Share Market Update | April 22, 2024

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Synopsis:

Stay updated on the latest market updates including Lupin's USFDA approval, JSW Energy's solar capacity award, UltraTech Cement's acquisition, Indian Railways' extensive operation, Tata Group's iPhone operations deal, Ola Cabs' IPO plans, and more. Plus, insights on global and Indian share markets.

Latest Market News

  1. Lupin gets USFDA approval to launch generic tablets for the treatment of overactive bladder.
  2. JSW Energy arm JSW Neo Energy Limited gets a Letter of Award from NTPC for setting up a 700 MW solar project.
  3. UltraTech Cement to buy a grinding unit from India Cements at ₹315 crores.
  4. Indian Railways gears up to run a record 9,000 plus trains with summer vacations on the horizon.
  5. Ramkrishna Forgings gains attention as Power Train Components order faces delay.
  6. Tata Group is in talks to buy Pegatron's iPhone operations, with a deal likely to be finalised by May.
  7. Ola Cabs plans a $500 million IPO and is soon to appoint banks for the same.
  8. National Fertilisers has achieved Navratna status as granted by the Department of Public Enterprise.
  9. AB Fashion has finalised the demerger plan for its Madura Fashion & Lifestyle Business, establishing a new venture Aditya Birla Lifestyle Brands (ABLBL).
  10. FIIs were net buyers of ₹129.39 crore while DIIs were net sellers of ₹52.50 crore in equities on Friday.

Detailed Global Market Insight: U.S. and International Stocks, Other Asset Classes, and Asian Market

U.S. Stock Market

1. Performance Overview:

  • The U.S. stock market has hit a rough patch, as bond yields spiked this month on fears that a robust economy is helping to keep inflationary pressures alive.
  • U.S. equities ended mostly lower on Friday, with the S&P 500 posting a third straight week of losses as tech stocks slumped.

2. Economic Indicators:

  • Investors get another look at U.S. inflation data on Friday with the personal consumption expenditures (PCE) price index, the Federal Reserve’s favored inflation gauge, which economists expect to remain elevated in March.
  • Other economic data for the week includes an initial estimate of first-quarter GDP, which is expected to have moderated slightly from the previous quarter.
  • Data on new home sales and initial jobless claims will also be released along with revised figures on consumer sentiment.

3. Geopolitical Situation:

  • On Friday, Israel responded to Iranian attacks from the preceding week, adding another layer of uncertainty to the volatile situation in the Middle East despite widespread international calls for de-escalation.

4. Sector-Specific Movements:

  • On Friday, the S&P 500 fell 0.9%, the Nasdaq Composite dropped 2%, and the Dow Jones rose 0.6%. For the week, the S&P 500 lost 3%, the Nasdaq sank 5.5%, and the Dow gained less than 0.1%. This marks the Nasdaq's longest losing streak since December 2022, with four consecutive weeks of losses, according to Dow Jones Market Data.

5. Corporate Earnings:

  • This week, four tech giants from the Magnificent Seven will release earnings: Tesla on Tuesday after market close, Meta on Wednesday, then Microsoft and Alphabet on Thursday.

Other Asset Classes

Treasury Yields:

  • On Wednesday, Fed Chair Jerome Powell closed the door on rate cuts due to doubts about progress on inflation, leading two-year Treasury yields to reach 5%, their highest since November 2023.

Currency:

  • In early Asian trading on Monday, the euro and yen remained stable, while the U.S. dollar held steady near recent highs. The dollar's trade-weighted index, above 106, retreated slightly from last week's five-month peak, influenced by remarks from Federal Reserve officials and surprising inflation data, which tempered expectations of rate cuts.

Commodities:

  • Gold prices rose for the fifth straight week, the longest streak since August 2020. Spot gold climbed 0.7% to $2,395.15 per ounce, hitting a high of $2,417.59 earlier. Weekly gains stood at 2.2%.
  • Oil prices fell at Asia's open on Monday due to a renewed focus on market fundamentals. Israel-Iran tensions eased after a minor strike. Brent futures fell 54 cents to $86.75, while May's WTI contract slipped 12 cents to $83.02. June's contract also decreased, down 47 cents to $81.75.

Asian Markets

1. General Trends:

  • Asia-Pacific markets rebounded from Friday’s sell-off as investors look to fresh data points out of China, Japan, and South Korea this week.
  • On Monday, investors will closely monitor China’s one-year and five-year loan prime rates as it acts as the peg for most property mortgages.

2. Specific Index Performance:

  • Japan’s Nikkei 225 popped 0.86% at the open, with the broad-based Topix seeing a larger gain of 1.44%.
  • South Korea’s Kospi also rose 1.13%, while the small-cap Kosdaq advanced 1.04%.

India Market Outlook

1. GIFT Nifty Projection:

  • Gift Nifty suggests a positive opening for the Indian market amid a pullback in the Asian Market after last week's sharp decline. We expect the Nifty spot post a positive opening is likely to trade in a range of 22330-22100.

2. Nifty Short-Term Outlook:

  • Driven by concerns over geopolitical tensions, a strong US economy, and inflation fears leading to a potentially restrictive Federal Reserve policy, volatility is expected to remain high due to global cues.
  • Short-term support for Nifty is at 21700, with a focus on stock-specific actions during Q4FY24 earnings.

3. Intraday Levels:

  • Nifty: Intraday resistance is situated at 22270, followed by 22350 levels. Conversely, downside support is located at 22100, followed by 22040.
  • Bank Nifty: Intraday resistance is positioned at 47890, followed by 48050, while downside support is found at 47480, followed by 47200.
  • Fin Nifty: Intraday resistance is positioned at 21300, followed by 21390, while downside support is found at 21140, followed by 21070.

Derivative Market Analysis

1. Nifty:

  • Derivative data suggest that Nifty is likely to consolidate between the resistance and support levels of 22,500 and 22,000, while a breach below 22,000 could lead to a corrective move towards 21,800.

2. Bank Nifty:

  • Option chain data and short covering in Futures indicate key levels for Bank Nifty are at 47,000 and 48,000, with significant support at 47,500.

Stay informed with Bajaj Broking’s share market update, where we bring you not just the numbers, but the stories behind the figures. Explore the nuances of the Indian share market’s latest news, and equip yourself with knowledge to make informed decisions in the ever-evolving financial markets.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

What exactly is the stock market, and how does it work?

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The stock market is a platform where investors buy and sell shares of publicly traded companies. It operates through stock exchanges, where supply and demand for securities determine prices.

Why should I consider investing in the stock market?

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Investing in the stock market offers the potential for long-term wealth growth, dividend income, portfolio diversification, and ownership stakes in successful companies.

How can I start investing in the stock market?

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To begin investing in stocks, individuals can open a brokerage account, conduct research on companies and industries, and start building a diversified portfolio aligned with their investment goals and risk tolerance.

What factors should I consider before investing in stocks?

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Important factors to consider include investment goals, risk tolerance, time horizon, market research, diversification, and staying informed about economic and market trends.

What are the risks associated with stock market investments?

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Risks include market volatility, liquidity risk, company-specific risks, and the potential for loss of capital. It's essential for investors to assess their risk tolerance and diversify their portfolios accordingly.

How do I stay informed about daily market happenings?

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You can stay informed by monitoring financial news websites, market analysis reports, earnings announcements, economic indicators, and utilising real-time market data provided by reliable brokerage platforms.

What is the difference between long-term investing and trading in the stock market?

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Long-term investing involves holding stocks for extended periods, typically years or decades, with a focus on capital appreciation and dividend income. Trading involves buying and selling stocks more frequently, often based on short-term price movements.

How can I mitigate risks in the stock market?

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Risk mitigation strategies include diversifying your portfolio, setting stop-loss orders, conducting thorough research, avoiding over-leveraging, and maintaining a long-term perspective on investments.

Are there any specific tax implications associated with stock market investments?

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Yes, tax implications vary depending on factors such as investment duration, type of account (e.g., taxable brokerage account, retirement account), and realised gains or losses from selling stocks.

Can I invest in the stock market with a small amount of capital?

Answer Field

Yes, many brokerage platforms offer fractional investing or allow investors to purchase partial shares, enabling individuals with limited capital to start investing in the stock market with smaller amounts.

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