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 Rohit Vaid,
Mumbai : The outcome of the Gujarat assembly elections, along with the announcement on implementing the “e-way” bill and global cues — especially the US tax reforms — are expected to drive sentiments in the key domestic equity indices in the coming week.
Market analysts observed that cues from Parliament’s winter session, coupled with the direction of foreign fund flows and the rupee’s movement against the US dollar will also impact investors’ risk-taking appetite.
“The next week would begin with the Assembly election results being declared. All eyes would be on the outcome. While the exit polls predict a victory for the NDA (National Democratic Alliance), the margin of the same will matter more for the market sentiment,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The market is already pricing the best case scenario and some short covering had helped the sentiment too. A high vote share would raise the chances of NDA winning in the 2019 general elections. With the foreign investors in holiday mood, the activity levels are likely to be lower with support from DIIs (domestic institutional investors).”
According to Vinod Nair, Head of Research, Geojit Financial Services: “The verdict of the Himachal (Pradesh) and Gujarat state elections will be the key trigger for the market next week.”
“Cues from the winter session will also be closely followed. Any deviation from the exit polls could negatively impact the market sentiment in the near to medium term. After the election results, the markets will also look towards global cues and US tax reforms,” Nair said.
In terms of economic indicators, the healthy exports figures for November released after market hours on last Friday are expected to give a fillip to the equity markets.
Currency-wise, the rupee had strengthened by 41 paise to close at 64.04 against the US dollar from its last week’s close at 64.45.
“The rupee has been one of the best-performing currencies in the world… We continue to expect inflows in debt and equity. As a result, rupee can range between 63.80 and 64.30,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
“We can see equities rallying and so too currency once the results are out. However, do not expect a repeat of the post-Uttar Pradesh impact, as positioning is already aggressively in long rupee and long equities.”
As per provisional figures from the stock exchanges, foreign institutional investors (FIIs) sold scrips worth Rs 609.91 crore during the week.
On technical levels, the National Stock Exchange (NSE) Nifty’s upside faces an immediate resistance at 10,410 points-mark.
“Technically, while the Nifty has surged higher, traders will need to watch if the recent rally can sustain early next week,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Further, upsides are likely once the immediate resistances of 10,410 points are taken out. Weakness could resume if the supports of 10,265 points are broken.”
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — rose as expectations of the BJP’s political victory in the Gujarat and Himachal Pradesh
assembly elections grew.
Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE rose by 428.77 points, or 1.3 per cent, to close at 33,462.97 points.
Similarly, the Nifty50 of the NSE edged higher by 67.6 points, or 0.66 per cent, to close the week’s trade at 10,333.25 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Quarterly results along with macro-economic data points are expected to guide the key Indian equity indices during the week ahead, experts said.
Additionally, the trajectory of the two key indices is expected to be influenced by global cues, profit bookings and expectations of more economic announcements to support growth.
“In the near term, stock specific actions will be witnessed due to ongoing Q2 results,” said Research Head at Geojit Financial Services Vinod Nair.
“Going ahead, market will closely watch details of bank recapitalisation programme and next GST Council meet.”
Companies like Lupin, Marico, Tata Steel, EIH, HDFC, Bharti Airtel, Dr. Reddys Lab, Interglobe Aviation, Hero MotoCorp, TVS Motor Co, Vedanta and Punjab National Bank are expected to announce their quarterly results in the coming trade week.
“We expect the stock specific action to remain high for the coming few days,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
Besides results, macro-economic data points like Index of Eight Core Industries (ECI) figures and the country’s fiscal deficit data up to September 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.
Other factors such as premium valuation, US GDP data and US Federal Reserve’s interest rate decision coupled with direction of foreign funds will also impact the key indices’ movement.
Liquidity-wise, foreign funds turned net buyers of Indian equities last week. The provisional figures from stock exchanges showed that foreign institutional investors invested in Rs 912.33 crore during the week ended on October 27.
On the currency front, the rupee closed flat at 65.05 against the US dollar.
“Indian rupee has been resilient and inspite of the weakness against USD, it has fared quite well against its EM (emerging markets) peers,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
According to Banerjee, in the near term, rupee is expected to trade within a range of 64.70 and 65.50 levels on spot against USD.
On technical charts, NSE Nifty’s underlying trend remains bullish.
“Further upsides are likely once the immediate resistance of 10,365 points is taken out,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Weakness could emerge next week if the support of 10,179 points is broken.”
The key Indian equity indices — BSE Sensex and NSE Nifty — rose for the fourth straight time on a weekly basis on the back of state-run banks’ recapitalisation measures which were announced last week.
Consequently, the 30-scrip Sensitive Index (Sensex) edged higher by 572.87 points or 1.75 per cent to 33,157.22 points.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made gains. It rose by 112.2 points or 1.09 per cent to close at 10,323.05 points.
The S&P BSE Sensex touched a record new intra-day highs of 33,286.51 points, while the broader NSE Nifty50 breached 10,366.15-points-mark.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Healthy buying in interest rate sensitive stocks, derivatives expiry and broadly positive global cues buoyed the Indian equity markets during the mid-afternoon trade session on Thursday.
According to market observers, the off-take in interest rate sensitive stocks along with those of metals, healthcare and oil and gas scrip kept the barometer 30-scrip Sensitive Index (Sensex) of the BSE above the 33,000-points-mark.
Similarly, the wider Nifty 50 of the National Stock Exchange (NSE) traded above the 10,300-points-mark.
At 1.15 p.m.,A the NSE Nifty 50 gained 20.95 points or 0.20 per cent at 10,316.30 points.
The Sensex of the BSE, which opened at 33,025.17 points, traded at 33,067.61 points (at 1.15 p.m.), higher by 25.11 points or 0.08 per cent from Wednesday’s close at 33,042.50 points.
The Sensex touched a high of 33,112.51 points and a low of 32,835.06 points during the intra-day trade so far.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The ongoing quarterly results season, along with cues from global markets and direction of foreign funds, are expected to set the tone for the key Indian equity indices, analysts feel.
According to market observers, indices’ movements will also be influenced by geo-political developments in the Korean peninsula as well as derivatives expiry and crude oil prices.
“The markets will be largely influenced by domestic liquidity and the buoyancy in the global markets, especially US markets,” Zyfin Advisors’ Chief Executive Devendra Nevgi told IANS.
“Earnings so far have been mixed for home-oriented companies, though the earnings will be watched closely for other companies such as banks keeping in mind the extent of provisioning for NPAs (non-performing assets) required.”
Last week, fears of higher NPA levels in the banking sector pulled the key indices lower.
“The Q2 results will gather significance in coming days with the earnings of index heavyweights which will dictate the market’s momentum,” Vinod Nair, Head of Research at Geojit Financial Services, told IANS.
Companies like ICICI Bank, HDFC Bank, Infosys, Ambuja Cements, Indian Oil, Yes Bank, Maruti Suzuki, ITC and Sun Pharma are expected to announce their quarterly results in the coming trade week.
Apart from quarterly results, other factors such as premium valuation and change in global liquidity due to the US dollar’s appreciation will also impact the key indices’ movements.
Liquidity-wise, foreign funds remained net sellers of Indian equities last week. The provisional figures from stock exchanges showed that foreign institutional investors (FIIs) offloaded stocks worth Rs 1,766 crore during the week.
But, domestic institutional investors (DIIs) continued to pump-in funds and bought scrips worth Rs 1,985.99 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 1,797.22 crore, or $276.76 million, during October 16-18.
On the currency front, the rupee depreciated by 11 paise to 65.04 against the US dollar from its previous close at 64.93.
On technical charts, NSE Nifty’s underlying trend remains bullish.
“While the Nifty has taken a breather in the last few sessions, the underlying trend remains up,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Further upsides are likely once the immediate resistance of 10,236 points is taken out. Weakness could however emerge if the support of 9,985 points is broken.”
The key Indian equity indices — BSE Sensex and NSE Nifty — had risen for the third straight time during the truncated week ended on October 18, as healthy macro economic data points buoyed investors sentiments.
Consequently, the 30-scrip Sensitive Index (Sensex) edged higher by 151 points or 0.46 per cent to 32,584.35 points.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) made gains. It rose by 43.4 points or 0.42 per cent to close at 10,210.85 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
