Auto, FMCG, IT, and real estate are all down 1%, while oil & gas and power are up.
Ravindra Rao, CMT, EPAT, Kotak Securities VP-Head Commodity Research:
NYMEX crude trades near $119/bbl, off yesterday’s 3-month high. China lifting virus-related restrictions, Saudi Arabia raising prices for Asian buyers, and EU banning Russian crude all support crude. Crude is struggling amid increased market volatility and monetary tightening concerns. Market players are also assessing whether Russian supply loss can be compensated by sanctions-hit Venezuela and Iran. Crude may be volatile, but supply worries may support prices.
V K Vijayakumar, Geojit Chief Investment Strategist:
Tomorrow’s RBI rate hike and Friday’s US inflation rate are important. The only unknown is the RBI’s rate hike’s magnitude. Even if the rate hike is 50bp, the market won’t be affected much because frontloading will anchor inflation expectations.
Inflation in the US will determine how far the Fed will raise rates, which will influence market direction. This will determine whether global equity markets are “risk-on” or “risk-off.” Since deposit rates lag lending rates, rising rates will improve bank margins. Financials, especially banking, are the best-valued market segment.
|Dr Reddys Labs||4,117.00||-188.75||-4.38%|
Deal cancellation rights: Musk to Twitter
Musk “reserves the right” to terminate the deal to take over Twitter, which he accuses of “resisting and thwarting” his request for spam account data. Tesla’s CEO said last month he was putting the $44 billion acquisition deal on “temporary hold” until it is determined whether fake Twitter users account for less than 5% of the total userbase. Musk has requested an independent analysis to verify Twitter’s claim of 5% spam accounts.
HDFC Securities’ Deepak Jasani
Indian markets could open lower today in line with Asian markets and despite higher US markets on Monday. All three major US stock indexes finished higher on Monday, but trimmed earlier gains as the 10-year Treasury yield breached 3%. Amazon.com and other mega-cap growth shares helped US stocks end Monday slightly higher, but inflation and interest rate worries kept the market in check.
Monday’s Nifty consolidation follows Friday’s drop. Taking support at 16443, the index rose and closed slightly below the low. Nifty could stay in 16353-16696 for a few sessions.