by admin | May 25, 2021 | Economy, Markets, News
Mumbai : A weak rupee, along with outflow of foreign funds and caution over upcoming quarterly results, pulled the key Indian equity indices into the red on Tuesday.
Accordingly, heavy selling pressure was witnessed in select market heavyweights including those in banking, oil and gas and energy sectors, while all the other counters ended in the green on the BSE, led by IT and pharma stocks which rose due to depreciation in the rupee value.
However, lower global crude oil prices arrested the downward spiral.
Consequently, the S&P BSE Sensex closed 176.27 points down at 0.52 per cent. It opened at 34,891.13, from its previous close of 34,067.40.
The NSE Nifty50 ended at 10,198.40, down 52.45 points and 0.51 per cent.
In terms of broader markets, S&P BSE MidCap gained 0.91 per cent, while S&P BSE SmallCap was up by 0.94 per cent.
Nevertheless, the BSE market breadth was positive as heavy selling occurred in market heavyweights.
“Investors turned stock-specific in the on-going result season while maintaining a cautious view due to upcoming state elections,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Weak global cues and selling pressure in stocks that unveiled below than expected results dragged the indices. Drop in oil prices will provide leeway to maintain support in the market while triggers like upcoming trade talks between US and China give more cues to investors.”
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty taking a breather, traders will need to watch if the recent rally can sustain and
move higher.”
“Further upsides are likely once the immediate resistances of 10,255 points are taken out. Crucial supports to watch for any weakness are at 10,150 points.”
In terms of investments, foreign fund outflows continued as provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 1,592.02 crore.
On the other hand, domestic institutional investors bought scrip worth Rs 1,363.04 crore.
As per data provided by the National Securities Depository (NSDL), the monthly outflow of foreign funds at Rs 27,385 crore from the equity segment was at its highest since 2002.
Currency-wise, the rupee closed at Rs 73.68 to a US dollar from its previous close of 73.44. Brent crude, the benchmark oil price, eased to around $76.20 a barrel.
The top gainers on BSE were: Infosys, up 2.48 per cent at Rs 659.75; Hindustan Unilever, up 2 per cent at Rs 1,585; State Bank India, up 1.90 per cent at Rs 273.15; Tata Consultancy Services (TCS), up 1.37 per cent at Rs 1,895.40; and Tata Motors, up 1.11 per cent at Rs 177.30 a share.
The top losers were: IndusInd Bank down 3.50 per cent at Rs 1,363.50; Coal India, down 3.47 per cent at Rs 277.10; Reliance Industries, down 2.84 per cent at Rs 1,057.15; Sun Pharma, down 1.92 per cent at Rs 561.65 and Power Grid down 1.79 per cent at Rs 186.10 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Despite negative global markets, the Indian stock indices surged by over two per cent on Monday, as value buying, along with an official announcement on fresh liquidity infusion in the debt market, uplifted investors’ sentiments.
According to market observers, value buying emerged after a correction which dragged both the S&P BSE Sensex and the Nifty50 to their respective seven-month lows last Friday.
On the liquidity front, the Reserve Bank of India’s announcement on a fresh bond buying programme in November to inject funds into the debt market soothed investors’ nerves, especially after caution prevailed over an impending credit crunch.
However, negative global markets and outflows of foreign funds capped gains.
Index-wise, the NSE Nifty50 settled higher by 220.85 points, or 2.20 per cent at 10,250.85 points.
Similarly, the S&P BSE Sensex made substantial gains. It opened at 33,549.88 points and closed higher by 718.09 points, or 2.15 per cent, at 34,067.40 points.
The Sensex swung over 800 points, touching a high of 34,154.60 points and a low of 33,341.80.
“Stock markets in India witnessed a relief rally today as key benchmark indices surged in opening trade and sustained the momentum through the day,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Overseas, Asian markets declined while European markets traded firm as investors tracked a number of political events and waited for further earnings reports.”
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty bouncing back, traders will need to watch if the recent rally can sustain and reverse the current downtrend.”
“Further upsides are likely once the immediate resistances of 10,274 points are taken out. Crucial supports to watch for any weakness are at 10,150 points,” he added.
In terms of investments, the week began with the continued trend of massive outflow of funds witnessed throughout October, as provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 2,230.79 crore.
Domestic institutional investors bought scrip worth Rs 2,526.90 crore.
As per data provided by the National Securities Depository (NSDL), the monthly outflow of foreign funds at Rs 38,797 crore from the equity segment was at its highest since 2002, while on a yearly basis, the outflow in the current year comes second just to the levels seen in 2008 when the foreign investors withdrew Rs 51,252 crore.
Nevertheless, the domestic currency closed nearly flat at Rs 73.44 to a dollar from its Friday’s close of 73.46. Brent crude, the benchmark oil price, was trading around $77.49 a barrel.
Top gainers on the Sensex was dominated by banking stocks, out of which ICICI Bank gained the most days after it reported a 55.84 per cent year-on-year decline in its standalone net profit for the quarter ended in September 30.
The private lender’s scrip closed higher by over 11 per cent to settle at Rs 349.15 a share. It was followed by State Bank of India, up 10.82 per cent at Rs 349.15; Adani Ports, up 7.33 per cent at Rs 326.60; Larsen and Tubro, up 5.25 per cent at Rs 1260.80; Tata Motors (DVR), up 5.04 per cent at Rs 95.95 and Bharti Airtel, up 0.83 per cent at Rs 298.30 and Axis Bank up 4.96 per cent at Rs 564.
The top losers were IndusInd Bank down 2.36 per cent at Rs 1,410.95; HDFC Bank, down 1.95 per cent at Rs 1,924; Kotak Mahindra Bank, down 1.85 per cent at Rs 1,137.55; and Bharti Airtel, down 1.56 per cent at Rs 293.65 and Hindustan Uniliver down 0.54 per cent at Rs 1,552.05 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : A positive start to the second quarter results season, along with a stable rupee and low crude oil prices, pushed both the key equity indices — S&P BSE Sensex and NSE Nifty50 — higher for the third consecutive session on Tuesday.
The day’s trade saw all sectors close on a high note led by finance, banking and energy stocks.
Index-wise, the benchmark S&P BSE Sensex settled at 35,162.48 points, up 297.38 points or 0.85 per cent. It touched an intra-day high of 35,215.79 points and a low of 34,913.06 points.
Similarly, the NSE Nifty50 ended the day’s trade on a positive note. It closed at 10,584.75 points, up 72.25 points, or 0.69 per cent.
Vinod Nair, Head of Research, Geojit Financial Services said: “Market maintained a positive momentum as healthy start to the earnings season and gaining strength in rupee supported the sentiment.”
“Though rally was broad based, financials led from the front. However, global market remain mixed due to trade tensions. Earnings season will dictate the trend in the market as investors are gradually shifting their focus from global volatility to domestic triggers.”
According to Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund: “On the macro front, India’s merchandise trade deficit during April-September 2018 was reported at $94.32 billion. The trade deficit for September 2018 was at $13.98 billion, which is the lowest in the last 5 months, despite high oil prices.”
On Tuesday, the Indian rupee closed at 73.46, recovering 37 paise from its previous close of 73.83 per US dollar.
Provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 1,165.63 crore, whereas domestic institutional investors bought scrip Rs 1,059.44 crore.
HDFC Securities’ Retail Research Head Deepak Jasani told: “Technically, the underlying trend of Nifty continues to be positive. At the same time one needs to be cautious of long trading positions at the highs.”
“Resistance for the Nifty is now at 10,720-10,754 band. Immediate supports to
be watched is at 10,490 levels.”
The top gainers in the Sensex were Mahindra and Mahindra, up 3.97 per cent at Rs 778.30; Adani Ports, up 3.54 per cent at Rs 333; ONGC up 3.44 per cent at Rs 165.50; SBI up 2.60 per cent at Rs 270.20; and ICICI Bank, up 2.51 per cent at Rs 321.05.
Major losers included HDFC Bank, down 0.77 per cent at Rs 1,992.40; Bajaj Auto, down 0.54 per cent at Rs 2,611.15; Maruti Suzuki, down 0.45 per cent at Rs 7,149.95; Infosys, down 0.39 per cent at Rs 696.40; and IndusInd Bank, down 0.37 per cent at Rs 1,620.85 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Key Indian equity indices recovered from their day’s lows to close with marginal losses on Tuesday even as broadly negative global cues, along with disappointing services sector data and outflow of foreign funds, kept market sentiment subdued.
According to market observers, investors traded with caution ahead of the outcome of the Reserve Bank of India’s (RBI) two-day policy review meet on Wednesday. However, the losses were trimmed by good buying in stocks of banking majors like State Bank of India (SBI) and Kotak Bank and index heavyweights like Reliance Industries.
On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) edged lower by 9.50 points or 0.09 per cent to 10,118.25 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,802.44 points — down 67.28 points or 0.20 per cent from Monday’s close.
The BSE market breadth was bearish — 1,549 declines and 1,105 advances.
“Markets ended with marginal losses on Tuesday after a bounce back from the lows of 10,069 curbed the losses. It was a volatile session ahead of the outcome of RBI’s MPC (Monetary Policy Committee) meet tomorrow,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Negative global cues and local service sector survey data for November weighed on the market sentiments. Broad market indices like the BSE mid-cap index ended with gains, thereby outperforming the main indices,” Jasani added.
Data released during market hours revealed that the Nikkei Services purchasing managers’ index in November fell to 48.5 points — the lowest since August — from 51.7 the previous month.
In the broader markets, the S&P BSE mid-cap index closed higher by 0.41 per cent, whereas the small-cap index inched down by 0.03 per cent.
“All eyes are now on RBI policy outcome which takes place tomorrow. It is expected central bank to keep interest rates on hold for a prolonged period starting with its policy meeting on concerns of rising inflation,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
On the currency front, the rupee closed almost flat at 64.38-39 against the US dollar from its previous close at 64.37-38.
Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,470.56 crore while domestic institutional investors bought stocks worth Rs 1,074.39 crore.
Sector-wise, the S&P BSE consumer durables index declined by 131 points, auto index by 130.49 points and metal index by 117.14 points.
On the other hand, the S&P BSE banking index surged by 108.78 points, oil and gas index was up 24.91 points and energy index by 23.70 points.
Vinod Nair, Head of Research, Geojit Financial Services, said: “After a subdued trade, the market reversed from day’s low led by banking stocks. The recent correction in PSU banks provides an opportunity for investors to accumulate as the long term prospects remains strong owing to healthy recapitalisation.”
Major Sensex gainers on Tuesday were: State Bank of India, up 1.92 per cent at Rs 319.30; Bharti Airtel, up 1.18 per cent at Rs 490.50; Reliance Industries, up 1.11 per cent at Rs 911.50; Sun Pharma, up 0.52 per cent at Rs 523.65; and ICICI Bank, up 0.38 per cent at Rs 305.40.
Major Sensex losers were: Hero MotoCorp, down 2.31 per cent at Rs 3,522.15; Wipro, down 2.29 per cent at Rs 283.40; Tata Steel, down 1.71 per cent at Rs 675.95; NTPC, down 1.70 per cent at Rs 176.75; and Dr. Reddy’s Lab, down 1.61 per cent at Rs 2,205.
—IANS
