The benchmarks for Indian equities are anticipated to open neutral or slightly lower on Tuesday, as SGX Nifty trends indicate a mildly negative start for the broader index with a loss of 14 points after the Nifty closed 121 points lower at 17,710 on Monday. Futures on the SGX were at 17,760.
The BSE Sensex dropped 520 points to end the previous session at 59,910, while the Nifty50 fell 121 points to 17,706 due to a sell-off led by IT equities. Nifty50 continues to trade comfortably above its 200-day moving average of 17,320 and will attempt to consolidate recent gains.
SGX Nifty lost 14 points after the Nifty finished 121 points down at 17,706
According to the pivot point charts, the Nifty may find support at 17,604, followed by 17,536 and 17,428. If the index advances, watch out for initial resistance at 17,825, followed by 17,893 and 18,004.
Today’s currency and equity market developments will be reported on Moneycontrol. We have compiled a list of significant news stories that could have an impact on Indian and international markets:
SGX Nifty indicates a mildly negative start for the broader index with a loss of 14 points after the Nifty closed Monday 121 points lower at 17,705. Futures on the SGX were at 17,760.
US Markets
Futures on US equities were unchanged on Monday, following a rise in the main averages to start off a packed week of corporate earnings. Futures on the Dow Jones Industrial Average and S&P 500 were little changed. Nasdaq 100 futures declined 0.03 percent.
Monday’s regular trading session concluded with a gain for stocks. The Dow Jones Industrial Average increased by 100.71 points, or by 0.3%. The S&P 500 increased by 0.33 percent, whereas the Nasdaq Composite rose by 0.28 percent.
European Economies
The pan-European Stoxx 600 index ended the session unchanged, wiping out earlier gains. The travel and leisure sector gained 1.5%, while the mining sector gained 1%. Insurance decreased by 1.5%, while financial services decreased by 2.1%.
The FTSE100 closed at 7879, up 0.10 percent. DAX closed down 0.11 percent at 15,789.53, while CAC 40 closed unchanged at 7,493. Tuesday’s report on China’s gross domestic product and Wednesday’s report on the U.K.’s consumer price index will also garner attention.
Asian economies
Asia-Pacific markets were divided on Tuesday as Wall Street’s earnings season continued and investors awaited a plethora of economic data from China, most notably its gross domestic product for the first quarter. Australia’s S&P/ASX 200 opened 0.22 percent lower, and so did South Korea’s Kospi and Kosdaq. In contrast, Japan’s Nikkei 225 and Topix were up marginally and 0.26 percent, respectively.
Futures for the Hang Seng Index of Hong Kong also indicated a lower opening price, with futures at 20,675 compared to the index’s previous closing price of 20,782.45.
Cement demand saw expanding 8-9% in FY24 over 9% growth in FY23
According to a report, a continued government effort to build infrastructure will increase cement demand by an additional 8 to 9 percent this fiscal year, on top of a 9 percent increase in FY22. This will help the sector regain some profitability.
March wholesale inflation falls to 1.34 percent, the lowest level in 29 months.
According to data released by the Ministry of Commerce and Industry on April 17, India’s wholesale inflation decreased further in March to 1.34 percent. The most recent Wholesale Price Index (WPI) inflation rate is the lowest it has been in 29 months. Inflation as measured by the WPI was 3.85% in February and 14.63% in March 2022.
Oil declines 2% due to a stronger dollar and rising interest rates
Oil prices declined on Monday as the U.S. dollar strengthened and investors pondered a potential Federal Reserve interest rate rise in May, which could dampen economic recovery expectations.
Brent crude futures settled 1.8% lower at $84.76 per barrel, while U.S. West Texas Intermediate crude fell 2.05% to $80.80 per barrel. Both contracts posted their fourth consecutive weekly gain last week, the longest such stretch since the middle of 2022.
Dollar
In tandem with interest rate increases, the dollar has strengthened, making oil priced in dollars more expensive for holders of other currencies. On Monday, the dollar index rose approximately 0.5 percent to 101.835. In contrast, the price of one dollar fluctuated near 81.99 Indian Rupee.
Gold falls below $2,000 as the market awaits Fed rate hike signals.
Gold reversed course to fall below the key $2,000 level on Monday, pressured by a stronger dollar and higher Treasury yields, as investors awaited clues on whether the market will see a ‘one and done’ rate hike by the US Federal Reserve in May.
At 3:38 p.m. EDT (1430 GMT), spot gold was down 0.4% to $1,995.80 per ounce, after rising as much as 0.6% earlier in the session. Futures on gold traded in the United States decreased 0.44 percent to $2,007.
The FII and DII
Foreign institutional investors (FII) sold shares worth Rs 533.20 crore on April 17, while domestic institutional investors (DII) purchased shares worth Rs 269.65 crore, according to preliminary data from the National Stock Exchange.
