Reside inventory change updates: Sensex opens over 250 factors increased, Nifty over 14,750; FMCG, IT shares win
Morning market quote from VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
“There are two macro numbers that will have a huge impact on the markets. External US inflation numbers and internal India’s Covid data. The jury is still ignorant of US inflation as the Fed claims that inflation is rising in the April is temporary and many economists & market experts believe that inflation will continue to rise to force the Fed to taper earlier than expected. We’ll have to wait and see how the inflation scenario develops. The other number, India’s Covid data, suggests The recent number at 2.81 lakhs is very positive indeed, and the recovery numbers at 3.78 lakhs indicate a steady decline in the total number of cases, which means that the currently increasing lockdowns will be a passing phase that the market is likely to ignore will likely result in unexpectedly poor GDP and first quarter earnings of fiscal year 22, as a trend reversal is imminent in the following quarters. “
Opening Bell: Sensex opens over 250 points higher, Nifty over 14,750; FMCG, IT stocks win
The Indian indices opened higher on Monday after cautious gains from Asian competitors as Chinese retail sales data fell short of expectations despite industrial production remaining solid. Purchasing was located in all key sectors, with banking, finance and FMCG leading the way. At 9:18 a.m., the Sensex rose 282 points to 49,015 while the Nifty rose 78 points to 14,756. The broader markets were also higher, with the mid-cap and small-cap indices each gaining around one percent. On the Nifty50 index, UPL, ITC, L&T, ONGC and SBI were the top winners, while Sun Pharma, Titan, Tata Steel, Cipla and Asian Paints led the losses.
Asian stocks listless due to mixed China data
Asian equity markets were mixed on Monday as Chinese retail sales data fell short of expectations, although industrial production remained solid, while more evidence of global inflationary pressures helped gold hit a three-month high. Chinese retail sales rose 17.7 percent year over year in April, falling short of projections for a 24.8 percent jump, while industrial production was in line with expectations, rising 9.8 percent. The broadest MSCI index for stocks in the Asia-Pacific region outside Japan rose 0.2 percent, moving further from a four-month low last week. Chinese blue chips proved to be robust with an increase of 1.8 percent. The Japanese Nikkei lost 0.7 percent after also hitting its lowest level since early January last week.
According to China, retail sales rose 17.7% in April, which was in line with expectations
China said Monday that consumer spending grew more slowly than expected in April. Retail sales rose 17.7% year over year last month, the National Bureau of Statistics said on Monday. According to analysts polled by Reuters, this fell short of expectations of 24.9% growth in April. Retail sales in April also slowed from 34.2% year over year in March. Industrial production rose 9.8% in April, in line with Reuters’ expectations. Fixed investment rose 19.9% in the first four months of the year, slightly above the 19% forecast by a Reuters survey.
Supriya Lifescience submits IPO papers to Sebi
Supriya Lifescience Ltd has filed preliminary filings with Sebi Capital Markets Authority to raise Rs 1,200 through an IPO. The IPO includes a new issue of shares valued at Rs 200 billion and an offer to sell up to Rs 1,000 billion by promoter Satish Waman Wagh under the Red Herring Prospectus (DRHP). The proceeds from the new issue will be used to fund investment needs, repay debt and for general corporate purposes. Supriya Lifescience is one of the most important Indian manufacturers and suppliers of active ingredients (APIs) with a focus on research and development.
Petrol and diesel prices remain stable today
Oil marketing companies (OMCs) kept gasoline and diesel prices stable on Monday after rising to record levels on Sunday. Accordingly, gasoline and diesel prices in the state capital remain unchanged at Rs 92.58 and Rs 83.22 per liter, according to Indian Oil Corporation, the country’s largest fuel retailer. In Mumbai, gasoline prices were constant on Monday at 98.88 rupees per liter. The cost of diesel was Rs 90.40 per liter.
Here’s a look at the global clues for today:
# CNBCTV18Mark | SGX Nifty reduces losses in early trading but continues to suggest a higher opening for Indian stocks today. Asian indices are mixed in trading. On the crypto front, #Bitcoin is down about 8% after Musk suspected Tesla may have dumped Bitcoin holdings.
Here’s more 👇 pic.twitter.com/wX49ap5DVc
– CNBC-TV18 (@ CNBCTV18Live) May 17, 2021
Penna Cement is filing IPO papers with Sebi for 1,550 rupees
Penna Cement has filed preliminary filings with the Sebi Capital Markets Authority to raise Rs 1,550 crore through an initial share sale. The initial public offering includes a new issue of shares valued at Rs 1,300 billion and an offer from the promoter to sell up to Rs. 250 billion under the draft Red Herring prospectus. The proceeds from the new issue will be used to pay debts of Rs 550 billion. In addition, Rs 105 crore will be used to finance the investment needs for the KP Line II project and Rs 80 crore to modernize its raw grinding and cement plant in Talaricheruvu. In addition, the company will use Rs 130 crore and Rs 110 crore to build a waste heat recovery plant in Tandur and Talaricheruvu, respectively. More here
First, here’s a quick rundown of what happened in the markets on Friday
The Indian indices ended unchanged on Friday as losses in metal and auto stocks offset a surge in the FMCG majors. Sentiment was also lifted when heavyweights Asian Paints rose 8.5 percent and UPL rose over 7 percent after both stocks reported excellent gains for the March quarter. The Sensex finished 42 points higher at 48,732 while the Nifty fell 19 points to level off at 14,678. Both indices ended the week with shortened holidays roughly 1 percent lower after suffering losses earlier in the week on US inflation worries. Broader markets lagged the benchmarks, with the mid-cap and small-cap indices each declining 1.5 percent on the day. In the Nifty50 index, Asian Paints, UPL, ITC, Nestle and HUL were the top winners, while Tata Motors, Coal India, Tata Steel, Hindalco and IndusInd Bank led the losses.
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