The stock market indices opened higher in keeping with global cues. At 09:16 AM, the Sensex was up 213.80 points or 0.38 percent at 56,676.95. The broader Nifty was up 57.00 points or 0.34 percent at 17,015.70. About 1458 shares have advanced, 512 shares declined, and 83 shares are unchanged.
Among early gainers on the Nifty were Coal India, Eicher Motors, Tata Motors, Maruti Suzuki and Reliance Industries. The laggards at the opening bell were Kotak Mahindra Bank, Apollo Hospitals, Cipla, HUL and HDFC Life.
On April 19, the Sensex closed 703.59 points or 1.23 percent down at 56,463.15. The Nifty was down 215.00 points or 1.25 percent at 16,958.70.
Asian stocks mixed
Asian stocks on Wednesday, led by Japan, managed to harness a tailwind from a US rally Tuesday.
The Chinese yuan hit its lowest since October after the central bank promised support for the services sector, but was volatile as China also surprised and disappointed equities investors by not cutting lending rates. MSCI's broadest index of Asia-Pacific shares outside Japan was steady as modest losses in Hong Kong and Shanghai offset gains in Sydney. Japan's Nikkei trimmed early gains to stand 0.5 percent higher by mid morning.
US stocks close sharply higher
Major US stock benchmarks closed sharply higher Tuesday, with gains led by the technology-heavy Nasdaq Composite, as investors weighed whether a raft of corporate earnings results will help markets break out of a recent rut.
The stock-market gains also came amid a drop in energy prices. West Texas Intermediate crude for May delivery dropped 5.2 percent Tuesday to settle at $102.56 a barrel. The yield on the 10-year US Treasury note rose 5 basis points to 2.911 percent the highest since December 13, 2018.
War in Ukraine to lead to significant slowdown in global economy: IMF
The International Monetary Fund (IMF) on Tuesday said the war in Ukraine will lead to a significant slowdown in global economic growth this year, though the institution isn’t forecasting recession or stagflation for the US or Europe. The IMF said global growth would slow to a 3.6 percent rate this year, down from 6.1 percent in 2021 and 0.8 percentage points lower than in the last forecast in January.
IMF cuts India's 2022 growth prospects
The IMF has cut its growth forecast for India for FY23 by 80 basis points to 8.2 percent from its earlier projection of 9 percent, which in itself was lowered from 9.5 percent, warning that Russia's invasion of Ukraine would hurt consumption and hence, growth, by way of higher prices.
"Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point)," the IMF said in the World Economic Outlook released on Tuesday. The revision reflects, it added, "in part weaker domestic demand -- as higher oil prices are expected to weigh on private consumption and investment -- and a drag from lower net exports."
China's central bank keeps loan rates unchanged
China's central bank on Wednesday held its benchmark loan rates unchanged as expected, after it kept its key policy rates stable last week. The People's Bank of China said the one-year Loan Prime Rate stayed at 3.7 percent, while the five-year rate remained at 4.6 percent.
Japan stimulus to include cash for low-income households
The Japanese government has decided to provide handouts of 100,000 yen ($774) to newly cash-strapped households as part of an emergency relief package expected to be announced next week, the Yomiuri daily reported on Wednesday.
The cash handouts will be offered by Prime Minister Fumio Kishida's government to households whose incomes have fallen to levels that exempt them from paying residential taxes from the new fiscal year that began this month, the paper said. The spending would come from last fiscal year's extra budget and reserves, the Yomiuri said, without citing sources.
Crude prices down
Oil prices were lower on Tuesday as Shanghai prepared to reopen factories from its strict lockdown, and the IMF slashed its global economic growth forecast. Nymex crude oil futures prices were sharply lower in April 19 session and close around $102.00 a barrel. In domestic market also its down 5.32 percent at Rs 7874.
The US dollar index is firmer today and hit a two-year high. The closely watched yield on the 10-year Treasury note is presently fetching 2.898 percent, near a three-year high. The American Petroleum Institute (API) reported a surprise draw this week for crude oil of 4.496 million barrels, compared to analyst predictions of a 2.533 million barrel build.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, "We expect crude oil prices may show some recovery from yesterday's fall in today’s session. Crude oil is having support at $100.20-$98.40 and resistance is at $104.50–106.20. In INR terms crude oil has support at Rs 7,620-7,480; while resistance is at Rs 7,950–8,090."
Bullion outlook
On Tuesday, Gold and silver prices were sharply lower after both metals hit five-week highs on Monday. Solid losses in the crude oil market and rising US Treasury yields on this day also worked against the precious metals market bulls. In international markets, gold future was down $26.90 at $1,959.60 and silver was down $0.775 at $25.37 an ounce. In domestic market also gold was down Rs 512 at Rs 52,760 and silver was down Rs 1176 at Rs 68,800.
The gold market continues to see some modest technical selling pressure, but has largely ignored stronger than expected US housing construction data. Higher global inflation and weakness in global equity markets supporting safe-haven buying of precious metals.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, "We expect both precious metals to remain volatile, short-term momentum has turned negative but medium-term momentum is still positive. Gold has support at $1938-1922, while resistance at $1962-1972. Silver has support at $24.78- 24.55, while resistance is at $25.30-25.48. In INR terms gold has support at Rs 52,420–52,250, while resistance is at Rs52,950–53,110. Silver has support at Rs 68,210- 67,770 while resistance is at Rs 68,980–69,350."
USD-INR futures contract extends gains
USDINR 27April futures contract extended its gain and crossed 76.50 levels again on a daily closing basis. On the daily technical chart, a pair is trading above its resistance level of 76.30. Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, "We observed that a pair is crossed 76.5000 levels and showing positive momentum on the charts. Looking at the technical set-up, if a pair continues to sustain above 76.5000; could show further strength towards 76.70-76.85 in the upcoming sessions. We have suggested buying in the pair for the targets of 76.70-76.85 with a revised stop loss of 76.30 on a closing basis."
The rupee fell 22 paise to close at 76.51 (provisional) against the US dollar on Tuesday, tracking a strong American currency in the overseas market and significant foreign fund outflows.
Results today
Angel One, Glenmark Life Sciences, Tata Elxsi, ICICI Securities, JTL Infra, Reliance Industrial Infrastructure, Ellora Trading, HCKK Ventures, Indbank Merchant Banking Services, and Ind Bank Housing will release quarterly earnings today.
Stock under F&O ban
Tata Power is under the F&O ban for April 20.
(With inputs from Reuters, agencies)
