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Business News/ Markets / Live Blog/ Market Close Highlights: Sensex ends down 380pts, Nifty at 22,300; FMCG IT gain, Realty, Metal, Auto, Bank, Pharma drag

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Market Close Highlights: Sensex ends down 380pts, Nifty at 22,300; FMCG IT gain, Realty, Metal, Auto, Bank, Pharma drag

21 min read . Updated: 07 May 2024, 03:44 PM IST

Pranay Prakash

Market Close Highlights : Foreign institutional investors (FIIs) net sold ₹2,168.75 crore shares, while domestic institutional investors (DIIs) pumped in ₹781.39 crore on May 6, provisional data from the NSE showed.

Sensex Today Live Updates : Companies reporting results on May 7 include Dr Reddy's Laboratories, PB Fintech, JSW Energy, Voltas, Century Textiles & Industries, Delta Corp, Graphite India, Indraprastha Gas, IRB Infrastructure Developers, Jindal Saw, Jupiter Wagons, Kajaria Ceramics, KEC International, Max Financial Services, Navin Fluorine International, Pidilite Industries, Sonata Software, United Breweries, and Bigbloc Construction. (Photo: AFP)

Market Close Highlights : Global shares traded around one-month highs on Tuesday, boosted by renewed confidence in U.S. interest rate cuts, while a weaker yen and small dip in the Australian dollar kept the dollar steady.

Last week saw a dramatic swing in investor expectations for the U.S. interest rate outlook. Market pricing went from showing even one rate cut in 2024 looking less likely to almost two being priced in by Friday, after monthly employment data suggested the labour market is softening.

A hefty sell-off in U.S. stocks early in the week, accelerated by volatile earnings, reversed, sending the benchmark S&P 500 index up by the most in a day since February after Friday's payrolls report, and adding to gains on Monday.

On Tuesday, U.S. futures pointed to a steady start later on, while stocks in Europe caught a bid from the banks, where UBS and Unicredit beat expectations, sending the STOXX 600 up 0.6%.

MSCI's All-World index was up 0.1%, around its highest since April 10.

The "Fed put" refers to a belief among investors that the central bank will step in to support the economy and financial markets in times of turmoil.

Futures show traders believe U.S. rates will drop by around 45 basis points this year, from 5.25-5.50% right now. This time last week, just 28 bps were priced in.

The mood set by last week's softer-than-expected U.S. jobs data was further underpinned by remarks from Federal Reserve Chair Jerome Powell reiterating that the next move in rates will be lower.

Treasuries, which rallied on Friday's jobs figures, traded steady in New York overnight and 10-year yields held at 4.49% in Tokyo on Tuesday. Interest rates markets price at least one U.S. rate cut this year, in November.

Demand will be tested at a $58 billion three-year note auction on Tuesday, which is followed by $42 billion in 10-year sales on Wednesday and $25 billion of 30-year sales on Thursday.

Expectations of falling rates have weighed on the dollar, though only gently. European policymakers are readying cuts for June, capping the euro, and rates are not expected to move too far above zero in Japan this year, leaving a wide gap with the rest of the world.

The dollar rose 0.6% on the yen on Monday and a further 0.3% to 154.31 yen on Tuesday, keeping markets on edge as to whether Japanese authorities may step in again.

In commodities, oil held steady, with Brent crude futures up 0.1% to $83.41 a barrel with a ceasefire deal in the Middle East proving elusive. Gold edged down 0.2% to $2.319 an ounce, still within sight of recent record highs.

Wheat, corn and soybean traded around multi-month highs on worries about unfavourable weather in Russia - where it has been frosty and dry - and Brazil, where there are floods.

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Market Close Highlights: Sensex ends down 380pts, Nifty at 22,300; FMCG IT gain, Realty, Metal, Auto, Bank, Pharma drag

Market Close Highlights : Foreign institutional investors (FIIs) net sold ₹2,168.75 crore shares, while domestic institutional investors (DIIs) pumped in ₹781.39 crore on May 6, provisional data from the NSE showed.

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