Market Live: Sensex jumps 700 pts, Nifty above 17,150; Banks, realty, auto shine

Stock Market LIVE Updates: Benchmark Indian equities opened higher on Tuesday. The indices rebounded strongly after making losses for the last two sessions. The 30-share BSE benchmark was trading 657.67 points higher at 57,237.56 in early trade, while the Nifty jumped 204.35 points to 17,158.30.

Indian indices witnessed a positive start on Tuesday amid mixed global trends. Global sentiments were uplifted after world's richest person Elon Musk clinched a deal to buy social media platform Twitter. The deal provided a boost to Wall Street as the indices reversed losses to end a volatile session higher. However, caution still prevails around the globe as renewed concerns over interest rate hikes, China's sputtering economy, and high commodity prices continue to spoil investors' mood. Oil prices took a hit, along with stocks in Europe, over concerns of Covid-19 outbreak in China, while Asian equities were mixed in early trade on Tuesday. Shares rose in Japan, South Korea, Shanghai, and Hong Kong, while that in Australia retreated. 

Asian shares advance on back of rally on Wall Street

Asian shares were mostly higher Tuesday after U.S. stocks stormed back from sharp losses to log strong gains.

Tokyo, Hong Kong, Seoul and Shanghai advanced while Sydney declined. Oil prices rose and U.S. futures also were higher.

South Korea reported that its economy grew at a 3.1% annual pace in the first quarter of the year, up 0.7% from the previous quarter, suggesting a rebound from the travails of the pandemic.

The government has recently lifted most COVID restrictions as case numbers have abated after a wave of the omicron variant.

Technical & derivatives report by Sameet Chavan of Angel One

The week started on a weak note as indicated by SGX Nifty and in the opening trades, itself Nifty was down below the psychological level of 17000. The sell-off extended to test sub-16900 levels and post some choppy intra-day move within a 100 points range Nifty eventually ended with a loss of 1.27% at 16954.

With yesterday’s selloff, the Nifty has reached a key support level at 16900 formed by a 50% retracement of the recent rally seen from the March swing low of 15671 to a recent high of 18114. During the day, even though the momentum was mainly on the downside there were a couple of intraday attempts of bouncing from the mentioned support levels. Now, It would be crucial to see how things pan out in today’s session and if the Nifty sustains below 16900 then one should brace up for challenging times going ahead where 16600 and below levels may be retested. The only bright picture for the session was the Bank Nifty which ended slightly in green and showed some relative strength as compared to the benchmark. If the Nifty has to hold the key supports then the bank nifty plays a key role and needs to show a strong performance from hereon. On the flip side, the bulls have a daunting task as resistance can be seen at every 100 points (rounded off), and for them to make a comeback have to close above 17400 with some authority. Immediate, resistance is seen around, 17050 and 17200 levels. As far as trading is concerned, opportunities are seen on both ends but one needs to be very fussy in-stock selection.

Yash Gupta of Angel One on LIC IPO

LIC IPO to open for subscription from 4th May to 9th May 2022. The issue size of the IPO is ₹21,000 Cr with a valuation of ₹6,00,000 crores. The government expected to dilute 3.5% of their holding with an option to increase by 1.5%.

Earlier it was expected that the valuations will be around ₹13,00,000 crores but now it will be around ₹6,00,000 crores and embedded values are around ₹5,40,000 crores, so the LIC IPO is valued at around 1.1 times of its embedded value. Private players are trading at around valuations of 2-3 times of embedded value. This ₹6,00,000 crores LIC valuation looks Lucrative.

Market likely to remain volatile this week: Mitul Shah, head of research at Reliance Securities

U.S. equities ended higher led by rally in technology and other growth stocks. The S&P 500 rose 0.6% in a volatile session, the Dow Jones gained 0.7% while the tech-heavy Nasdaq, gained 1.3%. The yield on the benchmark 10-year Treasury note tumbled to 2.825%. Brent crude prices declined ~5% to end at $100 per barrel. Moreover, shares of social-media giant Twitter rose 5.6% after it accepted Tesla CEO Elon Musk’s $44bn takeover deal. Markets are likely to remain volatile due to strict policies and lockdowns China has in place to combat Covid-19, which might further disrupt global supply chains.

Domestic equities closed lower following weak global cues as concerns over worsening inflation have compelled investors to expect a faster rise in interest rates. Nifty declined 1.3% while broader markets underperformed in comparison to the main indices. Nifty MidCap and Nifty SmallCap tumbled 2.2% and 2.4% respectively. Most sectoral indices ended in red. Nifty Reality was the biggest laggard which plummeted 3.8%, followed by Nifty Metal and Nifty Media which dropped 2.9% and 2.2% respectively. Furthermore, the Federal Reserve’s hawkish tone, Russia-Ukraine crisis and surging COVID cases around the world continue to affect the market sentiments. FIIs net sold shares worth ₹3,303 crore while DIIs net bought shares worth Rs1,870 crore.

The market is likely to remain volatile this week as traders roll over their positions in the F&O segment from the April series to May series. The next batch of Q4 results and management commentary, global stock market trends, and the movement of rupee and crude oil prices are likely to assess market sentiments in the near future. Moreover, the ongoing Russia-Ukraine crisis and sanctioning of Russian products would have high negative bearings on global and Indian equities. The markets are likely to see gap up opening, SGX nifty is up 190 points compared to Yesterday’s spot Nifty closing. Asian markets trading in green with Nikkei is up 0.5%, while Hang Seng is up 0.7%.

Indian investors lose over ₹6.47 lakh crore in two days

Investors' wealth tumbled over ₹6.47 lakh crore in two days of market crash amid weak cues from global markets.

On Monday, BSE benchmark Sensex dived 617.26 points or 1.08 per cent to end at 56,579.89. During the day, it plummeted 840.28 points or 1.46 per cent to 56,356.87.

On Friday, the Sensex tanked 714.53 points or 1.23 per cent to settle at 57,197.15.

The two-day fall in equities wiped out ₹6,47,484.72 crore, bringing the market capitalisation of BSE-listed firms to ₹2,65,29,671.65 crore.

Oil steadies after sinking below $100 on China’s virus lockdowns

Oil steadied after falling below $100 a barrel as China’s Covid-19 resurgence raised concerns about the outlook for global demand.

West Texas Intermediate futures edged higher after sliding around 5% over the previous two sessions. China expanded virus testing to most of Beijing, with rising cases prompting fears about an unprecedented lockdown of the capital. The world’s biggest crude importer is sticking with its Covid Zero strategy that’s hobbled large parts of the economy and sapped fuel consumption.

Oil has now given up most of the gains since Russia’s invasion of Ukraine in late February following a tumultuous period of trading. The war has led to the U.S. and U.K. banning Russian crude imports, while the European Union is considering similar measures as the conflict continues.

Palm oil rises as traders weigh severity of Indonesia export ban

Palm oil rebounded as traders assessed the severity of Indonesia’s ban on cooking oil exports that sparked wild swings in the market.

Fears of a complete ban eased as Indonesia said it will only halt exports of RBD palm olein, a product that has been processed, while shipments of crude palm oil can continue. The move has threatened to tighten global vegetable oil supplies at a time of soaring food inflation fueled by the war in Ukraine.

Palm oil is one of the most versatile staples, used in thousands of products from food to personal care items and biofuels. The move could increase costs for packaged food producers such as Nestle SA, Mondelez International Inc. and Unilever Plc, hitting products like biscuits, noodles, cakes and ice cream. It might also increase inflation risks for top importers like India and China.

Elon Musk to buy Twitter for $44B and take it private

Elon Musk reached an agreement to buy Twitter for roughly $44 billion on Monday, promising a more lenient touch to policing content on the social media platform where he — the world's richest person — promotes his interests, attacks critics and opines on a wide range of issues to more than 83 million followers.

The outspoken Tesla CEO has said he wanted to own and privatize Twitter because he thinks it’s not living up to its potential as a platform for free speech.

Musk said in a joint statement with Twitter that he wants to make the service “better than ever" with new features while getting rid of automated "spam'' accounts and making its algorithms open to the public to increase trust.

Asian markets mixed but China, Fed keep confidence in check

Asian markets were mixed Tuesday as investors scrabbled to recover from the previous day's rout but fears over the impact of China's Covid-induced lockdowns and the Federal Reserve's plan to hike interest rates quickly continue to drag on sentiment.

The Omicron flare-up across China has led authorities to impose strict containment measures in its biggest cities, shutting off millions of people and threatening to deal a hammer blow to the world's number two economy.

While Shanghai -- the largest city -- has been in lockdown for weeks, Beijing has launched mass testing for nearly all its 21 million residents with many in the capital now fearing the same fate as the financial hub.

The measures have dealt a severe blow to the economy, leading to concerns about the likely knock-on effects for the rest of the world owing to its reliance on goods from China.

The China crisis comes as traders grapple with a hawkish Fed, which is struggling to control inflation, which is sitting at a more than 40-year high.

Coal still top threat to global climate goals

The number of coal-fired power plants in the pipeline worldwide declined in 2021, according to research released Tuesday, but the fossil fuel most responsible for global warming still generated record CO2 emissions, threatening Paris climate goals.

Since the 195-nation treaty was inked in 2015, coal power capacity under construction or slated for development has dropped by three-quarters, including a 13-percent year-on-year decrease in 2021 to 457 gigawatts (GW).

Globally, there are more than 2,400 coal-fired power plants operating in 79 countries, with a total capacity of 2,100 GW.

A record-low 34 countries have new coal plants under consideration, down from 41 in January 2021, according to the annual Global Energy Monitor report, Tracking the Global Coal Plant Pipeline.

Bonds rise, stocks struggle amid China Covid worry

Asian stocks struggled to make progress Tuesday and bonds rose amid economic threats from China’s Covid outbreak and aggressive Federal Reserve monetary-policy tightening.

Equities were mixed in Japan, edged up in South Korea and slid in Australia, while U.S. futures wavered. Most of Beijing is being tested for the virus, subduing sentiment by fanning fears of an unprecedented lockdown in the city.

Treasuries climbed along with sovereign notes in Australia and New Zealand. That reflected demand for havens as investors fret over the risk of global economic downturn. A gauge of the dollar pared an advance.

The yuan pared its biggest loss since 2015 after the People’s Bank of China cut the amount of money banks must set aside in reserve for foreign-currency holdings, effectively increasing the supply of dollars in the domestic market.

Oil held a retreat below $100 a barrel, weighed down by the threat to demand from China. The virus outbreak in the world’s biggest crude importer is another source of commodity-market volatility alongside Russia’s invasion of Ukraine.

IMF warns of 'stagflationary' risks in Asia, cuts growth outlook

The Asian region faces a "stagflationary" outlook, a senior International Monetary Fund (IMF) official warned on Tuesday, citing the Ukraine war, spike in commodity costs and a slowdown in China as creating significant uncertainty.

While Asia's trade and financial exposures to Russia and Ukraine are limited, the region's economies will be affected by the crisis through higher commodity prices and slower growth in European trading partners, said Anne-Marie Gulde-Wolf, acting director of the IMF's Asia and Pacific Department.

Moreover, she noted that inflation in Asia is also starting to pick up at a time when China's economic slowdown is adding to pressure on regional growth.

Tokyo stocks open higher after US gains

Tokyo stocks opened higher on Tuesday as investors cheered gains on Wall Street while keeping a cautious eye on Chinese shares.

The benchmark Nikkei 225 index added 0.59 percent, or 155.59 points, at 26,746.37, while the broader Topix index firmed 0.36 percent, or 6.69 points, to 1,884.09.

The dollar stood at 127.59 yen, off from 128.15 yen on Monday in New York.

Shares tracked US gains after the Dow closed up 0.7 percent while the tech-rich Nasdaq index added 1.3 percent.

But the market may lose its sense of direction later in the day, analysts said, ahead of a set of public holidays known in Japan as Golden Week.

Traders in Tokyo will take a break on Friday. Then, after operating normally on Monday, the market will close for three straight days before reopening on Friday April 6.

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