The Nifty 50 dropped 141 points (0.6 percent) to 22,301.50 on Tuesday, while the Sensex closed 383 points (0.5 percent) lower.
This decline was exacerbated by the continued lacklustre Q4 earnings, with Kotak Securities reporting few good surprises and thus few profit upgrades. The Nifty FMCG Index, up 2 percent, and the Nifty IT, up 0.77 percent, were the top gainers among the sectors. Nifty metals and real estate fell by 2.4 and 3.5 percent, respectively, on the negative side. Nifty PSU Bank Index (down2.3%), Nifty Healthcare (down2%), and Nifty Auto (down1.8%) were the other losers.
Gift Nifty
Trends in the GIFT Nifty show that the Indian index as a whole has started flat, up 10 points or 0.04 percent. The 22,400 level was the trading range for the Nifty futures.
Crude oil
Amid tensions in the Middle East and a more pessimistic US stocks report, oil prices remained close to their mid-March lows. About $83 per barrel was Brent’s average price, slightly over the 100-day moving average. The West Texas Intermediate was higher than $78. Amid elusive cease-fire negotiations with Hamas, Israel’s soldiers advanced into Rafah.
Asian markets.
Following a lacklustre US day, Asian stocks are unsure. Some investors are unsure if the current rise will last given the current state of the economy. Australia’s and South Korea’s stock markets saw increases, but Japan’s declined. Futures for Hong Kong point to a flat beginning. As US reticence on intervention added to forecasts of sustained pressure, the value of the yen slightly declined. The finance minister of Japan promised to be prepared to take the required action. Asia’s attention is now on President Xi Jinping’s tour of Europe and the changing nature of trade relations. The US withdraws Huawei’s permission to purchase from Qualcomm and Intel, indicating heightened tensions. Hopes for a Fed rate decrease and promising profit outlook have propelled global markets towards a comeback following their April decline.
US marketplaces
Tuesday saw a retreat in Wall Street gains as investors assessed the possibility of a Federal Reserve rate drop. The strength of the dollar further depreciated the yen. The MSCI index of world stocks increased by 0.30 percent, with European shares setting new records. Treasury yields decreased as the currency increased due to anticipations of strong US economic growth and potential rate hikes. The S&P 500 gained 0.13 percent, the Nasdaq fell 0.1 percent, and the Dow Jones increased by 0.08 percent. Fed rate cuts were rumoured in response to weak GDP growth and disappointing US jobs data.
Gold falls
As the US dollar strengthened due to hawkish comments made by a Federal Reserve member about possible monetary tightening, gold declined. In early Asian trading, gold didn’t move after earlier declining by 0.4 percent. The Federal Reserve Bank of Minneapolis President, Neel Kashkari, made a suggestion that the present interest rates would be kept at their current levels for some time and hinted at potential future hikes. Gold prices, which are expressed in US dollars and have no interest, are usually suppressed by both higher interest rates and a strong dollar. Additionally, traders monitored the escalating tensions in the Middle East, especially since Israeli forces took control of the Rafah border crossing in Gaza. Should hostilities worsen, this could push investors towards gold as a safe-haven investment.
The UPI Decline of Paytm
According to NPCI data, Paytm’s UPI market share fell by over five percentage points in a single year, from 13.3 percent in April 2023 to a low of 8.4 percent in April 2024. The parent business of Paytm, One97 Communications Limited, depends mostly on UPI for about 75% of its gross merchandise volume. In April, rival PhonePe’s market share increased to 49% while Paytm’s fell.
Obtaining funds
The JSW Energy board approves funding up to Rs 10,000 crore for portfolio expansion in the renewable energy sector. Techniques include asking for board approval at the AGM for extra fundraising as necessary, as well as private offerings, preferred allotments, or placement in approved institutions.
The Flow of FII and DII
For a total of Rs 3,668.84 crore, FIIs sold shares. On May 7, DIIs invested a total of Rs 2,304.50 crore in equities.
Stocks prohibited by NSE F&O
Vodafone Idea, SAIL, GMR Airports Infrastructure, Biocon, Aditya Birla Fashion & Retail, Zed Entertainment Enterprises, Punjab National Bank, and Balrampur Chini Mills