by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Subdued macro-economic sentiment, coupled with rising geo-political tensions in the Korean Peninsula and continuous outflows of foreign funds dragged the key Indian equity markets in the red last week.
Consequently, the two key indices — the BSE Sensex and the NSE Nifty — receded below their psychologically important levels of 32,000-points and 10,000-points as investors were spooked over a possibility of government exceeding its fiscal deficit target to stimulate the economy.
On a weekly basis, the 30-scrip Sensitive Index (Sensex) of the BSE declined by 350.17 points or 1.09 per cent to 31,922.44 points.
Similarly, the Nifty 50 of the National Stock Exchange (NSE) edged lower to 9,964.40 points, down 150.6 points or 1.19 per cent.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, rising geo-political tension eroded investors’ risk-taking appetite and subdued global and domestic markets.
“Geo-political tensions, continue to take centre stage, as things have gone from bad to worse,” Desai said.
Besides geo-political tensions, FOMC (Federal Open Market Committee) minutes dampened investors’ sentiments. The US Fed has indicated that there will be one rate hike in December 2017 and three in 2018.
A likely US rate hike can potentially drive away foreign portfolio investors (FPIs) from emerging markets such as India.
“Domestic markets became nervous after the US Federal Reserve outlined plans to unwind its $4.2 trillion balance sheet starting next month,” D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors, told IANS.
“The domestic currency hit 65 levels against the US dollar for the first time in more than five months on the back of speculation about the government going in for a fiscal deficit relaxation, with talk of a Rs 40,000-Rs 50,000 crore stimulus.”
Provisional figures from the stock exchanges showed that FIIs continued with their selling spree and off-loaded stocks worth Rs 5,448.66 crore during the week.
However, domestic institutional investors bought scrip worth Rs 3,581.88 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 3,911.21 crore, or $354.46 million, during September 18-22.
On the currency front, the Indian rupee weakened by 72 paise to close the week at 64.80 to a US dollar from its previous week’s close at 64.08.
Market observers added that liquidity was redirected from equities to insurance IPOs of ICICI Lombard and SBI Life.
“During the week Insurance IPOs of ICICI Lombard and SBI Life sucked some liquidity from markets, FII flows remained negative… Indian rupee became weak against the US dollar along with most of Asian currencies,” said Anita Gandhi, Whole Time Director at Arihant Capital Markets.
“Macro factors like fiscal deficit, CAD, inflation and new employment generation indicated weakness.”
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Key Indian equity indices on Friday witnessed the steepest fall since November 2016, on the back of escalating geo-political tensions between North Korea and the US, a weak rupee and heavy selling pressure in capital goods, metal and banking stocks.
Market observers pointed out that investors’ sentiments were hampered by a likely US rate-hike in December which was signalled by the US Federal Reserve on Wednesday night. The move can potentially lead foreign portfolio investors (FPIs) away from emerging markets such as India.
Besides, investors remained cautious about the government’s plans for a stimulus programme which might lead to fiscal deficit.
The wider Nifty50 of the National Stock Exchange (NSE) slipped below the psychologically important 10,000-points-mark, to close at 9,964.40 points — down 157.50 points or 1.56 per cent.
The 30-scrip Sensitive Index (Sensex) of the BSE, too, plunged by 447.60 points, or 1.38 per cent, to end below its psychologically important 32,000-points-level at 31,922.44 points.
“The main indices — NSE Nifty50 and BSE Sensex — fell steeply during the day’s trade. This was the largest fall for both the indices on an intra-day and overall closing basis since November 11, 2016,” Deepak Jasani, Head – Retail Research, HDFC Securities told IANS.
“The weakness came on the back of geo-political tensions as North Korea threatened that it could consider testing a nuclear weapon in the Pacific.”
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, concerns over the government’s plan for a stimulus to halt the economic slowdown — which might lead to fiscal deficit — eroded investors risk-taking appetite.
“In view of the economic slowdown, the government is reported to be open to allowing the fiscal deficit to exceed this year’s target as it considers a stimulus package in the range of Rs 40,000-50,000 crore by way of increased spending,” Desai told IANS.
In terms of the broader markets, the S&P BSE mid-cap index tanked by 2.71 per cent and the small-cap index by 2.93 per cent.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 1,241.73 crore while domestic institutional investors (DIIs) purchased stocks worth Rs 521.17 crore.
“The rupee fell sharply today to breach the 65-mark against the US dollar but recovered later. The rupee fell to a nearly six-month low of 65.14 against the US dollar — its lowest since April this year,” Desai added.
During the day, the rupee closed at 64.79-80 against the US dollar.
Sector-wise, all the 19 sub-indices of the BSE closed in the red, led by capital goods (down 603.52 points), metals (down 554.26 points) and banking (down 526.84 points) indices.
Major Sensex gainers on Friday were: Wipro, up one per cent at Rs 294.05, and Coal India, up 0.12 per cent at Rs 253.90.
Major Sensex losers were: Tata Steel, down 4.70 per cent at Rs 654.55; Larsen and Toubro, down 3.49 per cent at Rs 1,184.90; Reliance Industries, down 2.83 per cent at Rs 817.50; ICICI Bank, down 2.77 per cent at Rs 277.10; and Hero MotoCorp, down 2.59 per cent at Rs 3,788.15.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Boosted by positive global cues on the back of easing geo-political concerns, healthy domestic industrial production data and persistent pumping in of funds by domestic investors, Indian equity markets rode the bulls during the week ended Friday.
The two key Indian equity indices — the BSE Sensex and the NSE Nifty — reclaimed their psychologically important 32,000 and 10,000 levels. Despite that, the equity markets ended the week on a muted note as investors booked profits.
On a weekly basis, the 30-scrip Sensitive Index (Sensex) of the BSE surged by 585.09 points or 1.85 per cent to close the week at 32,272.61 points.
Meanwhile, the Nifty50 of the National Stock Exchange (NSE) closed at 10,085.40 points, up 150.6 points or 1.52 per cent.
“Nifty rallied this week after breaking out of the 9,740-9,988 trading range. Sectorally, the top gainers were the pharma, media and infra indices. There were no losers,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
Vinod Nair, Head of Research, Geojit Financial Services, said: “This week, market emerged out of the consolidation phase on account of continued uptrend in global market as geo-political risks eased out.”
“Additionally, domestic economic data supported this positive trend. Nifty made a high of 10,132. However, continued FII (foreign institutional investors) selling, lack of fresh triggers and expectation of tighter liquidity led the market to trade in a range bound manner,” Nair added.
Provisional figures from the stock exchanges showed that FIIs continued with their selling spree and offloaded stocks worth Rs 3,365.4 crore during the week.
However, the outflow was offset by continous injection of funds by the domestic institutional investors, who bought scrips worth Rs 3,835.21 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 119.46 crore, or $18.79 million, during September 11-15.
During the week, the Indian rupee weakened by 28-29 paise to close the week at 64.07-08 to a US dollar from its previous week’s close at 63.79.
According to D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors, global stock market got pulled back from record highs after disclosure of weaker-than-expected Chinese economic data.
“The sentiments got further weakened after North Korea test-fired another ballistic missile… European stock markets were mixed as market participant assessed geo-political developments and looked ahead to the Bank of England’s latest policy decision,” Aggarwal told IANS.
“Back at home, domestic ended the volatile session amid tepid global cues due to disappointing China’s economic data and as fresh missile launch by North Korea weighed,” he added.
Official data released during the week showed that factory output (Index of Industrial Production) in July rose by 1.2 per cent as compared to the same month of last year, whereas August’s consumer price index (CPI) inflation shot up a full one percentage point to 3.36 per cent.
“Higher prices of food and fuel products drove inflation based on wholesale price index (WPI) to a four-month high of 3.24 per cent in August even as experts said the rise is in expected lines,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
Speaking about another development during the week, Desai told IANS: “Reliance Industries, the most valued company on BSE in terms of market capitalisation has touched its all-time high of Rs 849.7 per share during the week.”
The top weekly Sensex gainers were: Sun Pharma (up 11.20 per cent at Rs 523.80); Tata Motors (DVR) (up 9.26 per cent at Rs 228.95); Tata Motors (up 6.99 per cent at Rs 401.25); Adani Ports (up 4.95 per cent at Rs 404); and Axis Bank (up 4.93 per cent at Rs 517.55).
The losers were: Wipro (down 4.88 per cent at Rs 285.75); Hero MotoCorp (down 1.54 per cent at Rs 3,898); Bharti Airtel (down 1.29 per cent at Rs 398); ITC (down 1.14 per cent at Rs 269.35); and HDFC (down 0.42 per cent at Rs 1,770.85).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Weak global cues on the back of recurring geo-political tensions, coupled with profit booking in banking, capital goods, FMCG and healthcare sectors, subdued investors’ sentiments and led the key Indian equity indices — the BSE Sensex and NSE Nifty50 — to close on a flat note on Friday.
The 30-scrip Sensitive Index (Sensex) of the BSE, which slid into the red during the day’s trade, closed with marginal gains at 32,272.61 points — up 30.68 points, or 0.10 per cent.
However, the BSE market breadth was bearish — with 1,457 declines and 1,112 advances.
On the other hand, the wider 51-scrip Nifty50 of the National Stock Exchange (NSE) inched down 1.20 points, or 0.01 per cent, to close the day at 10,085.40 points.
“Markets ended flat on Friday after a volatile session. The volatility came on the back of return of geopolitical tensions as North Korea launched a missile near east of Japan,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Major Asian markets ended on a positive note, barring the Shanghai and Straits indices. European indices like FTSE 100, DAX and CAC 40 traded lower,” he added.
In terms of broader market indices, the S&P BSE mid-cap index fell by 0.28 per cent, whereas the small-cap index rose by 0.38 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Nifty continued to face resistance above 10,100 level due to weak global cues and continued hostility in Asia. US bond yields rose as CPI August data inched higher to 0.4 per cent leading to risk of Fed interest rate hike in December.”
“Continued FII (foreign institutional investors) selling and tightening monetary policies in US will curtail the easy liquidity, which is making investors cautious,” said Nair.
In investments, provisional data with the exchanges showed that FIIs sold scrip worth Rs 8,043.58 crore during September 1-14.
On a daily basis, the FIIs purchased scrip worth Rs 418.86 crore and the DIIs (domestic institutional investors) worth Rs 125.55 crore during the day’s trade.
The Indian rupee strengthened by 4-5 paise to 64.07-08 against the US dollar from its previous close at 64.12.
“Indian shares fell on Friday tracking lower Asian markets, as geo-political tensions following another missile launch by North Korea dampened sentiment and as profit taking was seen in recent outperformers such as banks and pharma stocks,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
“Sun Pharmaceutical Industries and Dr. Reddy’s Laboratories, which gained in the last three sessions, fell 1.65 per cent and 1.94 per cent, respectively. State-owned Oil and Natural Gas Corporation, however, rose as much as 4.4 per cent, the top percentage gainer on the NSE index, and in line to snap a three-session losing run,” Desai told IANS.
Sector-wise, the S&P BSE banking index fell by 98.30 points, capital goods index by 66.19 points, and the healthcare and FMCG indices by 26.42 points each.
On the other hand, the S&P BSE IT index was up 103.78 points, Teck (technology, media and entertainment) index by 43.63 points and the oil and gas index by 43.13 points.
Major Sensex gainers on Friday were: ONGC, up 4.71 per cent at Rs 166.90; Bajaj Auto, up 3.19 per cent at Rs 3,022.05; Coal India, up 1.94 per cent at Rs 259.90; Infosys, up 1.83 per cent at Rs 908.60; and Wipro, up 0.65 per cent at Rs 285.75.
Major Sensex losers were: Dr. Reddy’s Lab, down 1.77 per cent at Rs 2,210.25; ITC, down 0.92 per cent at Rs 269.35; NTPC, down 0.77 per cent at Rs 167.30; State Bank of India, down 0.68 per cent at Rs 272.05; and Tata Motors, down 0.66 per cent at Rs 401.25.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key Indian equity indices — the BSE Sensex and NSE Nifty50 — traded on a flat note with marginal gains during the mid-afternoon session on Thursday, with healthy buying in healthcare and banking stocks.
However, profit booking in metal and oil and gas stocks capped gains.
Around 1.15 p.m., the wider 51-scrip Nifty50 of the National Stock Exchange (NSE) was up 5.20 points, or 0.05 per cent to trade at 10,084.50 points.
The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 32,289.26 points, traded at 32,218.49 points — up 32.08 points, or 0.10 per cent, from its previous close at 32,186.41 points.
The Sensex has so far touched a high of 32,328.61 points and a low of 32,187.20 points during the intra-day trade.
The BSE market breadth was slightly bullish — with 1,254 advances and 1,216 declines.
On Wednesday, the benchmark indices closed on a flat-to-negative note, as profit booking eroded investors’ risk-taking appetite.
Consequently, the NSE Nifty 50 closed at 10,079.30 points — down 13.75 points or 0.14 per cent, whereas BSE Sensex closed at 32,186.41 points — up only 27.75 points, or 0.09 per cent.
—IANS
