Highlights:

Markets open IN NEGATIVE MODE BUT PICKS UP.

Oil prices ..no change today in bunks

Tata Motors reports loss: Shares down

Pharma shares show promise

Dollar index trading at 3 months low

Gold up

Crude falls

BSE M-Cap touches all time high..>Rs 2 Bn

Stock Market Live Updates: Indian indices trimmed losses to turn range-bound on Wednesday as gains in IT, pharma stocks were capped by losses in auto and metal stocks. Meanwhile, Asian stocks were down as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now. Auto major Tata Motors fell 6 percent after it posted weak March quarter earnings.

“The trend of low daily Covid cases and high recoveries has the potential to sustain the ongoing ‘hope trade’ in the market. But since the bulls are sitting on good profits, corrections caused by profit-taking are due anytime. Global support to markets is likely to continue since the consensus is that the Fed is likely to ignore the recent spurt in inflation dismissing it as transitory. A positive development is FIIs turning buyers with a net buy figure of Rs 618 cr yesterday. The consensus pre-second Covid wave GDP growth rate of around 11 percent for FY22 is getting revised to around 9 percent. Earnings estimates for FY 22 also will take a hit. But it appears that the market is looking through this downward revision and is focussing on the post- second wave scenario.”

Opening Bell: Sensex opens 150 points lower, Nifty below 15,100; banks, autos drag

Indian indices opened lower on Wednesday, snapping 2 sessions of gains as it tracked losses in Asian peers.  Losses in banking and auto stocks weighed the most on the benchmarks. Asian stocks fell as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now. At 9:18 am, Sensex was down 147 points at 50,046 while the Nifty lost 49 points to 15,058. Broader markets, however, outperformed and gained in opening deals. The Nifty Midcap index rose 0.2 percent and smallcap index was up 0.5 percent. On the Nifty50 index, Tata Motors, M&M, ONGC, Kotak Bank and HUL were the top losers while Powergrid, L&T, Adani Ports, Cipla and Sun Pharma were the top gainers.

No change in petrol, diesel prices on Wednesday

The oil marketing companies (OMCs) kept fuel prices remain unchanged on Wednesday after raising them on Tuesday. Accordingly, the price of petrol and diesel stood at Rs 92.85 and Rs 83.51 per litre respectively in Delhi, according to Indian Oil Corporation, the country’s largest fuel retailer. In Mumbai, the petrol price remained unchanged at Rs 99.14 per litre on Wednesday. The cost of diesel also was the same at Rs 90.71 a litre.

Oil falls on concerns of Iranian supply return, inflation fears

Oil prices fell for a second day on Wednesday on the potential of Iranian supply returning and as investors sold on speculation that inflation fears might lead the US Federal Reserve to raise interest rates, which could limit economic growth. US West Texas Intermediate (WTI) crude futures dropped 73 cents, or 1.1 percent, to USD 64.76 a barrel at 0241 GMT, following a 1.2 percent fall on Tuesday. Brent crude futures also fell 73 cents, or 1.1 percent, to USD 67.98 a barrel, after dropping 1.1 percent on Tuesday. The Fed has indicated that interest rates will stay at their current low levels through 2023 though futures markets show investors believe rates may start to be raised by September 2022.

Asian shares slip, bitcoin tumbles as inflation worries linger

Asian stocks dipped and cryptocurrencies extended losses on Wednesday as uncertainties over inflation prompted investors to reduce exposure to riskier assets for now. Also weighing on digital coins was a new Chinese ban on financial institutions providing services related to cryptocurrency transactions. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.3 percent though Hong Kong and South Korea are closed for the holiday. Mainland China’s CSI300 slipped 0.6 percent while Japan’s Nikkei lost 1.1 percent. Wall Street stocks slid late in the session to end lower on Tuesday, unable to sustain gains made after bumper earnings from Walmart and Home Depot. The S&P 500 lost 0.85 percent, with telecom shares leading the decline, while the Nasdaq Composite dropped 0.56 percent.

Investors richer by over Rs 5.78 lakh crore in two sessions of massive market rally

Investors’ wealth zoomed by Rs 5,78,634.72 crore in two days of intense market rally, with participants adding Rs 2,74,908.83 crore to their fortune on Tuesday. Over the past two sessions, the BSE gauge Sensex has gained about 1,461 points or 2.99 percent. The benchmark rallied 612.60 points or 1.24 percent to settle above the 50,000-mark on Tuesday. Following the two-day massive rallies, the market capitalisation of BSE-listed companies jumped by Rs 5,78,634.72 crore to a record Rs 2,16,39,367.91 crore on Tuesday. “The rise can be attributed to a decline in India’s COVID cases and stability in the global markets,” said an analyst. Last time on April 1, the BSE benchmark had closed above 50,000-level.

Gold hovers near 4-month high as dollar eases; Fed minutes in focus

Gold prices inched up on Wednesday, hovering near a four-month high on a weaker dollar, while investors awaited minutes from the US Federal Reserve’s last policy meeting as inflation worries persist.

* Spot gold was up 0.1 percent at USD 1,870 per ounce by 0044 GMT, after hitting its highest since Jan. 29 at USD 1,874.80 in the previous session.

* US gold futures rose 0.1percent to USD 1,869.60 per ounce.

* The dollar index held close to a near three-month low against its rivals, making gold less expensive for other currency holders.

* Market participants are waiting for the release of minutes from the US Fed’s April 27-28 policy meeting at 1800 GMT for further clarity on economic recovery and policymakers’ view on inflation.

SUUTI may sell 3.6 crore shares in Axis Bank at Rs 680 per share

The central government is likely to further pare down its stake in Axis Bank held via the Specified Undertaking of the Unit Trust of India (SUUTI). SUUTI is likely to sell 3.6 crore shares in Axis Bank at a price of Rs 680 per share, it said. SUUTI was created to take over part of the assets and liabilities of the now-defunct Unit Trust of India. The state-owned undertaking is aiming to sell the stake in Axis Bank which is considered to be Rs Rs 2,448 crore, while it may sell up to 5.8 crore shares, taking in a total of Rs 3,949.34 crore. As of March 31, 2021, SUUTI holds a 3.45 percent stake in Axis Bank. The main brokers on behalf of SUUTI include ICICI Securities Limited, Citigroup Global Markets India Private Limited, and Morgan Stanley India Company Private Limited.

First up, here is quick catchup of what happened in the markets on Tuesday

Indian indices ended higher for the second session on Tuesday boosted by auto stocks and financials, as the daily rise in domestic COVID cases stayed below the 300,000-mark for a second straight day. The Sensex ended 612 points higher at 50,193 while the Nifty rose 185 points to settle at 15,108. Broader markets outperformed benchmarks with the midcap index up 1.8 percent and smallcap index up 1.6 percent. On the Nifty50 index, four of 5 stocks were from the auto space. M&M, Bajaj Auto, Bajaj Finance, Titan, and Eicher Motors were the top gainers while Bharti Airtel, ITC, Coal India, Dr Reddy’s, and Divi’s Labs were the top losers.

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