Trade setup for Wednesday 5 April 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens today
Asian stock markets are trading mixed on Wednesday, following losses from Wall Street overnight. Shanghai and Hang Seng are not trading today due to a public holiday. The latest data showed that Japan’s services sector expands in March according to a Jibun bank survey. Japan’s Nikkei is trading lower by 1.28 percent while Kospi is trading higher by 0.18 percent.
SGX Nifty is trading lower by 57 points or 0.33 percent at 17517 levels. The indication getting from the Asian markets is mixed today. The Indian stock markets are likely to open on a cautious note and would trade volatile ahead of the RBI policy outcome, which is due on Thursday.
U.S. and European stock market indexes update
The US stock market indexes closed lower on Tuesday after fresh data showed that the job opening fell more than expected, adding concern about the health of the economy. The market sentiments were also downbeat after a selloff in the regional bank and financial shares, as JPMorgan’s chief executive warned that the banking crisis was far from over and the impact of the turmoil in the sector will likely reverberate for years.
The yields on 10-year Treasury notes slipped to 3.335% from 3.430% Monday. The key US stock market indexes Dow Jones and S&P 500 declined by 0.59 percent and 0.58 percent respectively, while Nasdaq was down by 0.52 percent on Tuesday.
European stock markets closed slightly lower on Tuesday as oil and gas stocks pared some gains following the surprise production cut by the OPEC+ members. The pan-European Stoxx 600 index traded above its neutral lines for most of the session, later it closed slightly lower by 0.05% for the second consecutive session.
Insurance and financial sectors closed higher while oil and gas sectors closed lower on Tuesday. The key European stock market indexes FTSE and CAC closed lower by 0.50 percent and 0.01 percent respectively while DAX closed higher by 0.14 percent on Tuesday.
Indian stock market updates
Indian stock markets were closed on Tuesday on account of Mahavir Jayanti. The domestic market indexes ended marginally higher amid volatility on Monday. The sentiment was upbeat as Manufacturing PMI rose in March while some cautiousness was seen, as the 3-day RBI monetary policy meeting started on 3 April.
The market breadth was very strong with an advance decline indicating a ratio of 4:1 at the close. The foreign investors were the net buyers on Monday, they bought Rs 321.93 crore worth of shares while DIIs sold Rs 328.24 crore on Monday.
News you should read before the trade setup for today 5 April
On Tuesday, the World Bank cuts India’s economic growth forecast for the current fiscal year to 6.3% from 6.6%. Indian recorded YoY growth of 4.4% in the Oct-Dec quarter down from 11.2% reported in the same period last year and 6.3% in the previous quarter. India’s central bank has raised interest rates by 250 basis points since May to control inflation.
The World Bank said in its report that “Rising borrowing costs and slower income growth will weigh on private consumption growth.”
On Tuesday, the Asian Development Bank (ADB) said India’s economic growth is expected to moderate to 6.4% in the current financial year due to tight monetary conditions and elevated oil prices as compared to a 6.8% expansion for the financial year ending March 2023.
However, ADB expects the country’s economic growth to accelerate to 6.7 % in FY25 driven by private consumption and private investment on the back of government policies to improve transport infrastructure, logistics, and the business ecosystem.
The country’s net direct tax collections surged by 17.63% to Rs 16.61 lakh crore in the financial year 2022-23 (FY23), against Rs 14.12 lakh crore in the previous financial year. The Budget Estimates (BE) for direct tax revenue in the Union Budget for FY23 were fixed at Rs 14.20 lakh crore which were revised and the Revised Estimates (RE) were fixed at Rs 16.50 lakh crore.
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