Markets in details 10 May 2022

*Namaste!!!* 

*US Markets in Detail...*

*SGX: 16,195 (-97) (-0.60%)*

*IPO*

Rainbow Children: IPO Px: 542/-..Issue size: Rs. 1581 cr…last heard: today listing

LIC … IPO px: Rs 949/-….last heard 9/- buying

*As per sources Approx 1 Million Applications expected to get rejected in LIC IPO.*

*All valid Retail Applicants to get Allotment, Who bid for more then 1 lot to get extra shares.*

*Policyholder who bid 14 lots to get 3 lots or more Shares*

*Today’s Major Results*: AJANTPHARM, ASIANPAINT, CERA, CHALET, CIPLA, DCAL, GUJGAS, IDEA, KABRAEXTRU, KANSAINER, MFSL, MGL, MRF, NEULANDLAB, ORIENTELEC, POLYCAB, STYLAMIND, TDPOWERSYS, TORNTPOWER, VENKYS, WELSPUNIND etc.

Provisional Cash Rs. In Crs. (10th May)  

FIIs: -3,362 (5,342 – 8,704)

DIIs: +3,077 (7,730 – 4,653)

*IPL T20 update:*

Yesterday: KKR (165/9) bt MI (113) (T20 56 of 74)

Today: GT vs LSG (T20 57 of 74)

Sensex: 54,471: +365 (-0.67%)

Nifty: 16,302 (-109) (-0.67%)

Dow: 32,246 (-654) (-3.12%)

S&P: 3,991 (-132) (-3.20%)

Nas: 11,623 (-521) (-4.29%)

Brazil: 103,250 (-1,885) (-1.79%)

Ftse: 7,217 (-171) (-2.32%)

Dax: 13,381 (-294) (-2.15%)

Cac: 6,086 (-172) (-2.75%)

MOEX: 2,393 (12) (-0.49%)

WTI Oil: $103.1 (-6.7) (-6.1%)

Brnt: $105.1 (-7.3) (-6.5%) 

Gold: $1,859 (-24) (-1.3%)

Silver: $21.8 (-2.45%)

Copper: $419 (-7) (-1.72%)

Copper (LME): 9,415 (-75) (-0.79%)

Zinc (LME): 3,772 (-133) (-3.4%)

Alluminum (LME): 2,842 (-74) (-2.54%)

Tin (LME): 39,340 (-1,160) (-2.9%)

Eur-$: 1.0558

GBP-$: 1.2330

Jpy-$: 130.36

Re: 77.4637: +0.71%

USD = RUB: 69.7053: +0.32%

US10yr: 3.03%

GIND10YR: 7.465: +0.19% 

$ Index: 103.7260: +0.06%

US Vix: 34.75: +4.6: +15.10%

India Vix: 22.0325: +3.68%

BalticDry: 2,718: +74: +2.80%

*ADR/GDR*

Cogni: +0.99% 

Infy (-0.15%)

Wit (-1.76%)

IciciBk (-2.86%)

HdfcBk (-2.57%)

DrRdy (-1.63%)

TataMo (-4.22%)

TatSt (-3.34%)

Axis (-2.07%)

SBI (-2.41%)

RIGD (-4.43%)

INDA (-1.73%) (IShares MSCI INDIA ETF)

INDY (-1.48%) (IShares MSCI INDIA 50 ETF)

EPI (-2.02%) (Wisdom Tree India Earning)

PIN (-1.38%) (Invesco India Etf)

*Stocks tumbled to a 13-month low in a widespread selloff amid concern about the Federal Reserve’s ability to tame inflationary spirals without throwing the economy into a recession. Dow tumbles 654 points, S&P 500 goes below 4,000 amid sea of losses in stocks: U.S. crude prices tumble 6.1%. Investors fretted over stagflation threats — giving Dow industrials, the S&P 500, and the Nasdaq Composite their biggest three-day percentage drops since 2020.*

It was the lowest closing levels for Dow industrials and the S&P 500 since March 9 and March 31, 2021. And for Nasdaq lowest close since Nov. 10, 2020.  The S&P 500 is now down 16.3% for the year so far.

*The equity-market selling pushed about 85% of the companies in the S&P 500 down, while a plunge in megacaps like Apple Inc. and Microsoft Corp. sank the tech-heavy Nasdaq 100 by about 3.5%. The Treasury-yield curve steepened, with the gap between five- and 30-year rates hitting the widest in over six weeks. Bitcoin slipped below $32,000.*

*The slide in the S&P 500 topped 3%, while the Treasury curve steepened, with the gap between two- and 30-year rates hitting the widest since mid-March as short-dated bonds led the gains. Investors are increasingly worried about the limits to Fed policy at a time when supply-chain disruptions pose a significant threat to inflation amid a ravaging war in Ukraine and China’s Covid lockdowns.*

Bitcoin plunged 9% toward $30,000, losing more than 50% of value from its record high set in November.

*What drove markets*

*Monday’s brutal day for equities extended investors’ losses following the longest weekly losing streak for all three major indexes in years. The Dow and S&P 500 each slipped 0.2% last week, while the technology-heavy Nasdaq fell 1.5%. It was the longest string of weekly losses for the Dow since May 2019, for the S&P 500 since June 2011, and for the Nasdaq since November 2012.*

*Among the hardest hit in the recent selloff have been technology and growth stocks, whose valuations rely more heavily on future cash flows.*

Stock-market sentiment could be summed up in a single word,: “Bad,”. Financial markets are in an even worse mood than they were in the 2008 global financial crisis, based on BNY’s own model..

*Investors are assessing the risks of continued high inflation against the prospects of weakening growth, combined with the need of policy makers to continue lifting interest rates. While Fed Chairman Jerome Powell said the central bank was not actively considering a 75-basis-point rate hike, that isn’t likely to keep some corners of the market from pricing that in.*

*Traders will be closely watching a host of central bank speakers this week after Chair Jerome Powell on Wednesday played down the option of 75 basis-point rate hike. Fed Bank of Atlanta President Raphael Bostic told Bloomberg Television he favors policy makers continuing to raise rates by half-point increments rather than doing anything larger. While a number of economists have predicted tightening would inevitably result in a recession, Bostic said he was a “worried optimist” and that the current unique circumstances made predictions especially difficult.*

*The April consumer-price index report on Wednesday is the highlight of an otherwise quiet week for economic releases. Inflation is projected to have moderated on both a monthly and annual basis, partly reflecting a dip in gasoline prices that have since picked back up. While inflation likely peaked in March at 8.5%, the hottest in four decades, price pressures are expected to remain elevated, keeping Fed officials on track to steadily lift borrowing costs in the months ahead.*

*High inflation readings, a slowing economy and aggressive tightening by the Fed to tame soaring prices have weighed on risk appetite and valuations. Even if an outright recession is avoided, the outlook for U.S. stocks isn’t particularly bright, according to Goldman Sachs Group Inc. strategists.*

Even analysts within BlackRock Inc., the world’s biggest asset manager, are slightly reducing their risk profile amid a worsening macroeconomic outlook. They now see little chance of a “perfect economic scenario.”

“Swings will remain large until the path of inflation is clarified,” strategists led by David Kostin wrote in a note to clients, adding that “tightening financial conditions and poor market liquidity make it difficult to argue for a short-term rally similar in size to the one in late March.”

*More comments:* 

# “The big question is if inflation can head below 3% without the Fed causing a recession,” wrote Dennis DeBusschere, founder of 22V Research. “Until that question is answered, financial conditions are biased tighter, and markets will struggle despite oversold conditions.”

# “Sentiment is bearish, but not at capitulation levels, market liquidity is poor which leads to greater volatility, and investors are pulling money out of equity and bond funds rather than putting it in,” wrote Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management. “These technical factors can dominate economic news over a few weeks or couple of months, and it will probably take that long for inflation improvement to become apparent.”

The world remains a scary place for investors this year,” said Alejo Czerwonko of UBS Global Wealth Management. “We have been dealt with one negative shock after another, all taking a heavy toll on the global economic outlook.”

“The American Association of Individual Investors surveys its members weekly with a simple question: “What direction do you feel the stock market will take in the next six months?” Just 19% of respondents were bullish over the last month, the lowest four-week average in three decades,” Czerwonko wrote in a note Monday.

# “This is significant repricing, this is significant dislocation and this is all being spurred and driven by Federal Reserve policy,” said Jeff Kilburg of Sanctuary Wealth. “The only way I see us finding the bottom in equities short-term, the only way I see markets healing is if the Fed has the ability with the tools in their toolbox to calm down interest rates. The 10-year note needs to go back under 3%.”

# “We expect markets to remain volatile, with risks skewed to the downside as stagflation risks continue to increase,” wrote Barclays’ Maneesh Deshpande. “While we cannot discount sharp bear market rallies, we think upside is limited.”

Stocks in the S&P 500’s energy sector led the way down Monday, tumbling 8.3% as West Texas Intermediate crude for June delivery skidded 6.1% to settle at $103.09 a barrel.

Earlier in the day, the 10-year Treasury yield had briefly moved above 3.2%, before pulling back by 4.4 basis points to 3.08% by the afternoon. Meanwhile, real or inflation-adjusted yields rose to their highest or least negative levels in more than two years.

A surge in yields is a negative for stocks, particularly tech and other growth shares because their valuations are based on profit and cash flow far into the future. Rising yield on risk-free Treasurys cuts the present value of those future flows.

*Analysts said weak Chinese trade data contributed to pressure risky assets. Government customs data showed exports rose only 3.7% year-over-year in April, down sharply from growth of 15.7% in March, news reports said. Imports edged up just 0.7%, reflecting tepid demand.*

Data Monday showed U.S. consumers project prices in three years to be higher compared with a month ago -- a troubling sign for officials trying to keep longer-term expectations anchored.

The release of the April jobs report on Friday also did little to move the dial ahead of this Wednesday’s release of the consumer-price index, according to Peter Iosif, senior research analyst at Noteris.

*Volume on U.S. exchanges was 15.29 billion shares, compared with the 12.34 billion average for the full session over the last 20 trading days.*

*Companies in focus*

• Shares of *Exxon Mobil Corp. finished 7.9% lower* while those of *Chevron Corp. closed 6.6% lower.*

• *NVIDIA Corp. shares closed down by 9.2%* after the company agreed to pay a $5.5 million fine to the Securities and Exchange Commission to settle charges that allege the company failed to disclose the impact of cryptocurrency mining on its gaming business.

• Shares of *Uber Technologies Inc. finished almost 12%* lower after CNBC reported that the ride-sharing and food-delivery company is planning to cut spending on marketing and incentives and slow hiring, citing an email sent by CEO Dara Khosrowshahi to staff on Sunday.

• *Palantir Technologies Inc. shares closed down by 21%* after the software company delivered a mixed earnings report and downbeat forecast.

• *BioNTech SE* the U.S.-listed biotech company, said its first-quarter profit more than tripled to €3.7 billion ($3.9 billion), or €14.24 per share, from €1.13 billion, or €4.39 per share, as revenue jumped to €6.38 billion from €2.05 billion, mostly on its share of COVID-19 vaccine sales from *Pfizer and Fosun Pharma* as well as direct sales to customers in Germany and Turkey. BioNTech’s American depositary receipts finished higher by 3%.

• *Twitter Inc shares eased more than 3%* as Hindenburg Research took a short position on the social media company's stock, saying the company's $44 billon deal to sell itself to Elon Musk has a significant risk of getting repriced lower.

• *Rivian shares plunged more than 20%* after CNBC’s David Faber reported on Saturday that Ford is looking to sell 8 million shares in the electric vehicle maker.

The Shanghai Composite finished 0.1% higher, while Japan’s Nikkei 225 tumbled 2.5%.

European stocks on Monday fell to two-month lows as global investors fled risk assets en masse due to fears over inflation.

*Investors are also keeping an eye on the war in Ukraine as dozens are feared dead after a school in the Luhansk region in eastern Ukraine was hit by Russian shelling. Luhansk is one of the two regions that make up the Donbas, where Russian troops are now largely concentrating their attacks.*

*Russia was also under scrutiny on Monday, as it held its “Victory Day” — a holiday commemorating the Soviet Union’s defeat of Nazi Germany in World War II.*

*In his speech, President Vladimir Putin attempted to justify his unprecedented invasion of Ukraine by claiming without evidence that the West was “preparing for the invasion of our land, including Crimea,”*

*U.S. first lady Jill Biden made a surprise visit to Ukraine on Sunday. The U.S. and Group of Seven countries announced that they would increase short-term financial support for Ukraine as the war with Russia nears the three-month mark.*

*Here are key events to watch this week:* 

# Cleveland Fed President Loretta Mester, Atlanta Fed President Raphael Bostic, New York Fed President John Williams, Fed Governor Christopher Waller speak, Tuesday 

# Atlanta Fed President Raphael Bostic speaks, Wednesday 

# U.S. CPI, Wednesday EIA crude oil inventory report, Wednesday 

# San Francisco Fed President Mary Daly speaks, Thursday 

# U.S. PPI, initial jobless claims, Thursday 

# University of Michigan consumer sentiment, Friday

*Currencies* 

# The Bloomberg Dollar Spot Index rose 0.3% 

# The euro was little changed at $1.0560 

# The British pound was little changed at $1.2336 

# The Japanese yen rose 0.1% to 130.38 per dollar 

*Bonds* 

# The yield on 10-year Treasuries declined five basis points to 3.08% 

# Germany’s 10-year yield declined four basis points to 1.09% 

# Britain’s 10-year yield declined four basis points to 1.96% 

*Commodities* 

# West Texas Intermediate crude fell 6.1% to $103.11 a barrel 

# Gold futures fell 1.4% to $1,856.70 an ounce