by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Despite healthy macro-economic indicators, the Indian equity markets turned volatile and gave up gains during the week over prospects of political instability, along with the ongoing turmoil in the banking sector and weak global cues.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE slipped by 131.14 points or 0.39 per cent to close at 33,176 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,195.15 points — down 31.7 points or 0.31 per cent from its previous week’s close.
“Domestic markets remained volatile amid sluggish global cues and trade war concerns, weighed by oil and technology stocks,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Also, the sentiments got further dented amid political upheaval after the Telugu Desam Party (TDP) formally decided to quit the NDA government. However, fertiliser stocks gained after the continuation of a government subsidy for urea,” said Aggarwal.
According to Gaurav Jain, Director at Hem Securities, robust industrial production growth in January coupled with the slowing down of retail inflation in February were among the major factors that propped up sentiments during the week.
Official data released during the week showed that India’s factory production growth in January stood at 7.5 per cent — double the 3.5 per cent recorded in the same month last year — while retail inflation for February eased down to 4.4 per cent.
“However, profit booking coupled with reports that the country’s monsoon could be below normal due to El Nino impact, caused some panic off-loading in the market towards the end of the week, erasing gains,” Jain told IANS.
“Political instability after TDP broke ties with the ruling NDA added to the woes. On the global front, traders are watching the tariff issue which is hogging the market sentiments,” he added.
On the currency front, the rupee strengthened by 24 paise to close at 64.93 against the US dollar from its previous week’s close at 65.17.
“Volatility has become the name of the game for equity markets in India of late and our expectations are that this may persist for some more time this year even as the structural uptrend in the market remains intact,” said Shibani Kurian, Senior Vice President and Head of Equity Research, Kotak Mutual Fund.
“During the week, market participants continued to grapple with news flow relating to the fraud at PNB (Punjab National Bank) and balance sheet stress for the banking system as a whole,” Kurian told IANS.
Provisional figures from the stock exchanges showed that foreign institutional investors FIIs purchased scrips worth Rs 6,288.23 crore and the domestic institutional investors (DIIs) worth Rs 202.69 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 6,713.73 crore, or $324.81 million, during March 12-16.
The top weekly Sensex gainers were: Bharti Airtel (up 4.04 per cent at Rs 418.20); Wipro (up 3.70 per cent at Rs 295.75); Axis Bank (up 3.58 per cent at Rs 523.45); Yes Bank (up 3.11 per cent at Rs 312.90); and ICICI Bank (up 1.84 per cent at Rs 298.10).
The losers were: Coal India (down 8.53 per cent at Rs 278.70); Tata Consultancy Services (down 6.89 per cent at Rs 2,825.50); Kotak Bank (down 2.21 per cent at Rs 1,061); Larsen and Toubro (down 1.75 per cent at Rs 1,267.60); and Adani Ports (down 1.66 per cent at Rs 371.05).
(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 | Economy, Markets, News
Mumbai : The key Indian equity indices on Monday witnessed the biggest intra-day gains in around two years with the benchmark BSE Sensex index surging by over 600 points and the Nifty50 of the National Stock Exchange (NSE) by almost 200 points.
According to market observers, across-the-board buying, as well as positive cues from the global markets on easing trade war fears and hopes of easing inflation in the Consumer Price Index (CPI) data at home slated for release after market hours, lifted the indices by gains last seen in March 2016.
On the NSE, the wider Nifty50 edged higher by 194.55 points, or 1.90 per cent, to close trade at 10,421.40 points.
The barometer 30-scrip Sensitive Index (Sensex) closed at 33,917.94 points — up 610.80 points, or 1.83 per cent, from the previous session’s close.
The Sensex touched a high of 33,962.48 points and a low of 33,468.16 points during the intra-day trade.
However, the BSE market breadth remained tilted to the bearish with 1,370 declines and 1,346 advances.
“Markets rallied sharply today with the Nifty breaking out of the 10,444 resistance in the process. The gains came on the back of positive global equity markets as international trade-war concerns took a backseat to economic optimism following a stronger US jobs report released over the weekend,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Gains were led by ITC, HDFC and Reliance Industries. Broad market indices like the BSE mid-cap and small-cap indices gained less, thereby underperforming the main indices,” Jasani added.
In terms of the broader markets, the S&P BSE mid-cap index edged higher by 0.76 per cent and the small-cap index by 0.56 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Firm global cues and expectation of ease in domestic inflation to 4.74 per cent excited investors to utilise the bargain opportunity.”
“Investors are positive on blue chips on expectation of faster recovery, however, mid and small cap witnessed reluctance due to high valuation,” Nair said.
On the currency front, the Indian rupee strengthened by 13 paise to close at 65.04 against the US dollar from its last week’s close at 65.17.
Provisional data with the exchanges showed that foreign institutional investors turned net buyers and purchased scrips worth Rs 374.65 crore. However, domestic institutional investors sold stocks worth Rs 464.59 crore.
All the 19 sub-indices of the BSE closed with gains led by the S&P BSE banking index, which escalated by 437.70 points.
It was followed by the auto (up 335.17 points), metal (up 325.30 points), oil and gas (up 321.28 points), capital goods (up 228.70 points) and FMCG (up 219.37 points) indices.
Major Sensex gainers on Monday were: Bharti Airtel, up 4.68 per cent at Rs 420.75; NTPC, up 4.33 per cent at Rs 171; ITC, up 4.09 per cent at Rs 270; Tata Motors, up 3.07 per cent at Rs 352.20; and Tata Steel, up 2.82 per cent at Rs 622.70.
The Sensex losers were: Coal India, down 2.26 per cent at Rs 297.80 and State Bank of India, down 0.12 per cent at Rs 252.85.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Value buying by investors, along with positive global markets on the back of easing of trade war fears, propelled the key Indian equity indices on Thursday — snapping a six-day losing streak.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE surged over 400 points to scale an intra-day high of 33,439.97 points, with healthy buying in banking, auto and capital goods stocks adding to the upward trajectory.
The Sensex closed at 33,351.57 points — up 318.48 points or 0.96 per cent from its previous session’s close.
However, the BSE market breadth was bearish with 1,530 declines and 1,197 advances.
On the National Stock Exchange (NSE), the wider Nifty50 rose by 88.45 points or 0.87 per cent to close at 10,242.65 points.
“Markets bounced back on Thursday after six consecutive sessions of losses. Bottom fishing on the back of gains in Asian stocks amid news of potential US tariff exemptions helped to boost the market sentiments,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Major Asian markets have closed on a positive note, while European indices like CAC 40 and FTSE 100 traded in the green. Broad market indices like the BSE mid-cap and small-cap indices gained less, thereby underperforming the main indices,” Jasani added.
The S&P BSE mid-cap index edged higher by 0.56 per cent and the small-cap index by 0.50 per cent.
On the currency front, the Indian rupee weakened by 26 paise to close at 65.15 against the US dollar from its previous close at 64.89.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 364.80 crore, while domestic institutional investors purchased stocks worth Rs 675.26 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market reversed from the last six days losing streak as ease in trade war concerns and short covering in PSU banks supported the rally.”
“Mid and small-caps continued to underperform as investors were still jittery waiting for further ease in valuation,” Nair added.
Sectorwise, the S&P BSE banking index augmented by 389.41 points, auto index by 220.70 points and capital goods index by 203.84 points.
On the other hand, the S&P metals index fell by 65.01 points, healthcare index by 33.36 points and the FMCG index by 21.38 points.
Major Sensex gainers on Thursday were: State Bank of India, up 4.09 per cent at Rs 256.75; ICICI Bank, up 3.58 per cent at Rs 296.95; Adani Ports, up 2.95 per cent at Rs 388.60; Mahindra and Mahindra, up 2.45 per cent at Rs 727.25; and Reliance Industries, up 2.25 per cent at Rs 911.60.
The Sensex losers were: Tata Steel, down 1.98 per cent at Rs 635.20; Sun Pharma, down 1.85 per cent at Rs 515.40; Yes Bank, down 1.63 per cent at Rs 307.80; Tata Consultancy Services, down 0.92 per cent at Rs 3,001.50; and Tata Motors, down 0.60 per cent at Rs 345.90.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Despite earlier gains, the key Indian equity indices closed in the red on Tuesday as banking stocks tanked substantially and investors also continued to trade with caution.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,317.20 points — down 429.58 points, or 1.27 per cent, from its previous close of 33,746.78 points.
Similarly, the wider Nifty50 of the National Stock Exchange (NSE) also plummeted by 109.60 points, or 1.06 per cent, to close at 10,249.25 points.
In the intra-day, the S&P BSE Sensex touched a high of 34,060.13 points and a low of 33,209.76 points.
“Early positivity that rode on global markets’ pull back proved to be brief, as turmoil in banking sector and persistent selling by FIIs dragged stocks lower,” said Anand James, Chief Market Strategist, Geojit Financial Services.
Banking stocks fell as ICICI Bank chief Chanda Kochhar and Axis Bank’s Shikha Sharma had been summoned by Serious Fraud Investigation Office in Mumbai in the bank fraud case involving jeweller Nirav Modi and his partner and uncle Mehul Choksi.
“Market gave up gains despite positive trade in global market. Consolidation continues led by broad selling across all sector. Market has broken ye’terday’s low while banks continue to struggle due to NPA issue, higher bond yield & cost of funds. Investors are little nervous to start accumulating and are waiting for major triggers to get direction,” said Vinod Nair, Head of Research, Geojit Financial Services.
Sector-wise, almost all the sectors ended in red. Major selling pressure was seen in banking, capital goods, auto and realty sectors.
S&P BSE banking index plummeted by 1.44 per cent, capital goods index by 1.31 per cent, auto index by 1.36 per cent and realty index by 2.21 per cent.
Only consumer durables sector remained in the green.
There were only three Sensex gainers on Tuesday: IndusInd Bank, up 1.21 per cent at Rs 1,707.10; Tata Steel, up 0.79 per cent at Rs 660.50 and Hero MotoCorp, up 0.35 per cent at Rs 3,570.
The major Sensex losers were: Sun Pharma, down 2.95 per cent at Rs 531.70; State Bank of India, down 2.77 per cent at Rs 256.50; ICICI Bank, down 2.64 per cent at Rs 295.10 and Mahindra and Mahindra, down 2.52 per cent at Rs 720.35.
—IANS
