ETMarkets morning Podcast: Weak IIP, rise in CPI inflation to move market

Hey there! Good Morning. This is Nandini Sanyal from ETMarkets.com with the regular morning briefing of news, views and cues before you start your day on Dalal Street.

The domestic market awaits a mixed set of cues on Thursday, in the form of the first set of big March quarter earnings from Infosys, and a signal from the US that President Donald Trump wants the Federal Reserve to keep interest rates low. Back home, a weak set of IIP data released on Wednesday and a spike in consumer price inflation are going to have a bearing on the market.

At 6.30 am, Nifty50 futures on the Singapore Stock Exchange were trading 32 points lower at 9,200, indicating a negative opening for the domestic market.

Asian markets were trading weak in early morning trade, though they still fared better than Wall Street, which declined following Trump comments. In overnight trade, Dow Jones Industrial Average slipped 59.44 points to 20,591, the S&P500 index fell 8.85 points to 2,344, and the Nasdaq tanked 30.61 points to 5,836.

The Nifty50 formed a 'Bearish' candle on technical charts on Wednesday, but the intraday fall was mostly bought into. Analysts noted that the index was in a corrective phase since the recent high of 9,274 and Wednesday's chart seemed like the top of the bottom.

Foreign portfolio investors sold stocks worth Rs 580 crore on Wednesday. The total investment by FPIs in domestic equities has got trimmed to Rs 3,493 crore so far this month. For the year, FPIs have invested nearly Rs 43,124 crore in domestic stocks so far.

In other news, the rupee on Wednesday ended 17 paise lower at 64.67 against the US dollar as forex market sentiment dipped over simmering geopolitical tensions. The local currency plunged to touch an intra-day low of 64.73 before ending at 64.67, logging a loss of 17 paise, or 0.26 per cent.

Domestic oil marketing companies have decided to revise prices of petrol and diesel on a daily basis from May 1. The pilot project will be implemented in Udaipur, Jamshedpur, Visakhapatanam, Chandigarh and Puducherry, entitling gradual changes of a few paise every day instead of sharp fortnightly variations.

Oil futures fell on Wednesday, pulling back after eight straight sessions of gains after US crude inventory data suggested the market was still heavily supplied. Brent crude futures settled 37 cents lower at $55 a barrel after hitting a one-month high of $56.65. WTI crude futures were down 29 cents to $53.11 a barrel.
Lastly, a quick look at some of the interesting headlines from the print edition of ETMarket.

Sebi plans to make it mandatory for companies raising less than . 500 crore through IPO to appoint a monitoring agency to keep track of the use of funds. The board also plans to reduce paperwork for foreign portfolio investors wanting to bring money into the country and allow systemically important NBFCs in the institutional category in public issues.

While PE investors make big money in IPO exits, retail and other investors have also been making decent money in such exits in recent times. The largest IPO exits in the last three years made 1-14 times returns for private equity firms. But after listing, retail, HNIs and institutional investors have gained 9-156 per cent in these firms, thanks to a strong stock market, data from Venture Intelligence showed.

Shares of public sector oil companies IOC, BPCL and HPCL have outperformed the market by 35-80 per cent in the past two calendar years. This, however, may not be sustainable in the short term considering the deceleration in the demand for petroleum products. Analysts say rising prices of petrol, diesel, naphtha, and fuel oil are expected to curb their demand further, which may restrict the upside in the stocks.
We would leave you with that much for now.

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