Market Bizzz

Indian market closed in the red on Tuesday after a 2-day winning streak, following mixed global cues. The S&P BSE Sensex fell by over 400 points, while the Nifty50 closed above 18200. Buying was seen in public sector, power, and capital goods stocks, while auto, healthcare, banks, and FMCG names experienced selling. PVR Inox fell more than 2%, HUDCO increased nearly 7%, and Aurobindo Pharma closed with gains of over 4%. Analysts suggest selling PVR on the rise and buying HUDCO and Aurobindo Pharma at current levels or on dips.

Golden Cross is an important technical indicator of bullishness. It occurs when the short-term moving average crosses over the major long-term moving average on the upside.

Asian equities rose, with Japan’s Topix index hitting its highest close since 1990. Hong Kong stocks rose by over 1% following an increase in the Nasdaq Golden Dragon China Index. Michael Burry also raised his bullish bets on Alibaba Group and e-commerce giant Inc. as filings showed. South Korean stocks rose, supported by chip stocks due to a possible merger between Kioxia Holdings and Western Digital Corp. Investors await a meeting between President Joe Biden and House Speaker Kevin McCarthy. The US debt-ceiling impasse is a headwind for the equity markets, according to Marko Kolanovic at JPMorgan Chase & Co.

Indian markets closed on a positive note with S&P BSE Sensex up by 300 points on Monday, while the Nifty50 closed below 18400 levels. The realty, FMCG, telecom, and public sectors were buying while power, utilities, and oil & gas witnessed some selling. Zensar Technologies is said to face a short-term decline, Max Healthcare is suggested to be bought on dips and DLF’s stock has bullish long-term and medium-term technical indicators, with recommended fresh long positions to be initiated at the present level and on dips.

Berkshire Hathaway has revealed its latest investments in a regulatory filing, cutting exposure to equities as it devoted more resources elsewhere. The financial services giant exited investments in Bank of New York Mellon, Taiwanese chip manufacturer TSMC, US Bancorp and furniture chain RH. However, it also revealed a new $41.3m stake in Diageo and an investment in Capital One Financial, which led shares of the bank to rise 5.7% in after-hours trading. The company ended March with $130.6bn in cash and equivalents.

​​In the pharmaceutical sector, fewer incidents of regulatory breaches and attractive valuations drove fund managers to add stocks such as Alkem Laboratories, Ajanta Pharma, and Dr Reddy’s Laboratories.

Oil prices have fallen due to concerns over fuel demand in the US and China despite tighter supplies due to OPEC+ cuts and US buying for reserves. Brent crude futures dropped 0.6% to $73.74 a barrel and US West Texas Intermediate crude fell 0.5% to $69.67. The dip follows a fourth consecutive week of decline for both benchmarks on fears of a US recession and historic default. Despite the oil supply shortage, market sentiment towards oil remains weak given economic reopening setbacks in China and concerns of a US growth slowdown.