News

Published: May 16, 2023
Updated: May 16, 2023

Indian Share Market Poised for Positive Start as Nifty and Sensex Close with Gains

The Indian equity benchmarks, Nifty50 and Sensex, concluded Monday's trading session with a half-percent increase, reaching 18,398 and 62,345 points, respectively. Several sectors, including realty, FMCG, and banking, experienced notable gains, contributing to the overall market upswing. As the market gears up for Tuesday's session, it is expected to open on a positive note.

Market Indicators:

SGX Nifty: SGX Nifty futures, an early indicator of the Nifty 50 index, displayed an increase of 0.3% or 54.5 points, reaching 18,458, suggesting a positive start for the Indian share market.

Wall Street: The three main US indices posted modest gains, with the Dow Jones Industrial Average rising 0.1%, the S&P 500 gaining 0.3%, and the Nasdaq Composite adding 0.7%. Manufacturing data raised concerns about a potential slowdown in the US economy and ongoing debt ceiling negotiations.

Asian markets: Most Asian markets saw a positive start, with MSCI's broadest index of Asia Pacific shares outside Japan trading 0.3% higher. Japan's Nikkei 225, Hong Kong's Hang Seng, and South Korea's KOSPI recorded gains of nearly 1% each, while China's Shanghai Composite remained flat.

Foreign Exchange:

Rupee vs. Dollar: The rupee depreciated by 13 paise to close at 82.31 against the US dollar due to the strength of the dollar overseas. However, gains in domestic stocks and foreign fund inflows limited the rupee's fall.

Dollar Index: The dollar retraced from a five-week high as investors consolidated their gains and awaited news from Washington regarding the resolution of the debt ceiling issue. The dollar index, measuring the greenback against six major currencies, fell 0.3% to 102.40.

Commodities:

Crude Oil: Crude oil prices rebounded by $1 per barrel after three consecutive sessions of decline. The market was buoyed by the prospect of tightening supplies in Canada and elsewhere, although recession concerns continued to exert pressure. Brent crude futures settled at $75.2 per barrel, while US West Texas Intermediate crude settled at $71.1 per barrel.

Government Measures and Economic Factors:

Windfall Tax: The government has eliminated the windfall tax on petroleum crude, reducing it from Rs 4,100 ($50.1) per tonne to zero, effective May 16. However, the windfall tax on petrol, diesel, and aviation turbine fuel (ATF) remains unchanged at zero.

Q4 Results: Several prominent companies, including Indian Oil Corporation, Bharti Airtel, Bank of Baroda, LIC Housing Finance, Metropolis, and Oberoi Realty, are set to announce their Q4 earnings on Tuesday. On Monday, companies such as Berger Paints, PVR, Pfizer, Coromandel International, and Jindal Steel and Power reported their quarterly numbers.

Wholesale Inflation: India's Wholesale Price Index (WPI) experienced a year-on-year decline of 0.92% in April, the first drop in nearly three years. Prices softened across various categories, with the food index rising by 0.17% and fuel and power increasing by 0.93%.

FII and DII Flow: Foreign portfolio investors (FPIs) remained net buyers of Indian shares worth Rs 1,685.29 crore, while domestic institutional investors (DIIs) made net purchase of 191.20 crores according to data.