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The benchmark Sensex and Nifty indices are likely to open on a strong note on May 3 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 104.50 points.
Indian markets erased some of the previous session losses and ended higher with Nifty around 22,650 on May 2, as market participants digested the Fed Chair’s comments on rate hike after keeping key interest rates unchanged on May 1 meeting.
At close, the Sensex was up 128.33 points or 0.17 percent at 74,611.11, while the Nifty was up 43.35 points or 0.19 percent at 22,648.20.
The pivot point calculator indicates that the Nifty 50 is expected to face resistance at the 22,697 level, followed by 22,730 and 22,785 points. On the lower side, the index may take immediate support at the 22,588 level, followed by 22,554 and 22,499 points.
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 gap-up start for the broader index in India, with a gain of 104.50 points or 0.45 percent. The Nifty futures were trading around the 22,888 level.
Trade setup for today: Top 15 things to know before the opening bell
US Markets
US stocks rallied on Thursday as investors weighed the Federal Reserve’s more dovish-than-expected interest rate guidance on Wednesday against a plethora of mixed earnings and economic data.
The Dow Jones Industrial Average rose 322.37 points, or 0.85%, to 38,225.66. The S&P 500 gained 45.81 points, or 0.91%, at 5,064.2 and the Nasdaq Composite added 235.48 points, or 1.51%, at 15,840.96.
Asian Markets
Asian markets rose on Friday, tracking Wall Street gains ahead of key U.S. employment data.
South Korea’s Kospi rose 0.60%, while the smaller-cap Kosdaq added 0.77%.
Stock markets in Japan and mainland China were shut for public holidays.
India’s services exports decline marginally in March to $30 bn
India’s services exports declined 1.3 per cent in March to USD 30 billion while imports fell by 2.1 per cent to USD 16.61 billion, according to Reserve Bank data, which was released on Thursday. As per RBI’s data on India’s international trade in services, the trade surplus during March 2024 was USD 13.4 billion.
Both exports and imports of services were in the positive zone in the preceding two months. According to the commerce ministry data, the services export during fiscal 2023-24 is estimated at USD 339.62 billion and imports at USD 177.56 billion.
The trade surplus or difference between exports and imports works out to be USD 162 billion during the year. Despite persistent global challenges, overall exports (merchandise and services) are estimated to reach USD 776.68 billion in 2023-24 as compared to USD 776.40 billion in 2022-23.
Bayer acquires remaining 25% stake in Bayer Zydus Pharma
Pharma majors Bayer Pharmaceuticals Private Limited and Zydus Lifesciences Limited (formerly Cadila Healthcare) on May 2 announced the conclusion of their joint venture (JV) – Bayer Zydus Pharma Private Limited (BZPPL). The announcement came after Bayer acquired the remaining 25 percent stake in Bayer Zydus Pharma to secure full ownership.
The 50:50 joint venture was established on January 28, 2011, for the sales and marketing of pharmaceutical products in India. Bayer is now securing full ownership of the entity, as per pre-agreed JV terms.
The JV successfully leveraged the strengths of both companies to better serve the fast-growing Indian market, said the company in a release.
Adani Enterprises received 2 show cause notices from Sebi
Adani Enterprises Ltd on Thursday said that the company received two show cause notices from markets regulator Securities and Exchange Board of India (Sebi) as part of its ongoing investigation in Hindenburg’s report against the conglomerate.
In its Q4 earnings release, Adani Enterprises said that during the quarter ended March 31, 2024, the company received notices from Sebi alleging non-compliance with provisions of the Listing Agreement and LODR (Listing Obligations and Disclosure Requirements) Regulations pertaining to related-party transactions with respect of certain transactions with third parties as well as the validity of peer review certificates of statutory auditors with respect to earlier years.
Coal India Q4 net profit rises 26% to Rs 8,640.5 crore
Coal India Ltd (CIL) on May 2 reported a 26-percent rise in consolidated net profit at Rs 8,640.5 crore for the quarter ended March 31, 2024. The government-owned company had reported a net profit of Rs 6,869.5 crore in the year-ago period.
There was rise in CIL’s bottom line despite its revenue from operations falling nearly 2 percent to Rs 37,410.4 crore in the quarter under review, from Rs 38,152.3 crore in the same quarter last year.
Moreover, CIL’s consolidated sales also fell to Rs 39,654.4 crore in the January-March period from Rs 40,371.5 in the corresponding period of the previous fiscal year, a decrease of 1.8 percent.
The state-owned company also said that the board has declared its third interim dividend for the financial year 2023-24 at Rs 5 per share.
Coforge to buy 54% in Cigniti Technologies at Rs 1,415 per share
Coforge is set to acquire a 54-percent stake in Cigniti Technologies at Rs 1,415 per share, the company informed the exchanges on May 2.
The share price of Rs 1,415 represents a premium of 3 percent over Cigniti’s May 2 closing price of Rs 1,372.65 on the BSE.
The firm, which has signed a definite agreement with the IT services management company, believes the acquisition will improve company’s operating margins by 150-200 bps by FY27 and help it grow to a $2-billion company.
Yen Update
The yen was headed for its best week in more than a year on Friday, helped by Tokyo’s suspected intervention this week to pull the Japanese currency away from 34-year lows, which also left the dollar broadly on the back foot.
The yen rose to a session-high of 152.895 per dollar in early Asia trade and was set to clock a weekly gain of more than 3%, its largest since December 2022. It was last more than 0.4% stronger at 152.96 per dollar.
Gold Prices
Gold retreated on Thursday as focus returned to chances of U.S. interest rates staying higher for longer, with traders also positioning for economic data that could influence the Federal Reserve’s policy path.
Spot gold fell 0.7%, to $2,301.59 per ounce, while U.S. gold futures for June delivery held steady at $2,311.10.
Crude
Oil prices edged up in early trade on Friday on the prospect of OPEC+ continuing output cuts, but the crude benchmarks were headed for weekly losses on U.S. economic uncertainty and limited crude supply disruptions caused by the Israel-Hamas war.
Brent crude futures for July rose 16 cents to $83.83 a barrel. U.S. West Texas Intermediate crude for June was up 19 cents to $79.14 per barrel.
FII and DII data
Foreign institutional investors (FIIs) net sold Rs 964.47 crore shares, while domestic institutional investors (DIIs) pumped in Rs 1,352.44 crore on May 2, provisional data from the NSE showed.
Stocks under F&O ban on NSE
The NSE has added Aditya Birla Fashion & Retail to the F&O ban list for May 3, while retaining Biocon and Vodafone Idea to the said list.
With inputs from Reuters and other agencies
