by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key Indian equity indices closed on a flat-to-positive note as investors booked profits ahead of the release of important macro-economic data later on Friday.
Market observers opined that the caution ahead of the RBI’s monetary policy review and a long weekend also forced investors to vacate some of their positions.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) closed at 9,788.60 points — up 19.65 points or 0.20 per cent.
The 30-scrip Sensitive Index of the BSE, which opened at 31,367.25 points, closed at 31,283.72 points — up a mere 1.24 points, from its previous close at 31,282.48 points.
The Sensex touched a high of 31,523.87 points and a low of 31,243.71 points during intra-day trade.
“The pullback rally continued today with the markets ending with modest gains on Friday (Nifty closed up 0.2 per cent). A sell off in the afternoon session curbed the gains ahead of the long weekend,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Firm global cues and positive sentiments after the government stuck to its budgeted market borrowing for the second half of fiscal 2018, thereby easing concerns that it would widen its fiscal deficit target, helped to lift the indices.”
Anand James, Chief Market Strategist, Geojit Financial Services, said: “With a long weekend ahead, followed by RBI rate decision and a series of macro data, traders opted to limit aggressive bets, confining indices to a flat close.”
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the benchmark indices pared gains to end on a flat note on the back of foreign fund outflows.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 1,546.86 crore while domestic institutional investors (DIIs) purchased stocks worth Rs 2,064.63 crore.
On the currency front, the rupee strengthened by 22 paise to close at 65.29 against the US dollar from its previous close at 65.51.
Major Sensex gainers on Friday were: Bajaj Auto, up 2.44 per cent at Rs 3,108.15; Bharti Airtel, up 1.63 per cent at Rs 388.65; Mahindra and Mahindra, up 1.55 per cent at Rs 1,253.75; Coal India, up 1.35 per cent at Rs 270.60; and Adani Ports, up 1.25 per cent at Rs 376.20.
Major Sensex losers were: Hindustan Unilever, down 2.37 per cent at Rs 1,175.15; Wipro, down 1.71 per cent at Rs 280.95; Tata Consultancy Services (TCS), down 1.67 per cent at Rs 2,437; Dr Reddy’s Lab, down 1.62 per cent at Rs 2,329.40; and ITC, down 1.11 per cent at Rs 258.25.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Healthy macro-economic industrial production data, along with broadly positive Asian markets buoyed the key Indian equity indices — the BSE Sensex and the NSE Nifty 50 — during the mid-afternoon trade session on Wednesday.
According to market observers, brisk buying was witnessed in healthcare, banking and oil and gas stocks.
At 12.35 p.m. the wider 51-scrip Nifty50 of the National Stock Exchange (NSE) traded at 10,114.25 points — up 21.20 points or 0.21 per cent.
The 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 31,188.95 points, traded at 32,283.36 points — up 124.70 points, or 0.39 per cent, from its previous close at 32,158.66 points.
The Sensex has so far touched a high of 32,287.55 points and a low of 32,137.71 points during intra-day trade.
“The BSE Sensex and the broader NSE Nifty were trading higher on the back of positive Asian markets and slight improvement in industrial production as shown by the IIP data which was released yesterday,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
—IANS
by admin | May 25, 2021 | Economy, Investing, Markets, News
By Rohit Vaid,
Mumbai : Macro-economic data points and the direction of foreign funds’ flow are expected to influence sentiments of investors and set the tone for the Indian equity markets in the upcoming week, feel senior analysts.
Other important factors such as the geo-political situation in the Korean peninsula, rupee’s movement and government’s measures to tackle the non-performing assets (NPAs) will also have a major bearing on the stock markets.
Market observers pointed out that investors would take cues from the upcoming macro-economic inflation and industrial production data points.
The Central Statistics Office (CSO) will release the IIP (Index of Industrial Production) and CPI (Consumer Price Index) data points on September 12, Tuesday.
The CPI numbers will be followed by that of foreign trade figures and the release of WPI (Wholesale Price Index) data on September 14.
“Next week is going to be data heavy with the release of CPI, IIP and WPI. These are expected to have a major impact on the markets,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“These macro-economic data points will also be viewed keeping an eye out on the earnings growth.”
Besides the macro-economic data, geo-political developments and a slowdown in domestic investment flows are likely to make investors nervous.
“Global geo-political development, especially the one taking place in the Korean peninsula, will be keenly followed by the investors,” Devendra Nevgi, the Zyfin Advisors Chief Executive, said.
“After large outflows of foreign funds, even domestic funds slowed down last week. This trend needs to be tracked as high prices, which are based mostly on PE expansion, might not sustain on such levels with a slowdown in domestic flows,” Nevgi explained.
Provisional figures from the stock exchanges showed that DIIs (domestic institutional investors) bought scrips worth Rs 1,210.12 crore last week. But, foreign institutional investors (FIIs) continued with their selling spree and off-loaded stocks worth Rs 3,426.51 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 3,409.13 crore, or $531 million, during September 4-8.
In addition to investments, Indian currency’s movement against the US dollar would be closely watched by investors. The Indian rupee strengthened by 23 paise on a week-on-week basis to close at 63.79 to a US dollar from its previous week’s close of 64.02-03.
“A strong macro story and positive risk environment will continue to favour rupee. We expect a range of 63.70 to 64.20 over the near-term on spot,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
On technical levels, the NSE Nifty is in a consolidation phase in a range of 9,861-9,983 points, according to Deepak Jasani, Head – Retail Research, HDFC Securities.
“Further directional cues are likely to emerge on a move beyond this range,” Jasani said.
Last week, global cues and sustained outflow of foreign funds dragged the key equity indices in the red after three consecutive weeks of gains.
Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE declined by 204.71 points or 0.64 per cent to 31,687.52 points from its previous week’s close.
Similarly, the NSE Nifty50 closed at 9,934.80 points, down 39.6 points or 0.4 per cent.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Rising geo-political tension in East Asia along with foreign fund outflows and upcoming derivatives expiry dragged the key Indian equity indices — the NSE Nifty50 and the BSE Sensex — to close deep in the red on Tuesday.
The two key indices closed at their lowest levels in a week’s time as heavy selling pressure in banking, consumer durables and capital goods stocks weighed on markets’ sentiments and spanned four consecutive sessions of gains.
Consequently, the wider 51-scrip Nifty of the National Stock Exchange (NSE) closed at 9,796.05 points — down 116.75 points or 1.18 per cent.
Similarly, the 30-scrip Sensitive Index (Sensex) of the BSE closed in the red. It opened at 31,724.84 points, closed at 31,388.39 points — down 362.43 points or 1.14 per cent from Monday’s close at 31,750.82 points.
The Sensex touched a high of 31,739.80 points and a low of 31,360.81 points during the intra-day trade.
Investors’ risk-taking appetite got eroded amid geo-political tensions in the Korean peninsula.
“Markets corrected sharply on Tuesday after a weak opening. The main indices lost over one per cent as weak European and Asian markets weighed on the market sentiments,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.
“The Sensex and Nifty hit one-week lows and all the major sectoral indices on the BSE closed in the red. Major Asian markets have ended on a negative note, barring the Shanghai index. European indices like FTSE 100, DAX and CAC 40 also traded lower.”
According to market observers, Anand James, Chief Market Strategist, Geojit Financial Services, concerns of heavy floods in the financial capital and the selling by FIIs in equities over the past one month “ensured that risk appetite was down to a trickle, especially as Asian markets were in a sea of red following North Korea threats”.
“The speeding process of NPA resolution may provide some respite to the market ahead of the F&O expiry, after it managed to hold the crucial 60 DMA level,” James said.
On the currency front, the Indian rupee weakened by 11 paise to 64.02 to a US dollar from its previous close at 63.91.
In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrip worth Rs 1,459.64 crore, while domestic institutional investors (DIIs) purchased stocks worth Rs 1,391.33 crore.
“The selling pressure was broad-based with all the sectoral indices in the red,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
“Banking, IT, Pharma and FMCG stocks led the sell off. Coal India, HDFC, Sun Pharma and Hindalco were down over 2 per cent.”
Sector-wise, all the 19 sub-indices of the BSE ended in the red, led by the S&P BSE banking index, which plunged by 290.54 points, followed by the S&P BSE consumer durables index, down 258.72 points and the capital goods index which edged-lower by 187.72 points.
The lone Sensex gainer on Tuesday was: Wipro, up 0.02 per cent at Rs 290.95.
On the other hand, major Sensex losers were: NTPC, down 2.80 per cent at Rs 168.50; Tata Motors (DVR), down 2.57 per cent at Rs 219.85; Sun Pharma, down 2.35 per cent at Rs 481.15; HDFC, down 2.20 per cent at Rs 1,727.85; and Reliance Industries, down 2.17 per cent at Rs 1,531.75.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Macro-economic data points, especially the country’s quarterly economic growth figures, along with derivatives expiry are expected to influence the movement of equity indices next week.
According to market observers, investors’ risk-taking appetite will also depend upon global cues, direction of foreign funds movement and any further development over divestment and consolidation of public sector undertakings.
“Main data points such as the ECI, quarterly GDP growth rate and fiscal deficit will have a major bearing on the equity markets,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Apart from official data releases, automobile sales figures for August and stock-specific developments will continue to influence the equity markets.”
The Ministry of Commerce and Industry will release the Index of ECI (eight core industries) figures for August 2017. This will be followed by the release of the country’s fiscal deficit and quarterly estimates of GDP growth for the first quarter of 2017-18.
Subsequently, the monthly automobile sales figures and the Purchasing Managers’ Index (PMI) manufacturing data will be released on September 1.
In addition to key data points, derivatives expiry on August 31, Thursday, will be the other major theme for the week, even as volatility is expected to flare up on account of foreign funds outflows. This might even impact the Indian rupee.
Last week’s provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 4,666.53 crore, while DIIs bought scrip worth Rs 2,883.99 crore during August 21-24.
Similarly, the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 5,281.52 crore, or $824.17 million, during the trade week ended August 24.
“Short-term volatility can be high as the stock market remains choppy. Next week traders will focus on US jobs data,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS, adding that a rupee range of 63.80-64.20 to a US dollar can be expected next week.
The Indian rupee had strengthened by 11 paise to close the last week at 64.03-04 to a US dollar from its previous week’s close at 64.14.
On technical levels, the NSE Nifty is expected to continue on its upward trajectory after crossing the immediate resistance level of 9,950 points.
“Technically, Nifty showing minor upmove in the (last) week after a strong week earlier represents consolidation,” elaborated Deepak Jasani, Head of Retail Research for HDFC Securities.
“Hence, Nifty has to move, sustain above 9,950 points levels to witness further upmoves. The immediate support is at 9,750 points levels.”
Last week, key equity indices closed on a flat-to-positive note on the back of short covering and influx of domestic funds.
Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE rose 71.38 points or 0.99 per cent to 31,596.06 points.
The NSE Nifty50 inched-up by just 19.65 points or 0.2 per cent to close the week’s trade at 9,857.05 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
