India’s benchmarks, the BSE Sensex and NSE Nifty, are set to open higher on Thursday, following strong signals from their global peers after Federal Reserve Chairman Jerome Powell played down the risk. Importance of Bigger Rate Hikes Anytime Soon. Asia-Pacific stocks rose at the open of trade, after a strong conclusion on Wall Street overnight after the US central bank raised US interest rates by 0.5% expected to curb inflation. Positive trends on SGX Nifty indicated a strong open for domestic exchanges, with SGX Nifty futures trading at 174 points, or 1.04%, up to 16,863 on the Singapore Stock Exchange as of 08:00. Investors will keep an eye on the LIC IPO tender, which was 67% subscribed on the first day.
Domestic stock markets ended lower for the third consecutive session on Wednesday, with the Sensex and Nifty falling more than 2% each after the RBI raised the interest rate by 40 basis points to 4.40% in the aim of containing inflation. The surprise decision came at an unscheduled meeting of the Monetary Policy Committee (MPC) where all six members voted unanimously to hike rates while maintaining the dovish stance. The BSE Sensex plunged 1,307 points to close at 55,669, and the NSE Nifty plunged 391 points to close at 16,677.
Future Retail: The indebted company, which is facing an insolvency request from its lenders, has informed exchanges that its chief executive Rakesh Biyani has resigned while officials including the indebted company’s general secretary tendered their resignations. .
State Bank of India (SBI): The country’s largest lender plans to raise long-term funding of up to $2 billion through foreign bonds in the current fiscal year (FY23).
Adani green energy: The Gautam Adani-led renewable energy company posted 16% year-on-year growth in net profit to ₹121 crore in the quarter ended March 2022, from ₹104 crore a year ago year. The company’s total revenue rose to ₹1,587 crore in the fourth quarter from ₹1,082 crore in the same period a year ago.
GMR infrastructure: The Ministry of Civil Aviation has granted GMR Group the right to operate Hyderabad International Airport for another 30 years till March 22, 2038. The airport was inaugurated on March 23, 2008.
Indiabulls housing finance: The Bombay High Court on Wednesday quashed a cheating and criminal breach of trust case filed against the company, saying the FIR filed in April 2021 by Palghar police was an abuse of legal process.
Castrol India: The lubricant maker saw its profit after tax (PAT) drop by 6% to ₹229 crore for the first quarter ended March 31, 2022, from ₹244 crore in the January-March period last year. Operating income, however, soared to ₹1,236 crore from ₹1,139 crore a year ago.
Tata Consumer Products: The Tata group company on Wednesday announced a tripling of consolidated net profit to ₹239.05 crore for the fourth quarter ended March. The company had recorded a net profit of ₹74.35 crore in the January to March quarter a year ago.
Havells India: The consumer electrical goods maker posted a 16% rise in its consolidated net profit to ₹352.48 crore for the fourth quarter ended March 2022 from ₹303.83 crore in the January-March quarter a year ago. one year old. Its operating revenue increased by 32.55% year-on-year to ₹4,426.26 crore during the reporting period.
ABB India: The company on Wednesday announced a doubling of its net profit to ₹370 crore in the March 2022 quarter from ₹151 crore in the same period last year. Total revenue increased to ₹1,968 crore from ₹1,629 crore in the March 2021 quarter.
Here are the key things investors should know before the market opens today:
Wall Street applauds Fed rate hike
In overnight trading, all three major US indices ended higher with solid gains after the Federal Reserve raised interest rates by half a percentage point, in line with market expectations. The central bank has also moved to liquidate its $9 trillion portfolio of assets next month in a bid to contain rising inflation. Market sentiment was also lifted after Fed Chairman Jerome Powell downplayed the chances of bigger rate hikes. The Dow Jones Industrial Average ended up 2.81% and the S&P 500 rebounded 2.99%. In a similar trend, the tech-heavy Nasdaq Composite jumped 3.19%.
Asian stocks follow Wall Street higher
Stocks in the Asia-Pacific region flashed green in early trading on Thursday, following strong signals from Wall Street after the Federal Reserve announced a widely expected interest rate hike. Markets in Japan and South Korea are closed for a public holiday Thursday.
Hong Kong’s regional heavyweight Hang Seng Index rose 1.15% in early trades, Singapore’s Straits Times edged up 0.1% and Australia’s ASX 200 rose 0.6% . Similarly, Taiwan’s weighted index climbed 1%.
Mainland Chinese stocks were mixed as they resumed trading after a holiday. The Shanghai composite rose 0.7% while the Shenzhen component fell 0.3%.
Oil prices continue to rise
International crude oil prices continued to climb amid supply worries as the European Union plans to impose sanctions on imports of Russian oil, in line with the United States, Canada and the United Kingdom . Market sentiment was also shaken after OPEC+ countries stuck to their existing agreement to slightly increase production targets amid demand issues from the lockdown in China.
In Asian trading hours on Thursday, Brent oil for July delivery climbed 0.27% to $110.43 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 0. .15% to $107.95 a barrel.
FIIs remain net sellers, DIIs net buyers
Foreign institutional investors (FIIs) remained net sellers in the Indian stock market on May 4, while domestic institutional investors (DIIs) continued to support the market. According to exchange data, FIIs sold shares worth ₹3,288.18 crore, while DIIs bought shares worth ₹1,338 crore.
LIC IPO gets strong reaction from day one
India’s highly anticipated Life Insurance Corporation (LIC) initial public offering (IPO) received an overwhelming response from investors on the first day of the auction. The offer was subscribed at 67% on May 4, with a quota reserved for policyholders subscribing 1.99 times and the employee portion was reserved at 117%. The retail investor segment was subscribed at 60%, the non-institutional investor quota received 27% supply and the qualified institutional buyer share was subscribed at 33%.
The IPO, which is billed as the country’s biggest ever public offering, will see the government sell a 3.5% stake in the insurer, down from the previous 5% offer, comprising 22, 13 crore shares with a face value of ₹10. The government is expected to raise around ₹21,000 crore through the issuance at the upper end of the price range of ₹902-949 per share.
The main companies expected to report results today are Adani Power, Adani Transmission, Dabur India, TVS Motor, Exide Industries Marico, MMTC and CEAT. Among others, AAVAS Financiers, Aptus Value Housing Finance India, Blue Star, Blue Dart Express, Borosil Renewables, Computer Age Management Services, Cholamandalam Investment and Finance Company, DCM Shriram, Firstsource Solutions, Intellect Design Arena, Jindal Stainless (Hisar), Punjab Alkalies & Chemicals, Procter & Gamble Health, PNB Gilts, Quick Heal Technologies, Sona BLW Precision Forgings and Tribhovandas Bhimji Zaveri will also release their March quarter results on May 5.