ONGC considers raising stakes in Russian oil fieldsONGC is weighing the options of placing more bids for the stakes of Western companies in multiple Russian oil and gas fields, even as its first bid for Shell’s 50 percent stake in Salym fields in Siberia has not been accepted. The company is looking at an option to bid for Shell’s 27.5 percent interest in the Sakhalin-II oil and gas project and ExxonMobil’s 30 percent stake in the Sakhalin-I project.
BSE Realty index shed 3 percent dragged by the DLF, Indiabulls Real Estate, Macrotech Developers
Central government to continue with capex push in 2022-23
The government will not cut capital expenditure in the current fiscal year, finance secretary TV Somanathan said.
The government has budgeted Rs 7.5 trillion capital expenditure in 2022-23 compared with a revised Rs 6.03 trillion capex in the year ended March.
Ukraine-Russia crisis won’t derail recovery in Indian economy, says Moody’s
Global rating agency Moody’s Investor Service does not see the Russia-Ukraine war to derail India’s economic recovery as the country has come back on track following a gruelling COVID-19 pandemic, the rating agency said in a note.
“Several months into the conflict, fears over the impact have moderated,” Moody’s said in the ‘Banking–Emerging markets: New risks from Ukraine conflict create diverging paths for emerging market banks’ note.
The rating agency said that it expects India’s real GDP to grow at 8.2 percent in 2022-23, the fastest expansion among G20 countries, partly reflecting ongoing base effects from pandemic-led disruptions.
Gainer and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened gap-down on May 19 with Nifty below 16000 amid weak global cues.
At 09:16 IST, the Sensex was down 900.65 points or 1.66% at 53307.88, and the Nifty was down 268.90 points or 1.66% at 15971.40. About 370 shares have advanced, 1629 shares declined, and 73 shares are unchanged.
All stocks on BSE Sensex and Nifty50 were trading in the red. JSW Steel, Tata Steel, Tech Mahindra, Wipro and Hindalco Industries were among major losers on the Nifty.
Mohit Nigam, Head – PMS, Hem Securities:
Indian benchmark indices are set to face heavy turbulence today amid negative global market cues. US markets saw the worst sell off since June 2020 as inflation fear looms. Retail major Target Corp’s quarterly results dropped drastically and has hinted towards further shrinkage in margins owing to rising fuel and freight cost. The scrip fell by almost 25% thus, losing quarter of its market capitalisation.
A day before, Walmart Inc posted its results and has pruned its earning forecast. Indian economy is set to face jitters due to rising inflation in US thus, making further interest rate hikes all the more important.
On the technical front, the key resistance level for Nifty50 is 16,350 followed by 16400 and on the downside 15,900 and 15,750 will act as strong support. They key resistance level for Bank Nifty is 34,500 followed by 34,800 and on the downside 33,500 and 33,100 will act as strong support.
Indian rupee opened 11 paise lower at 77.69 per dollar Thursday on against previous close of 77.58.
Petrol, diesel rates Update:
Prices of petrol and diesel have remained steady for over 40 days now. Since the end of a four-and-a-half-month-long stop in rate revision on March 22, rates of petrol and diesel have increased by Rs 10 a litre each through 14 revisions. Fuel prices were last hiked on April 6 by 80 paise a litre each.
According to a price notification from fuel retailers, petrol in Delhi costs Rs 105.41 a litre and diesel Rs 96.67 a litre.
In Mumbai, petrol and diesel prices are at Rs 120.51 and Rs 104.77 respectively. In Chennai, petrol costs Rs 110.85 and diesel Rs 100.94. In Kolkata, petrol is at Rs 115.12 and diesel Rs 99.83.
Market at pre-open: Benchmark indices are trading weak in the pre-opening session with Nifty below 15900.
At 09:02 IST, the Sensex was down 1,023.65 points or 1.89% at 53184.88, and the Nifty was down 350.40 points or 2.16% at 15889.90.
Aether Industries sets price band at Rs 610-642
Speciality chemicals company Aether Industries Ltd has set a price band of Rs 610-642 a share for initial public offering. Earlier, the firm said its IPO will open on May 24 for subscription and close on May 26.
The basis of allotment expected on May 31, credit of shares expected on Jun 2 and the firm may be listed on exchanges on June 3.
The IPO consists of a fresh issue of Rs 627 crore and an offer-for-sale of up to 2.82 million shares by its existing shareholders and promoters.
On the upper end of the price band, the firm will raise around Rs 801 crore.
Prashanth Tapse, Vice President (Research), Mehta Equities:
Markets could be in for a bearish start, tracking overnight slump in US markets and subsequent fall in the SGX Nifty. Deteriorating macro sentiments such as soaring inflation, recession fears, and the prospect of the Federal Reserve getting even more hawkish will continue keep benchmarks on the edge.
Another main reason for the pessimism can be attributed to relentless selling from the FII camp. FIIs continue to be net sellers for the 8th straight month since October 2021. They have sold shares worth Rs 37,937 crore in the month of May so far.
Technically, the sell-off on Dalal Street will gain steam if Nifty slips below 15971 mark. Below the same, the index could swiftly slip to 15671 mark. Bulls have a chance to fight only above the 16411 mark.