by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Signs of easing Indo-Pak tensions and expectations of a breakthrough in US-China trade talks buoyed the Indian equity market on Friday, snapping a three-day losing streak.
Additionally, expectations of a further lending rate cut by the RBI to prop-up growth and healthy buying in small and mid-cap stocks, supported the upward movement of key indices.
In terms of sectors, all indices gained except for telecom. Healthy buying was seen in the index pivotals — finance and banking — stocks.
Consequently, the S&P BSE Sensex closed 196.37 points or 0.55 per cent higher at 36,063.81 points, while the NSE Nifty ended 71 points up at 10,863.50 points.
“Market rallied as cues on ease in border tensions and expectation of US-China trade agreement uplifted the sentiment. Outperformance was seen in bank, small and mid-caps in expectation of a rate cut from the RBI, after a slowdown in GDP growth in the third quarter,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Investors are gradually churning their portfolios to high quality small and midcaps, where valuation looks attractive.”
Stock-wise, Bharti Airtel, Asian Paints, Bajaj-Auto, Axis Bank and Reliance Industries were the only scrips that ended lower.
On the other hand, Stocks of Tata Motors (DVR), IndusInd Bank, Yes Bank, Vedanta and HeroMoto Corp gained in the range of 1 to 3 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Broadly negative global cues as well as disappointment over the Reserve Bank’s monetary policy announcement dragged the key Indian equity indices to end in the red for the second straight day on Wednesday.
According to market observers, caution over initial signs on re-emergence of trade tension between the US and China subdued the Asian markets and subsequently impacted the domestic indices.
Even the disappointment over the Reserve Bank of India’s (RBI) decision to maintain its stance of “calibrated tightening” unchanged had its impact on the investor sentiments.
In addition, the RBI’s monetary policy committee (MPC) kept its key lending rate for commercial banks unchanged at 6.5 per cent for the second time in succession.
However, RBI’s announcement to continue its liquidity infusion measures including OMOs (open market operations) arrested the sharp decline in the equity market.
Till now, RBI has injected durable liquidity through open market operation purchases to the tune of Rs 1.36 trillion in the current financial year.
“The pace of our OMOs has stepped up with the injection of slightly over Rs 1 trillion in the last three months. Second, the RBI has also provided liberal infusion of liquidity through term repos in addition to the usual provision via the LAF…,” RBI Deputy Governor Viral V. Acharya said at the post-MPC meeting press conference.
“Based on our assessment of durable liquidity needs going forward, we have already announced an OMO purchase program of Rs 40,000 crore for December. We expect that this increased frequency and quantum of OMO purchases may be required until end of March.”
Index-wise, the S&P BSE Sensex lost close to 250 points, while the NSE Nifty50 settled at 10,784.95 points.
All sectoral indices on BSE ended in the red led by metal, auto and healthcare stocks. Interest sensitive banking stocks traded 1 per cent lower on the BSE.
However, the Nifty IT index saw a recovery as it was the only sectoral index ending in green with marginal gains.
The Sensex settled lower 0.69 per cent, or 249.90 points, at 35,884.41, from its previous close of 36,134.31. It touched an intra-day high of 36,048.65 and a low of 35,777.81.
The Nifty50 lost 84.55 points or 0.74 per cent to close the session at 10,784.95.
“RBI has adopted a cautious approach and held on to rates. Reducing SLR requirement from next quarter onwards is a welcome move,” said Rajesh Sharma, MD, Capri Global Capital.
“Some more measures like reducing risk weight specifically for NBFC lending to MSME sector to boost confidence in NBFCs would have triggered positive sentiment in the sector.”
Just after the monitory policy announcement began at 2.30 pm the Sensex traded lower by
203.62 points.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Ravi Dutta Mishra and Rohit Vaid,
Mumbai : A slide in global crude oil prices, along with a healthy influx of foreign funds and a strengthened rupee buoyed the Indian equity market indices during the just-concluded week.
In addition, healthy macro-economic inflation and trade data as well as credit rating agency Fitch affirming India’s ‘Long-Term Foreign-Currency Issuer Default Rating’ (IDR) at ‘BBB-‘ with a stable outlook, enhanced the risk-taking appetite of investors.
Consequently, the S&P BSE Sensex gained 298.61 points, or 0.8 per cent, to close at 35,457.16 points.
Similarly, the 50-share Nifty of the National Stock Exchange (NSE) advanced 97 points, or 0.91 per cent, to settle at 10,682.20 points.
“Markets were steady as crude prices continued to drop and led to a consequent decline in bond yields and appreciation in USD…,” Sanjeev Zarbade, Vice President, PCG Research at Kotak Securities, said.
Accordingly, the benchmark Brent crude price which had touched $86 a barrel in early October closed last week’s trade at $67.74.
The fall has key significance for India, which is the third largest importer of crude oil. A steep fall in global prices eases the country’s concerns about inflation and fiscal and current account deficit.
In terms of currency, the rupee on Friday closed at 71.92 per dollar, 3.42 per cent higher from its life-time low of Rs 74.47 to a US dollar which it hit on October 11. Its previous weeks close was at Rs 72.49.
On foreign fund flows, the provisional investment figures from the stock exchanges showed that foreign institutional investors bought scrips worth Rs 3,502.46 crore in the week ended November 16 which was 22 times more than the previous week.
“The ongoing liquidity crunch for NBFCs appears to be fading away as almost all the NBFC’s were able to roll over to meet their commitments coupled with mixed earning season that concluded this week has helped rejuvenate confidence in FIIs…,”
said Rahul Sharma, Senior Research Analyst with Equity99.
The change in trend was further affirmed on Friday after the Associated Chambers of Commerce and Industry of India (Assocham) said it expects foreign institutional investors (FIIs) to “stage a strong comeback” owing to the strengthening rupee, low inflation and weakening oil prices.
“We expect foreign institutional investors to stage a strong comeback into India sooner than later with the rupee improving and getting stable,” Assocham said in a statement.
The rupee and the US dollar equation, along with an uncertain domestic and global economic growth outlook, had triggered a massive foreign fund outflow from the country’s capital markets in October.
However, the domestic institutional investors sold Rs 1,275.61 crore worth of stocks in the past week.
Sector-wise gainers for the week were consumer durables, FMCG and bank indices.
Losers for the week were pharma, auto, IT, realty and metals indices, said Deepak Jasani, Head – Retail Research at HDFC Securities.
The top weekly Sensex gainers were Bharti Airtel, up 9.57 per cent at Rs 327; ICICI Bank up 2.95 per cent at Rs 366.30; Adani Ports up 2.58 per cent at Rs 345.55; Axis Bank up 1.22 per cent at Rs 620.05; and Maruti Suzuki up 0.89 per cent at Rs 7,330 per share.
The major losers were Yes Bank, down 16.68 per cent at Rs 189.85; Sun Pharma down 13.26 per cent at Rs 516.90; Tata Motors (DVR) down 5.81 per cent at Rs 98.90; Power Grid down 2.11 per cent at Rs 187.45; and TCS down 1.93 per cent at Rs 1,873 per share.
(Ravi Dutta Mishra can be reached at ravidutta.m@ians.in and Rohit Vaid at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : Broadly negative global markets, along with outflow of foreign funds and a marginal rise in crude oil prices, dragged the key domestic equity indices into the red on Friday.
In addition, mixed quarterly earning results combined with heavy selling pressure in IT, auto and consumer durable stocks eroded investors’ risk-taking appetite.
Index-wise, the S&P BSE Sensex opened at 34,563.29 points from its previous close of 34,779.58 points on Wednesday. The Indian stock and forex markets were shut on Thursday.
On Friday, the 30-scrip Sensex closed at 34,315.63 points down by 463.95 points or 1.33 per cent.
Similarly, the NSE Nifty50 of the National Stock Exchange (NSE) ended the day’s trade in the red.
The NSE Nifty50 closed at 10,303.55 points down 149.50 points and 1.43 per cent.
“Stock markets in India traded under pressure today as key benchmark stocks reeled under selling pressure and dragged indices lower. Tepid global markets further fuelled the negative sentiment as investors dogged fears about global growth,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Additionally, the minutes of the (US) Fed’s September meeting, released earlier in the week, indicated that policymakers are prepared to forge ahead with increases and will likely hike rates again as early as December…”
According to Vinod Nair, Head of Research, Geojit Financial Services: “Market slid below 10,300 mark due to mixed earnings from index heavyweights and selling pressure in global market.”
“Despite the fall, rupee gained some weight supported by stability in oil prices. IT stocks slid the most due to stock specific sell off and concerns on tightening of US H1-B visa norms.”
On Friday, the Indian rupee closed at 73.33 to a USD, strengthened by 28 paise from its previous close of 73.61 per greenback.
Additionally, brent crude oil prices inched up to around $80 a barrel.
Investment-wise, provisional data with the exchanges showed that foreign institutional investors sold stocks in the tune of Rs 618.26 crore, whereas domestic institutional investors off-loaded scrip worth just Rs 2.14 crore.
HDFC Securities’ Retail Research Head Deepak Jasani said: “The weakness in the Nifty came on the back of selling in index heavyweights Reliance, HDFC and Infosys.”
“Technically, with the Nifty correcting further, traders will need to watch if the index can now hold above the immediate supports of 10,249 points; else a further correction is likely.”
The top gainers in the Sensex were Sun Pharma, up 2.52 per cent at Rs 608.40; Kotak Mahindra Bank, up 1.83 per cent at Rs 1,199.55; Vedanta up 1.51 per cent at Rs 211.15; Hindustan Unilever up 1.16 per cent at Rs 1,579.20; and ITC, up 0.73 per cent at Rs 288.45.
Major losers included Yes Bank, down 6.06 per cent at Rs 217.70; HDFC, down 4.32 per cent at Rs 1,661.30; Reliance Industries, down 4.11 per cent at Rs 1,101.65; Tata Motors DVR, down 4 per cent at Rs 95.95; and Hero MotoCorp, down 3.70 per cent at Rs 2,711 per share.
—IANS
by admin | May 25, 2021 | Economy, Finance, Markets, News
By Rohit Vaid,
Mumbai : The second-quarter earnings result season, along with the direction of foreign fund flows and macro-economic data points, are expected to determine the trajectory of key Indian equity indices next week.
Market analysts said that crude oil prices coupled with rupee’s strength against the US dollar will also influence the market moves.
“The markets next week would get some sentimental support from stability in INR and crude oil prices,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The earnings season would be closely tracked as a factor to mitigate some of the volatility in the markets.”
Companies like ACC, Cyient, Reliance Industries, Infosys, Hero MotoCorp, IndusInd Bank and UltraTech Cement are expected to announce their Q2 earning results next week.
“Currently, broader markets look attractive while investors may seek more clarity from upcoming quarterly results,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The continuity of this trend largely depends on stability on bond yields and INR. However, worries about US Fed rate hike, US-China trade dispute and political uncertainties in India on account of upcoming state elections may impact the sentiment in the short-term.”
Apart from the Q2 results, investors will look forward to the macro-economic data points of WPI (Wholesale Price Index) and India’s trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of WPI on October 15.
“The trade deficit number due next week would be crucial for the INR moves,” Nevgi said.
On a weekly basis, the rupee closed at 73.56 last Friday, strengthening by 21 paise from its previous week’s close of 73.77 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 8,335.12 crore last week.
At present, outflows in just the nine trading sessions in October have reached over Rs 17,000 crore.
This has been one of the worst months in over a decade in terms of fund outflows.
On technical charts, the National Stock Exchange (NSE) Nifty50 remains in an uptrend as it has closed at new life highs.
“Technically, while the Nifty has bounced back smartly, the intermediate trend remains down,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“The downtrend is likely to continue once the immediate support of 10,138 points is broken. Crucial resistances to watch on the upside are at 10,492-10,605 points. A break of 10,866 points would change the trend of the Nifty.”
Last week, both the key Indian equity indices — S&P Bombay Stock Exchange (BSE) Sensex and the NSE Nifty50 — came in for some rough weather due to global worries over high crude oil prices and US interest rates during the period, but managed to catch the upside in the final session of trade.
The market swung widely with major losses of over 2 per cent in just one session — thereby pulling stock prices and the Indian currency lower.
Notwithstanding the general downturn, a timely plunge in crude oil prices, attractive valuations and liquidity infusion by the Reserve Bank of India (RBI) lured investors back to the Indian market.
Consequently, the S&P BSE Sensex closed at 34,733.58 points, up 353.54 points or 1.02 per cent from its previous close.
Similarly, the wider Nifty50 of the National Stock Exchange also made gains. It closed at 10,472.50 points, up 156.05 points or 1.51 per cent from the previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
