Indian benchmark indices, the BSE Sensex and the NSE Nifty, are set to open lower on Tuesday, following weak cues from Asian peers and a negative finish at Wall Street overnight amid concerns about high-interest rates. The Covid-19 outbreak in mainland China and the ongoing Russia-Ukraine conflict are also likely to keep traders on edge. The negative trends on SGX Nifty also indicated a bearish opening for the domestic bourses, with SGX Nifty futures trading 170 points, or 0.96%, lower at 17,794 on the Singapore Stock Exchange at 8:10 AM. Investors will also keep an eye on corporate earnings numbers for future clues, with IT major Infosys set to release its results on April 13.
The domestic equity market started the holiday-shortened week on a bearish note, following weak cues from global peers on worries over high-interest rates. The 30-share BSE Sensex dropped 482.61 points, or 0.81%, to close at 58,964 with 23 of its constituents ending in the red. The 50-issue NSE Nifty dropped 109.40 points, or 0.62%, to finish at 17,675. IT heavyweights were among top losers, with HCL Tech falling the most by 2.73%, while the other two IT majors Infosys and Wipro also dropped 2.67% and 2.16%, respectively. Meanwhile, TCS closed marginally higher ahead of its March quarter financial results.
Stocks to focus:
Tata Consultancy Services (TCS): The IT major reported a 7% growth in consolidated net profit at ₹9,926 crore in Q4FY22, as compared to ₹9,246 crore a year ago. Revenue from operations jumped 16% Y-o-Y to ₹50,591 crore for the quarter ending March 2022. The company’s board has also recommended a final dividend of ₹22 per equity share.
UltraTech Cement: The cement maker has been declared as the preferred bidder for a limestone block in an e-auction conducted by the Karnataka government. The block is situated in Tehsil Chittapur of Kalburgi district in Karnataka, which is adjacent to UltraTech's Rajashree unit.
JSW Steel: The steel maker’s subsidiary, JSW Utkal Steel, has received environmental clearance from the central government to set up a greenfield integrated steel plant (ISP) with a capacity of 13.2 million tonnes per annum (MTPA) crude steel.
Nestle India: The FMCG major has declared an interim dividend of ₹25 per share for the financial year 2021-22. The company has fixed April 22 as the record date for determining the eligibility of shareholders for dividends.
Delta Corp: The gaming and hospitality company saw its net profit falling to ₹48.11 crore in Q4 FY22, from ₹57.77 crore in the year-ago period, while revenue rose marginally to ₹218.32 crore as compared to ₹211.34 crore in March quarter of 2021.
F&O ban: Delta Corp and RBL Bank will be under the F&O ban today as these securities crossed 95% of the market-wide position limit.
Here are the key things investors should know before the market opens today:
Tech stocks drag U.S. indices lower
In the overnight trade, all three major U.S. indices closed lower on Wall Street, dragged by growth-driven technology stocks ahead of crucial inflation data. Investors weighed the Fed's March meeting minutes which indicated an aggressive policy stance in the coming months, while concerns about the Russia-Ukraine war and the Covid-19 situation in China also dented market sentiment. The S&P 500 fell 1.69%, the Dow Jones Industrial Average dropped 1.19%, and the Nasdaq Composite shed 2.18%.
Asian stocks fall on weak global cues
Shares in the Asia-Pacific region were trading mostly lower in opening trade on Tuesday, following weak cues from European and U.S. markets. The concerns about aggressive rate hikes by the U.S. Federal Reserve and the coronavirus outbreak in mainland China left investors jittery. The ongoing geopolitical strife also soared investors’ appetite for equities.
Japan’s benchmark index Nikkei 225 fell 1.4% in early trade, while South Korea’s KOSPI dived 1.1%. The Straits Times Index in Singapore traded lower by 0.7%, Australia’s ASX 200 index fell 0.6%, and Thailand’s SET Composite slipped 0.4%.
Bucking the trend, Hong Kong's benchmark index, the Hang Seng, gained 0.14%, Taiwan’s Weighted index rose 0.1%, and Indonesia’s Jakarta Composite surged 0.3%.
In mainland China, the Shenzhen Component and the Shanghai Composite fell 0.2% and 0.1%, respectively, in early trade.
International oil prices hover around $100
The price of Brent and U.S. crude oil hovered around $100 per barrel on Tuesday amid plans to release a record volume of oil from strategic reserves to fill the supply gap, while the fresh Covid-19 outbreak in China and Fed’s aggressive policy stance impacted demand outlook. International Energy Agency (IEA) member nations, including the U.S., will release 60 million barrels over the next six months.
During the Asian trading hours on Tuesday, the Brent oil for June delivery was down 2.05% at $100.5 per barrel, while the U.S. West Texas Intermediate (WTI) crude futures climbed 2.2% to $96.38 a barrel. In the overnight trade, the oil prices dropped nearly 4% amid easing concerns about supply shortages.
Meanwhile, oil retailers kept petrol and diesel prices unchanged for the sixth day in a row on Tuesday, after several hikes in the last 20 days. The domestic oil companies have raised fuel rates by ₹10 per litre since the ending of a four-and-half-month long hiatus in rate revision on March 22, when the results of five Assembly polls were announced.
FIIs remain net sellers, DIIs turn net buyers
The foreign institutional investors (FIIs) turned net sellers in the Indian equity market on March 11, while domestic institutional investors (DIIs) remained net buyers. As per the exchange data, FIIs offloaded shares worth ₹1,145.2 crore, while DIIs net purchased shares worth ₹ 486.5 crore.
Anand Rathi Wealth, GM Breweries, Hathway Cable & Datacom, Tinplate Company of India, Evexia Lifecare, and Gayatri Bioorganics will unveil their quarterly results today.