The stock market is going to open on Thursday amid many major domestic and global reasons. On one hand, the exit polls of five states have created a stir on the political front; On the other hand, the huge rise in crude oil prices due to the crisis in the Strait of Hormuz has increased the concern of investors. Markets are likely to remain volatile on the back of Fed’s interest rate decisions, weakness in US markets, continued selling by foreign institutional investors (FIIs), and key corporate earnings reports to be released today. GIFT Nifty is trading near 24,067 levels with a fall of almost 190 points. Meanwhile, Dow Futures are down 125 points, indicating a weak start to the trading session. The chances of a BJP government being formed in West Bengal—which would be a first for the state—look promising. Six out of eight exit polls conducted for Bengal have predicted BJP to get majority. Additionally, forecasts suggest that the DMK will return to power in Tamil Nadu and the BJP in Assam.
Crude oil prices rise amid Hormuz crisis
Crude oil prices have seen a sharp rise due to the continued closure of the Strait of Hormuz. Brent crude futures for July delivery rose 6% to cross $112 a barrel, while June futures climbed 9% to trade near $120 a barrel.
Trump rejected Iran’s proposal
US President Donald Trump rejected a proposal from Iran, saying that the blockade in the Strait of Hormuz will continue until an agreement is reached on Iran’s nuclear program. This development has further increased geopolitical tensions.
Fed kept interest rates unchanged for the third time
The US Federal Reserve decided to keep interest rates unchanged for the third consecutive meeting. Rates were kept within the range of 3.5% to 3.75%. It is noteworthy that the level of disagreement among the committee members in this meeting was the highest seen in the last 34 years.
pressure on US markets
American markets came under pressure after the rise in crude oil prices. The Dow fell 280 points, closing with losses for the fifth consecutive trading session. The Nasdaq gave up its intraday gains and closed with a modest gain of just 9 points.
Heavy fall in gold and silver
In the global market, gold fell $50 to near $4,550, while silver fell 2% and slipped below $72. On MCX, gold fell ₹800 to settle near ₹1.49 lakh, and silver fell ₹4,150 to settle near ₹2.33 lakh.
Continuous selling of FIIs continues
Foreign investors sold in the cash market for the eighth consecutive day. FIIs made cash sales of ₹2,468 crore, resulting in a net outflow of ₹1,831 crore. In contrast, DIIs made purchases totaling ₹2,262 crore.
Focus on earnings figures
Bajaj Finance’s March quarter results were in line with estimates, and its guidance was also strong. Meanwhile, Force Motors and Motilal Oswal had a mixed performance. KFin Tech and Waaree Energies reported weak results. Today, the earnings data of Adani Ports, Bajaj Finserv and HUL are going to be released under Nifty index. In the F&O segment, six companies including NALCO, Laurus Labs and Indus Towers will be the ones to watch out for.
Ex-Date of Vedanta Demerger today
Today is the ex-date of Vedanta’s demerger. There will be a price discovery session from 9:15 am to 9:45 am. After this, new F&O contracts will be issued at 10:00 am.
RBI gave relief to disaster affected borrowers
RBI has issued new relief guidelines for borrowers affected by natural disasters. The relief process should be started within 45 days of the disaster occurring. This includes rescheduling EMIs, converting accrued interest into a new loan, and providing additional loan facilities. These rules will come into effect from July 1.
SEBI launches new PaRRVA framework
SEBI has launched ‘PaRRVA’ framework to protect investors from misleading claims. Under this framework, the NSE Data Center will verify the performance records of entities engaged in advisory services, research and algorithmic trading.
