by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Rise in wholesale inflation rate and broadly weak global cues subdued the key Indian equity indices on Monday, with the Nifty50 on the National Stock Exchange (NSE) closing below the 11,000-mark.
According to market observers, heavy selling pressure was witnessed on the metal, healthcare and auto stocks.
Index-wise, the broader NSE Nifty50 closed at 10,936.85 points — lower by 82.05 points or 0.74 per cent from its previous close of 11,018.90 points.
The barometer 30-scrip Sensex on the BSE, which had opened at 36,658.71 points, closed at 36,323.77 points — down 217.86 points or 0.60 per cent — from its previous close of 36,541.63 points.
The bearish momentum on the Sensex could be gauged from the fact that its intra-day high was its opening level of 36,658.71 points. It touched a low of 36,298.94 points during the day.
“Surge in inflation and weak global cues influenced investors to book profit from the recent rally while IT index maintained the uptrend followed by earnings,” said Vinod Nair, Head of Research at Geojit Financial Services.
The wholesale inflation rate for June was recorded at 5.77 per cent, compared to 4.43 per cent in the previous month, according to data released on Monday.
Abhijeet Dey, BNP Paribas Mutual Fund’s Senior Fund Manager for Equities, said: “A higher inflation rate in a flat-to-slowing growth environment can be detrimental for the economy.”
Major Asian markets closed on a negative note and the European indices like FTSE 100 and CAC 40 traded in the red, said Deepak Jasani, Head of Retail Research at HDFC Securities.
Nair also said the trade tensions and weak rupee negatively impacted the performance of broad indices.
In the broader markets, the S&P BSE mid-cap and the S&P BSE small-cap declined significantly, by 2.45 per cent and 2.51 per cent respectively. The BSE market breadth was bearish with 2,052 declines and 546 advances.
On the currency front, the rupee weakened by five paise to end at 68.58 per dollar, against the previous close of 68.53 per greenback.
Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 625.68 crore and the domestic institutional investors sold stocks worth Rs 70.30 crore.
Sector-wise, the gainers were the S&P BSE IT index and the teck (technology, entertainment and media) stocks which rose by 112.89 points and 23.91 respectively.
On the contrary, the S&P BSE metal index plunged 461.08 points, the healthcare index was down 458.49 points and the auto index ended 402.05 points lower from its previous close.
The major gainers on the Sensex were NTPC, up 1.96 per cent at Rs 155.70; Infosys, up 1.83 per cent at Rs 1,333.05; HDFC, up 0.95 per cent at Rs 1,991.55; Wipro, up 0.86 per cent at Rs 283.10; and Hindustan Unilever, up 0.73 per cent at Rs 1,753.85 per share.
The top losers were Tata Steel, down 6.96 per cent at Rs 519.30; Tata Motors (DVR), down 5.02 per cent at Rs 142.75; Tata Motors, down 4.77 per cent at Rs 251.55; Sun Pharma, down 4.69 per cent at Rs 532.95; and Bharti Airtel, down 3.31 per cent at Rs 346.20 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rituraj Baruah,
Mumbai : After reaching new landmarks in the last couple of trading sessions, the key Indian equity indices are likely to witness another eventful week (June 16-20), with major quarterly earnings and a key macro-economic data point, the Wholesale Price Index, due in the next few days.
According to market observers, further developments in the ongoing trade tensions between the US and China also would set the cues for the global markets.
“The markets next week would look forward to the earnings season as larger companies such as HUL (Hindustan Unilever), Bajaj group of companies will come out with their results,” said Devendra Nevgi, founder and Principal Partner at Delta Global Partners.
According to Geojit Financial Services’ Head of Research, Vinod Nair: “Market is expecting 19 per cent growth in PAT (profit after tax) for Sensex index stocks and 14.7 per cent for Nifty50 index stocks in Q1, FY19 compared to a washout in last quarter.”
“From here on market trend will largely depend on progress of results season,” he said.
Gaurav Jain, Director of Hem Securities said: “We will continue to see stock-specific approach as heavyweights like HDFC Bank, Hindustan Unilever, Ashok Leyland, Zee Entertainment, Ultratech Cement, MindTree, Bajaj Finance, and Kotak Mahindra Bank are scheduled to report their quarterly earnings.”
On the macro front, the government will announce wholesale price inflation (WPI) for June 2018 on Monday, July 16, Jain added.
Further, on the global side, markets would be hoping for easing of trade related issues between the US and China, said Sanjeev Zarbade, Vice President for Research at Kotak Securities.
Noting the significance of oil prices, Zarbade said: “Crude oil prices have corrected a bit and further softening in prices would be positive for global markets”.
In the week ended Friday, fall in crude oil prices was a major factor for the positive trend in the global and domestic equity markets.
As per Delta Global Partners’ Nevgi, the fall in crude prices and weaker US dollar would help the sentiments in the rupee market.
On Friday, the Indian rupee closed at 68.53, strengthening by 35 paise from its previous week’s close of 68.88 per greenback.
Talking on the investor sentiments in the Indian equity market, Nevgi told IANS,the support comes from domestic investors as foreign ones continue to be net sellers.
In the week gone by, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 1,801.65 crore, while the domestic institutional investors purchased stocks worth Rs 2,288.08 crore.
During the upcoming week, Deepak Jasani, Head of Retail Research at HDFC Securities feels, “further upsides are likely, once the immediate resistance band of 11,078-11,171 (Nifty50) is taken out.”
The level of 10,893 points would be a crucial support for the Nifty50 on the National Stock Exchange, he added.
On Friday, the Nifty50 closed at 11,018.90 points — up 246.25 points or 2.29 per cent — from its previous week’s close.
The Sensex on BSE rose by 883.77 points or 2.48 per cent to close at 36,541.63 points on a weekly basis.
On Thursday, the barometer 30-scrip Sensex touched a record high of 36,699.53 points, only to surpass the level the very next day and set a fresh all-time high of 36,740.07 points.
It had also set a new closing high of 36,548.41 points on Thursday.
With another eventful week expected to follow, these instances of fresh benchmarks and landmarks, may not end here.
(Rituraj Baruah can be contacted at rituraj.b@ians.in )
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rituraj Baruah,
Mumbai : Supportive global cues and a healthy start to the earnings season lifted the key Indian equity indices over 2 per cent in the week ended Friday, with the BSE Sensex setting fresh benchmarks and the NSE Nifty50 closing over the 11,000-mark.
On Thursday, the barometer 30-scrip Sensex touched a record high of 36,699.53 points, only to surpass the level the very next day and set a fresh all-time high of 36,740.07 points.
It had also set a new closing high of 36,548.41 points on Thursday.
Globally, investors’ sentiments were strengthened after reports on Wednesday said China and the US may hold talks to resolve the ongoing trade tensions. Easing crude oil prices was also welcomed by the markets.
However, in the domestic market, weak macro-economic data released on Thursday trimmed the gains.
Index-wise, the wider Nifty50 of the National Stock Exchange closed the week’s trade at 11,018.90 points — up 246.25 points or 2.29 per cent — from its previous week’s close.
The Sensex on BSE rose by 883.77 points or 2.48 per cent to close at 36,541.63 points on a weekly basis.
Market breadth, however, was negative in three out of the five trading sessions of the week, said Deepak Jasani, head of Retail Research at HDFC Securities.
Prateek Jain, Director of Hem Securities said: “Traders and investors seem impressed by the healthy start to the earnings season and easing crude oil prices. But towards the fag end of the week, profit-booking set on concerns of macro indicators.”
Retail inflation grew 5 per cent in June to a five-month high while industrial production slowed down to 3.2 per cent in May on weak manufacturing sector output, Jain said.
According to Equity99’s Senior Research Analyst, Rahul Sharma: “The stock-specific action continued last week with IT major TCS (Tata Consultancy Services) beating market estimates, while IndusInd Bank was in line (with expectation).”
On the currency front, rupee closed at 68.53, strengthening by 35 paise from its previous week’s close of 68.88 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 1,801.65 crore, while the domestic institutional investors purchased stocks worth Rs 2,288.08 crore in the week bygone.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested Rs 1,540.59 crore, or $224.27 million from the equities segment on stock exchanges during the week ended on July 13.
Sector-wise, oil and gas, IT and capital goods ended on a positive note, while metals and auto were among the major losers, Jasani told IANS.
Scrip-wise, Reliance Industries gained the most on the Sensex and in a major development its market capitalisation (m-cap) crossed the $100 billion mark this week.
On Friday, the m-cap of the company at closing was Rs 694,944.56 crore or $101.40 billion.
The top weekly Sensex gainers were Reliance Industries (up 12.31 per cent at Rs 1,096.75); Yes Bank (up 6.81 per cent at Rs 376.40); Wipro (up 6.73 per cent at Rs 280.70); Hindustan Unilever (up 3.70 per cent at Rs 1,741.15); and Bajaj Auto (up 3.66 per cent at Rs 3,134 per share).
The major losers were Hero MotoCorp (down 4.84 per cent at Rs 3,460.60); Tata Motors (DVR) (down 4.18 per cent at Rs 150.30); Vedanta (down 4.05 per cent at Rs 210.60); Tata Motors (down 2.58 per cent at Rs 264.15); and IndusInd Bank (down 1.81 per cent at Rs 1,923.45 per share).
(Rituraj Baruah can be contacted at rituraj.b@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : From the BSE Sensex hitting a new record high earlier in the day, to closing on a flat-to-negative note, the key Indian equity indices saw a very volatile trade on Friday.
Although the market had opened on a positive note in continuation with Thursday’s bull run helping the Sensex touch a fresh all-time high of 36,740 points in the morning session, still the indices could not hold on to the earlier gains.
Analysts attribute the shedding of gains on the indices to the weak macro-economic data released on Thursday — higher retail inflation in June and fall in industrial output in May.
Index-wise, the broader Nifty50 of the National Stock Exchange (NSE) closed at 11,018.90 points — lower by 4.30 points or 0.04 per cent — from its previous close of 11,023.20 points.
The barometer 30-scrip Sensex on the BSE, which had opened at 36,635.14 points, closed at 36,541.63 points — down 6.78 points or 0.02 per cent — from its previous close of 36,548.41 points.
As mentioned, it touched a record intra-day high of 36,740.07 points and a low of 36,501.61 points.
In the broader markets, the S&P BSE mid-cap fell by 0.77 per cent and the S&P BSE small-cap ended 1.36 per cent lower from its previous close. The BSE market breadth was bearish with 1,824 declines and 813 advances.
“It was a volatile day on the bourses as stocks oscillated between the positive and negative zones through the day, reacting to conflicting cues in terms of positive global stocks and lacklustre macro-economic data,” said Abhijeet Dey, Senior Fund Manager for Equities at BNP Paribas Mutual Fund.
He added: “On the macro front, data revealed that India’s factory output growth slowed to a seven-month low in May while retail inflation quickened to a five-month high in June.
On the currency front, the rupee appreciated by five paise to end at 68.53 per dollar, against the previous close of 68.58 per greenback.
Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 1,104.65 crore while the domestic institutional investors bought stocks worth Rs 872 crore.
Sector-wise, the S&P BSE consumer durables index gained the most, by 178.22 points, followed by the IT index, which was up 49.21 points and the energy index rose by 32.90 points.
On the contrary, the S&P BSE banking index fell by 170.58 points, the capital goods index was down 157.32 points and the FMCG index ended 101.60 points lower from its previous close.
The major gainers on the Sensex were Reliance Industries, up 1.34 per cent at Rs 1,096.75; Infosys, up 1.12 per cent at Rs 1,309.10; Bajaj Auto, up 1.03 per cent at Rs 3,134; Coal India, up 0.96 per cent at Rs 267.75; and Maruti Suzuki, up 0.93 per cent at Rs 9,434.30 per share.
The top losers were ONGC, down 2.80 per cent at Rs 154.60; Axis Bank, down 2.48 per cent at Rs 523.90; ITC, down 2.29 per cent at Rs 270.40; State Bank of India, down 1.96 per cent at Rs 257.60; and ICICI Bank, down 1.60 per cent at Rs 268.05 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Firm global cues coupled with an appreciation in the Indian rupee lifted the key Indian equity indices on Monday.
According to market observers, a healthy US jobs data released on Friday strengthened the investor sentiments in the global markets.
Index-wise, in the domestic market, the broader Nifty50 of the National Stock Exchange (NSE) closed at 10,852.90 points — higher by 80.25 points or 0.74 per cent — from its previous close of 10,772.65 points.
Similarly, the barometer 30-scrip Sensex on the BSE, which had opened at 35,835.10 points, closed on a positive note. It ended the day’s trade at 35,934.72 points — up by 276.86 points or 0.78 per cent — from its previous session’s close of 35,657.86 points.
Sensex touched a high of 35,977.37 points and a low of 35,779.72 during the intra-day trade.
In the broader markets, the S&P BSE mid-cap rose by 1.23 per cent and the S&P BSE small-cap ended 1.58 per cent higher from its previous close. The BSE market breadth was bullish with 1,708 advances against 907 declines.
“The gains came on the back of a robust June payrolls in the US,” said V.K. Sharma, Head of Private Client Group and Capital Market Strategy at HDFC Securities.
The BNP Paribas Mutual Fund’s Senior Fund Manager for Equities, Abhijeet Dey said trading for the week began on a firm note following positive global stocks.
Fresh buying in pivotal indices propelled the key benchmark indices to trade in the positive zone, Dey added.
Further, appreciation in the rupee against the dollar also firmed up the investor sentiments.
The rupee strengthened by 15 paise on Monday to end at 68.72 per dollar, against the previous close of 68.87 per greenback.
Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 569.91 crore while the domestic institutional investors bought stocks worth Rs 740.39 crore.
Sector-wise, all the indices ended on a positive note with the S&P BSE banking index gaining the most, by 277.41 points. It was followed by the capital goods and metal indices, which rose by 255.43 points and 155.99 points respectively.
The major gainers on the Sensex were Vedanta, up 3.14 per cent at Rs 226.40; Asian Paints, up 3.11 per cent at Rs 1,364; Yes Bank, up 2.70 per cent at Rs 361.90; Sun Pharma, up 1.97 per cent at Rs 569.45; and Reliance Industries, up 1.96 per cent at Rs 995.65 per share.
The top losers were Tata Consultancy Services, down 1.34 per cent at Rs 1,887.65; HDFC, down 0.32 per cent at Rs 1,909.70; IndusInd Bank, down 0.22 per cent at Rs 1,954.60; Bharti Airtel, down 0.22 per cent at Rs 361.05; and Coal India, down 0.11 per cent at Rs 271 per share.
—IANS
