Following a major slump on Thursday, the Indian market expects a relief rally today. Strengthening the market sentiment is the drop in oil prices toward the $105 mark and indications that the issues surrounding HDFC Bank are not severe.
Oil prices, which had surged following attacks on oil and natural gas fields and facilities in the Gulf, have now retreated. Brent crude settled below the previous day's closing price. Prices cooled following President Trump’s statement that Iranian oil and gas facilities would not be targeted. The U.S. also hinted at lifting trade sanctions on Iranian oil.
However, UAE’s Murban crude remains above $125. India’s crude basket price rose to $146.39, more than double the $70 recorded on February 27. Additionally, the Russian Urals grade, which previously traded at a discount of up to $12 against Brent, now commands a premium of $5 per barrel.
In derivative trading at GIFT City, the GIFT Nifty ended at 23,109.50 on Thursday night and rose to 23,260 this morning. This suggests that the Nifty is likely to open with strong gains.
Following the U.S. Federal Reserve, the Bank of Japan, the Bank of England, and the European Central Bank announced their monetary policies, keeping interest rates unchanged.
HDFC Bank shares fell 5.11% yesterday after its part-time chairman resigned, citing vague allegations. However, the Reserve Bank of India (RBI) clarified that there are no underlying problems within the bank. HDFC Bank ADRs in New York fell a further 1.8% before gaining 0.80% in extended trading. ICICI Bank shares rose 1.17% during regular hours and added another 0.89% in after-hours trading.
U.S. markets ended Thursday with losses, though they recovered significantly from their session lows. The drop in oil prices helped support the market.
The Dow Jones closed down 203.72 points (0.44%) at 46,021.40. The S&P 500 ended with a loss of 18.21 points (0.27%) at 6,606.49, while the Nasdaq closed 61.73 points (0.28%) lower at 22,090.70.
U.S. futures are trading higher this morning. The Dow Jones is up 115 points (0.25%), the S&P is up 15 points (0.22%), and the Nasdaq has moved up 25 points (0.10%).
European markets ended Thursday with a 2.5% loss due to inflation fears. Asian markets are showing mixed trends today; the Japanese market is closed for a holiday, while South Korea's KOSPI rose 1% in the morning. The Australian index fell 0.65%, and Hong Kong and Chinese markets also started the day in the red.
A spike in crude oil prices to $118 and the unexpected resignation at HDFC Bank led the Indian market to its biggest crash in 22 months yesterday. All sectors declined, with major indices falling by over 3%.
On Thursday, the Sensex plummeted 2,496.89 points (3.26%) to close at 74,207.24. The Nifty fell 775.65 points (3.26%) to end at 23,002.15. The Bank Nifty closed with a loss of 1,875.05 points (3.39%) at 53,451.00. The Midcap 100 index dropped 1,797.55 points (3.19%) to 54,492.30, and the Smallcap 100 index ended 474.90 points (2.94%) lower at 15,704.25.
The vast majority of stocks declined. On the BSE, 913 stocks rose while 3,359 fell. On the NSE, 528 stocks advanced while 2,670 declined. Foreign investors continued their selling spree on Thursday, with FIIs recording a net sell of ₹7,558.19 crore in the cash market. Domestic funds and institutions made a net purchase of ₹3,863.96 crore.
Fears that high inflation would prompt central banks to hike interest rates caused gold and silver to plunge yesterday. Gold dropped 6.5% to $4,502 per ounce, and silver fell 13% to $65.45. Later, reports showing a 17.3% drop in new home sales in the U.S. helped precious metals recover slightly. Gold closed at $4,650.70, down $169 (over 3%). This morning, the price rose to $4,678. Silver closed at $72.94 and rose to $74.27 this morning.
Platinum stands at $2,003, Palladium at $1,453, and Rhodium at $10,650. In Kerala, the price of 22-carat gold fell by ₹5,240 per sovereign to reach ₹1,10,200. On the Multi Commodity Exchange (MCX), 24-carat gold closed at ₹1,45,119 per 10 grams, and silver ended at ₹2,31,589 per kg.
Fears that rising oil prices would lead to an economic recession caused a major crash in industrial metals yesterday. Copper fell 5.42% to $11,825.35 per ton. Aluminium dropped 4.58% to $3,228.08. Tin fell 10%, while nickel, lead, and zinc also declined.
On Thursday, international rubber prices fell 1.74% to 192.20 cents per kg. Synthetic rubber prices dropped 0.31% to 15,833.33 Yuan per ton.
Cocoa prices rose 2.67% to $3,347.00 per ton. Tea prices remain unchanged, while coffee rose 3.18%. Palm oil prices climbed to 4,564 Malaysian Ringgit per ton. Polyethylene, polypropylene, and PVC prices fell by up to 0.80%. Urea rose to $616.50 per ton.
The Dollar Index fell yesterday to close at 99.23, rising slightly to 99.32 this morning. Recession fears weakened the dollar. The Euro rose to $1.1571 and the Pound to $1.3419. The Japanese Yen strengthened to 157.90 per dollar, while the Chinese Yuan weakened to 6.90 per dollar. The yield on U.S. 10-year treasury bonds fell to 4.251%.
The Rupee ended weaker on Wednesday as the dollar showed strength, closing at ₹92.63 (a 26-paise increase for the dollar). Markets were closed yesterday. In the offshore Non-Deliverable Forex (NDF) market, the dollar stood slightly lower at ₹93.08 last night. As the Chinese Yuan fell to ₹13.47 and the Euro rose to ₹107.53, their influence will be visible in India's currency trading today.
Oil prices, which had surged due to the war, have since declined. Brent crude, which reached $119, closed at $108.65 per barrel and fell to $105.72 this morning. WTI crude stands at $92.94, and UAE’s Murban crude at $124.1.
Cryptocurrencies saw a major dip yesterday before recovering slightly, but they remain lower compared to previous days. Bitcoin is currently below $70,350, with Ether under $2,150 and Solana below $90.
| Indicator | Value | Change |
|---|---|---|
| Sensex | 74,207.24 | -3.26% |
| Nifty 50 | 23,002.15 | -3.26% |
| Bank Nifty | 53,451.00 | -3.39% |
| Midcap 100 | 54,492.30 | -3.19% |
| Smallcap 100 | 15,704.25 | -2.94% |
| Dow Jones | 46,021.40 | -0.44% |
| S&P 500 | 6,606.49 | -0.27% |
| Nasdaq | 22,090.70 | -0.28% |
| US Dollar | ₹92.63 | ₹0.26 |
| Gold (Ounce) | $4,650.70 | -$169.00 |
| Gold (Sovereign) | ₹1,10,200 | (₹5,240) |
| Crude Oil (Brent) | $108.65 | +$1.25 |