News and Impact
· Expects market to open on a soft note on account of sharp decline across the global markets. Overnight, US Dow Jones nosedived nearly 1200 points or 4% (currently Future declined 150), one of the biggest fall since June 2020 as investors weighed concerns over economic growth against expectations of more aggressive monetary policy tightening by the Federal Reserve. US Fed Chair Powell said the US central bank will keep raising interest rates until there is “clear and convincing” evidence that inflation is declining. In the UK, data on Wednesday showed inflation rose to its highest level in more than 40 years, adding pressure on the central bank to take more action. SGX Nifty is down over 300 points or 2%. Market expectation that the economy slow-down after the US retail giants, Traget and Wall-mart announced poor quarterly results and earning guidance (major indicator US economy on retail sales). In the domestic front, rising oil price and continued FIIs selling are major concern in the local market. Traders avoid bargain hunting in the market till clear trend emerges. Expects profit booking on metal stocks on account of sharp decline metal price on LME
· US stocks suffered steep declines on Wednesday as Target's (TGT – Retail stock) earnings miss intensified investor concerns about inflation, with market volatility that was initially seen in tech stocks now underscored through a huge sell-off in consumer stocks. Dow Jones slipped nearly 4%. Both Nasdaq and S&P 500 declined 5% and 4% respectively. Retail US giant Tatget shed 24% followed by large cap stocks like Amazon, Twitter, Meta, Apple fell between 4-8%. The US 10-year yield fell by 8.6 basis points to 2.88% and US Dollar Index is trading flat at 104.
· European stocks declined following three days of gains as investors weighed economic risks from more aggressive tightening following hawkish comments from the Federal Reserve’s Jerome Powell. UK, Germany and France Index declined over 1% each.
· A slump in US stocks extended into Asia Thursday and US equity futures retreated after mounting fears of an economic downturn hit Wall Street shares and spurred a flight to havens including sovereign bonds. Equities slid in Japan, Australia and South Korea Index slipped 2% each.
· Oil prices declined 4% to below $110/bbl on Wednesday even after data showed an unexpected drop in U.S. crude stockpiles. The U.S. Energy Information Administration (EIA) said Wednesday that the nation's crude inventories fell by 3.4 million barrels in the week ending May, 22.
· Gold was steady at $1814/ounce as investors weighed concerns over economic growth against expectations of more aggressive monetary policy tightening by the Federal Reserve
· Actionable - ABFRL, Chambel Fertlizer
· Brokers Radar – ITC - TGT BY JP Morgan at 305, Morgan Stanley at 293, Jefferies TGT at 305, IGL – Credit Swiss TGT at 290, Jefferies TGT at 590, CIti TGT 490. LIC Housing – Morgan Stanley TGT at 330, Credit Swiss TGT at 355, , Macquarie TGT on Pidilite at 1850, JP Morgan TGT on Pidilite at 2068, Wipro TGT JP Morgan at 430, L&T Infotech TGT by JP Morgan at 3600, TCS TGT JP Morgan at 3100, Nomura TGT on Bharat Forge at 838, Asian Market TGT on ICICI Lombard at 1462
· Results – Alkyl Amnies, Bosch India, Container Corporation, Dr Reddy, Gland Pharma, Godrej Consumer, HPCL, Lincoln Pharma, Novartis, Prince Pipes, Ramco Systems, Rossari Bio and Ujjivan Finance
· Events – Weekly Nifty and Bank Nifty expiry, Paradeep Paradeep Phosphate IPO final day and subscribed by 51%. Ethos IPO second day and subscribed by 27%, CL Educare board meeting for share buy-back
By: via @AlliesFin Serve Stock Market
