International markets pared early losses after the US economy revealed better than expected initial claims data and service PMI. While the number of American filing for unemployment came down by 8,000 from the expected figure, at 282,000 whereas services PMI came in 58.6 compared to expectations of 57.2. European markets, like the US markets, shrugged off losses after investors gained traction owing to better than expected US economy. German equities, which were trading with more than 1.5% loss ended the day with just 0.2% loss.
Asian markets are trading on a mixed note as investors focus on the Japanese economic data. While the retail sales figures fell 1.8% compared to expectations of 1.5%; housing hold spending increased both MoM and YoY. All the other Asian markets are trading with losses. Taiwan and Kospi equity markets are trading with 0.8% and 0.1% losses respectively. However, Japanese, Chinese and Hong Kong stocks are trading on a positive note with gains of 0.5%, 0.3% and 0.13%, respectively.
Commodity prices spiked over 1% as investors grew nervous because of the war prevailing in Yemen. This prompted them to turn their investments towards commodities. The price of gold per 10 grams increased more than 1% is available at Rs 26,810 with gains of Rs 318 while silver prices, too, gained 1.2% and per kilogram is available higher by Rs 455 at Rs 36,613 levels. Crude oil prices shot up by 5% as a result of the ongoing war. Per barrel, the crude oil is available at Rs 3,253. US Dollar opened today's trade with modest gains of 0.1% or 0.06. The value of Indian Rupee is Rs 62.73.
Most of the power stocks are trading in the green. NTPC and Reliance Power have gained the most with over 1% gains. Power major Powergrid Corporation said that it plans to invest over Rs 20 bn on many projects across the country. The project involves installing sub-stations at Delhi which will cost Rs 13.94 bn and will be commissioned in 26 months while Rs 0.7 bn will be invested in the Eastern region and is planned to be commissioned in 24 months. Few investments will parked in Hyderabad and Solapur which involve installing sub-stations. The expected costs are Rs 5.5 bn and Rs 0.5 bn respectively for Hyderabad and Solapur. Shares of the company fell about 0.6% in early trade.
Telecom companies have gained a lot of attention post completion of spectrum auctioning. Shares of Idea and Bharti Airtel are trading above 1% even amidst sell-off. Stock of Airtel gained nearly 1% after the company said that it has invested nearly Rs 291 bn to acquire 111.6 mhz from prime spectrums that included 900 mhz, 1800 mhz and 2100 mhz. While Rs 176 bn was spent in retaining the existing spectrum, the balance Rs 115 bn were spent to acquire new ones. Shares of Airtel gained about 0.6% after such developments.