by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : A global sell-off triggered by trade protectionist measures imposed by major world economies unleashed the bears in the Indian equity markets during the week, pushing the key indices — NSE Nifty50 and BSE Sensex — to their 5-month lows.
Apart from the prospects of escalating trade wars, the risk-taking appetite of investors was marred by rising crude oil prices, the ongoing turmoil in the domestic banking system as well as the uncertainty on the political situation in the country.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE shed 579.46 points or 1.75 per cent to close at 32,596.54 points — its lowest closing level since October 23, 2017.
On the National Stock Exchange (NSE), the wider Nifty50 ended below the psychologically important 10,000-mark and closed trade at 9,998.05 points — down 197.1 points or 1.93 per cent from its previous week’s close — its lowest closing level since October 11, 2017.
“Benchmark indices Sensex and Nifty fell 1.75 per cent and 1.93 per cent respectively during the week, posting their longest stretch of weekly losses in 16 months as the domestic market joined a global sell-off triggered by prospects of a trade war,” Arpit Jain, Assistant Vice President at Arihant Capital Markets, told IANS.
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, the global stock market traded lower after US President Donald Trump announced sweeping tariffs on Chinese goods, a move that has heightened concerns that the global trade war will escalate.
“Back at home, dragged by escalating trade tensions among global economies, the Indian stock market too witnessed selling pressure amid other domestic factors. Since the beginning of the year domestic market witnessed some hiccups on the back of imposition of LTCG (long term capital gains) tax, liquidity issues, rising bond yields and volatile global markets,” Aggarwal told IANS.
“Also, a surge in crude oil prices impacted the market sentiment. The Indian rupee, too, witnessed a volatile move ahead of Fed rate-hike and global trade war concerns,” he added.
On the currency front, the rupee weakened by eight paise to close at 65.01 against the US dollar from its previous week’s close at 64.93.
“Sentiments were affected by rising crude oil prices, bond yields and a troubled domestic banking system. Uncertainty around the political situation in the country added to the woes, and collectively dragged the sentiment across the street,” Gaurav Jain, Director at Hem Securities, told IANS.
Provisional figures from the stock exchanges showed that foreign institutional investors purchased scrips worth Rs 2,524.13 crore and the domestic institutional investors (DIIs) scrips worth Rs 211.91 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 2,060.04 crore, or $316.99 million, during March 19-23.
“The market breadth was negative in three out of the five trading sessions of the week. The top sectoral losers were realty, metal, Bank Nifty and pharma indices. There were no gainers,” said Deepak Jasani, Head – Retail Research, HDFC Securities.
The top weekly Sensex gainers were: NTPC (up 2.90 per cent at Rs 170.15); IndusInd Bank (up 1.36 per cent at Rs 1,750.20); Power Grid (up 1.04 per cent at Rs 194.25); Hindustan Unilever (up 0.05 per cent at Rs 1,299.75); and Larsen and Toubro (up 0.01 per cent at Rs 1,267.75).
The losers were: Yes Bank (down 8.37 per cent at Rs 286.70); ICICI Bank (down 7.48 per cent at Rs 275.80); State Bank India (down 7.13 per cent at Rs 234.60); Tata Steel (down 5.65 per cent at Rs 566.60); and Axis Bank (down 4.29 per cent at Rs 501).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The key Indian equity indices on Tuesday gave up all gains to close on a flat note, with the BSE Sensex incurring marginal losses while the NSE Nifty50 held on to the green with minute gains. IT major Tata Consultancy Services (TCS) was the top loser on the domestic bourses.
According to market observers, lessened chances of a rate-hike by the Reserve Bank of India (RBI) on the back of easing inflation, along with a huge sell-off in stocks of TCS, pulled the indices lower from their intra-day highs.
On a closing basis, the wider NSE Nifty50 inched up 5.45 points or 0.05 per cent to 10,426.85 points.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex) closed at 33,856.78 points — down 61.16 points or 0.18 per cent from the previous session’s close.
However, the BSE market breadth was bullish with 1,705 advances and 993 declines.
Earlier during the day, healthy macro-economic data, along with healthy buying in banking, consumer durables, oil and gas and healthcare stocks lifted the benchmark indices. The BSE Sensex had reclaimed the 34,000-mark in the course.
“A sell-off from the highs in the afternoon session curbed the gains. PSU banks bounced up, but failed to close at their intra-day highs as a soft CPI (Consumer Price Index) number for February announced on Monday raised hopes of a softer interest rate regime,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
Data released after market hours on Monday revealed that the country’s factory production growth in January doubled to 7.5 per cent and retail inflation (CPI) eased down to 4.4 per cent for February.
“Major Asian markets have closed on a positive note barring the Jakarta and Shanghai indices, while European indices like DAX, CAC 40 and FTSE 100 traded in the green,” Jasani added.
In terms of the broader markets, the S&P BSE mid-cap index edged higher by 1 per cent and the small-cap index by 1.14 per cent.
On the currency front, the Indian rupee strengthened by 14 paise to close at 64.90 against the US dollar from its previous close at 65.04.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 7,028.42 crore and domestic institutional investors worth Rs 1,613.39 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market gained a positive momentum on account of easing inflation and better than expected IIP (Index of Industrial Production) data.”
“However, selling in IT and profit booking in banks failed to keep positivity throughout the day. Benign inflation will provide more room to RBI to maintain the current stance rather to consider a rate hike in the near term,” he added.
During the day’s trade, TCS scrips plunged over five per cent on announcements of block deals on both the BSE and NSE.
“TCS shares fell 5.1 per cent after reports of Tata Sons’ plans to sell $1.25 billion of its stake in the company,” Desai added.
Sectorwise, the S&P BSE IT index fell by 196.78 points, followed by Teck (technology, media and entertainment) index by 71.51 points and FMCG index by 1.22 points.
On the other hand, the S&P BSE consumer durables index surged by 282.75 points, oil and gas index by 250.17 points and healthcare index by 140.65 points.
Major Sensex gainers on Tuesday were: Axis Bank, up 2.23 per cent at Rs 530.80; Sun Pharma, up 2.04 per cent at Rs 522.90; Wipro, up 1.65 per cent at Rs 295.55; Dr Reddy’s Lab, up 1.60 per cent at Rs 2,181.40; and Bharti Airtel, up 1.22 per cent at Rs 425.90.
The Sensex losers were: TCS, down 5.22 per cent at Rs 2,892.45; Kotak Bank, down 1.46 per cent at Rs 1,084.55; Coal India, down 1.02 per cent at Rs 294.75; NTPC, down 0.94 per cent at Rs 169.40; and Maruti Suzuki, down 0.66 per cent at Rs 8,753.50.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : The bears, tracking weak global cues, under-performance by banking sector stocks and outflow of foreign funds, ruled the Indian equity markets during the week ended Friday which saw the BSE Sensex and Nifty50 indices dropping over 2 per cent.
Fears of a global trade war following US President Donald Trump’s proposal to impose tariff on import of metals, along with the turmoil in the domestic banking sector, continued to erode the risk-taking appetite of investors.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE shed 739.8 points or 2.17 per cent to close at 33,307.14 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,226.85 points — down 231.5 points or 2.21 per cent from its previous week’s close.
“The week gone by saw the Nifty resuming its intermediate downtrend after a minor loss witnessed last week. There were no sectoral gainers, while the top losers were metal, PSU bank, pharma and infra indices,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, domestic market closed the week in red tracking weak global cues.
“Actually, market participants across the globe reacted to President Donald Trump’s decision to impose tariffs on metal imports,” Aggarwal told IANS.
“Oil prices fell for a second consecutive week as the dollar strengthened and concerns over rising US crude production continued to mount on signs of an inventory build-up at a key US storage hub,” he added.
On the currency front, the rupee closed flat at 65.17 against the US dollar.
“Markets continued to trade lower even though economy growth numbers been positive. The Punjab National Bank fraud (PNB) has taken a big toll on the markets and has resulted in a sell-off in almost all the banks stocks,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
Desai pointed out that the country’s IT sector has emerged as an outperforming sector in the recent correction witnessed in the markets.
“The S&P BSE IT index rose nearly 10 per cent compared to a one per cent fall seen in the S&P BSE Sensex so far in the year 2018,” Desai told IANS.
Vinod Nair Head Of Research at Geojit Financial Services, said: “Market continued to be under pressure on concerns impending global trade war, extension of PSU NPA (non-performing assets) worries and rise in bond yields.”
PSU Bank index — the key underperformer — declined by 5 per cent during the week, Nair said.
“FIIs (foreign institutional investors) are pulling out money given negative cues from both domestic as well on global front. The introduction of Long Term Capital Gains, scam in PNB, repeated signals from the US Fed to hike interest rates rapidly and possibility of downgrades of India weightage from MSCI index are the key factors which is turning FIIs cautious on domestic market,” he added.
Provisional figures from the stock exchanges showed that FIIs sold-off scrips worth Rs 280.74 crore, while domestic institutional investors (DIIs) purchased scrips worth Rs 131.07 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 1,384.36 crore, or $212.98 million, during March 5-9.
The top weekly Sensex gainers were: Asian Paints (up 0.73 per cent at Rs 1,127.75); NTPC (up 0.55 per cent at Rs 163.90); HDFC (up 0.32 per cent at Rs 1,818.45); Infosys (up 0.27 per cent at Rs 1,163.40); and Hero MotoCorp (up 0.21 per cent at Rs 3,587).
The losers were: Tata Steel (down 10.32 per cent at Rs 605.60); Tata Motors (down 7.86 per cent at Rs 341.70); Tata Motors (DVR) (down 7.34 per cent at Rs 192.60); Adani Ports (down 6.95 per cent at Rs 377.30); and Bharti Airtel (down 5.81 per cent at Rs 401.95).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The BSE Sensex and Nifty50 continued with gains for the second consecutive trade session to close at new high levels riding on positive global cues, along with inflow of foreign funds and healthy buying in consumer durables, banking and auto stocks.
On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) rose by 54.05 points or 0.51 per cent to a new high of 10,558.85 points, after it touched a fresh intra-day high level of 10,566.10 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE too scaled a new intra-day high of 34,188.85 points.
The Sensex closed at a fresh high of 34,153.85 points — up 184.21 points or 0.54 per cent — from its previous session’s close.
The BSE market breadth was bullish as 1,702 stocks advanced as compared to 1,235 declines.
“Nifty touched record highs in intra day trade. The rally came on the back of positive global cues,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
According to Vinod Nair, Head of Research, Geojit Financial Services, positive US jobs data fuelled optimism in the global markets, which had a rub effect in the domestic market.
“Additionally, clarity regarding the time frame of PSUBs (state-run banks) capital infusion provided positive vibes in the domestic market. The broad market was very buoyant seeing healthy buying in mid-cap and small-caps,” added Nair.
The S&P BSE mid-cap index closed higher by 0.69 per cent and the small-cap index by 0.97 per cent.
On the currency front, the Indian rupee strengthened by three paise to close at 63.37 against the US dollar from its previous close at 63.40.
Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 581.43 crore and domestic institutional investors worth Rs 243.13 crore.
“Sensex and Nifty touched record highs in early Friday trade, mirroring the gains in world equities. Investors now awaited December quarter earnings and upcoming Union Budget for further cues,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Cement companies were trading higher for the second straight day on expectation of increase in demand on the back of pick up in the affordable and rural housing segments,” Desai added.
Sectorwise, the S&P BSE consumer durables index edged higher by 292.26 points, followed by auto index by 159.65 points and banking index by 159.40 points.
On the other hand, the S&P BSE oil and gas index declined by 63.33 points and energy index slipped by mere 0.32 points.
Major Sensex gainers on Friday were: Yes Bank, up 5.03 per cent at Rs 333.05; Adani Ports, up 3.71 per cent at Rs 424.45; Bharti Airtel, up 3.36 per cent at Rs 540; IndusInd Bank, up 3.17 per cent at Rs 1,698.50; and Dr Reddy’s Lab, up 2.40 per cent at Rs 2,467.35.
Major Sensex losers were: ONGC, down 0.83 per cent at Rs 197.70; ICICI Bank, down 0.70 per cent at Rs 312.60; State Bank of India, down 0.60 per cent at Rs 306.20; Wipro, down 0.56 per cent at Rs 309.75; and Sun Pharma, down 0.39 per cent at Rs 578.75.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Ahead of a long weekend, the key Indian equity indices closed at new highs after recording fresh levels on an intra-day basis riding on broadly positive global cues and healthy buying in IT, auto and capital goods stocks.
On the National Stock Exchange (NSE), the wider Nifty50 index crossed the 10,500 mark for the first time on an intra-day basis.
The NSE Nifty50 edged higher to a new intra-day level of 10,501.10 points, crossing its previous intra-day high of 10,494.45 points scaled on December 20.
On a closing basis, the Nifty50 rose by 52.70 points or 0.50 per cent to a fresh high of 10,493 points, surpassing its previous closing high of 10,463.20 points scaled on Tuesday.
The barometer 30-scrip Sensitive Index (Sensex) touched a fresh high of 33,964.28 points on an intra-day basis, surpassing it’s Wednesday’s (December 20) intra-day high of 33,956.31 points.
On a closing basis, the Sensex scaled a new high of 33,940.30 points — up 184.02 points or 0.55 per cent from its previous close — surpassing its Tuesday’s (December 19) closing high of 33,836.74 points.
The BSE market breadth remained bullish as 1,564 stocks advanced as compared to 1,184 declines.
“Markets surged higher on Friday after two sessions of negative closings. Positive Asian markets helped to perk up the sentiments as the Nifty touched the 10,500 mark for the first time ever,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
The broader market indices also touched fresh intra-day highs. On a closing basis, the S&P BSE mid-cap index was up by 0.11 per cent and the small-cap index by 0.58 per cent.
“Market enthusiasm continued on the eve of Christmas with Nifty crossing 10,500 on intra-day basis. Nifty as well as Sensex scaled new highs,” Anita Gandhi, Whole Time Director, Arihant Capital Markets, told IANS.
“Investors were happy with Infosys buyback money credited and sentiment in the stock also improved taking it to 52-week high. Metals and realty sector also did well.”
Gandhi added that optimism was expected to continue due to expectation of net asset value (NAV) based buying till December end.
Shares of IT major Infosys rose by almost 2.2 per cent to Rs 1,044.20 per share during the day’s trade.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Passage of US tax reform bill aimed at reducing the corporate tax rates and strong US Q3 GDP growth of 3.2 per cent led rally in global markets which was extended to domestic market and Nifty hit an all time high of 10,500.”
“The expectation of a good budget and strong H2FY18 earnings is supporting this rally. IT sector was the outperformer today due to big order win by IT major Tata Consultancy Services (TCS). Weak crude prices and strong rupee supported the sentiments,” he added.
On the currency front, the Indian rupee closed flat at 64.05 against the US dollar from its Thursday’s close.
Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 107.87 crore while domestic institutional investors purchased stocks valued at Rs 371.53 crore.
Sector-wise, the S&P BSE capital goods index rose by 176.19 points, IT index by 144.29 points and auto index by 115.40 points.
On the other hand, the BSE S&P consumer durables index declined by 132.18 points, metal index slipped 8.66 points and realty index was a tad lower by 0.01 points.
Major Sensex gainers on Friday were: ONGC, up 2.87 per cent at Rs 193.40; TCS, up 1.76 per cent at Rs 2,639.80; Infosys, up 1.65 per cent at Rs 1,038.40; Bajaj Auto, up 1.24 per cent at Rs 3,326.45; and Wipro, up 1.16 per cent at Rs 301.10.
Major Sensex losers were: Dr. Reddy’s Lab, down 0.80 per cent at Rs 2,333.05; Coal India, down 0.75 per cent at Rs 266; Tata Steel, down 0.68 per cent at Rs 710.60; IndusInd Bank, down 0.64 per cent at Rs 1,648.85; and Hero MotoCorp, down 0.61 per cent at Rs 3,785.95.
The Indian equity markets will remained closed on Monday for Christmas.
—IANS
