Trends on SGX Nifty suggest headline indices will see a gap-up opening on the day of the monthly expiry of the F&O contracts of April Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity market benchmarks BSE Sensex and Nifty 50 have been on a gaining spree for three straight days. Trends on SGX Nifty suggest headline indices will see a gap-up opening on the day of the monthly expiry of the F&O contracts of April due on Thursday. In the three-day rally, the 30-share Sensex has surged 1,855 points or 3.87 per cent. While the market capitalisation of BSE-listed companies jumped Rs 6,39,437.31 crore to Rs 2,08,76,479.11 crore in three days. Asian stock markets were trading higher in early trade on Thursday as US Federal Reserve decided to keep short-term interest rates near zero. Markets in Japan were closed for a holiday. South Korea’s Kospi gained 0.37 per cent while Australia’s S&P/ASX 200 climbed 0.32 per cent. In overnight trade on Wall Street, US stock indices ended lower following Fed’d decision. The Dow Jones Industrial Average fell nearly half a per cent, while the S&P 500 lost 0.08 per cent. The Nasdaq Composite dropped 0.28 per cent.
The Federal Reserve on Wednesday said that it wants to keep monetary policy loose for the foreseeable future even as it sees the economic recovery gaining pace and the risks from the pandemic starting to ebb. And in a speech to a joint session of Congress later on Wednesday, President Joe Biden will pitch new infrastructure and social spending programs that could add trillions of dollars to the economy in coming years, according to Reuters. The FOMC left its benchmark rate unchanged in the range of 0-0.25 per cent and maintained its monthly pace of bond buying at $120 billion.
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Domestic equities look to be good at the moment. Benchmark indices shrugged off continued rise in COVID-19 cases in this week. We note that absence of nationwide lockdown and high chances of reversal in cases by the end of May or mid of June’21 offered comfort. However, sharp rise in number of deaths and active cases crossing 3mn is a matter of concern for central and state governments and therefore any possibility of further economic restrictions cannot be ruled out by the state governments. Market is expected to remain volatile until we see a clear reversal in COVID-19 cases. In our view, central government will continue to handle this disaster by maintaining a fair balance between lives and livelihoods. Notably, enhanced economic restrictions imposed by states and government’s continued focus to increase supply of vaccines and allowing vaccines at private hospitals should be able to check spread of coronavirus in coming weeks. Binod Modi, Head Strategy at Reliance Securities
US equites finished lower after FOMC meeting outcome, which appeared to be a non-event. Federal Reserve kept policy rates unchanged and reiterated accommodative policy despite rising inflation. Federal Reserve’s Chairman Powell stressed that vaccination ramp up in the USA has strengthened the economy, but Federal Reserve is still committed to maintain loose policy until 8mn job lost in pandemic is recouped and inflation continues to track above 2% marks for sometimes. President Joe Biden proposed US$1.8 trillion on childcare, education and paid leave and increased top income tax rates from 37% to 39.6% for high income individuals. Capital gain tax was also proposed to raise from 20% to 39.6% for households earning more than US$1mn, which was mostly on expected lines. Binod Modi, Head Strategy at Reliance Securities
As many as 34 BSE-listed companies including Ambuja Cements, Agro Tech Foods, AU Small Finance Bank, Bajaj Auto, Exide Industries, Hindustan Unilever Ltd, Embassy Office Parks REIT, Mahindra Logistics, Inox Leisure, Tata Coffee, Titan Company, and Zensar Technologies, will declare their January-March quarter earnings on April 29.
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After showing a sign of strength with upside momentum on Tuesday, Nifty demonstrated another sharp upmove on Wednesday and closed the day higher by 211 points. After opening with upside gap of 57 points, Nifty shifted into a sustained upmove that continued for the entire session. Intraday consolidation or minor dips in between have been used as buy on dips opportunity for the day. The opening upside gap remains unfilled.
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On Wednesday, foreign institutional investors (FIIs) bought shares worth Rs 766 crore, while domestic institutional investors (DIIs) lapped up shares worth Rs 436 crore on a net basis in the Indian equity market.
Domestic equity markets are now on a three-day gaining streak but might face some volatility today owing to the monthly derivates expiry. S&P BSE Sensex currently sits at 49,773 points while the 50-stock NSE Nifty was above 14,850. On Thursday morning, SGX Nifty was trading in the green, hinting at a gap-up start for domestic equities. Meanwhile, despite a weak closing on Wall Street, stock markets in Asia were inching higher during the early hours of trade on Thursday.
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PowerGrid Infrastructure Investment Trust (InvIT) on Wednesday raised Rs 3,480 crore from anchor investors ahead of its initial public offer, which opens for subscription on Thursday. It has been decided to allocate 34.80 crore units at Rs 100 apiece to 47 anchor investors, aggregating the total to Rs 3,480.74 crore, according to a circular on BSE website.
In overnight trade on Wall Street, US stock indices ended lower following Fed’d decision. The Dow Jones Industrial Average fell nearly half a per cent, while the S&P 500 lost 0.08 per cent. The Nasdaq Composite dropped 0.28 per cent.
Asian stock markets were trading higher in early trade on Thursday as US Federal Reserve decided to keep short-term interest rates near zero. Markets in Japan were closed for a holiday. South Korea’s Kospi gained 0.37 per cent while Australia’s S&P/ASX 200 climbed 0.32 per cent.
PowerGrid Infrastructure Investment Trust (InvIT) IPO will open for subscription Thursday, making it the first InvIT to be sponsored by a state-run firm. PowerGrid InvIT is looking to raise Rs 7,735 crore through the issue which will include a fresh issue as well as an offer for sale (OFS) of existing units. PowerGrid InvIT would become only the third InvIT to be listed on the bourses after IndiaGrid Trust and IRB InvIT, both trading on BSE and NSE since 2017.
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