Credit Suisse, Major Deals, CPI – what’s driving the market today

Main Global market news – 

1.  Regional banks and stocks rise on the CPI release

Tuesday saw a jump in U.S. markets as critical inflation data met forecasts. Stocks of regional banks rose, recovering some of their losses following the Silicon Valley Bank scandal.

2. Dow increases by 300 points today as bank rallies stoke speculation about a Fed action.

 U.S. markets closed the day higher as a surge in bank stocks allayed concerns that the banking sector’s problems might spread.The S&P 500 was up 1.7%, the NASDAQ Composite was up 2.1%, and the Dow Jones Industrial Average was up 336 points, or 1.1%, at 16:05 ET (20:05 GMT).

3.  Major Deals

1) BX will pay $4.6 billion to acquire CVT; Blackstone will pay $8.50 per share of Cvent stock in this deal. 

 2) MNTV has agreed to be acquired by a group led by Symphony Technology Group in an all-cash deal valued at about $1.5 billion; Momentive shareholders will receive $9.46 per share in this transaction.

4. The dollar traded little changed on Tuesday 

After solid consumer pricing data reignited the chance that the Federal Reserve will boost interest rates next week as worries of turbulence spreading in the banking sector receded.The dollar index, a measure of the greenback versus six other currencies, declined 0.087% as Treasury yields soared a day after the two-year note, which swings in tandem with interest rate forecasts, sank the most in a single day since 1987.

5. Governor Bowman’s address to the Federal Reserve Board on “The Innovation Imperative: Modernizing Traditional Banking”

In the beginning of the speech, the Governor acknowledged recent events ( closure of 2 big banks )and the responses made by the regulators.In order to reduce the direct and indirect risks that the closure of these two financial institutions poses to the U.S. financial system, a number of specific measures have been revealed. 

6. Once a Saudi benefactor cuts off more aid, Credit Suisse shares decline 20%.

About 10 a.m. London time on Wednesday, the shares of troubled bank Credit Suisse reached another record low, falling as high as 18.3%.According to a Reuters story, the bank’s biggest backer, Saudi National Bank, stated it was unable to offer the Swiss bank any more financial support.

As anticipated, the U.S. CPI dropped to 6.0% in February, although core prices       remained high.

The rate of U.S. headline inflation eased down once more last month, but core inflation accelerated uncomfortably due to rising home rents.The consumer price index increased by 0.4% in February, down from 0.5% in January, according to the Department of Labor Statistics. The annual rate of inflation decreased from 6.4% to 6.0%, and is currently less than one-third of what it was in June of last year, when it peaked at almost 9%.

Even yet, it is still three times the Federal Reserve’s 2% goal rate, giving the institution little additional room to maneuver in its fight against inflation.

Market at Closing Yesterday

 The S&P 500 Index                          gained 65.54 points,     or +1.67%

The Dow Jones Industrial Average gained-336.26 pnt       or 1.06%

The Nasdaq Composite                    gained +239.31points or 1.67%

The Russell 2000 Index                     gained 32.59               or 1.87%

Technical Picture –

Second closed in green after breakdown

Dow still below 50 and 200 EMA 

Both short and long term trend is down 

Midterm trend is sideways

Swing high is around 32620

Indian Market news Today

At close 

Sensex dropped-344.29               or- 0.59%

Nifty50 dropped –71.15 pts         or -0.42%      

Bank Nifty  dropped -359.90              or -0.91% 

1. SONA BLW: Analysts anticipate a 25–35% increase in the stock price despite Blackstone’s leaving.

SONA BLW has slumped 1.58 percent in today’s opening as Blackstone quit the company, dumping its 20.5 percent holding.  Brokerages are still positive on the stock despite this unfavorable event; some even predict that this costly stock will rise by more than 35%.

2. Cipla sells the most of its shares in a Ugandan subsidiary, and the stock rises.

Pharmaceutical giant Cipla announced its intentions to sell Africa Capital Works SSA a 51.18 percent controlling ownership stake in its subsidiary, Cipla Quality Chemical Industries Ltd. (CQCIL), situated in Uganda. Following the takeover, CQCIL will cease to be a subsidiary of Cipla.

At 11:02 a.m., shares of Cipla were up 1.06 percent, trading at Rs. 881.30 on the National Stock Exchange. The stock ended its three-day losing run with the advances in today’s session.

3. Promoter of Maruti Suzuki purchases 3.45 lakh shares on the open market

Suzuki Motors boosted its ownership from 56.37% to 56.48% by purchasing 3.45 lakh shares on the open market. Six new EV models have been released on the market by the company since FY31. Several brokerage firms thought it was appealing and set Maruti Suzuki ambitious 35% to 40% upside objectives.

4. India will put up for sale a new lithium reserve.

A lithium block found last month will be put up for sale in Jammu and Kashmir, a federal region in northern India, the nation’s mines minister announced in parliament on Monday.

Minister Pralhad Joshi stated, “The exploitation of lithium would rely upon the successful sale of the mineral block,” adding that the Jammu and Kashmir government will choose the auction’s schedule.The block is the nation’s first known lithium resource, with estimated reserves of 5.9 million tonnes.

5. Amitava Mukherjee assumes additional charge as NMDC CMD

Amitava Mukherjee, Director of Finance of NMDC, was announced as the organization’s Chairman-Cum-Managing Director on Tuesday.

Mukherjee, an Indian Railway Accounts Service (IRAS) officer from the 1995 batch, has a Master’s in Commerce from Guru Ghasidas Vishwavidyalaya in Bilaspur and is also a Cost Accountant.

Economic Calendar for Today

. 8:30 AM ET           Producer Price Index (PPI) est. +0.3% (prior +0.7%)

·     8:30 AM ET           Producer Price Index (PPI) est. +5.4% (prior +6.0%)

·     8:30 AM ET           PPI Ex: Food & Energy (core) est. +0.4% (prior +0.5%)

·     8:30 AM ET           PPI Ex: Food & Energy (core) est. +5.2% (prior +5.4%)

·     8:30 AM ET           Empire Fed manufacturing for March…est. (-8.0)

·     8:30 AM ET           Retail Sales M/M for February…est. (-0.3%)

·     8:30 AM ET           Retail Sales Ex; Autos M/M for February…est. (-0.1%)

·     10:00 AM ET         Business Inventories M/M for January…est. 0.0%

·     10:00 AM ET         NAHB Housing Market Index for March…est. 40

·     10:30 AM ET         Weekly DOE Inventory Data

·     4:00 PM ET            Long-term TIC Flows for January