Morning Alert.. *Soft US inflation data pushes markets higher; | Equity99
Morning Alert..
*Soft US inflation data pushes markets higher; Sensex gains 677 points*
Benchmark indices rose nearly a per cent as softer-than-expected US consumer inflation renewed hopes of at least two interest rate cuts in 2024. After swinging wildly, the Sensex ended the session at 73,664, with a gain of 677 points or 0.9 per cent, while Nifty ended the session at 22,404, with a gain of 203 points or 0.9 per cent. This was the biggest gain for both indices since April 29. The Sensex fluctuated between 72,530 and a high of 73,750 in intra-day trade as moderating inflation data kept sentiment buoyant but sustained selling by foreign funds, and election uncertainty stoked volatility. The pace of foreign portfolio investor (FPI) selling, however, moderated on Thursday. They sold shares worth Rs 777 crore, while domestic institutional investors (DIIs) provided buying support of Rs 2,128 crore. So far this month, FPIs have sold shares worth nearly $3.5 billion (Rs 28,000 crore) amid a muddled outlook around US rate cuts. Besides, experts say rotation out of India and into China due to favourable valuations also contributed to FPI selling.
*Lower crude oil prices likely to tilt imports towards Iraq and UAE*
Industry sources have said that crude oil purchases in the first quarter (April-June) of 2024-25 would remain tilted towards Russia if Brent crude prices remain above $81 per barrel, officials at state-owned refiners said. However, it may swing towards crude from Iraq and the United Arab Emirates (UAE) if prices fall beyond that level, even if for a few days, they added. On Wednesday, crude oil prices fell to a two-month low of Rs 79.87 per barrel due to low demand growth predicted by the International Energy Agency. Brent Last Day Financial prices stood at Rs 80.38 at the time of writing this report on Thursday. While India is keen on diversifying its sources of crude and wants to raise the share of traditional partners like Iraq, Saudi Arabia, and the UAE in the import mix, the levels of discounts offered by Russia in the short term are expected to remain higher, refinery officials said. After shrinking for a few months in May last year, the level of discount rebounded later in the year. It has remained in the range of $4-6 per barrel in 2024 so far.
* Global market action*
Dow Jones – Down by 0.06% or 24.80 points
FTSE – Down by 0.08% or 7.15 points
CAC – Down by 0.63% or 51.50 points
DAX – Down by 0.69% or 130.55 points
Gift Nifty – Up by 0.01% or 1.50 points
*FII/DII activities*
FII – Sold 776.49Cr worth of shares
DII – Bought 2127.81Cr worth of shares.
*Stocks with high delivery Percentage*
Century Plyboards (India) Ltd – 93.2%
AIA Engineering Ltd – 93.1%
Westlife Foodworld Ltd – 92.7%
Ratnamani Metals & Tubes Ltd – 90.3%
Avenue Supermarts Ltd – 83.6%
*Primary market Activities*
Listing today
Premier Roadlines Ltd (NSE SME) – Subscribed 117.57x
Aztec Fluids & Machinery Ltd (BSE SME) – Subscribed 218.38x
Piotex Industries Ltd (BSE SME) – Subscribed 107.44x
*Commodities updates*
Gold – Rs 75380/10gm, Silver – Rs 87330/10gm, Brcrude – Rs 6618/barrel, Copper – Rs 894.75/kg.
*Corporate News*
Auto major M&M shifts to high gear with Rs 37,000 crore investments.
Anil Agarwal-led Vedanta's board approves fundraise of up to Rs 8,500 cr.
Voda Idea Q4 results: Net loss widens to Rs 7,674 cr, Arpu at Rs 146.
