Lack of any fresh signals on the resumption of talks between Iran and the United States is likely to keep markets under pressure today. Asian markets surged in early trade and even touched record levels, but later slipped sharply into losses. US futures, which were firm yesterday, are trading lower this morning.
Concerns over crude supply have intensified as shipping disruptions continue in the Strait of Hormuz. Brent crude moved above $102 before easing slightly.
GIFT Nifty closed at 24,315.00 on Wednesday night and fell to around 24,200 this morning, signalling a weak opening for the Nifty today.
US markets rose sharply on Wednesday, interpreting the extension of the ceasefire as a sign that the conflict may be nearing an end. Both the S&P 500 and Nasdaq Composite hit record highs, supported by better-than-expected first-quarter earnings.
Boeing shares rose 5.5 percent as losses were lower than expected.
Dow Jones Industrial Average: up 340.65 points (0.69 percent) to 49,490.03
S&P 500: up 73.89 points (1.05 percent) to 7,137.90
Nasdaq: up 397.60 points (1.64 percent) to 24,657.57
However, US futures are trading lower this morning after results from IBM, ServiceNow and Tesla disappointed.
Indian ADRs showed weakness in New York trade:
HDFC Bank ADR fell 1.32 percent before recovering slightly
ICICI Bank ADR declined further in after-hours trade
Infosys ADR dropped 4.19 percent
Wipro ADR also weakened
European markets declined again on Wednesday after Germany cut its GDP growth forecast for the year to 0.5 percent, citing war-related disruptions and inflation concerns. Inflation is expected at 2.7 percent. The United Kingdom reported March retail inflation at 3.3 percent.
Asian markets initially rallied but later turned negative:
Nikkei 225 and Kospi hit record highs before slipping about 0.40 percent
Australian index fell 0.60 percent
Chinese markets edged up 0.12 percent
Hang Seng Index declined 0.80 percent
Indian markets declined on Wednesday as hopes of peace in West Asia faded. Weak outlook on IT earnings hit the sector hard, with the Nifty IT index falling nearly 5 percent at one point.
HCLTech dropped about 11 percent after disappointing results. Other large IT stocks also saw sharp declines.
Financials, auto and banking stocks were weak
FMCG, realty, media, metals and oil stocks gained
Sugar stocks rallied on expectations of a more liberal ethanol policy
Foreign investors remained net sellers, offloading ₹2,078.36 crore in the cash market, while domestic institutions also sold ₹1,048.17 crore.
Sensex: down 756.84 points (0.95 percent) to 78,516.49
Nifty 50: down 198.50 points (0.81 percent) to 24,378.10
Bank Nifty: down 0.43 percent
Broader markets outperformed, with mid cap and small cap indices closing higher. Market breadth remained positive.
Trent beat expectations in Q4:
Margin improved from 15.5 percent to 18.5 percent
Revenue up 19.2 percent
Operating profit up 42.3 percent
Net profit up 32.5 percent
Board approved a 1:1 bonus issue and plans to raise ₹2,500 crore
Oracle Financial Services Software reported strong sequential growth with margins rising to 51.2 percent.
SBI Life Insurance saw new business premium grow 20.4 percent, though margins declined.
Tata Communications reported a sharp 74.7 percent fall in net profit despite revenue growth.
Infosys announced a partnership with OpenAI to integrate models including Codex into its Topaz platform. The board will also decide on CEO Salil Parekh’s continuation.
L&T Technology Services missed estimates, with modest growth and margins at 15.2 percent.
Gold remains volatile amid geopolitical uncertainty. Prices moved in a wide range before closing at $4,740.90 per ounce and easing slightly this morning.
In Kerala, 22-carat gold fell ₹400 to ₹1,13,480 per sovereign.
Silver, platinum and palladium showed mixed trends.
Industrial metals traded mixed:
Copper slipped slightly
Aluminium jumped nearly 2 percent
Nickel and zinc gained; lead and tin declined
In commodities:
Cocoa rose 2.90 percent
Coffee gained 2.34 percent
Palm oil rose 1.51 percent
Fertiliser prices were mixed
The dollar index rose to 98.62. The euro and pound weakened, while the Japanese yen remained under pressure.
US 10-year bond yields climbed to 4.313 percent.
The rupee weakened further, closing at 93.80 against the dollar despite RBI easing forward market norms. It may move towards 94.15, according to market expectations.
In the NDF market, the rupee slipped to 93.89 this morning.
Renewed disruptions in the Strait of Hormuz pushed oil prices higher:
Brent closed at $101.91 and rose to $102.25
WTI crude moved up to $93.39
Cryptocurrencies advanced despite geopolitical concerns:
Bitcoin crossed $78,400
Ethereum rose above $2,375
Solana traded above $87
Sensex: 78,516.49 (-0.95 percent)
Nifty 50: 24,378.10 (-0.81 percent)
Bank Nifty: 57,124.45 (-0.43 percent)
Midcap 100: 60,201.60 (+0.19 percent)
Smallcap 100: 17,840.35 (+1.13 percent)
Dow Jones: 49,490.03 (+0.69 percent)
S&P 500: 7,137.90 (+1.05 percent)
Nasdaq: 24,657.57 (+1.64 percent)
Dollar: ₹93.80 (+₹0.30)
Gold (oz): $4,740.90 (+19.80)
Gold (sovereign): ₹1,13,480 (-₹400)
Brent crude: $101.91 (+$3.43)
