by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Heavy fund outflows, along with a continuous rise in global crude oil prices and caution ahead of key micro-economic data, dragged the Indian equity market into the red on Friday.
Accordingly, the benchmark Brent crude futures price crossed the $62 a-barrel-mark.
Index-wise, the NSE Nifty50 declined by 33.55 points or 0.31 per cent to settle at 10,821.60 points.
The S&P BSE Sensex closed at 36,009.84 points, lower by 96.66 points or 0.27 per cent from the previous close of 36,106.50 points.
It had opened at 36,191.87 points and touched an intra-day high of 36,214.26 and a low of 35,840.60.
Besides, investors were cautious ahead of the key macro-economic figures like forex reserves, industrial production output figures.
“Stock markets in India opened the day on a positive note and edged higher in early trade,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“However, indices subsequently reversed trend and turned negative to finally close the day with marginal losses. Overseas, stocks in Asia and Europe were trading higher as investor sentiment improved following overnight gains on Wall Street.”
The Indian rupee ended the Friday’s trade session at Rs 70.49 to a dollar from its previous close of 70.41.
“Despite positive global cues, Nifty saw a broad based consolidation today as investors turned cautious over Q3 results and FII selling,” Geojit Financial Services’ Head Of Research Vinod Nair said.
“Currently, market is pricing (factoring) further downgrade in earnings given disappointment from initial set of results from banks and margin pressure in IT sector. INR is losing strength given rebound in oil prices on the back of production cut by OPEC and concern over populist tone as general elections nears.”
Investment-wise, FIIs sold Rs 687.20 crore while DIIs bought stocks worth over Rs 123.17 crore on Friday.
“Technically, with the Nifty correcting further, traders will need to watch if the index can now hold above the immediate supports of 10,739; else a further correction is likely,”said Deepak Jasani of HDFC Securities.
In terms of sector, IT, banking and finance counters witnessed heavy selling.
Realty sector stocks also ended 1.43 per cent lower after Finance Minister Arun Jaitley said at Thursday’s GST Council Meeting that owing to diverse opinions, a decision on the much-expected rate reduction for under-construction homes will be taken at a later meeting.
Stock-wise, the top gainers on Sensex were ITC with 2.02 per cent It was followed by ONGC Vedanta, Infosys and Axis Bank rising up to 1 per cent.
In contrast, IndusInd Bank lost 3.26 per cent followed by Tata Motors which lost 2.83 per cent. TCS, Tata Motors (DVR) declined over 2 per cent. Yes Bank lost 1.47 per cent.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Despite heavy volatility, fresh inflows of foreign funds and buying interest in FMCG, banking and realty stocks lifted the Indian equity market for the fourth straight session on Wednesday.
Accordingly, the BSE Sensex crossed the 36,000-mark while the NSE Nifty50 reclaimed the 10,850-level. The rise came after a sharp dip in the mid-afternoon session.
The domestic investor sentiment was boosted by firm global markets and expectations of healthy corporate earnings for the October-December quarter.
Globally, investor sentiment was upbeat after the US-China trade talks concluded during the day. Investors expect a positive outcome from the three-day talks.
Index-wise, the Nifty50 rose by 53 points or 0.49 per cent to settle at 10,855.15 points.
The Sensex closed at 36,212.91 points, higher by 231.98 points or 0.64 per cent from the previous close of 35,980.93 points. It had opened at 36,181.37 and touched an intra-day high of 36,250.54 and a low of 35,863.29 points.
“The market started on a positive note but took some caution ahead of major quarterly results scheduled tomorrow. In totality with expectation of a breather from the US-China meeting which concluded today led the market to close on a positive bias,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Buying interest has been seen across sectors led by private banks, IT and FMCG while PSU banks declined due to profit booking post recent gains.”
The Indian rupee stood weaker by 26 paise at Rs 70.46 per dollar from its previous close of 70.20. In just two days the rupee has lost over 75 paise.
On the other hand, Brent crude futures rose to around $59 per barrel.
“Technically, with the Nifty moving up further, traders will need to watch if the recent gains can sustain in the near term. Further upsides are likely once the immediate resistances of 10,870 are taken out,” said Deepak Jasani of HDFC Securities.
“Crucial supports to watch for resumption of weakness is at 10,815.”
Investment-wise, FIIs bought Rs 276.14 crore while DIIs bought stocks worth over Rs 439.67 crore on Wednesday.
Stock-wise, the top gainers on Sensex were Axis Bank, ITC, Tata Motors, Bharti Aitel, HDFC which inched up in the range of 1 to 3 per cent.
In contrast, Yes Bank lost 3.07 per cent and Tata Steel, ONGC, Heromoto Corp, NTPC declined up to 2 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Ravi Dutta Mishra and Rituraj Baruah,
Mumbai : Quarterly results, along with manufacturing PMI and fiscal deficit data, are likely to drive the Indian equity market in the coming week.
Market participants and analysts expect value buying in the indices as the market has been largely bearish in the last couple of weeks.
In terms of quarterly results, companies like Bank of Baroda, Tata Power, Tata Motors, Union Bank of India, Lupin, DLF, HDFC, Axis Bank, Punjab National Bank, SAIL and Vedanta are likely to announce their second quarter earnings in the coming week.
Further, the Nikkei Manufacturing Purchasing Managers’ Index (PMI) for October will be released on Thursday, November 1, and the fiscal deficit data for September is due on Wednesday, October 31. This macroeconomic data would be key for the market sentiments.
“Manufacturing PMI and infrastructure output numbers will be seen crucially while leads will also be taken from ICICI Bank’s result (released on Friday). Mostly the trend will be in tandem with the global markets and indices such as S&P 500,” said Mustafa Nadeem, CEO, Epic Research.
On the technical front, the Nifty50 is seen receiving support at 9,951 points and 10,139 would be the immediate resistance level, analysts said.
In the week gone by, the National Stock Exchange (NSE) Nifty50 lost 273.55 points, or 2.65 per cent, on a weekly basis to settle at 10,030 points on Friday.
Similarly, the S&P Bombay Stock Exchange (BSE) Sensex lost 966.32 points, or 2.81 per cent during the week, to close at 33,349.31 points.
On Friday, both the Sensex and the Nifty dropped to seven-month lows.
“During the ongoing Q2 corporate earnings, companies declared lower-than-expected numbers which led to disappointment on the street. FII selling, lower-than-expected earnings and global markets sell-off combined, led to major selling in the markets,” said Rahul Sharma, Senior Research Analyst at Equity99.
In the coming week, the direction of flow of foreign funds will assume significance as there have been massive outflows in October, as investors pulled out from emerging markets to redeploy their capital in safe-havens such as US securities.
According to data provided by the National Securities Depository (NSDL), the monthly outflow of foreign funds at Rs 24,186 crore from the equity segment was at its highest so far in October.
The NSDL website has data from 2002, as Indian markets received minuscule funds from foreign investors prior to that, said Deepak Jasani, Head of HDFC Securities.
During the week just-ended, provisional figures from the stock exchanges showed that foreign institutional investors sold shares worth Rs 5,751.17 crore, whereas domestic institutional investors bought Rs 4,508.62 crore worth of stocks.
Figures from the NSDL showed that foreign portfolio investors divested Rs 4,563.31 crore, or $622.5 million, in the equities segment during the week ended October 26.
Besides, the rupee’s movement against the US dollar and global crude oil prices will also be closely followed by investors.
The Indian rupee on Friday closed at Rs 73.46 to a US dollar, weakening by 14 paise from its previous week’s close of 73.32.
(Ravi Dutta Mishra and Rituraj Baruah can be contacted at ravidutta.m@ians.in and rituraj.b@ians.in )
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
By Rituraj Baruah,
Mumbai : The domestic equity market’s movement in the coming week will be driven by the rupee’s movements well as futures and options expiry, besides the message from the Finance Minister’s meeting with the heads of public sector banks (PSBs).
Market analysts feel the indices could offer some relief in the upcoming week, after largely bearish trade last week.
Movement in the rupee would be a factor in the market, they said. On Tuesday, the Indian rupee touched a new low of 72.91 per US dollar, although it recovered somewhat later.
Concerns over the US-China trade war would also impact the global and domestic market sentiments. On Friday, China cancelled talks with the US after the latter imposed more tariffs on Chinese imports.
According to reports, a White House official has said the US is optimistic about finding a way forward in the ongoing trade dispute with China.
“Global headwinds are also subsiding slowly. Hence, the market may shake off its earlier losses to witness new highs,” said Prateek Jain, Director of Hem Securities.
He, however, added: “Amidst the global optimism, the market could witness a little volatility as traders adjust their positions on account of monthly derivatives expiry, which is scheduled to take place on Thursday, September 27.
“Further, there will be some buzz from the banking sector, as investors will keep an eye on the meeting of the Finance Ministry and top management of the public sector banks on September 25.”
Technically, for the Nifty50 on the National Stock Exchange (NSE), 11,050 points would be a major support level while immediate resistance level would be 11,250 points, said Deepak Jasani, Head of Retail Research at HDFC Securities.
In the week gone by, the Indian equity market slumped over three per cent due to a depreciating rupee along with high oil and credit risk concerns.
On a weekly basis, the Sensex of the Bombay Stock Exchange (BSE) closed at 36,841.60 points, lower by 1,249.04 points or 3.28 per cent from the previous week.
Similarly, the wider Nifty50 on Friday closed at 11,143.10 points, down 372.1 points or 3.23 per cent from the previous week’s close.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 2,674.12 crore, while the domestic institutional investors (DIIs) bought Rs 1,782.63 crore worth of stocks in the truncated week.
According to National Securities Depository (NSDL) figures, foreign portfolio investors (FPIs) divested Rs 2,231.37 crore, or $306.04 million, in the equities segment during the week ended September 21.
On the currency front, the Indian rupee closed at 72.20 a US dollar on Friday, depreciating 35 paise from the previous week’s close of 71.85.
(Rituraj Baruaah can be contacted at rituraj.b@ians.in)
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
By Rohit Vaid,
Mumbai : The Indian rupee’s movement against the US dollar and the upcoming macro-economic data points are expected to chart the course of key domestic equity indices during the coming week.
According to market observers, other factors such as the direction of foreign fund flows, derivatives expiry and the volatility in global crude oil prices will also impact investor sentiments.
“Crude oil prices, along with the rupee’s movement and the direction of foreign funds are likely to dictate market trends,” SMC Investments and Advisors’ Chairman and Managing Director D.K. Aggarwal told IANS.
“Investors will also remain cautious over the possibility of any rate hike by the US Fed, which can potentially drive away foreign funds from emerging markets such as India.”
Lately, a weakened Indian rupee has been a matter of concern for investors.
However, a reversal in the rupee’s trajectory was seen last week as it strengthened by 25 paise to close at 69.91 against the US dollar.
“The rupee is expected to be range-bound next week. In his speech at the Jackson Hole, US Fed Chairman has reiterated that the Fed will raise interest rates gradually,” said Rushabh Maru, Research Analyst with Anand Rathi Shares and Stock Brokers.
“Now the focus will shift to India’s GDP data, due to release next week. Expected range is estimated between 69.60 and 70.20.”
Besides, crucial data points on the country’s fiscal deficit, Index of Eight Core Industries and the Quarterly GDP growth rate will be keenly watched by the market participants.
Additionally, the direction of foreign fund flows will play a key role to determine market movement. Provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) bought scrips worth Rs 128.64 crore during the week ended August 24.
On technical-charts, any further upsides in the National Stock Exchange (NSE) Nifty 50 are seen after the immediate resistance level of 11,621 points is crossed.
“Technically, with the Nifty surging to new highs, its intermediate trend remains up,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“The intermediate uptrend is likely to continue once the immediate resistance of 11,621 points is taken out. Crucial supports to watch for resumption of weakness is at 11,499 points.”
Last week, both the key Indian equity indices — S&P BSE Sensex and NSE Nifty 50 — rose for the fifth consecutive week and scaled new highs during the August 20-24 period despite global trade war tensions.
On August 23, both key indices touched their respective intra-day all-time high levels, before settling at their record closing levels.
Consequently, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) rose by 303.92 points or 0.80 per cent to close at 38,251.80 points on a weekly basis.
Similarly, the wider Nifty50 on the NSE made gains. On Friday, it ended at 11,557.10 points, higher by 86.35 points or 0.75 per cent from the previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
