The benchmark Sensex and Nifty indices are likely to open on a flat note on May 9 as trends in the GIFT Nifty indicate a muted start for the broader index with a gain of 4 points.
India's benchmark Sensex and Nifty indices closed unchanged on May 8 as the market faced uncertainty over election results and subdued corporate earnings. However, broader markets showed resilience, with BSE Smallcap rising 0.5 percent and BSE Midcap edging 0.8 percent higher, rebounding from the previous day's losses of nearly 2 percent each.
At close on May 8, the Sensex was down 45 points (0.1 percent) at 73,466.39, while Nifty 50 gained 4.50 points, with 1,946 shares advancing, 1,310 declining, and 106 remaining unchanged.
Gift Nifty
Trends in the GIFT Nifty indicate a flat start for the broader index in India, with a gain of 4 points or 0.02 percent. The Nifty futures were trading around the 22,391 level.
Asian markets
Asia-Pacific markets had a mixed outlook before China's April trade data and Japan's pay statistics. China's exports are anticipated to rise by 1.5 percent, contrasting March's 7.5 percent drop, with imports expected to grow by 4.8 percent year-on-year, compared to a 1.9 percent decline in March.
Investors will also scrutinize Japan's pay data for signs of the Bank of Japan's desired "virtuous cycle" of increasing wages and prices. Japan's Nikkei 225 climbed 0.15 percent, while the broader Topix was up 0.29 percent. South Korea's Kospi retreated from a one-month high, falling 0.21 percent, and the Kosdaq was down 0.13 percent. Australia's S&P/ASX 200 edged down 0.23 percent. Futures for Hong Kong's Hang Seng index signaled a weaker open compared to the previous close. Investors are also processing Federal Reserve comments, with Boston Fed President Susan Collins suggesting interest rates will likely stay put until inflation moves sustainably toward the 2 percent target.
US markets
Wall Street's stock enthusiasm waned as traders hesitated to join a solid early May rally. The S&P 500 closed flat, staying below 5,200. Tesla and Alphabet led mega-cap losses, while Intel sank due to lower revenue expectations after a US ban on chip exports to Huawei. The S&P 500 remained close to a one-sided net long after short positions unwound, but investors were cautious about adding more bullish positions. The index hovered around 5,190, after its largest four-day advance since November, with 10-year Treasury yields rising to 4.49 percent. Equities resumed their climb in early May, boosted by solid earnings and speculation of Fed rate cuts, bringing the S&P 500 within 1 percent of its all-time high.
Gold
Gold slipped as investors awaited U.S. data for clues on potential Federal Reserve rate cuts, but a slight dollar uptick limited gains. Spot gold fell 0.2 percent to $2,308.29 per ounce, with U.S. gold futures down 0.3 percent at $2,316.30. A 0.1 percent dollar rise fueled rate cut expectations this year, making gold less attractive for foreign investors. Eyes are on the University of Michigan's consumer sentiment reading and Fed officials' comments. U.S. consumer price index data is due on May 15.
Weak U.S. job data led markets to price in two Fed rate cuts and around 40 basis points of easing. Lower rates reduce the opportunity cost of holding gold. The European Central Bank is poised for a rate cut on June 6, with concerns that the U.S. Fed policy delay could influence its decision-making.
Crude oil
Oil prices fell in early Asian trading due to reports of increased U.S. crude and fuel stockpiles, indicating weak demand. Brent crude futures dropped 0.3 percent to $82.95 a barrel, while U.S. West Texas Intermediate crude futures fell 0.2 percent to $78.25 a barrel.
U.S. crude stocks rose by 509,000 barrels in the week ending May 3, with gasoline and distillate fuel inventories also increasing. Analysts expected a 1.1 million barrel decrease in U.S. crude oil inventories last week. Both benchmarks slightly declined in the previous session due to easing supply tightness. Hopes for a Gaza ceasefire and a stronger U.S. dollar also contributed to the downward pressure on oil prices.
RBI Limits Cash Loans
The Reserve Bank of India has instructed non-bank finance companies (NBFCs) to strictly follow the IT Act regarding cash disbursements, limiting cash loans to Rs 20,000. According to a Reuters report, this directive aims to discourage cash transactions, citing Section 269SS of the Income Tax Act, 1961, which prohibits individuals from receiving more than Rs 20,000 as a loan amount in cash. The RBI sent this directive to gold loan NBFCs like Muthoot Finance and Manappuram Finance, following actions against IIFL Finance for violating rules on cash loan disbursals and collections exceeding the statutory limit.
L&T workforce expansion
L&T increased its workforce by 10 percent last year, adding nearly 8,000 employees. CFO R Shankar Raman stated plans for further expansion till 2025-26 despite a slowdown in order inflow. With a robust order book of Rs 475,809 crore, they aim to hire to meet demands, especially from international clients, constituting 38 percent of orders.
Results Today
HPCL, SBI, Rain Industries, Abbott India, Escorts Kubota, BPCL, Asian Paints, Vardhman Textiles, Alkyl Amines Chemicals, Timken India, Relaxo Footwears, Indian Overseas Bank, Punjab National Bank, Mahanagar Gas, Computer Age Management Services, Alembic Pharmaceuticals, Quess Corp, Intellect Design Arena, Orient Electric.
Stocks under NSE F&O ban
Canara Bank, Piramal Enterprises, Aditya Birla Fashion & Retail, Balrampur Chini Mills, Biocon, GMR Airports Infrastructure, Vodafone Idea, Punjab National Bank, SAIL, Zee Entertainment Enterprises.
FII, DII flows
Foreign Institutional Investors have net sold Rs 6,669.10 crore worth of Indian shares while Domestic Institutional Investors bought Rs 5,928.81 crore shares as markets closed flat.
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