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Sensex rises 180 pts, Nifty ends near 15,850; Ambuja Cements, ACC, NTPC shine

Market Closing: Indian indices added around 0.38% on Monday amid mixed global cuesPremium
Market Closing: Indian indices added around 0.38% on Monday amid mixed global cues

  • Market Closing: Indian indices on Monday returned to winning ways, tracking gains in US markets. However, China's weak economic data dampened the mood as indices slipped from day's high before settling in the green.

Indian indices on Monday closed higher, in a volatile trading session, as losses in infra and IT stocks were offset by gains in banking and auto scrips. Major heavyweights Maruti, NTPC, SBI, and Kotak Bank added positively to Sensex, while Ambuja Cements and ACC Ltd also posted solid gains after Holcim's deal with Adani. Asian equities retreated Monday following last week's temporary rally on Wall Street due to fears of surging inflation and supply chain woes inflicted by Beijing's punishing zero-Covid policy.

16 May 2022, 03:43:35 PM IST

Sensex gains 180 pts, Nifty ends above 15,800; Realty, power, telecom shine, FMCG, IT bleed

Indian indices edged higher on Monday, snapping a 6-day losing run, led by healthy gains in market heavyweights SBI, NTPC, Maruti, and the stocks of Ambuja Cements and ACC after Adani Group announced it would buy Holcim AG's controlling stake in the companies.

The Sensex surged 180.22 points, or 0.34%, to close at 52,973.84, while Nifty50 added 60.15 points to end at 15,842.30. Sectorally, realty, power, auto, and banks posted the biggest gains, while FMCG and IT declined.

On the 30-stock index, the most gains were made by NTPC, Bajaj Finance, SBI, HDFC, and Maruti among others, while Ultratech Cement, Asian Paints, and ITC were among the biggest losers.

On Nifty50, Eicher Motors, Apollo Hospital, and UPL made the most gains, while Ultratech Cement, Shree Cement, and Asian Paints were among the biggest laggards.

Sensex at close
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Sensex at close
16 May 2022, 03:24:16 PM IST

Delhivery IPO subscribed 1.63 times, share allotment this week

The initial share sale of supply chain company Delhivery was subscribed 1.63 times on the final day of subscription that ended on Friday. According to the NSE data, the offer received bids for 10,17,04,080 shares against 6,25,41,023 shares on offer.

16 May 2022, 02:54:58 PM IST

Global shares trading mixed as markets eye US interest rates

Global shares were mixed Monday, as investors eyed surging energy costs and prospects for interest rate hikes in the U.S.

European benchmarks were trading mixed, with shares up in France and Germany but down in Britain. Stock moves were similar earlier in the day in Asia, where benchmarks finished higher in Japan and Australia, but fell in South Korea. Shares rose in Hong Kong but declined in Shanghai.

France's CAC 40 declined 0.4% in early trading to 6,336.07, while Germany's DAX shed 0.5% to 13,963.69. Britain's FTSE 100 was up less than 0.1% at 7,421.33. U.S. shares were set to drift lower with Dow futures down 0.1% at 32,085.00. S&P 500 futures fell 0.3% to 4,006.00.

16 May 2022, 02:41:56 PM IST

Gold slides to 3-1/2-month low as dollar strength slams demand

Gold prices fell more than 1% on Monday to their lowest level since late January, as a stronger dollar continued to hammer demand for greenback-priced bullion.

Spot gold fell 0.8% to $1,797.82 per ounce, by 0815 GMT. U.S. gold futures dropped 0.6% to $1,797.40.

Earlier in the session, gold prices dropped 1.4% to their lowest level since Jan. 31 at $1,786.60. On Friday, they posted their fourth consecutive weekly decline.

16 May 2022, 02:38:53 PM IST

India retail investors still bullish on stocks despite recent plunge

If bets in the futures market are any guide, India’s retail investors remain optimistic about equities despite a 14% plunge in the nation’s stock market from a record high hit last year.

16 May 2022, 02:29:46 PM IST

Nifty50: Eicher Motors, Apollo Hospitals, Bajaj Finance, NTPC top gainers; Ultratech Cement, Shree Cement top losers

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16 May 2022, 02:18:28 PM IST

Broad market indices: Nifty50 rises 0.59%, Nifty MidCap 50 up 1.42%

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16 May 2022, 02:08:15 PM IST

China stocks decline as economic data disappoint, MLF rate held

Chinese stocks retreated, erasing early gains, as disappointing economic data outweighed moves by authorities to boost the property sector and ease virus-related curbs in the financial hub of Shanghai.

The CSI 300 Index ended Monday’s session down 0.8% after climbing as much as 0.7% earlier. China’s industrial output and retail sales both contracted more than estimated in April, data showed Monday, and the central bank left the interest rate on one-year policy loans unchanged.

That offset optimism spurred by Beijing’s decision Sunday to cut mortgage rates for first-time homebuyers. The reduction, however, helped spur gains in real estate shares. A Bloomberg Intelligence gauge of the sector was up 1.7% after having jumped as much as 3.1% earlier.

16 May 2022, 01:54:36 PM IST

ICICI Securities has 'Buy' rating on this multibagger specialty chemical stock, raises target price

Gujarat Fluorochemicals will start its battery chemicals plant in FY23, and some revenues are likely to flow in from FY24, highlighted brokerage ICICI Securities. The chemical manufacturer has increased capex outlay by 10% for the next two years on anticipation of a favourable market.

16 May 2022, 01:38:30 PM IST

Axis Securities on CreditAccess Grameen

Well Positioned to Grow, Maintain BUY!

 

The key highlights of CreditAccess Grameen Ltd.’s (CA Grameen) Q4FY22 performance were a pick-up in GLP growth and improved asset quality. On the operational front, disbursements during the quarter stood at 5,792 Cr (+23% YoY and QoQ). Robust disbursement growth translated into a healthy GLP growth of 22% YoY, ahead of management’s guidance of 17-19%. With growth momentum expected to remain healthy, CA Grameen expects GLP to grow at 24-25%, driven by 8-10% customer addition growth. However, as the company looks to implement the new RBI guidelines, disbursement growth in Q1FY23 is likely to be muted.

 

We believe the asset quality stress is now largely behind and the company is well-positioned to accelerate growth in a risk-calibrated manner.

16 May 2022, 01:18:22 PM IST

Views of Yash Gupta, Equity Research Analyst, Angel One on Delhivery IPO

Delhivery IPO closed with a total subscription of 1.63 times on day 3, till day 2 even it was a question that delhivery IPO will receive the full subscription on not. Delhivery has received a weak response from retail investors, retail subscription was at 0.57 times so now all the investors in the retail category will receive the full allotment.

On day 3 the QIB category investors came forward to rescue delhivery IPO. Just because of QIB only IPO is able to receive the full subscription. Delhivery IPO QIB portion was oversubscribed and received a total subscription of 2.66 times.

If we look at GMP, as per the news GMP of delhivery IPO is trading in negative so we can expect a soft listing from delhivery IPO. We have given a neutral rating to delhivery IPO looking at the expensive valuations of the IPO.

16 May 2022, 01:13:56 PM IST

DMart’s relatively lower valuations add to the stock’s appeal

Avenue Supermarts Ltd’s stock rose about 7% in opening deals on Monday on the National Stock Exchange, partly reversing losses seen last week when the stock had declined nearly 12%. In fact, shares of the company that runs the DMart chain of retail stores are now off the extremely high levels that they have been enjoying for a while now. After all, the stock has declined as much as 40% from its 52-week high of 5,900 apiece seen on 18 October on NSE.

16 May 2022, 01:05:37 PM IST

Rakesh Jhunjhunwala portfolio: Brokerages see upto 39% upside on Tata Group stock

Titan plans to strengthen the core while scaling up its new business. In Jewellery, ICICI Securities said it likes the strategy to open (more) stores in smaller towns. Further, it has clearly carved out its focus on high-growing sub-segments to drive growth.

16 May 2022, 12:49:23 PM IST

Growth outlook remains strong over medium term: YES SECURITIES on Coforge

We maintain BUY Rating on the stock with revised target price of 4,654/share at 30x on FY24E EPS. The stock trades at PER of 23.3x on FY24E EPS.

16 May 2022, 12:35:26 PM IST

Nothing to change bullish thesis: YES Securities on State Bank of India

We maintain ‘Buy’ rating on SBI with a revised price target of 659: We value the bank at 1.35x FY23 P/BV for an FY23E/24ERoE profile of 14.3/15.8%. We assign a value of 181 per share to the subsidiaries, on SOTP.

16 May 2022, 12:17:23 PM IST

Lower demand for LNG impacts throughput: YES SECURITIES on Gujarat State Petronet Ltd

We maintain our BUY rating on GUJS, with a revised TP of 370/sh (from 400/sh), as we adjust our estimates to accommodate for a slower trajectory in volume growth and to account for downward revision in tariff. Our SOTP ascribes 115/sh to GUJS’s core business, on DCF basis and 255/sh to listed and unlisted investments.

16 May 2022, 11:57:35 AM IST

Gold prices today struggle near 3-month lows, remain below ₹50,000

Gold today struggled for gains in Indian markets amid flat global rates. On MCX, gold futures slightly higher at near 3-month lows of 49,954 per 10 gram while silver moved 0.4% higher at 59,565 per kg.

16 May 2022, 11:46:28 AM IST

Prabhudas Lilladher on Eicher Motors

Rating: BUY | CMP: Rs2,433 | TP: Rs2,950

We maintain BUY on Eicher Motors as we anticipate (1) volume growth from Classic 350 plus new product launches and (2) rising exports volume from channel expansion and market share gains to further aid profitability. We trim our EBITDA margin estimates by 100bps for FY23/24 factoring in commodity cost pressures and assign a SoTP based TP of 2,950 (at 27x FY24E EPS for standalone business and 17x for VECV).

16 May 2022, 11:40:31 AM IST

Indian IPO market sees significant slowdown in January-March: EY

Volatile market conditions have led to a significant slowdown in the Indian initial public offer (IPO) market during the first quarter of 2022 as compared to the first quarter of 2021, EY Global IPO trends report suggests.

16 May 2022, 11:35:29 AM IST

Tata Power bags 300MW solar project worth ₹1,731 crore

Tata Power Company in a regulatory filing said on Monday that its wholly-owned subsidiary Tata Power Solar Systems won an order to build a 300-megawatt solar project for state-owned utility major NHPC at an all-inclusive price of 1,731 crore.

16 May 2022, 11:33:24 AM IST

Avenue Supermarts surges over 6.5% after Q4 results

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16 May 2022, 11:22:51 AM IST

Eicher Motors jump almost 6% after positive Q4 show

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16 May 2022, 11:19:43 AM IST

Shares of Adani Enterprises rises 3.6% after Holcim deal

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16 May 2022, 11:12:30 AM IST

Bharat Forge gains almost 3% ahead of Q4 results

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16 May 2022, 11:05:49 AM IST

ACC, Ambuja Cements rally after Holcim India deal

Shares of ACC and Ambuja Cements were in huge demand on Monday after Gautam Adani's group clinched a deal to acquire a controlling stake in Holcim Ltd's businesses in India for USD 10.5 billion.

The stock of ACC rallied 7.79 per cent to 2,288.15 on the BSE.

Shares of Ambuja Cements gained 4.13 per cent to 373.65.

Gautam Adani's group on Sunday said it has clinched a deal to acquire a controlling stake in Holcim Ltd's businesses in India for USD 10.5 billion, marking the ports-to-energy conglomerate's entry into the cement sector.

16 May 2022, 10:59:19 AM IST

Base metals report: Angel One

The base metals pack ended the week on a mixed note, with aluminum being the only metal to gain 1.2 percent for the week.

Copper prices rose on Friday after falling to 7-month lows as a slowing global economy will have little to no demand for metals. However, the prices were still on track for their sixth week of losses due to rising fears of a worldwide economic slowdown dampening demand.

In the short term, however, metals may stay under pressure, owing to COVID-19 limitations in top customer China, which have slowed metal demand and disrupted supply networks.

Another hindrance for base metals was a stronger US dollar, which traded around two-decade highs, lowering demand for dollar-backed commodities. For other currency holders, a stronger dollar raises the cost of acquiring these goods.

Outlook: We expect copper to trade lower towards 737 levels, a break of which could prompt the price to move lower to 718 levels.

16 May 2022, 10:56:07 AM IST

Stock recommendations by Reliance Research

Bharat Forge (CMP Rs.629)

In view of better business visibility, improving economic situation, healthy demand outlook for CV segment and foray into high-margin segments, going forward, we recommend BUY on Bharat Forge with 1-Year TP of Rs1,000, valuing the stock at 30x FY24E. .

Intraday Pick

DLF (PREVIOUS CLOSE: 319) BUY

For today’s trade, long position can be initiated in the range of 313- 316 for the target of Rs. 327 with a strict stop loss of 310.

JUBLFOOD (PREVIOUS CLOSE: 475) BUY

For today’s trade, long position can be initiated in the range of 466- 471 for the target of Rs. 485 with a strict stop loss of 463.

TCS (PREVIOUS CLOSE: 3415) BUY

For today’s trade, long position can be initiated in the range of 3380- 3410 for the target of Rs. 3500 with a strict stop loss of 3330.

16 May 2022, 10:43:24 AM IST

Reliance Securities on Tech Mahindra

TechM reported a mixed 4QFY22 performance. Margins were below our expectations while PAT was above our expectation. We expect both telecom and enterprise verticals to witness a healthy growth on the back of step-up in 5G capex and mid-term resiliency in technology demand. We believe TechM will be the key beneficiary of the medium-term themes such as software defined network (SDN) and telecom IT modernization. In view of healthy deal wins, strong deal pipeline and 5G rollout benefiting profitability, we maintain our BUY rating on the stock with a Target Price of Rs1,890, valuing the stock at a P/E multiple of 23x on FY24E earnings.

16 May 2022, 10:34:57 AM IST

Top BSE losers in early trade: Amber Enterprises, Privi Speciality Chemicals, Minda Corporation

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16 May 2022, 10:31:48 AM IST

BSE top gainers in early trade: Black Box, ACC, ELGI Equipments

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16 May 2022, 10:27:25 AM IST

Bajaj Finance top Sensex gainer in early trade, adds over 2%

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16 May 2022, 10:25:11 AM IST

BSE Sensex rises 441 points in early trade

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16 May 2022, 10:19:35 AM IST

LIC IPO: What GMP signals ahead of shares listing tomorrow

Life Insurance Corporation of India (LIC) will list on the stock exchanges tomorrow, following the initial public offer (IPO) which was oversubscribed nearly three times the issue size. The government has fixed the issue price of LIC shares at 949 apiece, the upper end of the IPO price band, fetching the exchequer around 20,557 crore.

16 May 2022, 10:14:10 AM IST

Venus Pipes IPO: GMP, share allotment listing date details

The initial public offer of Venus Pipes and Tubes was subscribed 16.31 times on the last day of subscription on Friday. The issue received bids for 5,79,48,730 shares against 35,51,914 shares on offer. The issue had a price range of 310-326 per share.

16 May 2022, 10:12:12 AM IST

Stock market: Settlement holiday today on account of Buddha Purnima

What investors should know

16 May 2022, 10:06:28 AM IST

Risk reward favourable at current valuation; Upgrade to BUY: Reliance Research on Apollo Tyres

In view of the strong volume growth ahead, regular price hikes, healthy export potential, structural positives in European operations and comfortable valuation, we turn positive on APTY. Post recent price correction, risk reward is favourable at current valuation of 10.6x FY24E earnings. Therefore, we upgrade APTY to BUY with a revised Target Price of Rs235 (vs. Rs220 earlier).

16 May 2022, 09:54:27 AM IST

Faith of millions of Small Investors Put to Test With LIC Debut

Millions of Indians investing in the country’s biggest listing could turn sour on the equity market if the stock follows the poor performance of its state-run predecessors.

Prime Minister Narendra Modi’s government raised $2.7 billion by selling shares in Life Insurance Corporation of India, including to millions of families nationwide that hold LIC policies. The stock starts trading Tuesday at a time when markets worldwide are being roiled by the fallout of Russia’s invasion of Ukraine and rising interest rates.

While deep-pocketed global funds can withstand volatility, small investors -- especially first-time shareholders such as the ones created by by LIC’s listing -- risk being burned if the stock underperforms. Of the 21 Indian state-run companies that debuted in the stock market since 2010, half are still trading below their issue price.

16 May 2022, 09:53:09 AM IST

Adani to become India's second-biggest cement maker with $10.5 billion Holcim deal

India's Adani Group acquired a controlling stake in Holcim AG's cement businesses in India in a $10.5 billion deal to become the second biggest cement producer in the country, Adani Group said in a statement on Sunday.

Asia's richest person Gautam Adani's conglomerate acquired 63.19% of Ambuja Cements Ltd and its subsidiary ACC in fierce bidding with local companies.

The divestment is the latest move by Holcim as it seeks to reduce its reliance on cement production, an industrial process which produces high levels of carbon emissions and has therefore deterred many environmentally-conscious investors.

16 May 2022, 09:49:43 AM IST

Healthy return ratios and strong cash flow command premium valuation: Reliance Research on Escorts

Despite the near-term volatility in demand in tractor sales, we expect tractor industry to continue growing going forward on account of the changing industry dynamics, increasing mechanization, rising affordability, and widening alternate usage of tractors. In view of the sizable presence in a relatively better-placed tractor segment, strong positive cash flow, healthy return ratios and attractive valuation, we reiterate our BUY rating on the stock, and maintain the Target Price of Rs2,250.

16 May 2022, 09:27:55 AM IST

Nifty50 at open: Jumps 90 points; Eicher Motors, JSW Steel, Tata Steel top gainers, Ultratech Cement, Shree Cement top drags

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16 May 2022, 09:25:31 AM IST

Sensex at open: Trades over 250 points higher; Tata Steel, Maruti top gainers in early trade; Ultratech Cement drags

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16 May 2022, 09:12:57 AM IST

Nifty50 at pre-open: Opens 63 points higher; Eicher Motors, JSW Steel, Hindalco top gainers, TechM top loser

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16 May 2022, 09:11:11 AM IST

Sensex at pre-open: Rises 150 points; Tata Steel, Titan up over 2%, Airtel drags

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16 May 2022, 08:57:07 AM IST

Sharp correction an entry opportunity, Upgrade to BUY: Prabhudas Lilladher on Avenue Supermarts

Rating: BUY | CMP: Rs3,231 | TP: Rs4,651

We cut FY23/24 EPS estimates by 10.8% and 13.5% and DCF based target price to Rs4651 (5345 earlier) even as we upgrade to the stock to Buy post sharp correction. We believe increased capex following accelerated store openings, higher inventory due to inflation and assuming higher WACC (rising interest rates). D’Mart reported strong growth despite higher inflation while growing the share of general merchandise and apparel by 50bps in FY22 vs FY21 (still lower than 27.3% share in FY20). 4Q margin expansion of 15bps shows the robust business model despite deterioration in sales mix and operating cost of 21 new stores opened in 4Q (other expenses up 18.9% YoY and 3.7% QoQ versus just 9.2% increase YoY in 9MFY22).

 

16 May 2022, 08:47:18 AM IST

Gold up from 3-month lows as U.S. bond yields weaken

Gold edged up on Monday from a more than three-month trough hit in the previous session, as lower U.S. Treasury yields kept demand for zero-yield bullion afloat above the key psychological support level of around $1,800 per ounce. Spot gold was up 0.1% at $1,812.15 per ounce, as of 0227 GMT. U.S. gold futures gained 0.1% to $1,809.80.

16 May 2022, 08:32:02 AM IST

Day trading guide for Monday

8 stocks to buy or sell today — 16th May

16 May 2022, 08:26:21 AM IST

Bitcoin trades near $30,000 as markets digest TerraUSD fallout

Bitcoin staged a modest recovery to trade at around $30,000, extending a period of relative market calm after the collapse of a closely watched stablecoin roiled digital assets in the past week.

The largest cryptocurrency advanced 3.4% n Sunday to $30,350 as of 4 p.m. in New York. Ether, the second-biggest token, rose 5% while coins like Avalanche and Cardano posted even larger gains.

Bitcoin dipped to a low of $25,425 on Thursday after the TerraUSD algorithmic stablecoin unraveled, throwing the entire ecoystem that supports it into disarray. At its height, the market panic engulfed the $76 billion stablecoin Tether, a key cog in cryptoassets that briefly dipped from its dollar peg.

16 May 2022, 08:17:56 AM IST

Goldman Sachs cuts US growth forecasts for 2022 and 2023

Goldman Sachs Group Inc. economists cut their forecasts for US growth for this year and next to reflect the shake-out in financial markets amid the Federal Reserve’s tightening of monetary policy.

In a report Sunday, the economists led by Jan Hatzius said they now expect the economy to grow 2.4% this year and 1.6% in 2023, down from 2.6% and 2.2% previously.

16 May 2022, 08:06:59 AM IST

China’s economy contracts sharply as Covid Zero cuts output

China’s economy contracted in April, with Covid outbreaks and lockdowns dragging the industrial and consumer sectors down to the weakest levels since early 2020 as millions of residents were confined to their homes and factories were forced to halt production.

Industrial output fell 2.9% in April from a year ago, worse than the median estimate of a 0.5% increase in a Bloomberg survey of economists. Retail sales contracted 11.1% in the period, weaker than a projected 6.6% drop. The unemployment rate climbed to 6.1%, higher than the forecast of 6%.

China’s economy has taken an enormous toll from the government’s stringent efforts to keep the virus at bay. Beijing has insisted on sticking with its Covid Zero strategy to curb infections, even though the high transmissibility of omicron puts cities at greater risk of repeatedly locking down and reopening compared to earlier strains.

16 May 2022, 08:04:39 AM IST

China keeps key interest rate unchanged despite sharp economic slowdown

China’s central bank refrained from cutting interest rates despite mounting evidence of a sharp slowdown in economic growth, suggesting policy makers may be concerned about the currency’s depreciation and capital outflows.

The People’s Bank of China kept the rate on its one-year medium-term lending facility at 2.85% on Monday. Economists had been split on the decision, with 13 of the 25 surveyed by Bloomberg expecting no change, and the rest predicting a reduction between 5 basis points and 15 basis points.

The PBOC also rolled over the maturing 100 billion yuan ($15 billion) of medium-term lending facility loans without providing additional liquidity.

16 May 2022, 08:03:56 AM IST

Dollar firm as traders mull scope for stock bounce

The dollar was firm Monday while equity futures pointed to the possibility of stock market gains in Asia following a bounce in US shares.

Contracts rose for Japan, Australia and Hong Kong after a technology-led jump on Wall Street Friday in a tumultuous week in markets.

The risk of an economic downturn amid high inflation and rising borrowing costs is the major worry for markets, alongside Russia’s war in Ukraine and China’s growth-sapping Covid lockdowns.

16 May 2022, 08:03:06 AM IST

Bond traders reel as inflation hits world’s emerging local debt

As spiraling inflation spreads across the globe, emerging-market bonds from Turkey to Thailand are feeling the brunt.

Local-currency debt from developing nations -- which is far more sensitive to a country’s domestic inflationary pressures than dollar denominated equivalents -- has slumped almost 9% this year, the most since at least 2008, according to a Bloomberg index. There’s unlikely to be any relief soon as central bankers around the world attempt to control surging prices by raising interest rates even more aggressively -- potentially risking growth in doing so.

16 May 2022, 07:55:52 AM IST

Wheat soars in risk to food inflation as India restricts exports

Wheat jumped by the exchange limit after India’s move to restrict exports, exposing just how tight global supplies are after the war in Ukraine and threatening to drive up food prices even more.

The government will suspend overseas sales to manage its food security, according to a notification dated May 13. This drew criticism from the agriculture ministers of the Group of Seven nations, who said that such measures make the world’s crisis worse.

Benchmark futures rose as much as 5.9% to $12.47 1/2 a bushel in Chicago, the highest in two months. Prices have surged about 60% this year, increasing the cost of everything from bread to cakes and noodles.

The surprising thing is that India isn’t even a prominent exporter on the world stage. The fact that it could have such a major impact underscores the bleak prospect for global wheat supplies. War has crippled Ukraine’s exports, and now droughts, floods and heat waves threaten crops in most major producers.

16 May 2022, 07:50:11 AM IST

Oil swings as investors weigh Russian ban; Gasoline hits record

Oil fluctuated at the start of a new week as investors weighed plans by Germany to ban Russian crude imports, while US gasoline futures rallied to top $4 a gallon for the first time ever.

West Texas Intermediate crude swung between gains and losses near $111 a barrel after posting a third weekly gain. Germany plans to stop importing Russian imports by the end of the year even if the European Union fails to agree on co-ordinated action, according to government officials.

The market has been gripped by a tumultuous period of trading since Russia’s late-February invasion of Ukraine and a Covid-19 resurgence in China. The war has boosted the cost of food and fuels, with surging US retail gasoline and diesel prices helping fan the fastest inflation in decades.

16 May 2022, 07:40:24 AM IST

Stocks rise with US futures as sentiment steadies

Stocks in Asia climbed with US equity futures Monday amid a steadier mood in global markets following a Wall Street bounce.

Equities rose in Japan, Australia and South Korea, while Nasdaq 100 and S&P 500 contracts pushed higher, signaling some relief from this year’s stock market rout. A gauge of the dollar was little changed.

Sentiment may be getting a boost from the People’s Bank of China, which effectively cut the interest rate for new mortgages over the weekend, seeking to bolster an ailing housing market.

Meanwhile, Shanghai partially loosened its Covid lockdown by announcing a phased reopening of shops. Virus curbs are squeezing China’s economy and some analysts expect a cut in the rate on one-year policy loans Monday.

In the bond market, a key question is whether economic worries will help stem 2022’s Treasury selloff, which has been driven by inflation and tightening US monetary settings. The 10-year US yield increased to 2.94%.

16 May 2022, 07:30:29 AM IST

Tokyo shares open higher after US gains

Tokyo shares opened higher on Monday after Wall Street rebounded, backed by gains among high-tech stocks.

The benchmark Nikkei 225 index gained 1.23 percent, or 325.72 points, to 26,753.37 at the open, while the broader Topix index rose 1.03 percent, or 19.13 points, to 1,883.33.

Wall Street stocks rallied on Friday, finally managing to score gains at the end of a week beset by worries over inflation, the Ukraine war and the global economic outlook.

The tech-rich Nasdaq Composite Index led the major US indices, jumping 3.8 percent. The Dow Jones Industrial Average climbed 1.5 percent, while the broad-based S&P 500 rose 2.4 percent.

"The Dow rebounded for the first time (after a six-day losing streak) and Nasdaq continued to grow significantly. This will be a tailwind for Japanese stocks," Okasan Online Securities said.

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