Crypto exchanges in a soup as investors grow uneasy
ICICIdirect says Nifty can top 16,400 by Sept
Fuel prices go through the roof
Fed is talking about talking about tapering
Hi there. Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh. Let’s start with a quick glance on the state of the markets.
The trade setup on Dalal Street looked weak as Nifty futures on Singapore Exchange traded some 49 points lower ahead of the opening of Indian markets, signalling a weak start. Stocks in other Asian markets traded largely steady. But Wall Street had a weak show overnight as softer economic data weighed on investor sentiment. The Dow Jones industrial average and the S&P 500 indices fell a quarter per cent each while the Nasdaq Composite ended flat.
Elsewhere, oil looked steady, international gold gained 1% to erase 2021 losses and Bitcoin held below $40,000 in the wake of last week’s crypto rout.
That said, here’s what is making news.
A top domestic brokerage says rising commodity prices would benefit 11 companies in the Nifty50 index — Grasim, Shree Cement, UltraTech, Hindalco, JSW Steel, Tata Steel, BPCL, IndianOil, ONGC, RIL and Coal India. They are expected to gain between 5% and 22% in earnings in FY22 due to the commodity inflation. Motilal Oswal sad these 11 companies will contribute 36% of Nifty’s estimated profits in FY22, while 13 negatively-impacted companies would make up 11%.
Brokerage ICICIdirect says India’s stock benchmark Nifty is likely to reclaim its previous record high and hit 16,400 by September. The brokerage also expects Bank Nifty to challenge lifetime highs and hit a target of 38,600 over the next quarter. Nifty is now just 1.5% away from the record highs of 15,431.75 hit on February 16.
Policymakers at the US central bank have begun to acknowledge they are closer to debating when to pull back some of their crisis support for the US economy, even as they say it is still needed to bolster the recovery and employment. “We are talking about talking about tapering,” San Francisco Federal Reserve Bank President Mary Daly told CNBC on Tuesday, referring to the potential reduction of the Federal Reserve’s monthly asset purchases of $120 billion.
Meanwhile, fuel prices are going through the roof.
State oil companies raised fuel prices for the 13th time this month, sending petrol price in Mumbai to almost Rs 100 per litre on Tuesday. Petrol prices set a new record after they rose by 23 paise to Rs 99.71 per litre in Mumbai and Rs 93.44 in Delhi. Diesel prices too set a fresh record after rising by 25 paise a litre on Tuesday. Diesel now costs Rs 91.57 in Mumbai and Rs 84.32 in Delhi.
Domestic crypto exchanges seem to have landed in a soup. Their investors are intensifying pressure as the regulatory environment in the country has become unpredictable and fraught with risk. Some are asking these exchanges for higher stakes as milestones haven’t been met. Others are frustrated at their inability to exit as ongoing deals have been put on hold after banks and Paytm refused to allow cryptocurrency transactions on their platforms.
And lastly, API Holdings, the parent entity of online pharmacy chain Pharmeasy, has begun exploratory talks for a potential public market listing, aiming to raise around Rs 3,000 – 3,700 crore, ET reported. The share sale proposal, which comes amid increased investor interest in the pharma sector and e-commerce space following the Covid-19 pandemic, will include both a primary as well as a secondary component, where some early backers will partially exit.
Before I go, here is a look at some of the stocks buzzing this morning.
NCLAT on Tuesday stayed the Mumbai NCLT’s order directing the administrator of DHFL to consider a settlement proposal from its former promoter Kapil Wadhawan.
HDFC said it would raise up to Rs 7,000 crore by issuing bonds on private placement basis. The base issue size for the secured redeemable NCDs is Rs 5,000 crore.
Lenders have dismissed a plea by Jaypee Infratech promoters to allow them to bid for the debt-laden company in a one-time settlement.
Brokerages have raised their target prices on USL after the company last week reported a six-fold increase in its March quarter net profit from a year earlier.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing!
