Dear Trader…
The benchmark BSE Sensex added 105.71 points or
0.13% to close at 80,746.78, while the broader Nifty 50 index closed at 24,461,
higher by 30 points or 0.12%.
The market capitalization of all listed companies
on the BSE increased by Rs 1.44 lakh crore to Rs 423.50 lakh crore.
Sector Watch – Auto stocks led the gains, rising 1.7%, driven by strong momentum in
Tata Motors, which surged 5.2% after shareholders approved a plan to split the
company into two listed entities. Optimism around the India-U.K. free trade
deal, seen as a positive for Tata’s British arm JLR, also lifted sentiment.
Global Markets – Global stocks held firm on Wednesday, with oil prices climbing amid
anticipation of a key meeting between top U.S. and Chinese trade officials.
However, caution lingered ahead of the U.S. Federal Reserve’s rate decision,
weighing on European equities and the U.S. dollar.
While the Fed is widely expected to hold rates
steady later in the day, markets have scaled back expectations for a cut in
June to just 30%, down from around 60% before last week’s strong U.S. jobs
report.
U.S. stock futures edged higher, with S&P 500
futures up 0.6%, but Europe’s STOXX 600 and the FTSE 100 slipped about 0.3%
each. The dollar extended its losing streak to a fourth session, and gold
dropped 1.3%, falling more than $100 below last month’s record high.
Meanwhile, China announced a rate cut, injected
more liquidity into the banking system, and expanded a channel for insurance
funds to invest in equities. The moves saw limited market reaction as investors
await broader fiscal stimulus and focus on the outcome of U.S.-China trade
talks.
Rupee vs Dollar – The Indian rupee fell sharply on Wednesday, posting
its steepest single-day drop in a month, as rising geopolitical tensions with
Pakistan weighed on investor sentiment. A broader decline in Asian currencies
also added pressure. The rupee ended 0.5% lower at 84.8250 against the U.S.
dollar, its weakest close since April 9.
Meanwhile, the U.S. dollar gained ground, with
the dollar index—measuring the greenback against six major currencies—rising
0.23% to 99.46.
Crude Impact – Oil prices rose for a second straight session on Wednesday, supported by
optimism around upcoming U.S.-China trade talks and signs of slowing U.S. shale
production, though gains were partially trimmed during the day.
Brent crude futures rose 34 cents, or 0.6%, to
$62.49 a barrel by 1220 GMT, while U.S. West Texas Intermediate (WTI) crude
gained 44 cents, or 0.7%, to $59.53 a barrel.
Nifty futures opened at 24343 points against the
previous close of 24431 and opened at a low 24311 points. Nifty Future closed
with an average movement of 277 points and rise of around 30 points and closed 24461
points…!!
Meanwhile, Indian
equity markets exhibited strong resilience amid recent Indo-Pak border
tensions, the measured market response indicated that geopolitical risks were
largely priced in and expectations of de-escalation is prevailing among
investors.
At the same time, the progress on the India–UK
FTA further buoyed investor optimism, driving gains in key sectors such as
textiles, automobiles, and information technology. Globally, investor sentiment
has improved as the United States and China signal a willingness to resume
trade negotiations.
Technically,
the important key resistances are placed in Nifty future are at 24461 levels,
which could offer for the market on the higher side. stainability above this
zone would signal opens the door for a directional up move with immediate
resistances seen at 24606 – 24676 levels. Immediate support is placed at 24404 –
24303 levels.
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