by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Positive global indices, coupled with healthy buying in capital goods, auto, banking, healthcare and metal stocks, lifted the key Indian equity indices on Monday.
Market observers said investors awaited the retail and industrial inflation data due to be announced in the evening which is expected to give direction to the central bank’s next course of action on raising interest rates.
The wider Nifty50 of the National Stock Exchange held the 10,500-mark and closed higher by 84.80 points or 0.81 per cent at 10,539.75 points.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex) closed at 34,300.47 points — up 294.71 points or 0.87 per cent from its previous close.
The Sensex touched a high of 34,351.34 points and a low of 34,115.12 points during the intra-day trade.
The BSE market breadth was bullish as 2,050 stocks advanced as against 764 declines.
In terms of the broader markets, the S&P BSE mid-cap index edged higher by 1.31 per cent and the small-cap index by 1.60 per cent.
“Markets bounced back on Monday after the correction seen on last Friday. The gains came on the back of strong global cues,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Major Asian markets closed on a positive note, barring the Hang Seng index. European indices like FTSE 100, DAX and CAC 40 traded in the green,” he added.
Last week on Friday, the key equities had plunged into the negative territory amid a global sell-off, with the Sensex shedding 407.40 points or 1.18 per cent and the Nifty50 was down 121.90 points.
Vinod Nair, Head of Research, Geojit Financial Services, said: “On Monday, market reversed from previous day’s losses owing to positive global cues and expectation of marginal decline in January CPI (Consumer Price inflation) inflation today.”
“Mid and small-caps outperformed the benchmark indices as investors start accumulating the over sold stocks. The economy is forecast to improve in the long-term with strong earnings growth which is likely to provide a safety to the ongoing consolidation,” he added.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of the CPI and IIP (Index of Industrial Production) on Monday evening.
On the currency front, the Indian rupee strengthened by nine paise to close at 64.31 against the US dollar from its previous close at 64.40.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 814.11 crore while domestic institutional investors bought stocks worth Rs 1,342.70 crore.
Sectorwise, the S&P BSE capital goods index surged by 317.88 points, followed by auto index by 266.55 points and banking index by 197.62 points.
On the other hand, the S&P BSE IT index edged lower by 52.47 points and the Teck (technology, media and entertainment) index by 22.59 points.
Major Sensex gainers on Monday were: Tata Steel, up 4.22 per cent at Rs 712.50; Yes Bank, up 2.89 per cent at Rs 334.95; Power Grid, up 2.51 per cent at Rs 198.05; IndusInd Bank, up 2.12 per cent at Rs 1,686.45; and Hero MotoCorp, up 1.94 per cent at Rs 3,615.
Major Sensex losers were: State Bank of India, down 2.67 per cent at Rs 288.50; Infosys, down 0.72 per cent at Rs 1,103.80; ITC, down 0.53 per cent at Rs 269.85; Mahindra and Mahindra, down 0.43 per cent at Rs 746.70; and ICICI Bank, down 0.23 per cent at Rs 326.
The Indian equity markets will remain closed on Tuesday (February 13) for Mahashivratri.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The volatility of global stock markets, along with macro-economic data points, are expected to influence the Indian equity market next week, opined analysts.
Market observers pointed out that the ongoing quarterly results season and crude oil price fluctuations, combined with the direction of foreign fund flows and the rupee’s movement against the US dollar, will also impact investors’ risk-taking appetite.
“The markets next week will focus on earnings, macro-data and, of course, global cues,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The global markets remain volatile, which might spill over to Indian markets. FPIs (Foreign Portfolio Investors) have been net sellers, hence support from DIIs (Domestic Institutional Investors) remains important in event of global volatility.”
In the past few weeks, a massive sell-off in the global markets has pulled the Indian equity indices deep into the red. Since February 1, 2018, the Bombay Stock Exchange (BSE) Sensex has shed around 1,900 points and the National Stock Exchange (NSE) Nifty50 over 500 points.
According to securities market regulator Sebi’s Chairman Ajay Tyagi, Indian stock market volatility “may continue” for some more time due to global factors.
However, he assured that “there is no cause of worry” in terms of volatility, as the country has a robust risk-management system and that “there is no issue in terms safety of contracts or enforcement of contracts”.
Answering a query on Economic Survey’s recommendation for the need to be vigilant of stock market movements, Tyagi said: “There is no cause of worry in terms of volatility.”
“Volatility, perhaps, may continue for some time, because, as you see in the US, the unemployment rates have really come down, wage rates have really gone up, so, maybe it is more than what was expected,” he said at a press briefing in New Delhi on Saturday.
The Economic Survey 2017-18, tabled in Parliament on January 29, had called for a vigil against a likely stock market bubble and that “sustaining” the current high valuations require “future earnings” to meet high expectations.
Apart from global cues, the ongoing quarterly results season assumes significance as major firms like GAIL, Indian Hotels, DLF, Fortis Healthcare, GMR Infra, Welspun India, Idea Cellular, Jet Airways, Nestle India and Sun Pharma are expected to announce their quarterly results in the coming week.
“The current earnings season is providing strong signs of revival in corporate earnings, underlining the long-term growth prospects,” said Vinod Nair, Head of Research, Geojit Financial Services.
“However, the prevailing inflationary pressure and fiscal slippage may turn RBI to take a more hawkish stance in the near future. Considering this, the near-term profitability of domestic corporate might get impacted by higher inflation and interest cost.”
Besides the Q3 results, investors will keep a close watch on the upcoming macro-economic data points such as the Index of Industrial Production (IIP), Consumer Price Index (CPI), Wholesale Price Index (WPI) and Balance of Trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on February 12.
“In the week ahead, December IIP, January CPI and WPI inflation data are key triggers for the market,” Nair said.
“The CPI inflation is expected to reduce marginally to 5.1 per cent from 5.2 per cent, while IIP to decelerate to 6.1 per cent versus 8.4 per cent.”
On technical levels, the underlying short-term trend of the NSE’s Nifty50 remains bearish.
“Technically, with the Nifty continuing to correct this week after breaking a trend line support in the previous week, the underlying short-term trend remains down,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Further downsides are likely once the immediate supports of 10,276 points are broken. Any pull-back rallies could find resistance at 10,703 points.”
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — receded for the second consecutive week on the back of a massive global stock markets’ sell-off.
Consequently, the barometer 30-scrip Sensitive Index (Sensex) tanked by 1,060.99 points or 3.02 per cent to close at 34,005.76 points.
Similarly, the wider Nifty50 of the National Stock Exchange (NSE) closed the week’s trade at 10,454.95 points — shedding 305.65 points or 2.84 per cent from its previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Following a massive global sell-off, the Indian equity markets turned bearish for the second consecutive week — with the BSE Sensex dropping over a 1,000 points and the Nifty50 index over 300 points.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) tanked 1,060.99 points or 3.02 per cent to close trade at 34,005.76 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed the week’s trade at 10,454.95 points — shedding 305.65 points or 2.84 per cent from its previous week’s close.
Since February 1, the BSE Sensex has shed around 1,900 points and the NSE Nifty over 500 points.
“In the week gone by, global stock market witnessed huge sell-off amid the fear of interest rates hike and this too sent the bond yields higher,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Back at home, the Union Budget 2018 verdict played a catalyst role and since then market has been tumbling down. Though market recovered and closed in green on Thursday but on Friday market closed red tracking lower Asian and US markets,” he added.
Aggarwal said in line with expectations, the Reserve Bank of India — in its final bi-monthly monetary policy review of the fiscal on Wednesday — kept key interest rate unchanged at 6 per cent with neutral stance, citing concerns about the inflationary push by rising global crude oil prices.
On the currency front, the rupee weakened by 34 paise to close at 64.40 against the US dollar from its last week’s close at 64.06.
Provisional figures from the stock exchanges showed that foreign institutional investors sold off scrips worth Rs 8,260.96 crore, while domestic institutional investors purchased scrips worth Rs 6,286.58 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors off-loaded equities worth Rs 4,738.66 crore, or $738.24 million, during February 5-9.
“The week gone by saw the Nifty correcting further. The Nifty ended with week-on-week losses of 2.84 per cent,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Sectorally, the top gainers were the pharma, metal and media indices. The top losers were the Bank Nifty, infra, FMCG and auto indices,” he added.
The top weekly Sensex gainers were: Sun Pharma (up 5.72 per cent at Rs 582.65); Dr Reddy’s Lab (up 3.43 per cent at Rs 2,194.80); Coal India (up 2.84 per cent at Rs 300.45); Tata Steel (up 2.08 per cent at Rs 683.65); and Power Grid (up 0.36 per cent at Rs 193.20).
The losers were: Yes Bank (down 6.99 per cent at Rs 325.55); HDFC (down 6.84 per cent at Rs 1,773.20); Larsen and Toubro (down 6.01 per cent at Rs 1,329.35); IndusInd Bank (down 5.94 per cent at Rs 1,651.40); and Tata Consultancy Services (down 5.62 per cent at Rs 2,972.30).
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Domestic exchanges — BSE, NSE and MSEI — on Friday said they will stop operating their indices on international bourses.
Currently, Indian exchanges through licensing or other arrangements can create indices based on their market data which could then be licensed to foreign stock markets for trading and settlement.
“It is observed that for various reasons the volumes in derivative trading based on Indian securities including indices have reached large proportions in some of the foreign jurisdictions, resulting in migration of liquidity from India, which is not in the best interest of Indian markets,” said a joint statement from the three exchanges.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Indian equities on Friday plunged into the negative territory following the negative trend in Asian markets, along with heavy selling pressure in banking, auto, oil and gas, capital goods and IT stocks.
Asian markets slumped on Friday tracking the decline in US stocks overnight (Thursday). The benchmark Dow Jones declined over 1,000-points for the second time this week as rising bonds yields dented investors’ sentiments.
Around 1 p.m., the wider Nifty50 of the National Stock Exchange (NSE) fell by 115.05 points or 1.09 per cent to trade at 10,461.80 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 34,002.45 points, traded at 34,036.43 points — down 376.73 points or 1.09 per cent from its previous session’s close.
The BSE market breadth was bearish with 1,475 declines and 1,100 advances.
“Global carnage center-staged in the morning as the US markets closed at record lows of 1,000 points down on Dow Jones. Asian markets followed suit as all opened gap down,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
However, in contrary to the bearish sentiments in the markets, Reliance Capital traded higher by 1.94 per cent at Rs 479.20 per share after it posted a net profit of Rs 315 crore for the third quarter ended on December 31 — a growth of 50 per cent — on Thursday.
Reliance Home Finance was also trading up by 0.67 per cent at Rs 75.50 per scrip after the company on Wednesday said it closed the quarter ended Q3 with a net profit of Rs 46 crore.
On Thursday, the equity indices propelled to close on a higher note on the back of bargain hunting by investors after seven consecutive days of losses.
The Nifty50 closed higher by 100.15 points or 0.96 per cent at 10,576.85 points while the Sensex closed at 34,413.16 points — up 330.45 points or 0.97 per cent.
—IANS
