Market Today
The Sensex and Nifty are likely to open on a negative note on April 5 as trends in the GIFT Nifty indicate a weak start for the broader index with a loss of 73 points.
The Indian benchmark indices climbed to record highs, squandered some of the gains but still managed to close in the green after a volatile session on April 4, a day before the Reserve Bank of India (RBI) policy announcement.
The Sensex ended 350.81 points, or 0.47 percent, higher at 74,227.63 and the Nifty was up 80 points, or 0.36 percent, to 22,514.70, making their best close ever.
The pivot point calculator indicates that the Nifty 50 may face resistance at the 22,600 level, followed by the 22,674 and 22,794 levels. On the lower side, the index may take immediate support at the 22,359 level followed by 22,284 and 22,164 levels.
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 weak start for the broader index in India, with a loss of 73 points or 0.32 percent. The Nifty futures were trading around the 22,574 level.
Trade setup for today: Top 15 things to know before the opening bell
US Markets
The three major US stock indexes fell more than 1 percent each and the S&P 500 had its biggest daily percentage drop since February 13 on Thursday as Federal Reserve officials took a cautious approach in comments on the outlook for interest rate cuts, and investors braced for Friday’s US monthly jobs report.
The Dow Jones Industrial Average fell 530.16 points, or 1.35 percent, to 38,596.98, the S&P 500 lost 64.28 points, or 1.23 percent, to 5,147.21 and the Nasdaq Composite dropped 228.38 points, or 1.4 percent, to 16,049.08.
Asian Markets
Asian markets were trading lower in the early trade on Friday, mirroring moves on Wall Street after comments from US Federal Reserve officials fueled worries that the central bank could hold off on rate cuts.
In the first policy review for this fiscal, the Reserve Bank of India’s Monetary Policy Committee is set to announce its interest rate decision on April 5.
A Moneycontrol poll showed bankers and economists predict a status quo in key rates, and the majority of them expect the MPC to retain its policy stance of withdrawal of accommodation.
Zee-Sony merger: NCLAT to decide next course of action in appeal on April 15
The National Company Law Appellate Tribunal (NCLAT) on April 4 indicated that it will on April 15 pass an order on whether the challenges to legal sanction of the Zee-Sony merger could be heard when the merger itself has been called off.
IDBI bank and Axis bank urged NCLAT to adjourn the case pending till the National Company Law Tribunal (NCLT) decided on Zee’s plea to enforce the merger. However, Zee argued that the pendency of the plea in NCLT will have no bearing on the present case and urged to NCLAT to continue hearing the case.
Additional Solicitor General (ASG) Venkatraman, who appeared for IDBI Bank, argued that the outcome of Zee’s plea in NCLT will have bearing on the case as it will decide the future of the merger. However, senior advocate Arun Kathpalia who appeared for Zee, argued that while the case in NCLAT is an appeal against the sanction to Zee-Sony merger, the case in NCLT deals with the implementation of the merger.
RBI defers implementing directions on exchange-traded forex derivatives to May 3
The Reserve Bank of India (RBI) on April 4 has extended deadline to implement exchange traded derivative contract rules to May 3 from April 5 earlier.
This was done after some concerns expressed about participation in the exchange traded currency derivatives (ETCD) market in the light of the RBI currency derivative norms.
“It is emphasised that the regulatory framework for ETCDs has remained consistent over the years and that there is no change in the RBI’s policy approach,” RBI said in a release.
In a circular dated January 5, the central bank said that investors must ensure the existence of a valid underlying contracted exposure which has not been hedged using any other derivative contract, and they should be in a position to establish the same if required.
NCLAT directs NHAI not to terminate concession agreement of IL&FS group entity
The National Company Law Appellate Tribunal has directed the National Highways Authority of India (NHAI) not to terminate the concession agreement of an IL&FS group entity — Baleshwar Kharagpur Expressway Ltd, and take appropriate measures for its insolvency resolution.
The appellate tribunal said the resolution of Baleshwar Kharagpur Expressway Ltd (BKEL), a SPV set up by IL&FS Transportation Networks Limited (ITNL), ”is in final stages” and any termination at this stage would ”further complicate” the process.
The appellate tribunal said the resolution of Baleshwar Kharagpur Expressway Ltd (BKEL), a SPV set up by IL&FS Transportation Networks Limited (ITNL), ”is in final stages” and any termination at this stage would “further complicate” the process.
Dollar
The dollar hit a two-week low on Thursday as economic data supported expectations for quick rate cuts in the United States, while the battered yen held steady under the key 152 level.
Gold Prices
Gold prices took a breather on Thursday after hitting an all-time high above $2,300 per ounce earlier in the session on expectations for lower US interest rates this year, as investors await more clarity on the timing of cuts.
Crude
Oil prices were steady on Thursday, shored up by concerns about lower supply as major producers keep output cuts in place and geopolitical tensions add further risk.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,136.47 crore, while domestic institutional investors (DIIs) offloaded Rs 893.11 crore worth of stocks on April 4, provisional data from the NSE showed.
Stock under F&O ban on NSE
The NSE has retained Hindustan Copper, SAIL and Zee Entertainment Enterprises to the F&O ban list for April 5.
With inputs from Reuters and other agencies
