Wednesday, 3 May 2023

Global market: SGX Nifty to US Fed meeting — key triggers for stock market today | Mint

  Global market today: Due to sell off in oil and gas, basic materials and financial shares, all three key benchmark indices of the US stock market ended lower on Wednesday. Investors were cautious as global markets were awaiting outcome of the US Fed meeting and the US Central Bank announced 25 bps rate hike on the expected lines. This triggered sell off in the US dollar as Dollar Index slipped to one month low. This weakness in the US dollar fueled gold rates today at 14-month low whereas crude oil prices slipped to two month low. Signaling the consolidation at overbought condition to further continue, SGX Nifty today opened lower and it has been trading in near 100 points zone after Asian stock market's opening bell today.

Here we list out important global market triggers that may dictate Indian stock market today:
US stock market

Due to sell off triggers in oil and gas, basic materials and financial shares, US stock market ended lower on Wednesday. All three key benchmark indices on Wall Street ended lower as Dow Jones index lost 0.80 per cent, S&P 500 index lost 0.70 per cent whereas tech heavy weight Nasdaq corrected to the tune of 0.46 per cent.
Asian stock market today

In early morning deals, Japanese Nikkei added 0.12 per cent, Shanghai index went off 0.05 per cent, Hong Kong's Hang Seng index surged 0.52 per cent whereas south Korean KOSPI corrected to the tune of 0.51 per cent.
US Fed rate hike

After FOMC meeting, US Fed declared 25 bps interest rate hike, which was on the expected lines of global market observers. However, the US Central Bank maintained that US banking system is sound and resilient. But, inflation at higher levels is still a big worry for the US Federal Reserve.

Announcing the interest rate hike, the US Fed said in a press statement, "The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5 to 5-1/4 percent."

The Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on reserve balances to 5.15 percent, effective May 4, 2023.
SGX Nifty today

Signaling muted opening on Dalal Street today, SGX Nifty today opened downside at 18,155 and went on to hit intraday low at 18,078 levels.

"SGX Nifty is signaling sideways to weak opening on Dalal Street. However, my advice would be buy on dips as overall trend is still positive and FIIs are continuously buying in Indian equities," said Anuj Gupta, Vice President — Research at IIFL Securities.
US dollar at one month low

After announcement of US Fed rate hike on expected lines, sell off triggered in the US dollar and Dollar Index slipped to one month low. In early morning session, Dollar Index lost 0.24 per cent to 100.870 levels.

On how it will impact US dollar to INR (Indian National Rupee), Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, "We expect Rupee to trade with a slight negative bias on risk aversion in global markets amid renewed fears over banking crisis in US and worries over global economic recovery. However, weak Dollar and extended fall in crude oil prices may prevent sharp fall in Rupee. Sustained FII inflows may also support Rupee at lower levels. Investors may remain cautious ahead of FOMC meeting and ISM services PMI. Fed is expected to hike interest rates by 25 basis points. Traders may also remain cautious ahead of non-farm payrolls data later this week. We expect USDINR spot to trade in between 81.30 to 82.30 in the near term."
Crude oil price

After 25 bps US Fed rate hike, crude oil prices went further downward as Brent crude oil price hit 2-month low. In early morning deals, WTI crude oil price has bounced back strongly adding over one per cent. However, WTI crude oil price is still below $70 per barrel. Brent crude oil price surged 1.30 per cent in early morning Asian stock market trade.
Gold rate today

After US Fed rate hike on expected lines, gold prices witnessed strong buying interest and the yellow metal price went on to hit a new high of $2,081.80 per ounce in international market whereas it climbed to 14-month high in domestic market.
US bond yield

In early morning session, US 10 year bond yield slipped over 2 per cent to 3.334 levels whereas US 30 year bond yield corrected 0.89 per cent to 3.682 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Russian Decoys Trick Ukrainian Air Defense While Kh-101 Stealth Missiles Deliver A Painful Blow

 On May 1, 2028, Russian cruise missiles struck a painful blow to Ukrainian military infrastructure that significantly degraded Ukraine’s ability to launch a counter-offensive.

Russian cruise missiles struck a facility in the Ukrainian city of Pavlograd in Dnipropetrovsk Oblast, causing a massive mushroom cloud blast, which by all reckoning was the granddaddy of all blasts so far in the conflict.

The RuMoD cryptically stated on May 1, 2023, “The Armed Forces of the Russian Federation launched a long-range high-precision air and sea-based missile strike against Ukrainian military-industrial complex facilities.

“The goal of the attack has been reached. All the assigned targets have been neutralized. The enterprises producing ammunition, weapons, and military equipment for Ukrainian forces have been disrupted.”

Multiple social media sources report that the likely target in Pavlograd was a plant in the city used for producing missile fuel and explosives.
Ukraine’s Version Of The Attack

Completely ignoring the fact that a cruise missile couldn’t have produced such a massive blast all by itself and video footage strongly suggests secondary explosions, Dnipropetrovsk Oblast Military Administration Serhiy Lysak stated on his Telegram channel, “An industrial enterprise was damaged in Pavlograd.

“A fire broke out there, which the rescuers have already put out. In the residential area, 19 high-rise buildings, 25 private houses, six schools and pre-school education institutions, and five shops were mutilated.”

Considering the subsonic terminal speed of a cruise missile and its relatively small warhead, it’s highly likely that one or more missiles struck rocket fuel containers or motors that were placed either in the open or under light protective cover.

Ordinarily, explosives and incendiary material is stored in deep underground facilities safe from even large warhead aerial attacks. The fact that large quantities of rocket motors and/or fuel were in the open would suggest that the incendiary cargo was about to be transported. Russian Aerospace Forces (RuAF) appear to have struck precisely when the vulnerability was greatest, suggesting superior intelligence.

Russia’s meticulous planning is also evident because Russia made a great effort to spoof and deceive Ukrainian air defense (AD). A large number of Russian bombers (some reports suggest nine Tu-95 and two Tu-160) got airborne. Strangely, according to multiple sources, they launched just 18 cruise missiles!
Kh-101 missile
File Image

According to Commander-in-Chief of Ukraine’s Armed Forces Valerii Zaluzhnyi, Russia began launching missiles at Ukraine around 2:30 a.m., using strategic aircraft, nine Tu-95 aircraft, and two Tu-160 aircraft.

He says, in total, Ukraine’s air defense shot down 15 out of 18 air-launched Kh-101 and Kh-555 cruise missiles.
Kh-101 – Stealth, Destructive Power, And Accuracy

The Kh-101 is a low-observable cruise missile with a reported operational range of 4,500 kilometers (2,800 miles). The missile’s guidance package features an inertial navigation system (INS), a terrain contour matching (TERCOM) system, a digital scene-matching area correlation (DSMAC) system, and a GPS/GLONASS receiver.

According to the open sources, the Kh-101 has a combat weight of 2,400 kilograms (including a warhead of 400 kilograms). (The Kh-555, referred to by Zaluzhnyi, is an older, non-stealthy, and less accurate variant of the Kh-101.)

The accuracy of the Kh-101 missile, in combination with the 400-kilogram warhead, gives it a considerable punch making it suitable for use against hardened targets.

The Ukrainian claim that only three Kh-101 missiles slipped through Ukrainian AD must be taken with due circumspection. The Ministry of Energy of Ukraine reports that the missile strike significantly damaged the network infrastructure in the Kherson and Dnepropetrovsk regions, and reports of power outages in Kyiv and Odesa would suggest a few more than three missiles slipped through.
Russian Deception

A single Tu-95 can carry 14 Kh-101 missiles (six internally, eight externally). A single Tu-160 can carry 12 Kh-101 missiles internally in its bomb bay. Then there is the RuMoD claim that some missiles were launched from the sea surface. There is a mismatch in the number of missiles reportedly launched and the number of platforms that reportedly got airborne to launch the missiles.

It’s possible that Russia launched some of its bombers simply to rattle and confuse Ukrainian AD. It’s also possible that some of the bombers launched decoys to send Ukrainian AD on a wild goose chase. Most likely, it was a combination of both.

Some of the Russian bombers appear to have launched Kh-55 missiles as decoys. The @milinfo Telegram Channel (TC) reports that one Kh-55 decoy missile was found shot down in the Kyiv region. Also, the @Rybar TC posted a photo of a crude drone that fell in one of the regions of Ukraine.
Kh-55 Old Gold

The Kh-55 is a Soviet-era strategic missile with a range of up to 2,500 kilometers. In an earlier analysis, we detailed how Russia has repurposed the strategic missile developed to carry a 200-kiloton nuclear warhead as a decoy. Indeed, the repurposing has been so successful that according to Ukrainian officials, Russia has rebooted production of the missile!
Kh-55 Russia missile
Kh-55 Russian Missile

A few Kh-55 missiles cruising deep into Ukrainian airspace, tracking on cleverly programmed waypoints, could put Ukrainian AD in complete disarray. Ukrainian AD cannot ignore the missiles assuming they have been repurposed as decoys, as Russia may well have repurposed some of the missiles to carry conventional warheads. Considering that the missile warhead weighs 410 kilograms, the destructive capability of the missile is significant.

The decoys launched by RuAF not only diverted Ukrainian AD’s attention but also forced Ukraine to needlessly expend scarce Soviet and expensive Western anti-aircraft missiles shooting down decoys.
Hitting Ukrainian Forces When They Are Most Vulnerable

In a recent analysis, we pointed out that RuAF cruise missile attacks are now focused on battlefield interdiction instead of infrastructure degradation, as in the past. The aim is to degrade Ukrainian offensive capability when it is most vulnerable – during relocation to the battlefront.

The April 28, 2023, cruise missile attack struck troops and equipment moving to the battlefront. The attack on May 1, 2023, most likely interdicted missiles being moved to the battlefront in preparation for the Ukrainian counter-offensive. Both the attacks involved a smaller number of missiles as compared to the numbers used for infrastructure attacks.

The tactics being employed by the RuAF have improved. Using medium-altitude drones such as the Orion, and possibly Tu-214R, a Russian reconnaissance aircraft fitted with cutting-edge optical and electronic equipment and radar systems, the RuAF is identifying and pinpointing high-value targets for pinpoint attacks by sophisticated cruise missiles. Simultaneously, it’s using disinformation and deception to dupe Ukrainian AD.

    Vijainder K Thakur is a retired IAF Jaguar pilot. He is also an author, software architect, entrepreneur, and military analyst. VIEWS PERSONAL

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New Apple MacBook Air laptop expected to launch next month: Everything we know so far

 By Abhik Sengupta: A new 15-inch MacBook Air laptop is expected to launch at Apple's upcoming WWDC 2023 event on June 5. The rumoured MacBook Air 15 will likely be powered by Apple's in-house M2 SoC (system-on-chip), which also powers the new-gen MacBook Air 13. At the same event, Apple is expected to unveil iOS 16 and iPadOS 16 for iPhones and iPads respectively. We might also see the debut of the Apple mixed-reality headset at WWDC 2023. Apple may showcase a dedicated OS (operating system) for the AR/VR headset as well.

The development comes from notable Apple analyst and Bloomberg's Mark Gurman in his Power On newsletter. Gurman does not highlight any specifications, though it is likely the Macbook Air 15 will be similar to the existing M2-powered MacBook Air 13.

That means the upcoming MacBook Air 15 may feature a metal chassis and a non-touch LED display. Despite an LED display panel, the laptop may offer a native resolution of 2560x1664 pixels and 500nits brightness. Apple may also add an upgraded 1080p FaceTime camera and Wi-Fi 6 connectivity support. Due to a laptop's large design, Apple may consider adding a bigger battery with faster charging support.

Since the new model will reportedly include a 15-inch screen, the price could go up drastically. Currently, the MacBook Air 13 with M2 SoC and 256GB SSD costs Rs 1,19,900. The top variant with 512GB SSD costs Rs 1,49,900.
TRENDING TOPICS

This is not the first time we have heard about the potential launch of the MacBook Air 15 at WWDC 2023. Gurman reported something similar back last month. He also claimed that several Mac PCs are in the works for this year. Apart from the MacBook Air 15, Apple may launch an updated 13-inch MacBook Air, an entry-level 13-inch MacBook Pro, a refreshed 24-inch iMac, the first Mac Pro with in-house chips, and an updated high-end MacBook Pro.

Apple may refrain from launching an iPhone at this year's WWDC event. The company launched an iPhone SE 3 last year.
TRENDING TOPICS

However, the highlight of the event will be the mixed-reality headset. The name of the product remains unclear, but the OS powering the headset is expected to be called xrOS. However, the first-gen product is expected to cost over 2 lahks.

The company killed iPods with iPhones and has been a leader in the smartphone market. The company's next step is to create a sleek AR headset to replace iPhones.

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Manipur violence: Internet suspended, curfew imposed, Army deployed; why this northeast state is burning — explained | Mint

  To tackle the worsening law and order situation after tribal groups took out rallies in several districts of Manipur, the state government has suspended mobile internet for five days. Along with a ban on large gatherings, a night curfew too has been imposed in several districts of the state. The Army and Assam Rifles were deployed to control the situation, ANI quoted a defence spokesperson.
Curfew in 8 districts of Manipur

In view of the situation, a curfew has been imposed in non-tribal-dominated Imphal West, Kakching, Thoubal, Jiribam, and Bishnupur districts, and tribal-dominated Churachandpur, Kangpokpi, and Tengnoupal districts.
Manipur suspends mobile internet services

Mobile internet services were suspended across the state for five days with immediate effect but broadband services were operational.

The Manipur government issued a statement stating, "Internet services suspended in Manipur for five days amid incidents of fighting among youths, and volunteers of different communities as a rally was organised by All Tribals Students Union (ATSU) Manipur in protest against the demand for inclusion of Meitei/Meetei in the ST category."
Two issues in the state have led to the situation

As far as the current situation is concerned, two issues in the state have led to the situation, sources told ANI.

1)CM Biren Singh's move to protect the forest faces resistance from illegal Immigrants and drug cartels.

2)The Manipur High Court's recent direction to the State Government to consider the inclusion of Meitei in ST has led to an outburst from the tribal community who are ST.
Why curfew was imposed and net services were suspended in Manipur?

Curfew was imposed in eight districts of Manipur and mobile internet services were suspended in the entire northeastern state over violence during a tribal agitation on Wednesday.

Violence broke out during the 'Tribal Solidarity March' called by the All Tribal Student Union Manipur (ATSUM) in the Torbung area of Churachandpur district to protest the demand of non-tribal Meiteis, who dominate the Imphal Valley, for Scheduled Tribe (ST) status.

Thousands of tribals -- who make up about 40 per cent of the state's population -- joined the processions, waved placards and raised slogans opposing ST status for the Meitei.
Why is Manipur burning?

The Meiteis, who make up 53 per cent of the state's population, inhabit the Valley, which accounts for about a tenth of the former princely state's land area. They claim they are facing problems in view of "large-scale illegal immigration by Myanmarese and Bangladeshis".

The hill districts which account for much of the state's land mass is inhabited mostly by tribals -- including the Nagas and Kukis – and are protected from encroachment by various laws.
Manipur violence: What is STDCM demanding?

The Scheduled Tribe Demand Committee Manipur (STDCM), which is spearheading the movement for the inclusion of Meiteis in the ST category said the demand is being made not merely for reservation in jobs, educational institutions, and tax relief but "more to protect our ancestral land, culture and identity", which they claimed was being "threatened by illegal migration from Myanmar, Bangladesh and by people from outside the state".

-With agency inputs

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Global market: SGX Nifty to US Fed meeting — key triggers for stock market today | Mint

  Global market today: Due to sell off in oil and gas, basic materials and financial shares, all three key benchmark indices of the US stock...