Market Today
The benchmark Sensex and Nifty indices are likely to open on a positive note on April 22 as trends in the GIFT Nifty indicate a higher start for the broader index with a gain of 139.50 points.
The benchmark indices bounced back to break a four-day losing streak in yet another volatile session on April 19, helped by gains in banking and metal names.
At close, the Sensex was up 599.34 points, or 0.83 percent, at 73,088.33, and the Nifty was up 151.20 points or 0.69 percent at 22,147.
The pivot point calculator indicates that the Nifty 50 may take immediate support at the 21,881 level, followed by 21,786 and 21,633 levels. On the higher side, the index may face resistance at the 22,184 level followed by the 22,283 and 22,437 levels.
GIFT Nifty
Trends in the GIFT Nifty indicate a strong start for the broader index in India, with a gain of 139.50 points or 0.63 percent. The Nifty futures were trading around the 22,250.50 level.
US Markets
The Nasdaq and the S&P 500 closed sharply lower on Friday and Treasury yields dipped as investors juggled lackluster earnings, uncertainties surrounding central bank policy, and geopolitical strife.
Gold and crude oil prices advanced as market participants kept an uneasy eye on the unfolding turmoil in the Middle East.
The Dow was the lone gainer among the three major US equity indices, while the Nasdaq, weighed down by mega-cap tech and tech-related momentum stocks, slid 2.05 percent.
The session marked six straight daily declines for the S&P 500 and the Nasdaq, the longest losing streak since October 2022.
The S&P 500 and the Dow registered their steepest weekly percentage losses since March 2023, while the Nasdaq saw its largest weekly drop since November 2022.
The Dow Jones Industrial Average rose 211.02 points, or 0.56 percent, to 37,986.4, the S&P 500 lost 43.89 points, or 0.88 percent, to 4,967.23 and the Nasdaq Composite dropped 319.49 points, or 2.05 percent, to 15,282.01.
Asian Markets
Asian markets rebounded from Friday's sell-off as investors look to fresh data points out of China, Japan, and South Korea this week.
Reliance Industries Ltd is set to report robust quarterly earnings, driven by a recovery in its core oil-to-chemicals (O2C) business and sustained momentum across the company’s consumer-facing telecom and retail businesses.
An improvement in refining margins and a rebound in the petrochemicals cycle are likely to fuel RIL’s earnings growth for the quarter ended March 31, 2024 (Q4FY24), analysts said. The Mukesh Ambani-led conglomerate is scheduled to report its earnings on April 22.
Consolidated revenue is expected to increase 11.4 percent from a year earlier to Rs 2.12 lakh crore, according to the average of 10 analyst estimatesIndia's net direct tax collections for 2023-24 grew 17.70 percent to Rs 19.58 lakh crore compared to Rs 16.64 lakh crore in the previous financial year and surpassed the Budget estimate for FY24 by 1.35 lakh crore, or 7.40 percent.
The budget estimate for direct tax mop-up for the previous fiscal was fixed at Rs 18.23 lakh crore, which was later revised upwards to Rs 19.45 lakh crore.
The market regulator has proposed a call auction for shares of certain kinds of listed investment companies (ICs) and listed investment holding companies (IHCs) so that there is a fair-price discovery of these securities.
This option was proposed after industry representatives informed the regulator that its circuit filters were hindering fair-price discovery for these shares.
HDFC Bank on April 20 reported a net profit of Rs 16,511 crore for the January-March quarter of the financial year 2023-24, marking a 0.84 percent jump compared to Rs 16,373 crore clocked in the previous quarter. The net profit is almost in line with the market estimates of Rs 16,576 crore.
The bank’s year-on-year financial results are not comparable due to the merger with the parent entity HDFC Ltd during the year.
The net interest income (NII) of Rs 29,007 crore jumped from Rs 28,470 crore reported in the previous quarter. The NII is slightly lower as against the market estimates of Rs 29,172 crore.
The bank's gross non-performing asset (NPA) stood at 1.24 percent, down from 1.26 percent in the last quarter. On the other hand, net NPA for the quarter stood at 0.33 percent compared to 0.31 percent.
India’s forex reserves dropped by $5.401 billion to $643.162 billion for the week ended April 12, the Reserve Bank said on Friday.
The overall reserves increased by $ 2.88 billion to a new high of $ 648.562 billion in the previous reporting week.
It can be noted that in September 2021, the country’s forex kitty reached an all-time high of $642.453 billion, which was breached in March this year. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global events, but there had been a steady accretion over the past few months.
For the week ended April 12, the foreign currency assets, a major component of the reserves, decreased by $6.513 billion to $564.653 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.
The majority of Reserve Bank of India (RBI) monetary policy committee members expressed caution on upside risks to inflation, particularly emanating from uncertainties in food prices, at the panel's policy review, showed the minutes of the meeting on April 19.
"While low core inflation would further the disinflation process, concerns remain on food inflation outlook. We need to remain watchful on upside risks to inflation outlook from adverse climatic factors, supply-side shocks, and geopolitical events," said Rajiv Ranjan in RBI minutes.
Adding to this, RBI Deputy Governor Michael Debabrata Patra said recent inflation prints and high-frequency data on salient food prices indicate that food inflation risks remain elevated.
Wipro Ltd said net profit fell 8 percent to Rs 2,835 crore for the fiscal fourth quarter, beating estimates. The company reported a profit of Rs 3,074.5 crore in the year-ago period.
The software services company's revenue fell to Rs 22,208.3 crore in the three months ended March 31, according to an exchange filing on April 19. It reported consolidated revenue of Rs 23,190.3 crore in the year-ago period.
Wipro beat both bottom line and topline analyst estimates of Rs 2,748 crore on Rs 22,117 crore, respectively.
IT services segment revenue was at $2.66 billion, an increase of 0.1% sequentially and a decrease of 6.4 percent from a year earlier.
Crude
Oil settled slightly higher on Friday, but posted a weekly decline, after Iran played down a reported Israeli attack on its soil, a sign that an escalation of hostilities in the Middle East might be avoided.
Brent futures settled up 18 cents, or 0.21 percent, at $87.29 a barrel.
The front-month U.S. West Texas Intermediate (WTI) crude contract for May ended 41 cents higher, or 0.5 percent, to $83.14 a barrel. The more active June contract closed 12 cents higher at $82.22 a barrel.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 129.39 crore, while domestic institutional investors (DIIs) sold Rs 52.50 crore worth of stocks on April 19, provisional data from the NSE showed.
Stock under F&O ban on NSE
The NSE has added Biocon to the F&O ban list for April 22, while retaining Balrampur Chini Mills, Bandhan Bank, Exide Industries, Vodafone Idea, Metropolis Healthcare, Piramal Enterprises, SAIL, and Zee Entertainment Enterprises to the said list. GNFC, Hindustan Copper, and National Aluminium Company were removed from the said list.
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