Barometers trade in range; Nifty nears 17,100 level

The benchmark indices were trading in a narrow range with modest gains in mid-afternoon trade. Auto and oil & gas scrips were in demand. The Nifty hovered near 17,100 mark.

At 14:30 IST, the barometer index, S&P BSE Sensex rallied 438.98 points or 0.78% at 56,902.13. The Nifty 50 index rose 137 points or 0.81% at 17,095.65.

Index heavyweight Reliance Industries (RIL) advanced 3.03% to Rs 2,718.50. It is 1.14% below its record high of Rs 2,750 hit on 19 October 2021.

In the broader market, the S&P BSE Mid-Cap index gained 0.10%. The S&P BSE Small-Cap index added 0.19%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,657 shares rose while 1,684 shares fell. A total of 127 shares were unchanged.

COVID-19 Update:

India reported 2,067 new cases of COVID-19 - more than double the infections recorded a day before�and 40 related deaths in the last 24 hours, the Union Ministry of Health and Family Welfare said on Wednesday. There were 1,247 cases and 1 death on Tuesday, according to the health ministry. The ministry`s data also showed that 480 active cases were recorded in the same period, taking the total active case count to 12,340.

Economy:

The International Monetary Fund (IMF) has cut its growth forecast for India for FY23 by 80 basis points to 8.2%, warning that Russia`s invasion of Ukraine would hurt consumption and hence, growth, by way of higher prices.

"Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand - as higher oil prices are expected to weigh on private consumption and investment - and a drag from lower net exports," the IMF said in its World Economic Report, released on 19 April 2022.

Numbers to Watch:

The yield on the 10-year benchmark federal paper fell to 7.142% from its previous close of 7.151%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.46, compared with its close of 76.50 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement lost 0.68% to Rs 52,390.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.25% to 100.71.

In the commodities market, Brent crude for June 2022 settlement rose $1.19 or 1.11% at $108.41 a barrel. Oil prices had risen about 1% on Wednesday; gaining back some of their losses during the previous session on concerns about energy demand after the International Monetary Fund (IMF) cut its economic growth forecasts.

Buzzing Index:

The Nifty FMCG rose 0.98% to 37,703.20. The index skid 2.82% in the past trading session.

Among the components of the Nifty FMCG index, Varun Beverages (up 3.03%), Godrej Consumer Products (up 3.03%), Nestle India (up 2.32%), Hindustan Unilever (HUL) (up 1.95%) and Tata Consumer Products (TCPL) (up 1.66%) were the top gainers.

Among the other gainers were Colgate-Palmolive (India) (up 1.26%), Britannia Industries (up 1.23%), United Breweries (up 1.19%), Marico (up 1.13%) and Dabur India (up 0.23%).

Meanwhile, Emami (down 0.19%), ITC (down 0.94%) and Radico Khaitan (down 0.97%) edged lower.

Stocks in Spotlight:

Inox Wind tumbled 5.51%. The company said its board approved raising upto Rs 402.50 crore through preferential issue of equity and convertible warrants. Inox Leasing and Finance, an entity forming part of the promoter group, will infuse Rs 150 crore through the preferential issue of equity shares. Sarnena Green, non promoter-foreign company, will infuse Rs 152.5 crore through preferential issue of equity shares (Rs 32.50 crore) and convertible warrants (Rs 120 crore). Lend Lease Company (India), non promoter, will infuse Rs 100 crore through preferential issue of equity shares (Rs 30 crore) and convertible warrants (Rs 70 crore). The company will issue equity shares at Rs 126 per equity share.

Sterlite Technologies rose 0.07%. The company announced that the company`s board will meet on Thursday, 28 April 2022 to consider raising of funds by issue of equity shares or any other securities convertible into equity shares or a combination of such securities. On the same day, the board will also consider financial results for Q4 FY22 and recommend final dividend, if any, for the financial year ended 31 March 2022.

Global Markets:

European stocks advanced across the board on Wednesday, as investors monitor developments in Ukraine and assess the IMF`s latest global economic forecasts.

The Russia-Ukraine conflict has entered a second phase in which fierce fighting has begun in the east of the country. Ukraine said on Monday that Russia`s offensive in the eastern Donbas region had begun, with a top official describing it as the �second phase� of the war. The eastern city of Kreminna fell to Russian forces on Tuesday, its regional governor said, marking the first city to be captured in this phase of the war.

On Tuesday, the IMF cut its global growth projections for 2022 and 2023, saying the economic impact from Russia`s invasion of Ukraine will �propagate far and wide.�

Meanwhile, Asian stocks closed mixed on Wednesday as China defied expectations by keeping its benchmark lending rate unchanged. China on Wednesday kept its one-year loan prime rate unchanged at 3.7%, while also holding steady on the five-year LPR at 4.6%.

Crypto Market:

Among the popular crypto currencies, Doge Coin (Doge) (up 3.24%), Ethereum (ETH) (up 1.47%) and Bitcoin (BTC) (up 1.18%) advanced.

However, Binance Coin (BNB) (down 0.70%) and Tether (USDT) (down 0.25%) declined.

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