Metals, financials drag indices; Sensex falls 338 pts, Nifty holds 14,900
Benchmark indices turned sharply lower during the fag-end of the session, after staying flat for better part of the day, as US stock futures indicated a weak session on Wall Street. Dalal Street investors took cues from Dow Jones Futures, that tumbled nearly 200 points in early pre-market deals, and booked profit largely in metal, financials, and FMCG counters. S&P 500 and Nasdaq Futures also slipped 20 points and 60 points, respectively, suggesting a third straight session of declines in the US. That apart, weekly expiry of the F&O contracts and FPI selling added to the volatility. By close, the BSE barometer of 30-shares was down 338 points, or 0.68 percent, at 49,565 levels while the Nifty50 index quoted at 14,906 levels, down 124 points or 0.83 percent. In the intra-day trade, the indices hit a low of 49,497 and 14,885, respectively. Heavyweights HDFC Bank, ICICI Bank, Reliance Industries, Axis Bank, Kotak Mahindra Bank, TCS, and HDFC contributed the most towards the indices’ losses as they declined between 0.5 percent and 1.5 percent.
Asian markets trade mixed; Nikkei index edges higher
Asian stock markets opened in the green on Friday led by a strong rally overnight in the US markets. Chinese stocks will again be in the limelight as strong manufacturing data could see more ETF flows into stocks. The Taiex in Taiwan led gains among the region’s major markets, rose over 1 percent. Mainland Chinese markets erased early gains and currently trading slightly lower, with the Shanghai Composite down 0.45 percent while the Shenzhen Component down by 0.20 percent. In Hong Kong, the Hang Seng index edged 0.26 percent lower. Japan’s Nikkei 225 rose 0.72 percent while the Topix index gained 0.62 percent and South Korea’s Kospi advanced 0.77 percent. Meanwhile, in Australia, the S&P/ASX 200 hovered above the flatline. Overnight stateside, Wall Street ended higher mainly on upbeat economic data, the S&P 500 gained around 1.1 percent to 4,159.12 while the Nasdaq Composite surged 1.77 percent to 13,535.74. The Dow Jones Industrial Average rose 188.11 points to 34,084.15.
Taiwan stock index surges the most in 14 months on tech rebound
Taiwan stocks rebounded, posting their best gains since March last year thanks to a broader rally in chipmakers. The Taiwan Stock Exchange Weighted Index closed 5.2 percent higher on Tuesday. The rally more than erased the 3 percent slump on Monday after the government tightened restrictions to control its worst outbreak of the coronavirus. Chipmaker Taiwan Semiconductor Manufacturing Co. jumped 4.2 percent while chip designer MediaTek Inc. climbed 8.8 percent. The two contributed the most to the benchmark’s gains. Steel, glass and shipping were among the top-performing sectors. Taiwan’s Taiex benchmark has fallen nearly 10 percent since the end of April after a surge in untraceable Covid-19 cases triggered worries over the strength of the island’s economic recovery. Taiwan Deputy Finance Minister Juan Ching-Hwa told Bloomberg News on Tuesday that the Taiwan Financial Stabilization Fund was still monitoring the market.
Europe markets attempt recovery at open
European stock markets climbed at the open on Thursday, staging a partial recovery from the previous day’s slump. In initial trade, London’s FTSE 100 index rose 0.5 percent to stand at 6,984.18 points, compared with Wednesday’s closing level. In the eurozone, Frankfurt’s DAX 30 index won 0.7 percent to 15,221.42 points and the Paris CAC 40 added 0.6 percent to 6,301.89. Europe’s major bourses had tanked Wednesday on fears that central banks will wind down easy money policies to tame high inflation. Asian indices however diverged Thursday as minutes showed some Federal Reserve officials contemplating a wind-down of its vast monetary easing measures.
Industrials push FTSE 100 higher
Gains in industrial stocks helped London’s FTSE 100 bounce back on Thursday from its worst daily performance in a week, while shares of Trainline slumped to the bottom of the mid-cap index as the U.K. reorganised its railway system. The blue-chip index rose 1 percent, with Experian jumping 4.7 percent to the top of the index, a day after its upbeat quarterly revenue forecast. The wider industrial index added 2.4 percent. Banks and healthcare stocks, including HSBC Holdings, Prudential Plc, AstraZeneca Plc and Smith & Nephew, were also among the biggest boosts on the index. The domestically focussed mid-cap FTSE 250 advanced 0.7 percent. Publisher Future surged 9.6 percent to the top of index after Deutsche Bank raised its price target on the stock. The FTSE 100 has gained 8.3 percent year-to-date on optimism about economic recovery. But the index has been trading in a tight range recently as higher inflation has ignited fears that central banks might pare back their support sooner.
S&P 500 gains 1pc as tech shares rally, treasury yields fall
Stock indexes rose around the globe on Thursday, with the S&P 500 climbing more than 1 percent led by sharp gains in technology shares, while U.S. Treasury yields fell after a weaker-than-expected U.S. business activity reading. The Philadelphia Federal Reserve Bank said its business activity index fell to 31.5 from 50.2 in April, its highest pace in nearly half a century. The reading was shy of economists’ expectations of 43.0, a Reuters poll found, and cast doubt on how fast the economy can continue to heat up. Cryptocurrencies bounced back from their recent sharp drop, but were well off the day’s highs by afternoon New York time, as U.S. regulators signaled greater oversight for the sector.
Canada stocks-TSX rises on upbeat jobs data
Canada’s main stock index rose on Thursday, as data showed the country added more jobs in April, but gains were capped by energy stocks tracking a fall in oil prices. The Toronto Stock Exchange’s S&P/TSX composite index was up 13 points, or 0.07 percent, at 19,430.03. Canada added 351,300 jobs in April despite a tightening of COVID-19 restrictions, led by gains in the leisure and hospitality, as well as the trade, transportation and utilities sectors. Canadian Pacific Railway Ltd rose 3.6 percent after reiterating its commitment to buy Kansas City Southern and asked the U.S. railroad operator to reject rival Canadian National Railway’s takeover offer.