by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The upcoming monetary policy review coupled with the ongoing financial results season and key macro-economic data points will influence the trajectory of key equity indices in the week ahead, analysts opined.
According to market observers, direction of foreign fund flows, rupee’s movement against the US dollar as well as global crude oil prices will also affect investors sentiments.
“The next week is dominated by macro data and RBI monetary policy meeting,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“On the RBI policy, the markets are divided on policy rate hike in the next weeks meeting. The decision weightage given by MPC to core inflation is crucial and whether RBI changes its stance from neutral to hawkish. RBI is likely to be data dependent and cautious on hikes.”
Besides the monetary policy review slated for July 31-August 1, investors will look out for macro-economic data points such as the eight core industries’ (ECI) output and the country’s fiscal deficit numbers.
In addition, the PMI manufacturing and services’ figures, along with monthly automobile sales data will be released during the week.
Furthermore, companies like Axis Bank, HDFC, Idea Cellular, IndiGo, Piramal Enterprises, Tech Mahindra, EIH, Tata Motors, Vedanta, Reliance Infra, ONGC and SAIL are expected to announce their Q1 earning results next week.
“Going forward, besides the movement of rupee against the dollar and crude oil price movement, the next batch of April to June 2018 quarterly earnings and developments in monsoon session of parliament will dictate trend on the bourses next week,” SMC Investments & Advisors Chairman and Managing Director D.K. Aggarwal told IANS.
On a weekly basis, the rupee strengthened by 19 paise to close at 68.66 from its previous week’s close of 68.85 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors bought scrip worth Rs 2,539.58 crore during the previous week.
As per technical charts, the underlying trend for the National Stock Exchange (NSE) Nifty remains bullish as it closed last week on a new record high.
“It could now face resistance at 11,410 points-level, while downside support is at 11,071-points-mark,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Last week, the S&P BSE Sensex and NSE Nifty50 closed at their respective high levels on the back of healthy quarterly earnings and GST rate cuts on over 50 consumer items.
Consequently, the barometer 30-scrip Sensex of the BSE closed at 37,336.85 points — up 840.48 points or 2.30 per cent from the previous close.
Similarly, the wider Nifty50 on the National Stock Exchange (NSE) settled at 11,278.35 points, higher by 268.15 points or 2.44 per cent — from its previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : Healthy buying in banking, FMCG and consumer durable stocks lifted the key Indian equity indices on Monday with the BSE Sensex setting a fresh benchmark of 36,749.69 points by the fag end of the day’s trade.
Investor sentiments were boosted after Goods and Services Tax on many items including electronic appliances were slashed on Saturday, analysts said.
Index-wise, the BSE Sensex closed at 36,718.60 points — higher by 222.23 points and 0.61 per cent — from the previous close of 36,496.37 points.
The wider Nifty50 on the National Stock Exchange closed the day’s trade at 11,084.75 points, up 74.55 points or 0.68 per cent from the previous close of 11,010.20 points.
As mentioned, the Sensex touched an all-time high of 36,749.69 points, and an intra-day low of 36,491.83 points. The previous record high on Sensex was 36,747.87 hit on July 18.
In the broader markets, the S&P BSE mid-cap closed 1.29 per cent higher while the S&P BSE small-cap rose by 0.93 per cent from its previous close. The BSE market breadth was bullish with 1,511 advances against 1,089 declines.
“The gains came on the back of the government’s announcement on reduction in goods and services tax (GST) rate on 88 goods and services over the weekend,” said Deepak Jasani, Head, Retail Research, HDFC Securities.
Further, according to Abhijeet Dey, Senior Fund Manager for Equities at BNP Paribas Mutual Fund, stock market in India started the week on an upbeat note as sentiments were boosted by the government winning the no-confidence motion in the Lok Sabha on Friday, July 20.
On the currency front, the rupee closed at 68.86, depreciating by just one paisa from the previous close of 68.85 per dollar.
Investment-wise, provisional data with exchanges showed that foreign institutional investors bought scrip worth Rs 259.37 crore and the domestic institutional investors purchased stocks worth Rs 124.82.
Sector-wise, the S&P BSE banking index gained the most, by 291.31 points, followed by the consumer durables index, up 259.97 points and the FMCG rose by 259.95 points.
On the contrary, the S&P BSE energy index was the only loser with a decline of 16.54 points from its previous close.
The major gainers on the Sensex were Vedanta, up 4.42 per cent at Rs 211.55; Adani Ports, up 3.83 per cent at Rs 384.05; ITC, up 3.80 per cent at Rs 283.85; Bharti Airtel, up 3.49 per cent at Rs 357.60; and ICICI Bank, up 3.33 per cent at Rs 274.85 per share.
The top losers were Hero MotoCorp, down 6.20 per cent at Rs 3,163.90; Bajaj Auto, down 5.35 per cent at Rs 2,689.10; Wipro, down 2.47 per cent at Rs 276.05; HDFC Bank, down 1.48 per cent at Rs 2,157.75; and ONGC, down 0.86 per cent at Rs 156.50 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The upcoming quarterly results season, along with macro-economic data points on industrial output and inflation, will determine the trajectory of the key Indian equity indices in the week ahead.
According to market analysts, developments on further imposition of trade protectionist measures between the US and China coupled with volatility in crude oil prices and the rupee’s movement against the US dollar will also affect investor sentiments.
The Q1, 2018-19, earnings result season will kick off from next week. IT major Tata Consultancy Services (TCS) is expected to be the first bluechip firm to come out with its Q1 result on July 10.
Other companies like Infosys, IndusInd Bank, Cyient and Indian Overseas Bank are also expected to announce their Q1 earning results in the coming week.
“The markets next week would look forward to the commencement of the earnings season with large caps like TCS, Infosys and banks like IndusInd and Kotak about to declare their earnings,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The IT sector earnings will be in focus, given its recent performance, INR weakness and the buoyant US economy.”
Apart from the Q1 results, investors will look forward to the macro-economic data points of IIP (Index of Industrial Production), Consumer Price Index (CPI) and India’s trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on July 12.
“CPI inflation and IIP data will be keenly watched, consensus expects June CPI rise to 5.2 per cent versus 4.87 per cent and May IIP is expected improve to 5.9 per cent versus 4.9 per cent,” Geojit Financial Services’ Research Head Vinod Nair told IANS.
Besides, the movement of Indian rupee against the US dollar and the direction of foreign fund flows will also set the course for the key indices.
On a weekly basis, the Indian rupee closed at 68.88, weaker by 41 paise from its previous close of 68.47 per greenback.
“Over the next week, we expect the India rupee to trade within a range of 68.40-69 levels on spot,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
“The Indian rupee is being driven by crude oil prices, weakness in Chinese yuan due to the ongoing tariff war between US and China, outflows from domestic equity and debt market and a hawkish US Fed.”
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 2,455.44 crore during the July 3-6 period.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested Rs 2,737.04 crore, or $398.62 million from the equities segment on stock exchanges during the week ended on July 6.
However, on technical charts, the underlying short-term trend of the National Stock Exchange’s (NSE) Nifty50 remains positive.
“Technically, with the Nifty bouncing back from the crucial supports of 10,550 points, the underlying short term trend remains up,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Further upsides are likely in the coming week once the immediate resistances of 10,816 points are taken out. A bigger move would open up for the Nifty once it is able to cross the recent intermediate highs of 10,929 points. Crucial supports to watch for any weakness are at 10,604 points.”
Last week, expectation of a healthy rural demand on the back of the government’s enhanced support for the farm sector and an uptrend in manufacturing activity as per macro-data had lifted the key indices.
However, escalation in the trade war tensions between the US and China limited the gains.
Index-wise, the wider NSE Nifty50 closed at 10,772.65 points — up 58.35 points or 0.54 per cent — from its previous close.
Similarly, the barometer 30-scrip Sensex of the BSE made gains. It rose by 234.38 points or 0.66 per cent to close at 35,657.86 points on a weekly basis.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The Indian rupee’s movement, coupled with fluctuations in global crude oil prices, are expected to drive investor sentiments on the key domestic equity indices during the upcoming week.
Besides, equity market participants will monitor the monthly automobile sales data along with production figures for eight core industries (ECI) in June and the direction of foreign fund flows to gauge economic performance.
“The next week will be dominated by global markets’ sentiments, especially in the emerging markets and their currencies, the Indian rupee’s movements and the RBI (Reserve Bank of India) r government’s actions on this will be closely monitored,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The sentiments towards sectors deriving USD revenue are expected to be positive. The large cap and quality bias in stock markets would continue, with the mid and small caps valuations not attractive enough for nibbling. Any fresh salvos fired in the ongoing global trade wars could dampen the sentiment.”
Lately, high crude oil prices and geopolitical developments have weakened the Indian rupee, which depreciated to touch its all-time low during the week just ended at the 69 per US dollar mark.
It closed at 68.47, weaker by 63 paise from its previous week’s close of 67.84 per greenback.
“Over the next couple of months, USD/INR may build a base between 67 and 69 on spot, before heading towards 71/72 before the FY19 draws to a close. Over the next week, a range of 67.80 to 68.80 can play out,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 1,380.94 crore during the week under review.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) invested in equities worth Rs 528.41 crore, or $79.66 million, in the week ended on June 29.
Apart from the rupee’s movement, investor sentiments will be driven by the monthly automobile sales figures as well as the ECI data and purchasing mangers index (PMI) readings.
On technical charts, further upsides are seen in the National Stock Exchange (NSE) Nifty 50 during the initial period of next week.
“Technically, with the Nifty holding above the crucial supports of 10,550 points and bouncing back smartly on Friday, the bulls do seem to have an upper hand for the initial part of the coming week,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Further upsides are likely once the immediate resistances of 10,733 points level are taken out. Crucial supports to watch for any weakness are at 10,612 points.”
On a weekly basis, both the key Indian equity indices — S&P Bombat Stock Exchange (BSE) Sensitive Index (Sensex) and NSE Nifty 50 — declined for the first time in last five-weeks, as escalating trade war concerns along with rising crude oil prices and a weak Indian rupee eroded investor sentiments.
Consequently, the barometer 30-scrip Sensex of the BSE fell by 266.12 points or 0.75 per cent to close at 35,423.48 points.
Similarly, the wider Nifty50 of the NSE closed the week in the red. It ended at 10,714.30 points — down 107.55 points or 0.99 per cent — from its previous close.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The key indices of the Indian equity market — S&P BSE Sensex and NSE Nifty50 — ended in the negative territory on Monday after a volatile trade session.
According to market observers, both the key indices had gained nearly a per cent each during the initial trade hour but failed to sustain the northward trajectory as caution over Reserve Bank of India’s (RBI) second monetary policy review of the fiscal eroded investor’s risk-taking appetite.
The Monetary Policy Committee (MPC) of the RBI began its three-day meet from June 4 to 6 here on Monday.
Accordingly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed the day’s trade in the red. It closed lower by 67.70 points or 0.63 per cent to 10,628.50 points from its previous close.
The Sensex of the BSE, which opened at 35,503.24 points, closed at 35,011.89 points, 215.37 points or 0.61 per cent lower from the previous session’s close at 35,227.26 points.
The Sensex touched a high of 35,555.59 points and a low of 34,982.25 during the trade session.
“Markets corrected further on Monday after a positive morning session led by banking and realty stocks,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Investors turned cautious ahead of RBI monetary policy review meet which began today. Broad market indices like the BSE Mid Cap and Small Cap indices fell more, thereby underperforming the main indices.”
Geojit Financial Services Head of Research Vinod Nair said: “Market erased early gains despite positive momentum in the global market as investors are gradually factoring a rate hike ahead of RBIs monetary policy.”
“As the result season is over, market participants are keen on macros, the movement of oil price and rupee will remain the key trigger. On the other hand, the tailwinds caused by prognosis of good monsoon and uptick in economic activity in Q4FY18 will boost consumption led story and rural economy.”
On the currency front, the Indian rupee weakened against the US dollar to 67.11-12, from its previous close at 67.06 per greenback.
Sector-wise, the S&P BSE banking index fell by 422.97 points, the consumer durables index was down by 376.37 points and the capital goods index ended 236.38 points lower.
On the other hand, S&P BSE IT index gained 55.34 points followed by the metal index which rose by 31.70 points and the TECK index ended 22.53 points higher.
The major gainers on the Sensex were Dr Reddy’s Labs, up 2.86 per cent at Rs 1,996.95; Infosys, up 1.59 per cent at Rs 1,239.60; Mahindra and Mahindra, up 1.45 per cent at Rs 914.60; Tata Steel, up 1.18 per cent at Rs 566.95; and Reliance Industries, up 1.09 per cent at Rs 939.35 per share.
The top losers were HDFC Bank, down 2.99 per cent at Rs 2,046.55; Bharti Airtel, down 2.81 per cent at Rs 371.85; Adani Ports, down 2.47 per cent at Rs 377.60; PowerGrid, down 2.06 per cent at Rs 201.65; and Hindustan Unilever, down 1.73 per cent at Rs 1,562.20 per share.
—IANS
