by admin | May 25, 2021 | Banking, Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Prospects of normal monsoon rains, lower inflation and a positive growth outlook boosted the key Indian equity indices during the just concluded trade week.
The northward progression of the market was supported by the Reserve Bank of India’s lower inflation forecast and a positive growth outlook for the fiscal.
Along with the forecast, healthy auto sales data for March led the key indices — the BSE Sensex and the NSE Nifty50 — to their second consecutive week of gains.
However, “constantly lingering fear due to ongoing trade war-like” scenario between the US and China capped the weekly gains.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE gained a massive 658.29 points or almost 2 per cent to close at 33,626.97 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,331.60 points — up 217.9 points or 2.15 per cent from its previous week’s close.
“Markets rallied strongly this week despite a sharp sell-off seen on Wednesday. It was the second consecutive week of gains for the Nifty,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“The top sectoral gainers were auto, pharma, PSU banks and realty indices. There were no losers,” Jasani added.
Rahul Sharma, Senior research analyst at Equity99, said: “Unexpected ‘dovish’ monetary policy announced by the RBI, improving macro-economic scenario and expectations of normal monsoon have been the main triggers for the second consecutive week of gains.”
On Thursday, the central bank in its first bi-monthly monetary policy review of 2018-19 lowered its inflation forecast for the first-half of the fiscal to between 4.7 per cent and 5.1 per cent, and 4.4 per cent for the second-half.
The forecast led the two key indices to their biggest intra-day gains since March 12. The BSE Sensex soared by over 500 points, while the NSE Nifty50 rose by almost 200 points.
On the currency front, the rupee strengthened by 21 paise to close at 64.97 against the dollar from its previous week’s close at 65.18.
D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, said markets across the globe rebounded during the week gone by on hopes that the US and China could open negotiations and avert a global trade war, turning the focus to upcoming earnings.
“However, on Friday, the sentiments of the market participants’ get spooked after US President Donald Trump proposed additional tariffs on China,” Aggarwal told IANS.
On the investment front, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 1,363.95 crore, while the domestic institutional investors purchased stocks worth Rs 2,660.52 crore during April 2-6.
The top weekly Sensex gainers were: Tata Motors (DVR) (up 12.23 per cent at Rs 206.40); Tata Motors (up 11.12 per cent at Rs 363.85); Kotak Bank (up 6.72 per cent at Rs 1,119.10); Hero MotoCorp (up 6.68 per cent at Rs 3,782.40); and Adani Ports (up 6.67 per cent at Rs 378.30).
The losers were: Bharti Airtel (down 3.38 per cent at Rs 385.40); Coal India (down 2.84 per cent at Rs 275.45); Axis Bank (down 1.71 per cent at Rs 500.70); ONGC (down 0.51 per cent at Rs 176.90); and Infosys (down 0.45 per cent at Rs 1,129.30).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key Indian equity indices tumbled during the late-afternoon session on Wednesday to provisionally close on a lower note after further trade protectionist measures were imposed on each other by two major global economies.
Besides, investors remained cautious ahead of the outcome of the central bank’s first bi-monthly monetary policy of 2018-19 on Thursday.
Market observers said that except for S&P BSE auto index, all the other indices slumped.
The barometer 30-scrip Sensitive index (Sensex) of the BSE shed almost 500 points from its day’s high at 33,505.53 points to provisionally close the day’s trade at 33,019.07 points.
On a session-wise basis, the BSE Sensex at 3.30 p.m. closed lower by 351.56 points or 1.05 per cent to 33,019.07 points from its previous session’s close.
On the National Stock Exchange (NSE), the wider Nifty50 declined by 116.60 points or 1.14 per cent to close at 10,128.40 points.
According to market observers, the domestic equity markets reacted to intensifying trade war fears after China on Wednesday unveiled a list of products worth $50 billion imported from the US that will be subject to higher tariffs, including soybeans, cars and chemical goods.
The Customs Tariff Commission of the State Council decided to impose additional tariff of 25 per cent on 106 items of products under 14 categories as a countermeasure after the US administration published a list of about 1,300 Chinese products it plans to hit with a 25 per cent tariff.
On Tuesday, the equity indices closed with appreciable gains — despite volatility in the global markets — led by healthy buying in banking, auto, oil and gas, and healthcare stocks.
The Nifty50 edged higher by 33.20 points or 0.33 per cent to close at 10,245 points, while the Sensex closed at 33,370.63 points — up 115.27 points or 0.35 per cent from its previous session’s close.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Despite volatility in the global markets, the key Indian equity indices provisionally closed Tuesday’s rangebound trade session with gains led by healthy buying in banking, auto, oil and gas, and healthcare stocks.
The wider Nifty50 of the National Stock Exchange (NSE) edged higher by 33.20 points or 0.33 per cent to provisionally close at 10,245 points (at 3.30 p.m).
The barometer 30-scrip Sensitive index (Sensex) of the BSE, which opened at 33,197.42 points, closed at 33,370.63 points — up 115.27 points or 0.35 per cent from its previous session’s close.
The Sensex touched a high of 33,402.94 points and a low of 33,153.83 points during the intra-day trade.
The BSE market breadth was bullish with 1,853 advances and 792 declines.
On Monday, broadly positive global peers, along with robust automobile sales data, lifted the key indices.
The NSE Nifty50 rose by 98.10 points, or 0.97 per cent, to close at 10,211.80 points, while the Sensex closed at 33,255.36 points — up 286.68 points, or 0.87 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Positive cues from the European markets, along with healthy buying in banking, consumer durables, auto and metal stocks, pushed the key Indian equity indices higher on Monday.
According to market observers, positive global cues on the prospects of easing trade war fears, along with short-covering ahead of March derivatives expiry, added to the upward trajectory of the key indices.
The Nifty50 of the National Stock Exchange (NSE) reclaimed the 10,100 mark. On a closing basis, the index edged higher by 132.60 points or 1.33 per cent to 10,130.65 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE reclaimed the 33,000 mark and closed at 33,066.41 points — up 469.87 points or 1.44 per cent from the previous session’s close.
However, the BSE market breadth was bearish with 1,573 declines and 1,184 advances.
“Markets ended sharply higher on Monday due to a late surge. The gains came on the back of positive Asian and European equity markets,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Broad market indices like the BSE mid-cap and small-cap indices gained less, thereby underperforming the main indices,” he said.
In terms of the broader markets, the S&P BSE mid cap index rose by 1.19 per cent and the small cap index by 0.73 per cent.
According to Gaurav Jain, Director, Hem Securities, short-covering ahead of March derivatives expiry on Wednesday saw the Nifty50 reclaiming its crucial 10,000 mark on Monday.
“Sentiments changed after US stock futures led global shares higher on reports that the US and China have quietly started negotiations to improve US access to Chinese markets eased fears of a trade war between the two economic giants,” Jain told IANS.
“Today’s gains were led by buying witnessed in banking stocks, especially PSU banks and consumer durables,” he added.
Sector-wise, the S&P BSE banking index surged by 608.79 points, followed by consumer durables index by 485.67 points and metal index by 297.10 points.
On the other hand, the S&P BSE IT index declined by 82.24 points, oil and gas index by 45.54 points and Teck (technology, media and entertainment) index by 4.95 points.
On the currency front, the Indian rupee strengthened by 14 paise to 64.87 against the US dollar from its previous close at 65.01.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 741.19 crore, while the domestic institutional investors purchased stocks worth Rs 2,017.95 crore.
Major Sensex gainers on Monday were: Yes Bank, up 5.67 per cent at Rs 302.95; State Bank of India, up 5.01 per cent at Rs 246.35; HDFC Bank, up 2.91 per cent at Rs 1,893.15; Tata Steel, up 2.80 per cent at Rs 582.45; and HDFC, up 2.66 per cent at Rs 1,832.60.
The Sensex losers were: Wipro, down 3.96 per cent at Rs 273.90; Infosys, down 1.13 per cent at Rs 1,154.30; Tata Motors (DVR), down 0.48 per cent at Rs 185.75; Tata Consultancy Services, down 0.12 per cent at Rs 2,813.05; and NTPC, down 0.03 per cent at Rs 170.10.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Fears over the imposition of more trade protectionist measures, along with a parliamentary deadlock may flare up further volatility in the domestic equity market in the coming truncated trade week.
Besides, triggers such as higher crude oil prices, derivatives expiry and the upcoming macro-economic data points are expected to influence investors’ sentiments.
“Markets next week would continue to be volatile guided by global developments on the ongoing trade issues between the US and China as well as the local political developments, especially the outcome of Rajya Sabha polls,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“Oil prices (Brent) have hit $70, adding to the risk aversion in India.”
Last week, economic tensions between the world’s two largest economies escalated after the US imposed tariffs on Chinese products and China announced plans for a retaliatory action.
“Market is expected to continue its volatile trade going forward and investors will continue to keep close eye on further actions by Donald Trump and the reaction of the Chinese government,” said D.K. Aggarwal, Chairman and Managing Director of SMC Investments & Advisors.
“Besides, global macroeconomic data releases, the movement of rupee against the dollar, crude oil price movement, investment by FPIs (foreign portfolio investors) and DIIs (domestic institutional investors) will continue to give direction to the markets.”
In addition, parliamentary proceedings, macro-economic points like Index of Eight Core Industries (ECI) figures, along with the country’s fiscal deficit numbers up to February and its external debt data will be keenly watched by investors.
“The fiscal deficit number for February to be declared on the coming Wednesday (March 28) will be closely watched for slippages,” Nevgi said.
According to Vinod Nair Head of Research at Geojit Financial Services, apart from weak global cues, domestic market “is underperforming” due to premium valuation, profit booking led by LTCG (long-term capital gains) tax and pre-election political uncertainties.
“We can expect this domestic chaos to stabilise by the end of FY18, as redemption pressure will be over. But due to risk of escalation in global trade war and domestic pre-election uncertainties, volatility may continue for some more time,” Nair said.
“The week ahead is truncated with two market holidays and F&O expiry adding volatility.”
Investment-wise, provisional figures from the stock exchanges showed that last week, foreign institutional investors purchased scrip worth Rs 2,524.13 crore and the DIIs invested Rs 211.91 crore in equities.
The National Securities Depository (NSDL) revealed that FPIs invested Rs 2,060.04 crore, or $316.99 million in equities during March 19-23.
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.
Technical charts showed a bearish outlook for the National Stock Exchange’s (NSE) Nifty.
“The Nifty remains in downtrend and further downsides are likely early next week once the immediate supports of 9,952 points are broken,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Immediate resistance is now at 10,227 points.”
The key Indian equity indices — the BSE Sensex and the NSE Nifty50 — closed last week at 5-month low levels on the back of trade protectionist measures, apart from the ongoing turmoil in the domestic banking system as well as the uncertainty on the political situation in the country.
Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE shed 579.46 points or 1.75 per cent to 32,596.54 points — its lowest closing level since October 23, 2017.
Similarly, the Nifty50 of the NSE edged lower. It ended below the psychologically important 10,000-mark level and closed last week’s trade at 9,998.05 points — down 197.1 points or 1.93 per cent — its lowest closing level since October 11, 2017.
The Indian equity markets will be closed on Thursday and Friday on account of Mahavir Jayanti (March 29) and Good Friday (March 30), respectively.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
