KEY HIGHLIGHTS
Longest FPI Buying Spree In 2023 Yet
Overseas investors in Indian equities remained net buyers for the eleventh day in a row on Thursday, marking their longest buying spree in the year so far.
Foreign portfolio investors mopped up equities worth Rs 837.21 crore, according to data from the National Stock Exchange.
Domestic institutional investors remained sellers for a second day, and sold stocks worth Rs 200.09 crore, the NSE data showed.
Foreign institutions have remained net sellers and have offloaded Rs 32,581.78 crore worth of stocks so far in 2023.
Yield On 10-Year Bond Declines
The yield on 10-year bond declined 2 basis points to close at 7.02% on Thursday. It had closed at 7.04% on Wednesday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency depreciated by 10 paise to close at 82.09 against the greenback on Thursday.
The local currency closed at 81.99 on Wednesday.
Source: Bloomberg
Sensex, Nifty Close Volatile Day Of Trade Lower As L&T, RIL Drag
Indian equity benchmarks ended the volatile day lower as the shares pharmaceutical companies declined through the day. The S&P BSE Sensex traded above the 62,000 mark intraday, the most in nearly five months since Dec. 15, 2022.
U.S. equity futures ticked higher and European stocks rose as more investors said the Federal Reserve is likely to pause interest-rate hikes on the back of cooling inflation data.
Contracts on the S&P 500 and the Nasdaq 100 advanced by about 0.3%. In U.S. premarket trading, Walt Disney Co. dropped after predicting a wider loss for its streaming service this quarter.
Investors have more market-moving events to contend with Thursday, with the Bank of England expected to tighten policy for a 12th consecutive meeting, hiking its key rate by a further 25 basis points to the highest since 2008. Later in the day, U.S. initial jobless claims and producer prices data will provide the latest snapshot of the state of the economy.
The S&P BSE Sensex Index closed down 36 points or 0.06% at 61,904.52 while the NSE Nifty 50 Index was lower by 18 points or 0.10% at 18,297.
Hindustan Unilever Ltd., Asain Paints Ltd., HDFC Ltd., Adani Enterprises Ltd., and ICICI Bank Ltd. were positively contributing to the change in the Nifty 50 Index.
Whereas, Larsen and Toubro Ltd., Relaince Industries Ltd., ITC Ltd., Dr. Reddy's Laboratories Ltd., and Infosys Ltd. were negatively adding to the change.
The broader market indices outperformed the larger peers; the S&P BSE MidCap Index was up by 0.36%, whereas S&P BSE SmallCap Index was higher by 0.68%.
Six out of the 20 sectors compiled by BSE declined, while 14 advanced in trade.
The market breadth was skewed in the favour of the buyers. About 2,045 stocks rose 1,437 declined, and 150 remained unchanged on the BSE.
Neuland Laboratories Q4 FY23 (Consolidated, YoY)
Revenue up 59.09% at Rs 407.07 crore vs Rs 255.87 crore
Ebitda up 208.44% at Rs 119.86 crore vs Rs 38.86 crore
Ebitda margin at 29.44% vs 15.19%
Net profit up 288.15% at Rs 84.54 crore vs Rs 21.78 crore
Source: Exchange filing
Asian Paints Q4 (Consolidated, YoY)
Revenue up 11% at Rs 8,787.34 crore vs Rs 7,892.67 crore (BBG Est: Rs 8,755.1 crore)
Ebitda up 29% at Rs 1,864.76 crore vs Rs 1,443.29 crore (BBG Est: Rs 1,703.98 crore)
Ebitda margin at 21.2% vs 18.3% (BBG Est: 18.1%)
Net profit up 44% at Rs 1,258.41 crore vs Rs 874.05 crore (BBG Est: Rs 1,140.4 crore)
The board recommended a dividend of Rs 21.25 per equity share of the face value of Rs 1 each for FY23.
Source: Exchange filing
April Mutual Fund Data
Industry posts total net inflow of Rs 1.21 lakh crore in April versus an outflow of Rs 19,264.26 crore in March.
Equity mutual funds see inflow of Rs 6,480.29 crore in April versus inflow of Rs 20,534.21 crore in March.
Debt mutual funds see inflow of Rs 1.07 lakh crore in April versus outflow of Rs 56,884.13 crore in March.
Hybrid mutual funds see inflow of Rs 3,316.99 crore in April versus outflow of Rs 12,372.04 crore in March.
Source: AMFI
Dr Lal Pathlabs Q4 FY23 (Consolidated, YoY)
Revenue up 1% at Rs 491 crore Vs Rs 486 crore (BBG estimate : Rs 516 crore)
Net profit down 8% to Rs 57 crore Vs Rs 61 crore (BBG estimate : Rs 63 crore Profit)
EBITDA down 5% to Rs 116 crore from Rs 121 crore (BBG estimate : Rs 125 crore Profit)
Margins at 23.5% Vs 24.9% (BBG estimate : 24.2%)
Source: Exchange filing
SpiceJet To Boost Grounded Fleet With $50 Million Funds From ECLG Scheme
SpiceJet has initiated the process of reviving its grounded fleet with $50 million ((Rs 410.47-crore) funds.
The funds have been received by the airline from the government’s Emergency Credit Line Guarantee Scheme and internal cash accruals.
The airline has also stated that it has no plans to file for insolvency.
"There is absolutely no question of filing for insolvency. Any rumour regarding the same is completely baseless"said Ajay Singh, Chairman and Managing Director, SpiceJet.
Source: Exchange filing
European Markets Trade Higher
Oil Prices And Inventories Headed In Different Directions. What Gives?
Stocks In Focus: DRL, Hindalco, Novartis, Sanofi India And More
Stocks At 52-Week High Intraday
ABB India Plans To Double Production Capacity By 2025 After The Launch Of New Line
ABB India Ltd. introduced a new line for variable speed drive modules at the Peenya factory in Bengaluru.
The new line will produce drives ranging from 75 kW to up to 250 kW and will cater to all major industrial segments.
The expansion will strengthen the local supplier eco-system for ABB low voltage AC drives portfolio.
Company aims to double production capacity by 2025, local manufacturing offering customers faster access to products, customization, and quick serviceability.
Source: Exchange filing
Hindustan Copper To Consider Raising Funds Via QIP And Issuance Of NCDs
Hindustan Copper's board will meet on May 19, to consider raising funds via qualified institutional placement of about 9.50 crore equity shares of face value of Rs 5 each.
The board will also consider raising Rs 500 crore via unsecured NCDs or bonds on a private placement basis.
Source: Exchange filing
Sanofi India Shares Gain Most in 33 Months After Demerger Of Consumer Health Arm Announced
Shares of Sanofi India rose after the board announced a demerger of its consumer health business from its pharma business.
The consumer health business is set to demerge into its wholly owned subsidiary, Sanofi Consumer Healthcare India Limited, according to an exchange filing.
The subsidiary will include all assets and liabilities pertaining to the business, including brands like Allegra, Combiflam, DePURA, and Avil.
Sanofi India also announced its first-quarter results on Wednesday:
After-tax profits declined 20% to Rs 190 crore. (Bloomberg estimate: Rs 129 crore)
Revenues rose 4% to Rs 737 crore. (Bloomberg estimate: Rs 690 crore)
Ebidta increased 19% to Rs 230 crore (Bloomberg estimate: Rs 164 crore)
Ebidta margins stood at 31.3% versus 27.5%. (Bloomberg estimate: 23.8%)
Shares of Sanofi rose as much as 8.06%, the most in a day since August 3, 2020. It was trading 7.84% higher at Rs 6,147.45 apiece as of 12:19 p.m. on Thursday compared to a flat benchmark NSE Nifty 50.
The average traded volume so far in the day was 17.5 times its monthly average.
Of the seven analysts tracking the company, six maintain a 'buy' rating, and one suggests a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 5.6%.
Sensex, Nifty Volatile As Pharma Stocks Decline; Banks Rise: Midday Market Update
Indian equity benchmarks opened higher but soon slipped into the volatile territory with the pharmaceutical companies dragging the index and banks advancing in trade. The S&P BSE Sensex traded above the 62,000 mark intraday, the most in nearly five months since Dec. 15, 2022.
Mainland China shares erased an earlier gain, while Hong Kong’s Hang Seng Index fell after Beijing reported smaller-than-expected consumer inflation, while producer prices continued to sink. The broader picture for Asian markets were mixed. The tech-dependent South Korean gauge rose, Taiwanese equities fell and Japanese stocks declined, weighed down by a stronger yen.
Contracts for the S&P 500 were about 0.2% higher after the benchmark rose 0.4% Wednesday. Nasdaq 100 futures also rose following a 1.1% rally in the tech-heavy benchmark, which closed at the highest level since August, after U.S. inflation softened.
Contracts for the S&P 500 were about 0.2% higher after the benchmark rose 0.4% Wednesday. Nasdaq 100 futures also rose following a 1.1% rally in the tech-heavy benchmark, which closed at the highest level since August, after U.S. inflation softened.
Headline U.S. inflation eased to 4.9% in April, the first reading below 5% in two years and below consensus expectations. Core inflation remained at 5.5%.
As of 12:00 p.m., the S&P BSE Sensex Index was down 22.7 points or 0.04% at 61,916.50 while the NSE Nifty 50 Index was lower by 10 points or 0.05% at 18,305.55.
ICICI Bank Ltd., Adani Enterprises Ltd., Hindustan Unilever Ltd., Relaince Industries Ltd., and Axis Bank Ltd. were positively contributing to the change in the Nifty 50 Index.
Whereas, Larsen and Toubro Ltd., Dr. Reddy's Laboratories Ltd., Hindalco Industries Ltd., ITC Ltd., and Bharti Airtel Ltd. were negatively adding to the change.
The broader market indices were trading higher; the S&P BSE MidCap Index was up by 0.33%, whereas S&P BSE SmallCap Index was higher by 0.69%.
Five out of the 19 sectors compiled by BSE declined, while 14 advanced in trade.
The market breadth was skewed in the favour of the buyers. About 2,059 stocks rose 1,230 declined, and 169 remained unchanged on the BSE.
Adani Ports Completes Early Settlement Of Notes Tendered Worth $130 Million
Adani Ports and Special Economic Zone has completed early settlement of notes tendered pursuant to tender offer for its 3.375% senior notes due 2024.
It paid a total $127.39 million including payment of $970 per $1,000 principal amount, accrued interest of $9.9375 per $1,000 of the notes tendered.
It arranged for the tendered notes to be cancelled on May 10, 2023.
The outstanding principal amount of notes following cancellation is $520 million.
Source: Exchange filing
Novartis India Shares Rise Most In 9 Months On Higher Quarterly Profits, Income
Shares of Novartis India Ltd. gained the most in nine months after its reported profit in the fourth quarter.
Shares of Novartis Ltd. advanced 5.28% to Rs 667.35 apiece in trade on Wednesday compared to the rise in the benchmark, NSE Nifty 50 Index by 0.14%.
The stock gained as much as 8.68% intraday, rising the most since July 28' 2022, while it is down 1.31% year-to-date. Total traded volume stood at 38.7 times its 30-day average.
Source: Bloomberg, Exchange filing
Ratnamani Metals & Tubes Shares Hit An All-Time High On Strong Q4 Show
Shares of Ratnamani Metals & Tubes Ltd. hit an all-time high after the company reported strong revenue and net profit in the fourth-quarter of fiscal 2023.
Its profit rose by 73% year-on-year to Rs 192.58 crore in the quarter ended March. This compares with the net profit of the period in the previous fiscal, which stands at Rs 111.63 crore, according to its exchange filing. Company's March quarter revenue was up 54% to Rs 1,499 crore compared with Rs 974 crore, in the same period a year back.
The board also recommended raising Rs 500 crore, in one or more tranches in the form of non-convertible debentures by way of private placement.
Ratnamani Metals & Tubes Q4 (Consolidated, YoY)
Revenue up 54% at Rs 1,499 crore vs Rs 974 crore
Ebitda up 4.02% at Rs 300.56 crore vs Rs 168.54 crore
Ebitda margin at 20.1% vs 17.3%
Net profit up 73% at Rs 192.58 crore vs Rs 111.63 crore
The board recommended a dividend of Rs 12 per equity share for FY23.
Shares of Ratnamani Metals & Tubes Ltd. rose 8.23% to Rs 2,424 apiece, as of 11:04 a.m., in trade on Thursday compared to 0.07% advance in the benchmark, NSE Nifty 50 Index.
The stock gained as much as 12.97% intraday, the most in over 10 months since June 30, 2022. The stock hit an all-time high at Rs 2,582 apiece, intraday. Total traded volume stood at 56.3 times its 30-day average. The relative strength index was at 79, implying that the stock maybe overbought.
Out of the six analysts tracking the company, five maintain a 'buy' rating and one recommends a 'hold' on the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential downside of 1.9%.
Source: Bloomberg, Exchange filing
L&T Shares Declines As AM Naik To Step Down As Chairman
L&T shares fall the most in over 14 months since March 7, 2020 after AM Naik announced that he will be stepping down as non-executive chairman of the company on Sept. 30, 2023.
Naik will be conferred the status of chairman emeritus, thereafter. On the other hand, SN Subrahmanyan, the chief executive officer and managing director, has been re-designated as the chairman and managing director of the company, with effect from Oct. 1, 2023.
Shares of Larsen and Toubro Ltd. dropped 4.57% to Rs 2,256.4 apiece, as of 10:21 a.m., in trade on Thursday compared to 0.05% advance in the benchmark, NSE Nifty 50 Index.
The stock fell as much as 5.38% intraday, the most in over 14 months since March 7, 2022. Total traded volume stood at 10.3 times its 30-day average. The relative strength index was at 45.8.
Out of the 43 analysts tracking the company, 40 maintain a 'buy' rating, one recommend a 'hold' and two suggest to 'sell' the stock, as per the Bloomberg data.
The average calculated from the 12-month price target given by analysts implies a potential upside of 12%.
Source: Bloomberg, Exchange filing
Gujarat Gas Shares Advance After Q4 Profit Beat Estimate
Shares of Gujarat Gas Ltd. rose during trade on Monday, after the company's net profit for Q4 of FY23 beat estimate, despite being lower.
Although consolidated net profit for the quarter fell 16.63% to Rs 370.5 crore on a year-on-year basis, according to an exchange filing, it was higher than Bloomberg's estimate of Rs 261.58 crore.
Gujarat Gas Q4 FY23 (Consolidated, YoY)
Revenues down 15.87% at Rs 3928.57 crore (Bloomberg estimate: Rs 4,156.38 crore).
Ebitda down 19.66% at Rs 560.32 crore (Bloomberg estimate: Rs 432.80 crore).
Margins at 14.26% vs 14.94% (Bloomberg estimate: 10.41%).
Net profit down 16.63% at Rs 370.5 crore (Bloomberg estimate: Rs 261.58 crore).
The board recommended a dividend of Rs 6.65 per share for the fiscal ended March 2023.
Shares of Gujarat Gas were trading 5.92% higher at Rs 490.25 apiece, compared to a flat Nifty 50 as of 9:44 a.m.
Of the 25 analysts tracking the stock, 10 maintained 'buy', six suggested 'hold', while six recommend 'sell', as per Cogencis data. Of the remaining three analysts, one has a neutral stance between 'buy' and 'hold', while two analysts remain neutral between 'hold' and 'buy'.
Broader Markets Open Higher
The broader market indices opened higher; the S&P BSE MidCap Index was up by 0.20%, whereas S&P BSE SmallCap Index was higher by 0.48%.
Seven out of the 19 sectors compiled by BSE declined, while 12 advanced in trade.
The market breadth was skewed in the favour of the buyers. About 1,804 stocks rose 747 declined, and 107 remained unchanged on the BSE.
Source: BSE
Top Movers On The Nifty 50 Index
HDFC Bank Ltd., Infosys Ltd., HDFC Ltd., ICICI Bank Ltd., and Adani Enterprises Ltd. were positively adding to the change.
Whereas, Larsen and Toubro Ltd., Dr. Reddy's Laboratories Ltd., Bharti Airtel Ltd., Hindalco Industries Ltd., ITC Ltd. were negatively contributing to the change in the Nifty 50 Index.
Sensex, Nifty Open Higher
Indian equity benchmarks opened higher in trade after Sensex traded above the 62,000 mark in pre-open, the most in nearly five months since Dec. 15, 2022. IT stocks gained whereas the pharmaceutical companies declined in trade.
U.S. equity futures and Chinese stocks advanced on Thursday as inflation data from the two economies spurred hopes monetary easing.
Contracts for the S&P 500 were about 0.2% higher after the benchmark rose 0.4% Wednesday. Nasdaq 100 futures also rose following a 1.1% rally in the tech-heavy benchmark, which closed at the highest level since August, after U.S. inflation softened.
Headline U.S. inflation eased to 4.9% in April, the first reading below 5% in two years and below consensus expectations. Core inflation remained at 5.5%.
Asian markets were mixed. Australian and Japanese shares were slightly lower in range-bound trading while South Korea’s benchmark rose. Indices of Hong Kong and mainland China climbed as inflation and factory-gate price data came in lower than expected. The declines keep the window open for monetary easing from the People’s Bank of China.
At pre-open, the S&P BSE Sensex Index was up 219 points or 0.35% at 62,158.10 while the NSE Nifty 50 Index was higher by 43 points or 0.23% at 18,357.80.
Sensex, Nifty Gain In Pre-Open
At pre-open, the S&P BSE Sensex Index was up 219 points or 0.35% at 62,158.10 while the NSE Nifty 50 Index was higher by 43 points or 0.23% at 18,357.80.
Source: Bloomberg
Yield On The 10-Year Bond Declines
The yield on the 10-year bond opened 2 bps lower at 7.01% on Thursday.
It closed at 7.03% on Wednesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened about 2 paise to open at 81.97 against the greenback on Thursday.
Rupee closed at 81.99 on Wednesday.
Source: Bloomberg
NBFCs Continue To Surge, Capital Goods Will Be In Focus: Trade Setup
Bosch Q4 FY23 (Consolidated, YoY)
Revenue up 23% at Rs 4,063.4 crore vs Rs 3,311.0 crore
Ebitda up 19% at Rs 522.4 crore vs Rs 440.7 crore
Ebitda margin at 12.9% vs 13.3%
Net profit up 13% at Rs 398.1 crore vs Rs 350.9 crore
The board recommended a dividend of Rs 280 per equity share of Rs 10 each.
Source: Exchange filing
Global Cues
U.S. Dollar Index at 101.4
U.S. 10-year bond yield at 3.43%
Brent crude up 0.29% to $76.63 per barrel
Nymex crude up 0.28% at $72.76 per barrel
SGX Nifty up 0.17% at 18,389 as of 8:10 a.m.
Bitcoin down 1% at $27,597.07
Insider Trading
Rajnish Wellness: Promoter Rajnish Kumar Singh bought 2 lakh shares on May 8.
Trading Tweaks
Ex-Date Final Dividend: IndiaMART InterMESH
Record Date Final Dividend: IndiaMART InterMESH
Ex-Date Interim Dividend: Kewal Kiran Clothing
Record Date Interim Dividend: Kewal Kiran Clothing
Ex-Date Bonus Issue: Sirca Paints India
Record Date Bonus Issue: Sirca Paints India
Offerings: Nexus Select Trust REIT IPO
Nexus Select Trust REIT: The issue was subscribed 60% by the second day, as per data shared by lead manager Axis Capital. The QIB portion was subscribed 18%. Non-institutional investors placed bids for 1.1 times the portion reserved for them.
Stocks To Watch: L&T, Dr. Reddy's, Asian Paints, Eicher Motors, HDFC, Godrej Consumer In Focus
Larsen & Toubro: AM Naik will step down as non-executive chairman of the company on Sept. 30 and will be conferred the status of chairman emeritus. SN Subrahmanyan, the chief executive officer and managing director, has been re-designated as the chairman and managing director of the company, with effect from Oct. 1.
Rail Vikas Nigam/Siemens: The consortium of the two companies received an order worth Rs 300.11 crore from the Mumbai Metropolitan Region Development Authority for the design, manufacture, supply, installation, testing, and commissioning of two 110KV receiving substations for mainline and depot of Mumbai Metro line 2B. Siemens is the lead consortium partner with a 60% share, and RVNL holds a 40% share.
Oil India: Stimul-T, the owner of Project License-61 oil block in Tomsk, Russia, has filed for bankruptcy. Oil India owns a 50% stake in WorldAce investment, the parent company of Stimul-T, through its subsidiary Oil India International BV. Meanwhile, the Numaligarh refinery allotted 20.03 crore partly paid-up shares to the company on May 10 at Rs 110 per share, taking its stake in the refinery to 73.27%.
CSB Bank: Satish Gundewar has been appointed as chief financial officer of the company effective June 5, 2023, following the resignation of BV Divakara.
Zydus Lifesciences: The company received an establishment inspection report from the U.S. FDA for the inspection conducted at its facility in Moraiya, Ahmedabad, without any observations. The pre-approval inspection, conducted from Jan. 23 to 27, covered transdermal patch products.
HDFC: SEBI granted its final approval for the change in control of HDFC Asset Management Company, a subsidiary of HDFC.
Q4 Results Today
Asian Paints, Eicher Motors, PDS, Deepak Nitrite, Balrampur Chini Mills, Zensar Technologies, Ujjivan Small Finance Bank, Intellect Design Arena, Dr Lal Pathlabs, Care Ratings, Siemens, Aditya Birla Capital, Ajmera Realty & Infra India, Alkyl Amines Chemicals, BLS International Services, DCW, Everest Industries, Gillette India. Gujarat State Petronet, GTL Infrastructure, Kirloskar Brothers, Mangalore Chemicals & Fertilizers, Neuland Laboratories, Paisalo Digital, PTC India Financial Services, Religare Enterprises, SG Finserve, Shankara Building Products, South Indian Bank.
Earnings Fineprint
Larsen & Toubro Q4FY23 Results (YoY)
Revenue up 10.4% at Rs 58,335.15 crore (Bloomberg estimate: Rs 58,907.23 crore)
Ebitda up 4.8% at Rs 6,832.95 crore (Bloomberg estimate: Rs 7,146.99 crore)
Ebitda Margin: 11.7 % vs 12.3% (Bloomberg estimate: 12.1%)
Net Profit up 10.98% at Rs 4,446.74 crore (Bloomberg estimate: Rs 3,965.1 crore)
The board approved a final dividend of Rs 24 per share for the financial year 2022-23.
Dr Reddy's Laboratories Q4 FY2023 (Consolidated, YoY)
Revenue up 15% at Rs 6,315 crore (Bloomberg estimate: Rs 6,248 crore)
Ebitda up 33% to Rs 1,588 crore (Bloomberg estimate: Rs 1,591 crore)
Ebitda margin at 25.1% vs 21.8% (Bloomberg estimate: 25.5%)
Net profit up 889.79% at Rs 960 crore (Bloomberg estimate: Rs 1,034 crore)
The company approved a final dividend of Rs 40 per share for the fiscal 2023.
Godrej Consumer Products Q4 FY23 (Consolidated figures, YoY)
Revenue up 10% at Rs 3,200.16 crore (Bloomberg estimate: Rs 3,249.47 crore)
Ebitda up 32% to Rs 664.81 crore (Bloomberg estimate: Rs 617.84 crore)
Ebitda margin at 20.8% Vs 17.2% (Bloomberg estimate: 19%)
Net profit up 24% at Rs 452.14 crore (Bloomberg estimate: Rs 430 crore)
Gujarat Gas Q4 FY23 (Consolidated, YoY)
Revenues down 15.87% at Rs 3928.57 crore (Bloomberg estimate: Rs 4,156.38 crore)
Ebitda down 19.66% at Rs 560.32 crore (Bloomberg estimate: Rs 432.80 crore)
Margins at 14.26% vs 14.94% (Bloomberg estimate: 10.41%)
Net profit down 16.63% at Rs 370.5 crore (Bloomberg estimate: Rs 261.58 crore)
The board recommended a dividend of Rs 6.65 per share for the fiscal ended March 2023.
Procter & Gamble Hygiene & Health Care Q4 FY23 (Consolidated, YoY)
Revenues down 9.26% at Rs 883.09 crore (Bloomberg estimate: Rs 971.5 crore)
Ebitda down 9.54% at Rs 149.27 crore (Bloomberg estimate: Rs 208 crore)
Ebitda margin at 16.9% vs 16.95%(Bloomberg estimate: 21.4%)
Net profit up 60.45% at Rs 165.02 crore (Bloomberg estimate: Rs 151.60 crore).
SGX Nifty Signals Higher Open For The Benchmark
U.S. equity futures and Chinese stocks advanced on Thursday as inflation data from the two economies spurred hopes of monetary easing.
Contracts for the S&P 500 were about 0.2% higher after the benchmark rose 0.4% Wednesday. Nasdaq 100 futures also rose following a 1.1% rally in the tech-heavy benchmark, which closed at the highest level since August after U.S. inflation softened.
Headline U.S. inflation eased to 4.9% in April, the first reading below 5% in two years and below consensus expectations. Core inflation remained at 5.5%.
Asian markets were mixed. Australian and Japanese shares were slightly lower in range-bound trading, while South Korea’s benchmark rose. Indices of Hong Kong and mainland China climbed as inflation and factory-gate price data came in lower than expected. The declines keep the window open for monetary easing from the People’s Bank of China.
The yield on the 10-year Treasury note in the U.S. was trading at 3.43%. Crude oil prices traded below the $77 mark, while Bitcoin declined below the e$28,000 level.
At 8:10 a.m., the Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 0.17% at 18,389.
Domestic benchmark indices picked up towards the end of the session after swinging between gains and losses.
The Indian rupee inched higher against the U.S. dollar as the greenback suffered due to cautious investor sentiment.
Foreign investors were net buyers for the tenth straight day and bought equities worth Rs 1,833.1 crore. On the other hand, domestic institutional investors turned sellers, and sold stocks worth Rs 789.7 crore, snapping a two-day buying streak, the NSE data showed.
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