Dear Trader…
Indian
equity markets closed in the red on Wednesday as traders were cautious ahead of
the Federal Reserve decision later in the day where policymakers are expected
to raise interest rates.
The odds of the Fed
hiking rates by 25 basis points were at 87.4% when domestic markets closed,
according to the CME FedWatch tool. IT firms earn a significant share of their
revenue from the U.S. and Europe and more rate hikes could hurt client spending.
Global equities remained subdued ahead of the Fed rate decision.Metals fell,
dragged by weak factory activity data from top metals consumer China, while
financials trimmed intraday losses to close marginally lower.
The
30-share BSE benchmark Sensex declined 161 points or 0.26% to settle at 61,193.
The broader NSE Nifty dropped 58 points or 0.32% to end at 18,149. Meanwhile,
the market capitalisation of all listed companies on BSE declined by Rs 1.63
lakh crore to Rs 271.82 lakh crore.
From
the Sensex pack, Bharti Airtel, Tech Mahindra, Axis Bank, Bajaj Finance,
L&T, and TCS were the top laggards, falling over 1%. On the flip side, HUL,
Asian Paints, Tata Motors, UltraTech Cement, ITC, and Nestle closedhigher.
Shares of Snapdana Shoorty Financial ended 4%
higher after Q4 results. Meanwhile, UCO Bank and Punjab & Sind Bank closed
5% and 7.6% lower, respectively, after Q4 earnings. Sectorally, Nifty IT fell
1%, and Nifty PSU Bank declined 0.98%. Nifty Financial Services and Nifty Metal
also closed lower. In the broader market, Nifty Midcap 100 gained 0.26%, while
Smallcap 100 fell 0.07%.
Global Markets – European stocks and US stock futures rose on
Wednesday with hopes hinging on the Federal Reserve signalling that US interest
rate hikes might peak soon and the soft landing that central banks have been
angling for is in sight.
The pan-European STOXX 600 index was up
almost 0.5% after Tuesday’s sharp selloff. S&P 500 futures edged up 0.1%
but the mood was cautious, with banks in the crosshairs.
Currency Watch – The rupee consolidated in a narrow range and
settled for the day higher by 6 paise at 81.81 (provisional) against the US
dollar on Wednesday, tracking the weakness of the American currency in the
overseas market.
At the interbank foreign exchange market,
the local unit opened at 81.80 against the US currency and finally closed at
81.81 (provisional), registering a gain of 6 paise over its previous close.
Crude Oil Falls – The US benchmark oil contract, WTI, traded under
$70 per barrel Wednesday for the first time since OPEC+ cut output a month ago
in a bid to bolster prices.
After going under $70 on recession fears,
WTI recovered slightly to $70.12, still a loss of 2.2%. The European benchmark,
Brent North Sea crude, shed 2.0% to $73.84.
Nifty
futures opened at 18154.90 points against the previous close of 18213.15 and
opened at a low of 18100.00 points. Nifty Future closed with an average
movement of 79.70 points and a rise of around 63.20 points and 18149.95 points…!!
On
the NSE, the midcap 100 index will rise 0.26% and small cap 100 index is
closing down 0.07%.
At
the start of intra-day trading, JUNE gold opened at Rs.60740 fell from a high
of Rs.60856 points to a low of Rs.60363 with a rise of 119 points, a trend of
around Rs.60747 and MAY Silver opened at Rs.75214, fell from a high of Rs.75711
points to a low of Rs.74924 with a rise of 168 points, a trend of around Rs.75213.
Meanwhile,Renewed concerns
over the US regional banking turmoil, uncertainty regarding the Fed’s policy
outcome, and the need to increase the US treasury debt borrowing limit
triggered a bearish attack on Wall Street. Despite this, the robust growth of
India’s services and manufacturing sectors in April and the strong inflow of
foreign funds helped minimise the losses in the domestic market.
Technically,
the important key resistances are placed in Nifty future are at 18147 levels,
which could offer for the market on the higher side. Sustainability above this
zone would signal opens the door for a directional up move with immediate
resistances seen at 18180 – 18232 levels. Immediate support is placed at 18088
– 18008 levels.
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