The markets are performing just as expected. Beyond the level of 14700, it is now headed to 15000-15100 which should be the first pit stop. If we can sustain there, the next level should be the previous high of 15300-15350. 14300 is now a strong support for the Nifty and any downward correction can be utilized to enter the index for higher targets. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
On the domestic side, the equity market is likely to extend it gains following the strength in the global market post Fed announcement. Further, it will take cues from the domestic Covid cases and vaccination development. In fresh issuance, the focus will be on just the second IPO for the month- PowerGrid Infrastructure Investment Trust IPO; which will be raising Rs. 7,734 crore from the market. This could attract some flows and could be supportive to the equity market. However, Maharashtra’s lockdown extension and vaccine shortage news could cap the upside and hence rupee could be seen limiting its gains upt o 74.20-30 levels and expected to weaken again upto 74.80-75.00 levels in the near term. The focus shift to US advance GDP data which is expected to be at 6.8%. Amit Pabari, managing director, CR Forex Advisors
Gold gained momentum after the US Fed’s pledge for an accommodative fiscal policy stance in yesterday’s policy meeting. Concerns over the economic impact of the second wave of corona pandemic and a softer US dollar also benefited the yellow metal. Meanwhile, a steady equity market and signs of economic recovery in the US and China may dent major gains in the commodity. Prices will continue with mild positive bias as long as $1760 hold the downside. Anyhow, major rallies are expected only if it breaks the next upside obstacle of $1820. A close below $1720 is a sign of immediate trend reversal. Hareesh V, Research Head Commodities at Geojit Financial Services
Out of 30 Sensex shares, 29 were trading in the positive territory. IndusInd Bank, Axis Bank, Bajaj Finserv were the top leaders. While HCL Tech was the only loser on the index
Index heavyweights such as Reliance Industries Ltd (RIL), HDFC Bank, Housing Development Finance Corporation (HDFC), Axis Bank and ICICI Bank among others contributed the most to the indices’ gain
Sensex surged 567 points or 1.14 per cent to 50,300, while Nifty 50 index surpassed the crucial 15,000 level on Thursday
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COMEX gold trades about 0.8% higher near $1788/oz after a 0.3% decline yesterday. Gold has edged up as the US dollar index slumped to 1-month low on back of Fed’s decision to maintain its accommodative stance despite improving outlook for the US economy. Also supporting gold is hopes of additional stimulus measures by the Biden administration. However, weighing on price is weaker investor buying and concerns about Indian demand. Gold may remain choppy reflecting trend in US dollar as market players counter Fed’s dovish stance against improving economic outlook. Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
Bajaj Auto, Maruti Suzuki, RIL and Power Grid Corporation of India were among top BSE Sensex gainers in the pre-open
“Markets are poised to open yet another day with stronger gains on the back of the stimulus from the US president. US president Joe Biden has laid out a $1.8 trillion social support plan, in his address to Congress. The markets saw a strong run in the crude prices by Brent rallying over $67 per barrel close to a six week high prices. The AMC’s stocks will be in focus in today’s trading after the SEBI rule that top executives of asset management companies will now be paid 20% of their compensation in units of the schemes that they have a role in or oversight of with a lock-in period of 3 years. This way the goals of the Mutual fund Investors and the Investment managers will be aligned and help India to further deepen the Mutual fund Investor base,” said Mohit Nigam, Head, PMS, Hem Securities.
Sensex surged to a 12-day high and reclaimed 50,000, while the broader Nifty 50 index was ruling above 14,900 in the pre-open on Thursday.
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The AMCs’ stocks will be in focus in today’s trading after the SEBI rule that top executives of asset management companies will now be paid 20% of their compensation in units of the schemes that they have a role in or oversight of with a lock-in period of 3 years. This way the goals of the Mutual fund Investors and the Investment managers will be aligned and help India to further deepen the Mutual fund Investor base. Mohit Nigam, Head, PMS, Hem Securities
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Prices of Petrol and Diesel have remained unchanged for fourteen consecutive days now. Fuel prices were last cut on April 15 after having remained unchanged for fifteen days straight. Today, the Petrol price in Delhi is Rs 90.40 per litre, while Diesel prices were at Rs 80.73 per litre. Fuel prices remain the highest in Mumbai at Rs 96.83 per litre for Petrol. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
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As per management projections, Powergrid InvIT is likely to generate cash flow from operations at an average of Rs.11.7 bn over the next three years, which implies a 10% cash flow yield. We recommend to “Subscribe” this IPO as the sponsor is the mega player with many ongoing projects along with strong financial performance and stable cashflows. Marwadi Shares and Finance Ltd
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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