109 crore of corporate loans under the scheme. On a standalone basis, only ICICI Bank implemented more corporate recasts than retail. However, HDFC Bank’s ₹5,456 crore retail loan recast tipped the scales. Axis Bank restructured ₹504 crore of retail loans and ₹341 crore of corporate loans. (Read more)
Biden celebrates an America ‘on the move again’
US President Joe Biden on Wednesday delivered a speech to a joint session of Congress that he used to promote a $1.8 trillion plan he said is needed to compete with China. He said the notion of “we the people” is actually “the government, you and I.”
As Biden wrapped up his prime-time speech, he also spoke of the mob that on January 6 overran the Capitol building where he gave his address Wednesday night.
He said the United States is “on the move again”, calling for trillions of dollars to rebuild the post-Covid US middle class and give new life to “forgotten” workers.
Markets seen firm on global cues
Indian equity markets are likely to rise on Thursday following global cues. Trends in SGX Nifty indicate a firm opening for domestic benchmark indices. On Wednesday, the BSE Sensex ended at 49,733.84, up 789.70 points or 1.61%. The Nifty closed at 14,864.55, up 211.50 points or 1.44%.
Oil prices extended gains on Thursday after rising 1% in the previous session as bullish forecasts for a demand recovery this summer offset concerns of rising covid-19 cases in India, Japan and Brazil.
Brent crude for June rose 0.37%, to $67.52 a barrel while U.S. West Texas Intermediate crude for June was at $64.12 a barrel, up 0.41%.
Stocks to Watch: Reliance, ONGC, Bajaj Auto, Titan, HUL
RIL, ONGC, Tata Communications and Indiamart are some of the companies that will be in focus on Thursday. Nifty companies that will report March quarter earnings today are Bajaj Auto, Hindustan Unilever, and Titan. Other major companies that will announce results are Ambuja Cements, Zensar Technologies, AU Small Finance Bank, and Inox Leisure
Asia markets gain
Asian shares rose in early trade on Thursday after the US Federal Reserve said it was too early to consider rolling back emergency support for the economy, and as US President Joe Biden unveiled plans for a $1.8 trillion stimulus package.
Japan markets were closed on account of a holiday.
Australia’s S&P/ASX 200 Index gained 0.3%
South Korea’s Kospi Index rose 0.4%
Hong Kong’s Hang Seng Index climbed 0.9%
Shanghai Composite Index edged up 0.2%
Fed strengthens view of economy while keeping rates near zero
US Federal Reserve officials strengthened their assessment of the economy on Wednesday and signaled that risks have diminished while leaving their policy interest rate near zero and maintaining a $120 billion monthly pace of asset purchases.
Wall Street ends lower on Wednesday
Wall Street ended lower on Wednesday after the US Federal Reserve held interest rates and its monthly bond-buying program steady and gave no sign it was ready to reduce its support for the recovery.
The Dow Jones Industrial Average fell 0.48% to end at 33,820.38 points, while the S&P 500 lost 0.08% to 4,183.18. The Nasdaq Composite dropped 0.28%, to 14,051.03.