The market is expected to open in the green as trends in SGX Nifty indicate a positive opening for the broader index in India with a gain of 40 points.
The BSE Sensex lost nearly 1,000 points from the day's high to close with 137 points down at 52,794, and the Nifty50 failed to hold on to the psychological 16,000 mark, down 26 points at 15,782, and formed bearish candle on the daily charts on Friday.
As per the pivot charts, the key support level for the Nifty is placed at 15,654, followed by 15,526. If the index moves up, the key resistance levels to watch out for are 15,997 and 16,212.
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
Wall Street surged on Friday to end higher, closing the book on a week of wild market gyrations as relief at signs of peaking inflation vied with fears that policy tightening by the Federal Reserve could tilt the economy into recession.
Gains were led by a rebound in mega-cap tech and tech-adjacent stocks, which sold off in recent sessions as benchmark Treasury yields climbed and investors worried the Fed might hike interest rates more aggressively than expected.
The Dow Jones Industrial Average rose 466.36 points, or 1.47 percent, to 32,196.66, the S&P 500 gained 93.81 points, or 2.39 percent, to 4,023.89 and the Nasdaq Composite added 434.04 points, or 3.82 percent, to 11,805.00.
Asian Markets
Shares in the Asia Pacific rose on Monday as investors watched for a slew of Chinese economic data. Japan’s Nikkei 225 gained 1.54 percent, while the Topix advanced 0.93 percent in early trading.
The Kospi in South Korea rose 0.46 percent, and the Kosdaq was 1.43 percent higher. In Australia, the S&P/ASX 200 climbed 0.73 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.33 percent.
SGX Nifty
Trends in SGX Nifty indicate a positive opening for the broader index in India with a gain of 40 points. The Nifty futures were trading around 15,812 levels on the Singaporean exchange.
Oil jumps 4% as US gasoline prices hit record high
Oil prices rose about 4 percent on Friday as US gasoline prices jumped to a record high, China looked ready to ease pandemic restrictions and investors worried supplies will tighten if the European Union bans Russian oil.
Brent futures rose $4.10, or 3.8 percent, to settle at $111.55 a barrel. US West Texas Intermediate (WTI) crude rose $4.36, or 4.1 percent, to settle at $110.49.
Foreign investors' relentless selling continues; pull out Rs 25,200 crore from equity market in May so far
The relentless selling of Indian stocks by foreign investors continued, as they pulled out a little over Rs 25,200 crore from the Indian equity market in the first fortnight of this month, on hike in interest rate globally and concerns over rising COVID cases.
Foreign portfolio investors (FPIs) remained net sellers for seven months to April 2022, withdrawing a massive net amount of over Rs 1.65 lakh crore from equities. Going ahead, FPIs selling will continue in the coming weeks as heat waves in the market and outside will make investors sweat a bit more, Vijay Singhania, Chairman, TradeSmart, said, adding that the selling has resulted in FPI’s stake in Indian companies falling to 19.5 percent, the lowest since March 2019.
Results on May 16
Bharat Forge, MCX India, Ami Organics, Century Plyboards, Dodla Dairy, Fino Payments Bank, Glaxosmithkline Pharmaceuticals, Greenply Industries, GRM Overseas, Max Ventures and Industries, Nava Bharat Ventures, Omkar Speciality Chemicals, RateGain Travel Technologies, Raymond, Shankara Building Products, Uttam Sugar Mills, and VIP Industries will be in focus ahead of March quarter earnings on May 16.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 3,780.08 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 3,169.62 crore worth of shares on May 13, as per provisional data available on the NSE.
RBI to raise rates again in June but not clear by how much: Reuters poll
The Reserve Bank of India will follow its surprise May rate rise with another hike at its meeting next month, according to a majority of analysts polled by Reuters who were exceptionally split on the size of the move. India's retail inflation accelerated to an eight-year high in April, remaining above the central bank's tolerance limit for a fourth month in a row, and is likely to stay elevated.
In the latest Reuters poll, over a quarter of economists, 14 of 53, expected the RBI to hike by 35 basis points to 4.75 percent next month, while 20 expected a larger move ranging from 40-75 basis points, including ten who forecast a 50 basis point hike.
Adani to buy Holcim’s stake in Ambuja Cements and ACC for $10.5 billion to seal largest infra and materials deal in India
The Adani Family, through an offshore special purpose vehicle, announced on May 15 that it had entered into definitive agreements for the acquisition of Switzerland-based Holcim Ltd’s entire stake in two of India’s leading cement companies – Ambuja Cements Ltd and ACC Ltd.
Holcim, through its subsidiaries, holds 63.19 percent in Ambuja Cements and 54.53 percent in ACC (of which 50.05 percent is held through Ambuja Cements). The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is about $10.5 billion, which makes this the largest ever acquisition by Adani, and India’s largest ever M&A transaction in the infrastructure and materials space.
Stocks under F&O ban on NSE
Three stocks - GNFC, Indiabulls Housing Finance, and Punjab National Bank - are under the F&O ban for May 16. 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.
Twitter shares slump as Musk puts $44 billion acquisition deal on hold
Elon Musk on Friday put his $44-billion deal for Twitter Inc temporarily on hold, citing pending details in support of calculation that spam and fake accounts indeed represent less than 5% of users.
Shares of the social media company fell 17.7% to $37.10 in premarket trading, their lowest level since Musk disclosed his stake in the company in early April and subsequently made a "best and final" offer to take it private for $54.20 per share.
The implied probability of the deal closing at the agreed price fell below 50% for the first time on Tuesday, when Twitter shares dropped below $46.75.
With inputs from Reuters and other agencies