Market Today
The benchmark Sensex and Nifty indices are likely to open on a positive note on April 12 as trends in the GIFT Nifty indicate a higher start for the broader index with a gain of 117 points.
On April 10, the Indian equity indices ended higher with the Nifty hitting fresh record high and Sensex inching closer to its all-time high ahead of the FOMC minutes and the US inflation data.
At close, the Sensex was up 354.45 points, or 0.47 percent, at 75,038.15, and the Nifty was up 111 points, or 0.49 percent, at 22,753.80.
The market was shut on April 11 on account of Ramzan Id.
The pivot point calculator indicates that the Nifty 50 may face resistance at the 22,763 level, and then at the 22,797 and 22,836. On the lower side, the index may take immediate support at the 22,695 level, followed by 22,671 and 22,632.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
Trends in the GIFT Nifty indicate a positive start for the broader index in India, with a gain of 117 points or 0.52 percent. The Nifty futures were trading around the 22,672.50 level.
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US Markets
US stocks closed higher on Thursday, with tech-related momentum stocks leading the charge, as fresh economic data rekindled hopes that inflation remains in a cooling trend.
Interest rate-sensitive megacaps gave the tech-heavy Nasdaq a decisive edge. The S&P 500 also closed in positive territory, while the Dow ended essentially unchanged.
The Producer Prices index (PPI) came in softer than expected, supporting the narrative that price growth is still cooling.
The Dow Jones Industrial Average fell 2.43 points, or 0.01 percent, to 38,459.08, the S&P 500 gained 38.42 points, or 0.74 percent, to 5,199.06 and the Nasdaq Composite added 271.84 points, or 1.68 percent, to 16,442.20.
Asian Markets
Asian markets were trading mixed on Friday after an inflation-fueled selloff in the previous session, with investor assessing economic data from Singapore and South Korea while awaiting China trade numbers.
US weekly jobless claims fall more than expected; continuing claims rise
The number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting that the labor market remained fairly tight, though it could be taking longer for some laid off workers to land new jobs.
Initial claims for state unemployment benefits dropped 11,000 to a seasonally adjusted 211,000 for the week ended April 6, the Labor Department said on Thursday. Economists polled by Reuters had forecast 215,000 claims in the latest week.
Claims, however, tend to be volatile around this time of the year because of the Easter, Passover and public schools’ spring breaks, whose timing shifts every year.
The labor market remains resilient despite 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022 to tame inflation. Job growth accelerated in March, while the unemployment rate slipped to 3.8 percent from 3.9 percent in February. That is contributing to keeping inflation elevated, through higher prices for services.
ECB holds rates at record highs, signals upcoming cut
The European Central Bank held interest rates steady again Thursday but said slowing inflation could open the door to easing monetary policy, raising hopes of a first cut in June.
It was the fifth consecutive time the central bank has frozen borrowing costs, with the key deposit rate sitting at a record high of four percent.
The ECB had hiked rates at a record pace to tame red-hot price rises, but calls have been growing for cuts to begin as inflation falls and higher borrowing costs take their toll on the 20-nation single currency area.
Eurozone inflation slowed more than expected in March to 2.4 percent — not far off the ECB’s two-percent target.
ADB raises India’s GDP growth forecast for FY25 to 7% on robust investment, consumer demand
The Asian Development Bank (ADB) on Thursday raised India’s GDP growth forecast for the current fiscal to 7 percent from 6.7 percent earlier, saying the robust growth will be driven by public and private sector investment demand and gradual improvement in consumer demand.
The 2024-25 growth estimate is, however, lower than 7.6 percent projected for the 2022-23 fiscal. Strong investment drove GDP growth in the 2022-23 fiscal as consumption was muted, the ADB said.
The ADB had in December last year projected the Indian economy to expand 6.7 percent in the 2024-25 fiscal.
US consumer prices rise more than expected in March
U.S. consumer prices increased more than expected in March amid rises in the costs of gasoline and shelter, casting further doubt on whether the Federal Reserve will start cutting interest rates in June.
The consumer price index rose 0.4 percent last month after advancing by the same margin in February, the Labor Department’s Bureau of Labor Statistics (BLS) said on Wednesday.
In the 12 months through March, the CPI increased 3.5% also as last year’s low reading dropped out of the calculation. That followed a 3.2% rise in February.
TCS to announce Q4FY24 earnings today
India’s largest IT services company Tata Consultancy Services (TCS) is going to announce earnings for the fourth quarter on April 12.
According to Moneycontrol estimates, revenue for the quarter is expected to be around Rs 60,559 crores, growing 2.36 percent YoY and remained flat sequentially.
Net profit is estimated to come in at Rs 11,739 crores, a 3.05 percent jump YoY and 6.16 percent increase sequentially.
Crude
Oil prices rose in early trade on Friday on heightened tensions in the Middle East, where Iran has promised to retaliate for a suspected Israeli air strike on its embassy in Syria, which could risk disruptions to supply from the oil producing region.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 2,778.17 crore, while domestic institutional investors (DIIs) purchased Rs 163.36 crore worth of stocks on April 10, provisional data from the NSE showed.
Stock under F&O ban on NSE
The NSE has added Balrampur Chini Mills, and National Aluminium Company to the F&O ban list for April 12, while retaining Exide Industries, Hindustan Copper, Vodafone Idea, India Cements, SAIL, and Zee Entertainment Enterprises to the said list. Bandhan Bank was removed from the said list.
With inputs from Reuters and other agencies
