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Sensex Today Live Updates : Asian stocks tracked Wall Street lower following activity data that signaled the Federal Reserve may keep rates on hold for most of this year.
Stocks fell in Australia and Japan, while equity futures in Hong Kong pointed to losses of more than 1% at the open Friday. The Golden Dragon Index of US-listed Chinese shares fell 3.7% Thursday, the most in six weeks. US contracts were steady after the S&P 500 fell the most this month and the Dow Jones Industrial Average lost 1.5%.
Swaps now fully price the Fed’s first full quarter-point rate cut in December, versus November a day earlier. Growth in activity at service providers was the fastest in a year and manufacturing output expanded at a quicker pace. Such resilience is making it difficult for inflation to cool, helping explain why the Fed is intent on keeping rates higher for longer.
“For central banks that have a responsibility for optimizing economic welfare, the growth climate is welcome,” Australia & New Zealand Banking Group economists including Henry Russell wrote in a note to clients. “Therefore, the primary uncertainty for rate setters continues to be whether inflation will continue to progress toward target despite economies operating strongly.”
Emerging Asian currencies, including South Korea’s won and Malaysia’s ringgit, fell on the back of a stronger dollar.
In Japan, inflation eased for a second month as investors continued to weigh whether the Bank of Japan has capacity to raise interest rates further this year. The yield on 10-year Japanese government bonds topped 1% this week as markets almost fully price a 10 basis point hike at the July meeting, according to data compiled by Bloomberg. The yen is trading around 157 per dollar.
The cooling in prices, however, won’t “deter financial markets from speculating on further Bank of Japan policy tightening,” said Kristina Clifton, a senior economist at Commonwealth Bank of Australia in Sydney. “At this stage, we expect the BOJ to wait until around October before increasing interest rates again,” which could place further pressure on the yen, she added.
Atlanta Fed President Raphael Bostic on Thursday reiterated the chorus from officials this week that the central bank needs to be patient on its next move as there is still considerable upward pressure on prices. Minutes of the Fed’s May meeting released this week showed policy makers coalesced around a desire to hold rates higher for longer and “many” questioned whether policy was restrictive enough to bring inflation down to their target.
“The minutes are a reminder that while the Fed does not see another rate hike as likely — and certainly does not see it as a base-case — it will not rule out hikes if inflation does not behave,” said Chris Low at FHN Financial.
Treasuries steadied after falling on bets on higher-for-longer US interest rate. An index tracking greenback strength was little changed in Friday Asian trading, after strengthening for a fourth day following higher Treasury yields.
Meantime, following another round of blowout earnings from artificial-intelligence darling Nvidia Corp, the chipmaker jumped over 9% on a solid outlook and topped the historic $1,000 mark. Together with the economy’s steady advance, the S&P 500 likely has further room to rise, according to JPMorgan Chase & Co.’s trading desk.
“With the AI theme still delivering and the macro hypothesis intact, we are likely to continue to make new all-time highs,” the team including Head of US Market Intelligence Andrew Tyler wrote in a note to clients.
In commodities, oil steadied on Friday after slipping in its previous session as traders weighed signs of a weakening physical market ahead of the start of the US summer driving season. Elsewhere, gold held Thursday’s loss following the US economic data.
Sensex Today Live : Mangalore Chemicals and Fertilizers shares down more nearly 4% after company posts 93% decline in Q4 net profit
Sensex Today Live : The company reported a 93% decline in Q4 net profit to ₹4.8 crore and a 32.4% fall in revenue to ₹786.4 crore.
Sensex Today Live : Landmark Cars shares down nearly 6% after company posts 55% decline in Q4 net profit
Sensex Today Live : The company reported a 55% plunge in Q4 net profit to ₹10.97 crore, but a 1.2% rise in revenue to ₹864 crore.
Sensex Today Live : Precision Camshafts shares fall nearly 7% after company posts 70% decline in Q4 net profit
Sensex Today Live : The company reported a 70% decline in Q4 net profit to ₹3.35 crore and an 8% decline in revenue to ₹256.2 crore.
Sensex Today Live : Zaggle Prepaid Ocean Services shares up nearly 4% after company posts 153% jump in Q4 net profit
Sensex Today Live : The company reported a 153.4% surge in Q4 profit to ₹19.2 crore and a 46.3% rise in revenue to ₹273.4 crore.
Sensex Today Live : Bayer Cropscience shares down more than 5% after company posts 40% decline in Q4 net profit
Sensex Today Live : The company reported a 39.4% drop in Q4 net profit to ₹96 crore and a 19.4% decline in revenue to ₹791.5 crore.
Sensex Today Live : JK Lakshmi Cement shares climb more than 6% after company posts 41% rise in Q4 net profit
Sensex Today Live : The company reported a 41.1% rise in Q4 net profit to ₹162 crore, and a 4.4% fall in revenue to ₹1,780.9 crore.
Sensex Today Live : Puravankara shares frozen at 5% lower circuit after posting a loss of ₹6.71 crore in Q4
Sensex Today Live : The company posted a loss of ₹6.71 crore in Q4, compared to a profit of ₹26.8 crore in the year ago period. Revenue spiked 136.5% to ₹920 crore.
Sensex Today Live : Steel Strips Wheels shares climb more than 3% after company posts 990% jump in Q4 net profit
Sensex Today Live : The company reported a 6.34% increase in Q4 net sales to ₹1,068.67 crore and a massive 990.17% jump in net profit to ₹515.56 crore. However, EBITDA slightly dropped by 0.4% to ₹114.69 crore.
Sensex Today Live : Birla Precision Technologies shares frozen at 5% lower circuit after company posts loss of ₹1.43 crore in Q4
Sensex Today Live : The company reported a 5.94% drop in Q4 net sales to ₹60.91 crore and a net loss of ₹1.43 crore. EBITDA stands at ₹4.47 crore, down 36.86%.
Sensex Today Live : Bikaji Foods shares up more than 6% after 200% jump in Q4 net profit
Sensex Today Live : The company posted a 200% jump in net profit at ₹116.28 crore in Q4, compared to ₹38.67 crore in the year-ago period. Revenue from operations also rose 12.8% to ₹520.82 crore.
Sensex Today Live : Opening Bell
Sensex Today Live : Indian benchmark indices opened in the red on Friday, amid weak sentiment flowing from Asian peers that were muted due to fears of ‘higher for longer’ interest rates in the US.
At opening bell, Sensex was down 128.06 points, or 0.17%, at 75,289.98, and Nifty was down 39.25 points, or 0.17%, at 22,928.40.
Sensex Today Live : Benchmark indices red at pre-open
Sensex Today Live : Indian benchmark indices were down at pre-open on Friday, amid weak sentiment flowing from Asian peers that were muted due to fears of ‘higher for longer’ interest rates in the US.
Sensex was down 82.59 points, or 0.11%, at 75,335.45 and Nifty was down 36.90 points, or 0.16%, at 22,930.75 during pre-open.
Sensex Today Live : Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, says the trend of outperformance of largecaps is likely to continue
“The 1,196 point rally in the Sensex yesterday was triggered mainly by the sudden shift in FII trade from sustained sellers to big buyers resulting in buying of ₹4,671 crores. The massive short-covering caused by this sudden change in FII trade contributed to the sharp rally. It is important to understand that the change in FII stance has been caused by the underperformance of the Hang Seng index, which is down 4.1% during the last 5 days. The outperformance of the Hang Seng had led to “ sell India, buy China ” trade during the last one month. It appears that this trade is over and that’s why FIIs have again turned buyers in India.
What makes this rally healthy is the fact that it is being led by fairly valued largecaps with the overvalued broader market taking a backseat. The trend of outperformance of largecaps is likely to continue.”
–Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services
Sensex Today Live : Yes Bank CEO Prashant Kumar says it’s important to find a strategic investor to replace SBI; shares in focus
Sensex Today Live : Prashant Kumar, CEO of Yes Bank, expressed no concern over the State Bank of India (SBI), its largest shareholder, potentially selling its stake, in an interview with Moneycontrol. He assured that any new stakeholder replacing SBI would require the Reserve Bank of India’s (RBI) approval, ensuring a thorough due diligence process.
As of April 21, SBI held a 25% stake in Yes Bank, followed by CA Basque Investments with 9.1% and Verventa Holdings with 5.3%. Kumar emphasized that the potential stake sale should not be a cause for concern as any new investor acquiring a 25% stake would undergo proper due diligence by the RBI.
Kumar also highlighted the regulatory stipulation that prevents a bank from remaining invested in another bank. He suggested that once Yes Bank stabilizes, it would be crucial for SBI to be replaced by a strategic investor.
Sensex Today Live : What to expect from Indian stock market in trade on May 24
Sensex Today Live : The Indian stock market, including the Sensex and Nifty 50, is set for a lower opening on Friday, influenced by weak global trends. The Gift Nifty’s trading around the 22,950 level, nearly 50 points lower than the Nifty futures’ previous close, further indicates a negative start for the Indian benchmark index.
Despite the anticipated lower opening, the domestic equity indices closed at a record high on Thursday. The Sensex surged by 1,196.98 points or 1.61%, closing at 22,967.65, while the Nifty 50 rose by 369.85 points or 1.64%, settling at 75,418.04.
The Nifty 50 formed a long bullish candlestick pattern on the daily charts, indicating strong buying interest. Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities, noted that the 20-period moving average (MA) remains above the 50-period MA, suggesting that the positive MA crossover is intact. This bodes well for the near-term uptrend to continue. He added that the Nifty continues to hold above the 20-day and 50-day Simple Moving Average (SMA), a positive signal. The 14-day Relative Strength Index (RSI) at 68.23 is rising and not overbought, which is encouraging. (Read the full story here.)
Sensex Today Live : Eight key things that changed for market overnight – Gift Nifty to Nvidia share price rally
Sensex Today Live : The Indian stock market is bracing for a potential dip in the opening trade on Friday, with the Sensex and Nifty 50 expected to start lower due to weak cues from global markets. Asian markets are trading lower, and the US stock market closed in the red as inflation concerns persist, potentially delaying Federal Reserve rate cuts.
Despite the anticipated dip, the market closed at a record high on Thursday, with broad-based buying observed. The Sensex soared by 1,196.98 points or 1.61%, closing at 22,967.65, while the Nifty 50 rose by 369.85 points or 1.64%, settling at 75,418.04.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, remains optimistic. He expects the positive momentum to continue, driven by an improving political environment, continued short covering by Foreign Institutional Investors (FIIs), and robust domestic macros. He also highlighted that sectors such as Defence, Banking, and Railways are likely to stay in focus. (Read the full story here.)
Sensex Today Live : Indian markets likely to start muted on ‘higher for longer’ fears
Sensex Today Live : Indian shares were set for a muted start on Friday, after notching up record highs in the previous session, as robust economic data in the U.S. dampened hopes of early interest rate cuts.
The Gift Nifty was trading at 22,975 as of 7:58 a.m. IST, indicating the Nifty 50 will open near Thursday’s close of 22,967.65.
Indian benchmarks closed at all-time high levels, and posted their best session since March 1 on Thursday, as the central bank’s record dividend to the government boosted financials.
Asian stocks fell on Friday, while the dollar advanced as strong U.S. economic data bolstered the prospect of interest rates staying higher for longer and the Federal Reserve taking its time in cutting rates, keeping investors away from risky assets.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5% and was on course for a 1% weekly decline, snapping its four-week winning streak. Japan’s Nikkei fell 1.45%.
China stocks were little changed in early trading, with the blue chip stocks 0.05% lower as China’s military started its second day of war games around Taiwan on Friday. Hong Kong’s Hang Seng Index was 0.33% lower.
Data on Thursday showed U.S. jobless claims dropped while S&P Global’s Flash PMI survey showed business activity expanded faster than economists forecast in May.
The robust economic data along with hawkish minutes from the Fed’s last meeting earlier in the week has led traders to dial back their bets on rate cuts this year, with markets now pricing in just 35 basis points of easing in 2024, versus expectations of 150 bps of cuts at the start of the year.
Markets are now fully pricing in a rate cut in December with a cut in September now a coin toss, CME FedWatch tool showed.
“This week’s data reaffirms the Fed simply does not have the capacity to provide policy accommodation,” said Prashant Newnaha, a senior Asia-Pacific rates strategist at TD Securities.
“The market and the Fed will just have to wait until there are labour market cracks to begin easing and right now there is little evidence that this is the case.”
Atlanta Fed President Raphael Bostic said the U.S. central bank may need to wait longer to cut interest rates because even with April’s slightly cooler inflation reading there is continued upward pressure on prices.
The changing expectations around U.S. rates has lifted yields, with benchmark U.S. 10-year yield touching a more than one-week peak of 4.498% on Thursday. It was last at 4.463% in early Asian hours on Friday.
The dollar has also benefited, with the dollar index, which measures the U.S. currency against a basket of six major peers, up nearly 0.6% on the week to 105.06, on course for its largest one-week rise since mid-April. [FRX/]
The dollar’s ascent has kept the pressure on the yen. The Japanese currency was last at 157.03 per dollar, not far from the over three week low of 157.19 touched on Thursday.
Japan’s core inflation slowed for a second straight month in April due to milder food inflation while staying comfortably above the central bank’s 2% target, government data showed on Friday.
Bank of Japan Governor Kazuo Ueda said on Thursday the economy was on track for a moderate recovery, suggesting a slump in first-quarter gross domestic product alone would not keep the central bank from raising interest rates in coming months.
“We believe that the Bank of Japan will leave its stance unchanged at its June meeting as they would like to confirm the turnaround in economic growth, particularly in private spending and wage growth, that may be seen in July,” said ING economists.
Sterling was muted on Friday at $1.2694, having touched a two month high of $1.2761 on Wednesday as traders ponder rates outlook in the wake of data this week showing inflation did not slow as much as expected in April.
The start of the election campaigns of British Prime Minister Rishi Sunak and his Labour Party rival Keir Starmer, drew eyes on Thursday though analysts said the poll was unlikely to have a major effect on markets.
In commodities, oil prices were steady, with Brent crude at $81.39 a barrel. U.S. West Texas Intermediate crude (WTI) futures were at $76.87.
Gold prices rose 0.24% to $2334.16 per ounce but are set for a 3.3% decline for the week since late September.