by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Negative global cues — on the prospect of trade wars and protectionism — pulled the key indices of the Indian equity market lower on Monday.
According to market observers, heavy selling pressure was witnessed in metals, oil and gas, auto, capital goods and banking stocks.
Consequently, the barometer 30-scrip Sensitive Index (Sensex) of the BSE closed the day’s trade at 33,746.78 points — down 300.16 points, or 0.88 per cent, from its previous close of 34,046.94 points.
Similarly, the wider Nifty50 of the National Stock Exchange (NSE) edged-lower on Monday. It closed lower by 99.50 points, or 0.95 per cent, to close at 10,358.85 points.
“Markets corrected further on Monday falling for the fourth straight session. Private survey data which showed deterioration in India’s services sector activity last month hit investor sentiments. Also fears that US President Donald Trump’s announced tariffs on steel and aluminium could spark a trade war led to sharp falls in Metal and Mining stocks,” said Deepak Jasani, Head – Retail Research, HDFC Securities.
“Weakness in Asian stock markets as investors digested the latest growth forecast for China (6.5 per cent for 2018, same as in 2017) also affected sentiments. Nifty finally closed 0.95 per cent lower at 10,359 points.”
As per Anand James, Chief Market Strategist, Geojit Financial Services: “Domestic market succumbed to the pressure exerted by global peers, concerned over talks over likely hike in US import tariff on steel and aluminium.”
“Metal sector has taken the biggest hit so far, but Indian exporters would look at the dawning possibility of a of a global trade war, adding to the anxiety of the investors awaiting outcomes of major Central banks meetings this week. Heavy FII outflow during February and the persistent NPA issues in the banking sector also continuous to worry the domestic investors.”
On the currency front, the Indian rupee stregthened to close at 65.11 against the US dollar from its previous close at 65.17-18.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrip worth Rs 366.60 crore, while domestic institutional investors off-loaded stocks worth Rs 154.20 crore.
“Sectorally, top gainers were IT and PSU Bank indices. Top losers were Metal, Auto, FMCG and Realty indices. Stockwise, BEML, Mindtree, IDBI and Tech Mah have moved higher while Balrampur Chini, NMDC, Nalco and Tata Motors have moved lower,” Jasani said.
Sector-wise, S&P BSE metals index receded by 495.82 points, automobile index by 385.15 points, oil and gas index by 281.45 points, capital goods index by 187.42 points and FMCG index by 130.74 points.
However, IT and ITES index remained in the green.
Major Sensex gainers on Monday were: Sun Pharma, up 2.50 per cent at Rs 547.85; Tata Consultancy Services (TCS), up 2.21 per cent at Rs 3,104.30; Mahindra and Mahindra, up 0.81 per cent at Rs 738.95, State Bank of India, up 0.48 per cent at Rs 263.80 and Kotak Bank, up 0.25 per cent at Rs 1,098.90.
The Sensex losers were: Tata Motors, down 5.04 per cent at Rs 325.15; Tata Motors (DVR), down 3.92 per cent at Rs 199.70; Tata Steel, down 2.95 per cent at Rs 655.35; Bajaj Auto, down 2.74 per cent at Rs 2,942.10; and Reliance Industries, down 2.48 per cent at Rs 924.20.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Release of key domestic macro-economic data, combined with global market volatility and movement of funds, are expected to dictate the direction of the Indian equity markets during the week ahead, say market analysts.
“Apart from other developments on the domestic front, the Indian equity markets would seek direction from global markets as the results (earnings) season is almost over,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Also, the movement of funds and crude oil prices are expected to influence the market sentiment next week,” he added.
Provisional figures from the stock exchanges showed that last week foreign institutional investors (FIIs) sold off scrips worth Rs 5,781.98 crore, while domestic institutional investors (DIIs) purchased scrips worth Rs 5,972.69 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) off-loaded equities worth Rs 3,054.94 crore, or $468.06 million, from February 20 to 23.
“On the macro front, fiscal deficit data, core sector data for January and estimates for October-December GDP (gross domestic product) data will be announced on February 28. Automobile sales data by automakers and Nikkei Manufacturing PMI (Purchasing Manager’s Index) for February will be announced on March 1,” Arpit Jain, Assistant Vice President at Arihant Capital Markets, told IANS.
In addition, the Central Statistics Office (CSO) is expected to release the macro-economic data points of Index of Industrial Production (IIP) on February 28.
According to Vinod Nair, Head of Research, Geojit Financial Services, investors will wait for fresh triggers to get direction in the week ahead.
“As per the quarter results, the corporate earnings have started to pick up but concern on inflation and hike in interest rate may add pressure on the near-term valuation,” said Nair.
“The sustainability in the global market is another key factor which may influence domestic investors’ sentiments,” he added.
Analysts were optimistic that the upcoming week could witness a recovery of the key indices from lower levels.
“Nifty and Sensex made a strong come-back post the bad expiry series for February, closing above the 10,490 and 34,000 marks, respectively, on the first day of March derivative series on February 23,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
“Therefore we believe that the final week of February should see a termination of the down move and a reversal sign is in the offing which could turn the tide in favour of bulls soon,” Desai told IANS.
Last week, the key Indian equity indices bounced back from their lows to close with humble gains on value buying by investors after three weeks of consecutive losses.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) edged higher by 131.39 points or 0.39 per cent to close at 34,142.15 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,491.05 points — up 38.75 points or 0.37 per cent from its previous week’s close.
The equity markets will remain closed on March 2 (Friday) for Holi.
(Porisma P. Gogoi can be contacted at porisma.g@ians.in )
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : After three weeks of consecutive losses, the key Indian equity indices bounced back from their lows to close this week with humble gains on value buying by investors.
Market observers said futures and options (F&O) expiry infused volatility in the domestic markets, amid global cues and a slew of domestic developments like the $1.8 billion fraud reported by the Punjab National Bank (PNB) and a weakening rupee due to the continuous outflow of foreign funds.
However, losses were trimmed as bargain-hunting by investors on the last trading day of the week lifted the benchmark indices.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) edged higher by 131.39 points or 0.39 per cent to close at 34,142.15 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,491.05 points — up 38.75 points or 0.37 per cent from its previous week’s close.
“The week gone by saw the Nifty bouncing back from a low of 10,302 to finally end with a modest gain. This week’s gains came after three weeks of losses,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, markets across the globe fluctuated wildly — highlighting the market’s fragility — as investors continued to assess the quickening pace of economic growth and the prospects of the US Federal Reserve’s tightening efforts.
“Back home, the sentiment of market participants have been dented by factors such as surging US bond yields, a multi-crore fraud in India’s second-largest public sector lender PNB and the return of long-term capital gains (LTCG) tax on equities, which put a break on the record-setting market rally,” he added.
During the eight trading sessions following the detection of a $1.8 billion fraud in one of the branches of the PNB, the bank’s shares on the BSE have plunged almost 30 per cent to Rs 113.40 per share.
Gitanjali Gems, the other listed entity involved in the fraud case, also witnessed an eight-day fall in its shares, nosediving 60.54 per cent to Rs 24.80 per share.
“The consolidation in the domestic market continued due to the NPA (non-performing assets) issue in public-sector banks, trade deficit, conflict between NSE and SGX, rise in bond yield and depreciation in rupee due to selling by FIIs (foreign institutional investors),” said Vinod Nair, Head of Research, Geojit Financial Services.
On the currency front, the rupee weakened by 51-52 paise to close at 64.73 against the US dollar from last week’s close of 64.21-22.
Provisional figures from the stock exchanges showed that FIIs sold-off scrips worth Rs 5,781.98 crore, while domestic institutional investors (DIIs) purchased scrips worth Rs 5,972.69 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors off-loaded equities worth Rs 3,054.94 crore, or $468.06 million, during February 20-23.
Sectorwise, Jasani said: “The top sectoral gainers were IT, metal and Bank Nifty indices. The top losers were auto, realty and pharma indices.”
The top weekly Sensex gainers were: Tata Consultancy Services (up 4.76 per cent at Rs 3,076.90); Yes Bank (up 3.75 per cent at Rs 323.60); Infosys (up 2.74 per cent at Rs 1,155.65); Kotak Bank (up 2.67 per cent at Rs 1,079.85); and Coal India (up 2.49 per cent at Rs 310.55).
The losers were: Bajaj Auto (down 3.70 per cent at Rs 2,988); Asian Paints (down 3.65 per cent at Rs 1,101.90); Mahindra and Mahindra (down 3.29 per cent at Rs 719.30); Tata Motors (down 2.73 per cent at Rs 360.45); and Tata Motors (DVR) (down 2.32 per cent at Rs 203.85).
(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 Friday closed at almost a week’s high levels as positive cues from the Asian markets, along with a strong rupee and value buying, uplifted investors’ sentiments.
According to market observers, easing worries of a rate-hike by the US Federal Reserve in the near term, coupled with healthy buying in almost all the sectors — led by metals, banking and healthcare stocks — added to the upward trajectory of the key indices.
The wider Nifty50 of the National Stock Exchange (NSE) edged higher by 108.35 points, or 1.04 per cent, to close at 10,491.05 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE settled near its day’s high of 34,167.60 points to close at 34,142.15 points — up 322.65 points, or 0.95 per cent, from its previous close.
The BSE market breadth was bullish with 1,899 advances and 831 declines.
The broader market indices outperformed the Sensex, with the S&P BSE mid-cap index closing higher by 1.47 per cent and the small-cap index by 1.54 per cent.
“Markets surged higher on Friday as the Nifty closed just below the 10,500 levels. The gains came on the back of positive Asian equity markets,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“It was also the first trading session of the derivatives March near-month series. The Sensex and the Nifty settled at over one-week high on broad-based buying,” Jasani added.
On the currency front, the Indian rupee strengthened by 31 paise to close at 64.73 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 sold scrips worth Rs 486.32 crore, while domestic institutional investors purchased stocks worth Rs 1,514.03 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market rebounded amid value buying on beaten down sectors like PSU banks, metal and pharma.”
“Additionally, ease in fears on US Fed rate hike trajectory led the 10-year yield to fall, comforting investors’ sentiment,” Nair added.
All the 19 sub-indices of the BSE closed with gains, led by metals, banking and healthcare sectors.
The S&P BSE metal index rose by 469.96 points, banking index by 356.63 points and healthcare index by 266.85 points.
Major Sensex gainers on Friday were: Tata Steel, up 6.26 per cent at Rs 677.80; Sun Pharma, up 5.17 per cent at Rs 570.20; Yes Bank, up 2.28 per cent at Rs 323.60; Dr Reddy’s Lab, up 2.26 per cent at Rs 2,169.25; and Bharti Airtel, up 2.26 per cent at Rs 425.45.
The Sensex losers were: Asian Paints, down 1.29 per cent at Rs 1,101.90; Coal India, down 0.48 per cent at Rs 310.45; Infosys, down 0.42 per cent at Rs 1,155.65; Mahindra and Mahindra, down 0.22 per cent at Rs 719.30; and Hindustan Unilever, down 0.16 per cent at Rs 1,323.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Bargain hunting by investors lifted the key Indian equity indices on Wednesday — a day ahead of futures and options (F&O) expiry, snapping a three-day losing streak.
According to market observers, healthy buying in IT, Teck (technology, media and entertainment) and banking stocks added to the upward trajectory of the benchmark indices.
The wider Nifty50 of the National Stock Exchange (NSE) rose by 37.05 points or 0.36 per cent to close at 10,397.45 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,844.86 points — up 141.27 points or 0.42 per cent — from its previous session’s close.
However, the BSE market breadth was bearish with 1,624 declines and 1,112 advances.
“Markets bounced back on Wednesday to end with gains after three sessions of losses. The gains came on the back of bargain hunting by investors post 1.30 p.m.,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“IT stocks gained after Nasscom (National Association of Software and Services Companies) gave a cautiously optimistic outlook for the Indian IT sector,” Jasani added.
Nasscom on Tuesday said it expects India’s IT exports to grow at 7-9 per cent to $135-$137 billion in 2018-19, projecting exports during the current financial year to be $126 billion — a growth of 7.8 per cent over the previous year.
The apex IT industry body said the domestic revenues, excluding hardware, is expected to grow by 10-12 per cent at $28-29 billion in the next financial year against $26 billion likely in FY2018.
On Wednesday, the Indian rupee strengthened by three paise to close at 64.76 against the US dollar from its previous close at 64.79.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,214.18 crore, while domestic institutional investors purchased stocks worth Rs 1,375.48 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “After a consecutive down trend, today (Wednesday) the market managed to close on a positive note due to the outperformance of IT index and rebound in PSU banks.”
Sectorwise, the S&P BSE IT index surged by 265.73 points, followed by Teck index by 117.15 points and banking index by 81.33 points.
On the other hand, the S&P BSE metal index slipped by 191.85 points, healthcare index by 168.40 points and consumer durables index by 121.85 points.
Major Sensex gainers on Wednesday were: Tata Consultancy Services, up 3.33 per cent at Rs 3,043.05; ITC, up 2 per cent at Rs 268.05; ONGC, up 1.66 per cent at Rs 190.10; State Bank of India, up 1.28 per cent at Rs 273.10; and Infosys, up 1.23 per cent at Rs 1,148.70.
Major Sensex losers were: Sun Pharma, down 6.19 per cent at Rs 524.75; IndusInd Bank, down 2.01 per cent at Rs 1,595.30; Tata Steel, down 1.57 per cent at Rs 640.55; Bajaj Auto, down 1.36 per cent at Rs 3,008.25; and Tata Motors, down 1.23 per cent at Rs 364.35.
—IANS
