Asian shares were on the backfoot on Wednesday, tracking overnight losses on Wall Street after evidence of a cooling economy fueled concerns that the Federal Reserve’s drive to rein in decades-high inflation could lead to a deeper downturn.
Sensex opened with slight gain
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Nifty rises 67.80 points to 17,465.80 in pre-open
Sensex fell in pre-open
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Nifty Outlook: Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities
Technically, Nifty is maintaining a bullish pattern on the daily chart, and it is producing a consistent higher lower shape on the intraday chart, which is mostly favourable. In our opinion the market structure is positive but due to short term overbought position, we may see some profit at higher levels.
The best course of action for traders at this point of time would be to buy on dips and sell on rallies. In the near term, the important support and resistance levels of the index would be 17,300-17,250 and 17,500-17,550 respectively.
Rising crude prices, tax cuts may not help oil producers
While the central government’s decision to withdraw an unexpected tax on local crude could be positive for upstream oil producers such as Oil and Natural Gas Corp Ltd (ONGC) and Oil India Ltd (OIL), analysts are cautious.
Government on Tuesday reduced windfall tax on domestic crude oil to zero 3,500 per tonne ($5.8 per barrel earlier).
Special Additional Excise Duty (SAED) on diesel has also been cut 0.5 liters including cess 1 liter earlier, while on ATF and petrol remained unchanged.
Revision usually takes place every fortnight. (Reading Here,
Oil gains as OPEC cuts, US inventory outlook brightens
Oil prices edged higher in early Asian trade on Wednesday led by a decline in US crude inventories and estimates of OPEC+’s latest output cut targets.
Brent crude futures were up 38 cents at $85.32 a barrel by 0021 GMT. US crude for West Texas Intermediate rose 33 cents to $81.04 a barrel.
Helping to boost oil prices was an industry report that showed US crude stocks fell by about 4.3 million barrels in the week ended March 31, according to market sources citing data from the American Petroleum Institute on Tuesday.
In Asia, Japan’s services sector expanded at the fastest rate in more than nine years in March.
Reliance Industries got an additional loan of $ 2 billion
Reliance Industries Limited (RIL) has secured an additional $2 billion credit line from 18 banks after securing $3 billion from 55 banks last week, three people directly aware of the development said.
The group has thus secured a total loan of $5 billion, making it the largest fund raising through the syndicated loan route in India’s corporate history.
Reliance Jio Infocomm Ltd, a unit of RIL, on Tuesday secured a $2 billion add-on facility with similar terms to its recent $3 billion syndicated loan.
The money will be mainly allocated for RIL’s capital expenditure and Jio’s nationwide 5G expansion. (Read full story Here,
SGX Nifty signals weak opening for Indian indices
Indicating a weak opening for Indian indices on Wednesday, Nifty futures on the Singapore Exchange closed 48.50 points lower at 17,526.50.
On Monday, the Nifty closed at 17,398.05, up 38.30 points, while the BSE Sensex closed at 59,106.44, up 114.92 points.
Asian shares are under pressure due to the rise in the US stock market
Asia’s equity markets declined after US stocks snapped a four-day winning streak amid selling in banks.
Shares in Japan fell more than 0.7% while Australian shares were little changed. US benchmark contracts held steady on Wednesday after the S&P 500 index fell 0.6% the day before. Markets in Hong Kong and mainland China are closed for a holiday.
The dollar weakened against most Group of 10 currencies, with the yen and the Aussie leading gains.
Wall Street stocks tumbled on Tuesday as financial and industrial stocks tumbled amid concerns of slowing growth in a session marred by former President Donald Trump’s historic court appearance.
Analysts cited data showing a decline in US job openings on Monday – following weak manufacturing numbers – as the latest sign of a cooling in the world’s largest economy.
The Dow Jones Industrial Average closed down 0.6% at 33,402.38.
The broad-based S&P 500 also fell 0.6% to 4,100.60, while the tech-rich Nasdaq Composite index declined 0.5% to 12,126.33.
Market watchers said the media attention to Trump’s plea deal in a state criminal proceeding may have dampened trading volume but has not affected the trajectory of the market.
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