The stock slide, rising bond yields and dollar strength are tightening financial conditions ahead of looming U.S., U.K. and Australian interest-rate hikes, while price pressures are being stoked by the elevated cost of commodities ranging from fuel to food, in part due to disruptions from Russia’s war in Ukraine.
Jet fuel prices hit record high
Jet fuel prices on Sunday were hiked by 3.22% to an all-time high, reflecting a surge in global energy prices. This was the ninth straight increase this year.
The price of aviation turbine fuel (ATF) was raised by ₹3,649.13 per kilolitre, or 3.22%, to ₹1,16,851.46 per kl ( ₹116.8 per litre) in the national capital, according to a price notification of state-owned fuel retailers.
Stocks to Watch
Shares of RIL, HDFC, Maruti, Wipro, Yes Bank, Tata Motors, Adani group will be in focus today.
HDFC, Britannia Industries, Alembic Pharmaceuticals, Adani Wilmar, Castrol India, Devyani International, IDBI Bank, Inox Leisure, JBM Auto, Jindal Stainless, Mahindra & Mahindra Financial Services, Meghmani Organics are among the key companies scheduled to announce their earnings today
LIC IPO may spur opening of more demat accounts
es and Exchange Board of India showed. In FY21, the demat tally had risen nearly 35% to 55.1 million.
The relentless rally in stocks since the outbreak of the pandemic has lured younger and tech-savvy cohorts. (Read here)
Slowing coal, crude oil output drags down core sector growth
Growth in the eight infrastructure sectors of the economy slowed in March after recovering to a four-month high in the previous month after supply-side disruptions caused a contraction in coal and crude oil output and a slowdown in some others.
The sectors—coal, crude, natural gas, refinery products, fertilizers, cement, steel and electricity—expanded by 4.3% in March from 6% in February, data released by the ministry of commerce and industry showed on Friday. However, fertilizers, cement and electricity posted a swift recovery.
Market directionless, 16900-16800 key support: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
With the last two weeks of range-bound movement, the daily time frame chart exhibits a ‘Triangle’ pattern and prices are inching closer to their apex point. Hence, the breakout in either direction is imminent. As of now, we expect it to happen in the northward direction where 17400 – 17450 are the levels to watch out for. The moment we surpass this, we could see a lot of individual stocks participating in the next leg of the rally. This view would be negated if the index slides and sustains below the lower range.
Most of the key indices are placed at a crucial juncture and they are waiting for some trigger to make a move. We hope to witness a much-awaited breakout in the early part of May which will certainly bring back a wider smile in the traders’ fraternity.
Oil falls on China growth concerns even as EU weighs Russia import ban
Oil prices fell on Monday in holiday-sapped trade in Asia as concerns about slowing economic growth in China, the world’s top oil importer, outweighed fears of potential supply disruptions from a looming European Union ban on Russian crude.
Brent crude futures fell $1.21, or 1.1%, to $105.93 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 99 cents, or 1%, to $103.70 a barrel. Markets in Japan, India and across Southeast Asia were closed for public holidays on Monday.
Prices fell after China released data on Saturday showing that factory activity in the world’s second-largest economy contracted for a second month to its lowest since February 2020 because of COVID lockdowns.
SGX Nifty falls over 200 points
Nifty futures on the Singapore Exchange fell 266.50 points, or 1.56%, to 16,860 in early deals on Monday, signalling a weak start for Indian benchmarks.
On Friday, the benchmark Sensex fell 460 points to close at closed at 57,060.87, led by losses in banking, IT, and energy shares. The Nifty tanked 142.50 points to end the day at 17,102.55.
Asia shares fall as inflation, Fed tightening, China covid lockdowns weigh
Stock markets in Japan, Australia, and South Korea fell on Monday, while US equity futures struggled as high inflation, tightening monetary policy and China’s Covid lockdowns deepened concerns about the global economic outlook.
Markets in China, Hong Kong, Indonesia, Singapore, Taiwan, and Thailand are closed on Monday for public holidays.
S&P 500 futures rose 0.1% and Nasdaq 100 futures climbed 0.2%.
Japan’s Topix index shed 0.2%, Australia’s S&P/ASX 200 Index fell 1.1%, and South Korea’s Kospi index fell 0.7%.
The Federal Reserve is expected to raise rates by a half point Wednesday, the largest increase since 2000. The question is how high it needs to go to get runaway inflation under control and whether that will trigger a recession.
On Friday, the Dow Jones Industrial Average slumped more than 900 points as another sharp sell-off led by technology stocks added to Wall Street’s losses in April. The benchmark S&P 500 fell 3.6% and finished April with an 8.8% loss, its worst monthly slide since March 2020. The Nasdaq composite, heavily weighted with technology stocks, bore the brunt of the damage this month, ending April with a 13.3% loss, its biggest monthly decline since the 2008 financial crisis.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!