by admin | May 25, 2021 | Uncategorized
Mumbai : After two consecutive sessions of losses, the two key indices of the Indian equity markets — NSE Nifty50 and BSE Sensex — made marginal gains on Tuesday, as positive global cues along with “some value buying” buoyed investors’ sentiments.
According to market observers, positive Asian and European markets as well as “an initial spurt of value buying” enhanced the risk-taking appetite of investors.
Healthy buying was witnessed in pharma, media and banking companies stocks.
The 30-scrip Sensitive Index (Sensex) closed higher by 33 points or 0.11 per cent.
Similarly, the wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 11.20 points or 0.11 per cent at 9,765.55 points.
The BSE Sensex, which opened at 31,393.93 points, closed at 31,291.85 points, up by 33 points or 0.11 per cent from Monday’s close at 31,258.85 points.
The Sensex touched a high of 31,484.28 points and a low of 31,241.50 points during the intra-day trade.
The BSE Sensex and NSE Nifty had opened higher on Tuesday against their respective previous sessions’ close.
However, broad market indices — the BSE mid-cap and BSE small-cap — underperformed the main indices.
“Markets ended with marginal gains on Tuesday after trading in a tight range during the day,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.
“Gains in European and Asian bourses helped the main indices to settle with marginal gains. Major Asian markets have ended on a positive note, barring the Nikkei index. European indices like FTSE 100, DAX and CAC 40 traded higher.”
On the currency front, the Indian rupee strengthened by four paise to 64.10 to a US dollar from its Monday’s close.
In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrip worth Rs 828.69 crore, whereas domestic institutional investors (DIIs) purchased stocks worth Rs 435.05 crore.
“Major losers were NTPC, Hero MotoCorp and Bajaj Auto as they post losses between 1.2 per cent and 2.2 per cent. Dr Reddy’s, Lupin and Sun Pharma were the top gainers as their stocks rose by 3.30 per cent, 1.93 per cent, and 1.64 per cent, respectively,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
Major Sensex gainers on Tuesday were: Dr Reddy’s Lab, up 2.67 per cent at Rs 1,984.85; Lupin, up 2.32 per cent at Rs 944.25; Sun Pharma, up 2.24 per cent at Rs 470.85; ONGC, up 1.11 per cent at Rs 159.30; and Axis Bank, up 1.01 per cent at Rs 499.15.
Major Sensex losers were: NTPC, down 2.56 per cent at Rs 167.45; Hero MotoCorp, down 2.07 per cent at Rs 3,885.30; Bajaj Auto, down 1.09 per cent at Rs 2,740.50; Tata Consultancy Services (TCS), down 1.01 per cent at Rs 2,496.05; and Larsen and Toubro (L&T), down 0.64 per cent at Rs 1,119.25.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Negative global cues and heavy selling pressure in index heavyweights such as Infosys, ONGC and Tata Motors among others pulled the key Indian equity indices — the NSE Nifty 50 and the BSE Sensex — lower on Monday.
According to market observers, subdued global benchmark indices coupled with foreign fund outflows eroded investors’ risk-taking appetite.
Besides, heavy selling pressure witnessed in oil and gas, automobile, IT, banking and capital goods stocks too weighed heavy on key indices.
The 30-scrip Sensitive Index (Sensex) closed lower by 265 points or 0.84 per cent.
Similarly, the wider 51-scrip Nifty of the National Stock Exchange (NSE) closed lower by 83.05 points or 0.84 per cent at 9,754.35 points.
The BSE Sensex, which opened at 31,609.93 points, closed at 31,258.85 points, lower by 265.83 points or 0.84 per cent from Friday’s close at 31,524.68 points.
The Sensex touched a high of 31,641.81 points and a low of 31,220.53 points during the intra-day trade.
However, the BSE Sensex and NSE Nifty had opened higher on Monday against their respective previous sessions’ close.
Broad market indices — the BSE mid-cap and BSE small-cap — underperformed the main indices.
“Weakness in global stocks impacted sentiments on the domestic bourses. Major Asian markets have ended on a mixed note. European indices like FTSE 100, DAX and CAC 40 are trading lower,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.
“Continued sharp fall in software pivotal Infosys also weighed on key indices.”
On the currency front, the Indian rupee closed on a flat note at 64.13-14 to a US dollar from its Friday’s close.
In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrip worth Rs 1,983.39 crore, whereas domestic institutional investors (DIIs) purchased stocks worth Rs 474.72 crore.
“Markets were volatile and swung between gains and losses, as global cues remained mixed after investors felt unconvinced about US President Donald Trump’s ability to fulfill his economic agenda,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Infosys’ buyback announcement failed to enthuse investors as the stock fell over 3 per cent to Rs 893.”
The company had announced on last Saturday that it would buy back shares for up to Rs 13,000 crore from investors at Rs 1,150 per share.
Major Sensex gainers on Monday were: Axis Bank, up 0.70 per cent at Rs 494.15; Tata Consultancy Services, up 0.34 per cent at Rs 2,521.40; Mahindra and Mahindra, up 0.27 per cent at Rs 1,374.85; HDFC, up 0.22 per cent at Rs 1,738.90; and ITC, up 0.12 per cent at Rs 282.15.
Major Sensex losers were: Infosys, down 5.37 per cent at Rs 873.50; Adani Ports and Special Economic Zone, down 2.74 per cent at Rs 376.05; Dr Reddy’s Lab, down 2.51 per cent at Rs 1,933.15; Sun Pharma, down 2.01 per cent at Rs 460.55; and ONGC, down 1.99 per cent at Rs 157.55.
—IANS
by admin | May 25, 2021 | Corporate, Corporate Buzz
By Rohit Vaid
Mumbai : (IANS) Expectations of an interest rate cut, coupled with healthy foreign fund inflows and value buying, buoyed the Indian equity markets during the just concluded weekly trade.
The Indian equity markets posted their fourth consecutive weekly gains during the week ended March 23. By some estimates, the domestic equity markets have delivered 10-12 percent in positive returns over the last one month alone.
In sync with headline indices, broader markets too ended higher. They rose by 1.5 percent, led by buying in high beta stocks.
Healthy buying was witnessed in reality, government banks, capital goods, metals and cement stocks.
However, gains were capped by negative global events like increased chances of a US rate hike and the Brussels terror attacks.
Further, a weak rupee and caution ahead of the derivatives expiry weighed heavy on the equity markets. The key Indian equity indices had declined for the better part of the truncated week.
The Indian equity markets were closed from March 24-25, on account of Holi and Good Friday.
The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 385 points or 1.54 percent to 25,337.56 points during the just concluded weekly trade.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) edged-up by 112.15 points or 1.47 percent to 7,716.50 points.
Vaibhav Agarwal, vice president and research head at Angel Broking, pointed out that traders remained reluctant to maintain their positions over the last weekend of the current financial year.
“Some selling pressure was witnessed, but the benchmarks managed to close in the green in all the sessions on the back of a late recovery in the last two sessions,” Agarwal told IANS.
Moreover, investor sentiments were buoyed on hopes that the Reserve Bank of India (RBI) will ease its lending rates in the upcoming monetary policy review.
Investors expect that the union budget’s fiscal prudence measures, reduction in interest rates on small savings and lower inflation will allow the RBI to further ease key lending rates.
The RBI will conduct its first bi-monthly monetary policy review for 2016-17 on April 5.
“Government authorities seem to be driving hard the point that now it is the central bank’s turn to act,” elaborated Pankaj Sharma, head of equities for Equirus Securities.
Nitasha Shankar, vice president for research with YES Securities stated that headline index Nifty approached its upper end of the downward channel which is placed at 7,880 points.
“A breakout from this channel could trigger a bullish trend reversal putting a halt to the extended ongoing corrective phase. Failure to do so may continue the complex corrective pattern,” Shankar noted.
According to Shankar, during the just concluded week, all major sector-based indices made gains.
“Reality, PSU banks, metal and cement indices outperformed rest of the market,” Shankar informed.
Nevertheless, the domestic positive cues were countered by global headwinds like the Brussels terror attacks.
“Global markets extended gains and are inching back from an initial sell off that followed deadly attacks in Brussels,” Dhruv Desai, director and chief operating officer, Tradebulls, told IANS.
“The fourth consecutive positive week shows markets moving in a strong up trend. Advance and decline still in the favour of bulls.”
In addition, investors were seen hesitant to chase prices due to the heightened chances of a US rate hike next month.
A hike in the US interest rates is expected to lead away Foreign Portfolio Investors (FPIs) from emerging markets such as India.
Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS: “Hawkish comments from US Fed officials set the tone for the week, inviting the investors to cash in on the steep rallies of the previous weeks.”
Besides, a weak rupee kept investors unnerved and capped gains through the week’s trade.
“The Brussels airport blast did prompt profit booking from risky assets, though the impact was sustained in US dollar, which rose due to its appeal as a safe haven asset, pushing rupee towards the 67 mark,” James cited.
On a weekly basis, the rupee weakened by 12 paise to 66.62-63 (March 23) against a US dollar from its previous close of 66.50-51 (March 18) to a greenback.
The rupee weakness was attributed to a strong US dollar. The US dollar has strengthened on the back of increased chances of a hike in US interest rates in April.
In contrast, an increase in foreign fund inflows supported prices and lifted equity markets.
The National Securities Depository Limited (NSDL) figures showed that the FPIs bought Rs.6,340.82 crore or $952.79 million in the equity and debt markets from March 21-23.
Data with stock exchanges disclosed that the FPIs invested in stocks worth Rs.3,468.68 crore during the week under review.
Conversely, the data showed that domestic institutional investors (DIIs) sold stocks worth Rs.2,571.72 crore.
Sharma credited the healthy market returns on the fresh inflows from foreign investors.
“We think the most important change which has been driving this market performance is linked to fresh inflows from foreign investors,” Sharma explained.
“As risk appetite increased among global investors, they started pumping in more money into emerging markets, as suggested by close to $2 billion of net inflows into Indian markets by foreign investors.”
