Market Bizzz

Oil prices fell on Monday after rising for three straight weeks, after U.S. jobs data pointed to a tight labor market, heightening expectations of another Federal Reserve rate hike that could curb oil demand.

The dollar strengthened against the yen because of the continued strong growth in the U.S. labour market despite inflation and sharp interest rate rises, Mizuho analysts Masafumi Yamamoto and Masayoshi Mihara wrote in a client note.

“Not only should high inflation and a still-strong labour market keep cuts unlikely,” according to Citi strategists. “But we see persistently too-strong inflation as leading to further hikes.” Citi expects three further 25 basis point rate hikes.

Gold prices fell on Monday as the dollar firmed after the U.S. non-farm payrolls report pointed to a tight labour market and raised the odds of another rate hike by the Federal Reserve at its May policy meeting.

“HDFC is my top pick given its strong updates and the volatile market conditions. I also like State Bank of India in the PSU pack, which looks interesting after a recent correction.”

“The Pharma Index is now trading above its 50-day moving average, indicating that buying interest is likely to continue in the short term.”

A recent study by Sebi had shown that loss-making traders expended an additional 28% of net trading losses as transaction costs in FY22.

“The Indian equity market saw gains for the second week in a row after a protracted period of underperformance, thanks to stable global cues, FII buying amid valuation comfort, and signs of a worldwide peak in interest rates,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

The global cues turned positive with the Fed’s stance and the management of the banking crisis, which was threatening to blow up. What seemed initially like a relief rally from lower levels seems to have more legs as we are trading above the 200 and 50-DMA levels. The RBI left the Repo rates unchanged, adding another point for markets to cheer about.