The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a negative opening for the index in India with a 80 points loss.
The BSE Sensex gained 374.87 points to 48,080.67 on April 22 while the Nifty50 rallied 109.80 points to 14,406.20. According to pivot charts, the key support levels for the Nifty are placed at 14,230.13, followed by 14,054.07. If the index moves up, the key resistance levels to watch out for are 14,503.53 and 14,600.87 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:
US Markets
Equity markets across the world fell on Thursday weighed by Wall Street after reports that the Biden administration will propose a sharp increase to capital gains tax, while the dollar index rose as the euro and pound gave back recent gains.
The Dow Jones Industrial Average fell 321.41 points, or 0.94%, to 33,815.9, the S&P 500 lost 38.44 points, or 0.92%, to 4,134.98 and the Nasdaq Composite dropped 131.81 points, or 0.94%, to 13,818.41.
Asian Markets
Asian markets declined following an overnight drop on Wall Street. The Nikkei 225 fell 1.36% in early trade while the Topix index shed 0.88%. South Korea’s Kospi dipped 0.92%. Shares in Australia also edged lower as the S&P/ASX 200 shed 0.14%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the index in India with a 80 points loss. The Nifty futures were trading at 14,322 on the Singaporean Exchange around 07:30 hours IST.
Commercial banks can pay 50% of pre-COVID dividend for FY21, says RBI
The Reserve Bank of India (RBI) on April 22 said commercial banks can pay up to 50 percent of what they could pre-COVID on equity shares from the profits for the financial year ended March 31, 2021.
For FY20, the RBI had asked banks not to make any dividend payment on equity shares from the profits in view of the ongoing stress and heightened uncertainty on account of COVID-19. This was asked to make sure banks continue to conserve capital to support the economy and absorb losses.
This rule has been relaxed for FY21.
Power Grid may launch landmark Rs 7,700 crore InvIT IPO on April 29, first ever by a PSU in India
Electricity transmission company Power Grid Corporation of India is preparing to launch the first ever InvIT (infrastructure investment trust) IPO by a state-owned firm, on April 29, marking a landmark deal for the Indian capital markets, people with knowledge of the matter told Moneycontrol.
“ This is a big transaction and the size of the IPO is likely to be around Rs 7,700 crore, with a primary component of around Rs 4500 crores and the balance making up the secondary component. The price band is likely to be announced on April 29,” said one of the persons cited above.
Fitch affirms BBB- rating, says COVID surge may delay economic recovery
Fitch Ratings on Thursday said the resurgence of COVID-19 infections may delay India's economic recovery, but won't derail it, as it kept the sovereign rating unchanged at 'BBB-' with a negative outlook.
It projected a 12.8 per cent recovery in GDP in the fiscal year ending March 2022 (FY22), moderating to 5.8 per cent in FY23, from an estimated contraction of 7.5 per cent in 2020-21. Fitch had in June last year revised outlook for India to 'negative' from 'stable' on grounds that the coronavirus pandemic had significantly weakened the country's growth outlook and exposed the challenges associated with a high public debt burden.
US jobless claims hit 13-month low
The number of Americans applying for unemployment aid fell last week to 547,000, a new low since the pandemic struck and a further encouraging sign that layoffs are slowing on the strength of an improving job market.
The Labor Department said on Thursday that applications declined 39,000 from a revised 586,000 a week earlier. Weekly jobless claims are down sharply from a peak of 900,000 in early January. At the same time, they’re still far above the roughly 250,000 level that prevailed before the viral outbreak ripped through the economy in March of last year.
Results on April 23
HCL Technologies, Indiabulls Real Estate, Mahindra & Mahindra Financial Services, Aditya Birla Money, Bombay Wire Ropes, Control Print, GNA Axles, Integrated Capital Services, Medinova Diagnostic Services, Oriental Hotels, Pranavaditya Spinning Mills, Radix Industries (India), Shiva Cement, Smruthi Organics and Wendt (India) will release their quarterly numbers.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 909.56 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 849.98 crore in the Indian equity market on April 22, as per provisional data available on the NSE.
3 stocks under F&O ban on NSE
Indiabulls Housing Finance, SAIL and Sun TV Network are under the F&O ban for April 23. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters & other agencies.