US markets slump again; mixed trends in Asia; Wipro trims revenue outlook; gold rally continues
US markets took another tumble on Wednesday, dragging sentiment across global indices. Asian markets opened mixed today, while Indian markets are expected to begin on a subdued note. Wipro’s trimmed revenue guidance may weigh on IT stocks.
In the derivatives segment, Gift Nifty closed at 23,255 on Wednesday night, indicating a weak start for the Nifty today. European markets opened lower and ended mixed yesterday, with technology shares leading the losses.
On Wall Street, indices ended sharply lower on Wednesday. The sell-off in tech stocks spilled into other sectors, triggered by comments from Fed chair Jerome Powell, who suggested the ongoing inflation fight could hinder economic growth.
The Dow Jones closed 699.57 points (1.73%) lower at 39,669.39. The S&P 500 fell 120.93 points (2.24%) to 5,275.70, while the Nasdaq tumbled 516.01 points (3.07%) to 16,307.16. US futures are slightly higher this morning: Dow is up 0.13%, S&P 0.21%, and Nasdaq 0.33%.
Asian markets opened mixed. Japan’s Nikkei gained half a percent. China's GDP rose 5.4% in Q1, surpassing expectations.
Defying regional cues, Indian markets ended with strong gains on Wednesday despite opening lower. Banks led the rally, although the reason for the reversal wasn’t immediately clear.
Nifty closed 108.65 points (0.47%) higher at 23,437.20. Sensex gained 309.40 points (0.40%) to end at 77,044.29. Bank Nifty surged 738.25 points (1.41%) to 53,117.75. The mid cap index added 0.71% (371.10 points) to settle at 52,345.55, while the small cap index rose 1.05% to 16,349.25.
PSU and private banks, oil, finance, FMCG, media, realty, and consumer durables stocks led the gains. Healthcare, pharma, and auto shares slipped. The IT index edged up just 0.06%.
The broader market breadth remained strong. On the BSE, 2,594 stocks advanced while 1,364 declined. On NSE, 2,088 stocks rose, and 834 declined. On the NSE, 54 stocks hit 52-week highs while 11 hit new lows. As many as 126 stocks hit the upper circuit, and 30 hit the lower.
Foreign investors continued buying on Wednesday, recording net purchases of ₹3,936.42 crore in the cash segment. Domestic funds sold shares worth ₹2,512.77 crore.
The market closed on a bullish note. Technical analysts believe Nifty has strength to move towards 23,650, with 23,200 seen as support. Immediate support is at 23,320 and 23,205, while resistance may be encountered at 23,455 and 23,565.
Infosys, Jio Financial, HDFC Life, HDFC AMC, and Tata Elxsi will announce their Q4 results today.
Wipro reported a 0.7% rise in revenue and a 6.6% increase in profit for Q4. However, its revenue guidance indicates a potential 3.5% decline. Its ADR fell 3.5% in New York, while Infosys ADR dropped 2.64%.
Waaree Renewable Technologies posted a 74.4% rise in revenue and an 82.7% jump in profit for Q4. Angel One, on the other hand, saw revenue fall 22.2% and profit plunge 48.7% in the fourth quarter.
Gold’s record-breaking run continues, with prices soaring to levels beyond expectations. Fears of global economic uncertainty and declining confidence in the dollar are driving the surge, with gold prices rising 3–4% daily in recent sessions. Prices are now up 36% compared to a year ago.
This relentless rally has sparked concerns about a possible correction. On Wednesday, gold closed at $3,346.60 per ounce, up $101.60. It climbed further to $3,354 this morning, touching $3,367 in early trade.
In Kerala, gold rose ₹760 per sovereign to ₹70,720. Prices are expected to rise further today. Silver also rose to $32.87 per ounce.
In contrast, global rubber prices fell 2%. Cocoa rose 1.13% to above $8,000, coffee jumped 2.31%, while palm oil slipped 0.97%.
The US dollar index fell again, closing at 99.38 on Wednesday and sliding to 99.25 this morning. The euro dipped slightly before rebounding to $1.138. The pound edged down to $1.322. US bond yields fell below 4.30% as bond prices rose.
The rupee strengthened slightly on Wednesday, with the dollar easing by 9 paise to close at ₹85.68. The Chinese yuan continues to trade at 7.35 per dollar.
Cryptocurrencies faced renewed volatility. Bitcoin fell below $84,000, while Ether dropped to $1,580.
