by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key Indian equity indices on Tuesday gave up gains and slipped into the negative territory as weak global cues coupled with heavy selling pressure in consumer durables, banking and IT stocks kept investors’ sentiments subdued.
Market observers said investors turned cautious ahead of the Union Budget to be presented on February 1 (Thursday).
On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) fell by 80.75 points or 0.73 per cent to 11,049.65 points.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex) closed at 36,033.73 points — down 249.52 points or 0.69 per cent from its previous close.
The Sensex slipped below the 36,000-mark to scale a low of 35,993.41 points during intra-day trade.
The BSE market breadth was bearish as 2,097 stocks declined against 748 advances.
“Markets corrected on Tuesday as selling pressure emerged in the morning session. Investors were probably turning cautious ahead of the Union Budget 2018-2019 on Thursday,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Weak global cues also contributed to the weakness in the Indian markets,” said Jasani.
In the broader markets, the S&P BSE mid-cap index closed lower by 0.67 per cent and the small-cap index by 1.34 per cent.
Provisional data with the exchanges showed that both foreign and domestic institutional investors turned net sellers and sold scrips worth Rs 105.56 crore and Rs 281.65 crore respectively.
The Indian rupee weakened by two paise to close at 63.60 against the US dollar from its previous close at 63.58.
“Sensex and Nifty edged lower following footsteps of Asian indices, as investors booked profits in recent outperformers such as index heavyweight HDFC Bank, while caution prevailed ahead of the Union Budget due later this week,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
Of the 19 sub-indices of the BSE, all closed with losses barring the S&P BSE oil and gas index which surged by 187.35 points.
Sectorwise, the S&P BSE consumer durables index declined by 401.04 points, banking index by 264.46 points and IT index by 137.96 points.
Major Sensex gainers on Tuesday were: Coal India, up 1.71 per cent at Rs 305.70; Hero MotoCorp, up 1.33 per cent at Rs 3,688.50; Sun Pharma, up 0.72 per cent at Rs 591.30; State Bank of India, up 0.56 per cent at Rs 312.85; and IndusInd Bank, up 0.24 per cent at Rs 1,745.
Major Sensex losers were: Asian Paints, down 2.22 per cent at Rs 1,128.90; Kotak Bank, down 2.20 per cent at Rs 1,089; Axis Bank, down 1.98 per cent at Rs 593.40; Dr Reddy’s Lab, down 1.86 per cent at Rs 2,312; and Adani Ports, down 1.84 per cent at Rs 428.50.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Optimism ahead of the tabling of the Economic Survey 2017-18 in Parliament, along with healthy buying in auto, metals and banking stocks, lifted the key Indian equity indices to trade at fresh high levels during the mid-afternoon trade session on Monday.
According to market observers, positive global cues, coupled with the expectation of sops from the Union Budget 2018-19, lifted investors’ risk-taking appetite.
Around 12.05 p.m., the wider Nifty50 of the National Stock Exchange traded higher by 88.95 points or 0.80 per cent at a fresh high of 11,158.60 points.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex), which opened at 36,106.36 points, traded at a fresh level of 36,391.59 points — up 341.15 points or 0.95 per cent from its previous close.
The BSE market breadth was bullish as 1,308 stocks advanced against 1,298 declines.
During intra-day trade, the Nifty50 scaled a new high of 11,163.75 points and the Sensex of 36,410.60 points.
“Indian shares opened higher Monday on value buying amid increased risk appetite. Investors focus on economic survey and budget announcement later this week,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Both benchmark indices jumped to record high on continued institutional buying, particularly in car makers and metals stocks,” he added.
On the last trading session on Thursday, the equity indices had closed in the red on the back of heavy selling pressure in auto, IT and consumer durables stocks.
The Nifty50 fell by 16.35 points or 0.15 per cent to close at 11,069.65 points, while the Sensex closed at 36,050.44 points — down 111.20 points or 0.31 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Announcements on capital expenditure, along with policy reforms and expected sops from the the Union Budget 2018-19, will determine the trajectory of the Indian equity markets in the coming week.
According to market observers, other themes for the trade week starting on January 29, will be macro-economic growth and select industrial production data points coupled with stock-specific movement due to the ongoing earnings result season.
“The budget remains critical, being the first one after GST (Goods and Services Tax) implementation and the last full year budget before the general elections in 2019,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The balancing act for the Finance Minister on reining in the fiscal deficit, rural populism and growth-boosting measures (private capex) remain the key themes that will be watched closely.”
Parliament’s budget session will kick off with the presentation of the Economic Survey 2017-18 on Monday, January 29, followed by the Union Budget 2018-19 on February 1.
“With crude oil prices surging, fiscal deficit projections in the upcoming budget will be keenly watched. The budget is expected to dictate the future direction of markets from here on,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
Apart from the budget, the week ahead will be heavily influenced by Q3 corporate earnings and the direction of foreign fund flows. Companies like HDFC, EIH, IndianOil, Piramal Enterprises, TVS Motor Company, ICICI Bank, L&T, NTPC, Vedanta, Titan Company, Bajaj Auto and Hindalco Industries are expected to announce their quarterly results in the coming week.
“Next week, till the Union Budget announcement, markets are expected to be driven by corporate earnings and the buoyant global markets as FPI (foreign portfolio investors) flows remain strong,” Nevgi said.
Besides quarterly results, macro-economic data points like GDP figures for 2017-18, Index of Eight Core Industries (ECI) figures and the country’s fiscal deficit data up to December will be keenly watched by investors.
In addition, monthly automobile sales figures and the Purchasing Managers’ Index (PMI) manufacturing and services data will become other major sentiment drivers.
On the currency front, the rupee’s strength will be arrested by higher crude oil prices, “as it will make rupee less attractive”.
“Next week, we expect USD/INR to trade within a range of 63.30 to 63.80. Rupee is expected to remain weak against the euro and pound,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
The Indian currency had strengthened by 30 paise during the week ended January 25, to close at Rs 63.55 against the US dollar from its last week’s close at Rs 63.85.
In terms of technical charts, the underlying uptrend in the National Stock Exchange (NSE) Nifty is expected to continue.
“Technically, with the Nifty surging higher to new record highs, the underlying intermediate uptrend remains intact,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Further upsides are likely once the immediate resistances of 11,110 points are taken out. Weakness could emerge if the supports of 10,881 points are broken.”
Last week, key indices made gains on the back of revival in corporate earnings, along with the country’s healthy economic growth outlook projected by the International Monetary Fund and massive inflow of foreign funds.
Consequently, the 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange closed at 36,050.44 points — up 538.86 points or 1.52 per cent from its previous week’s close.
Similarly, the NSE Nifty closed higher by 174.95 points or 1.60 per cent to 11,069.65 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Revival in corporate earnings, along with the country’s healthy economic growth outlook projected by the International Monetary Fund (IMF) and massive inflow of foreign funds kept the bulls riding in the Indian equity markets during the truncated trade week ended Thursday.
However, the key indices took a breather on the last trading day (Thursday) and closed in the red — snapping a six-day gaining streak — as investors booked profits amid higher crude oil prices and caution over January derivatives expiry, market observers said.
Nevertheless, it was the eighth consecutive week of gains for the benchmark indices.
The barometer 30-scrip Sensitive Index (Sensex), which crossed the psychologically important 36,000-mark during the week, surged by 538.86 points or 1.52 per cent to close at 36,050.44 points.
The wider Nifty50 of the National Stock Exchange (NSE) crossed the 11,000-points-level for the first time during the week and closed Thursday’s trade at 11,069.65 points — up 174.95 points or 1.60 per cent from its previous week’s close.
The indices scaled new records during the week.
On January 24, the BSE Sensex closed at a new high of 36,161.64 points after scaling a new high of 36,268.19 points during the intra-day trade.
On the same day, the Nifty50 closed at a new high of 11,086 points, after it scaled a fresh intra-day high of 11,110.10 points.
“Markets got a boost in the backdrop of budget expectations apart from positivity among investors on account of trade talks being held at Davos,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Also, the bulls got support after government announced that it would infuse Rs 88,139 crore into 20 public sector banks through recapitalisation bonds and budgetary support in this financial year. The aim of the government is to strengthen these banks’ lending capacity and thereby pulling the country out of a three-year low credit growth,” he added.
The government on Wednesday announced plans to infuse over Rs 1 lakh crore, including Rs 80,000 crore through recap bonds and Rs 8,139 crore as budgetary support, during the current fiscal seeking to perk up public sector banks (PSBs) that have been hit by huge non-performing assets.
“Post re-capitalisation allocation worth Rs 880 billion, PSBs corrected. However, private bank and infra stocks gained,” Arpit Jain, AVP at Arihant Capital Markets, told IANS.
“FIIs (foreign institutional investors) were net buyers during the month of January worth $1 billion,” said Jain.
On the investment side, provisional figures from the stock exchanges showed that FIIs purchased scrips worth Rs 4,510.59 crore, while domestic institutional investors divested stocks worth Rs 1,452.38 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors bought equities worth Rs 5,990.74 crore, or $939.38 million, during January 22-25.
According to Vinod Nair, Head of Research, Geojit Financial Services, positive global cues and revival in earnings supported the underlying sentiments.
“The rally was broadbased led by IT, oil and gas, financials, metals, pharma and PSBs. In the latest World Economic Outlook, the IMF has projected India’s GDP to grow at 7.8 per cent which helped the investor sentiments,” said Nair.
“F&O (futures and options ) expiry, long weekend, oil prices at three year at $71/bbl, lack of fresh triggers post a series of new high and sell-off in PSB stocks limited gains for the week,” he added.
On the currency front, the rupee strengthened by 30 paise to close at 63.55 against the US dollar from its last week’s close at 63.85.
The top weekly Sensex gainers were: ONGC (up 7.32 per cent at Rs 208.25); Tata Consultancy Services (up 7.14 per cent at Rs 3,117.85); Yes Bank (up 6.83 per cent at Rs 363.50); Coal India (up 5.85 per cent at Rs 299.65); and Adani Ports (up 5.61 per cent at Rs 437.60).
The losers were: Bharti Airtel (down 8.47 per cent at Rs 452.60); Tata Motors (DVR)(down 6.10 per cent at Rs 228); Tata Motors (down 4.44 per cent at Rs 400.20); Wipro (down 4.32 per cent at Rs 311.95); and Asian Paints (down 3.36 per cent at Rs 1,149.75).
The equity markets were closed on January 26 (Friday) for Republic Day.
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Snapping a six-day gaining streak, the key Indian equity indices on Thursday closed in the red on the back of heavy selling pressure in auto, IT and consumer durables stocks.
According to market observers, caution on January futures and options (F&O) expiry, along with rising crude oil prices infused volatility in the equity markets.
On a closing basis, the wider Nifty50 of the National Stock Exchange fell by 16.35 points or 0.15 per cent to 11,069.65 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 36,050.44 points — down 111.20 points or 0.31 per cent from its previous session’s close.
The BSE market breadth was bearish as 1,735 stocks declined against 1,115 advances.
In the broader markets, the S&P BSE mid-cap index closed lower by 0.75 per cent and the small-cap index by 0.68 per cent.
On Wednesday, the benchmark indices had closed at new highs. The Nifty50 closed at 11,086 points and the Sensex at 36,161.64 points.
“Markets ended with marginal losses on Thursday ahead of a long weekend. Thursday was also the derivatives expiry day,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“The losses came after six consecutive sessions of gains for the Nifty,” said Jasani.
On the global front, major Asian markets closed on a negative note, barring the Taiwan and Kospi indices, while European indices like FTSE 100 and CAC 40 traded in the green.
Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 937.31 crore, while domestic institutional investors divested stocks worth Rs 965.67 crore.
The Indian rupee strengthened by 15 paise to close at 63.55 against the US dollar from its previous close at 63.70.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Today, market witnessed broad based selling pressure amidst advancing crude prices which has touched a high of $71/bbl. Volatility heighted due to F&O expiry and long weekend.
“Post announcement of government’s first tranche recapitalisation, a major sell off was seen in PSU banking stocks as market was concerned about higher allocation of capital to weakest banks which has recently seen sharp run-up in stocks prices,” Nair added.
All the sub-indices of the BSE ended with losses, barring the S&P metals index which surged by 131.08 points and the capital goods index up 77.28 points.
Sectorwise, the S&P BSE auto index declined by 305.23 points, consumer durables index by 221.11 points and IT index by 145.45 points.
Major Sensex gainers on Thursday were: ICICI Bank, up 1.60 per cent at Rs 358.30; Coal India, up 1.56 per cent at Rs 299.65; Kotak Bank, up 0.99 per cent at Rs 1,091.45; Axis Bank, up 0.96 per cent at Rs 613.75; and Larsen and Toubro, up 0.90 per cent at Rs 1,412.95.
Major Sensex losers were: State Bank of India, down 4.96 per cent at Rs 313.15; Adani Ports, down 2.37 per cent at Rs 437.60; Dr Reddy’s Lab, down 2.26 per cent at Rs 2,504; Hero MotoCorp, down 1.95 per cent at Rs 3,569.60; and Tata Consultancy Services, down 1.79 per cent at Rs 3,117.85.
The equity markets will remained closed on January 26 (Friday) for Republic Day.
—IANS
