by admin | May 25, 2021 | Economy, Finance, Markets, News
Mumbai : Positive global markets coupled with a strengthened rupee and short-covering led the key equity indices to gain around 0.73 per cent on Friday.
Besides, healthy buying in finance stocks after reports of fresh capital infusion in public sector banks led the gains. This sectoral index has the highest weightage among all the sectors on the BSE. It rose 1.13 per cent.
“Markets were up on the news of fresh infusion of capital in public sector banks,” Anuj Gupta of Angel Broking told IANS.
Index-wise, the BSE Sensex settled 269.44 points or 0.75 per cent higher at 36,076.72 points after touching an intra-day high of 36,194.78 and a low of 35,911.99.
The NSE’s Nifty50 gained 78.65 points or 0.73 per cent to finish at 10,858.45 points.
According to Vinod Nair, Head of Research at Geojit Financial Services, market extended the rally by taking positive cues from global market.
“Investors remain focused on global growth momentum while easing tension between US government and US Fed provided an opportunity to accumulate stocks after recent consolidation,” Nair said.
On the currency front, the Indian rupee gained over 40 paise against the US dollar and settled at 69.94 from its previous close of 70.35.
“The rupee has appreciated smartly in recent sessions on account of sharp decline in the crude oil prices in the international market. This bodes well for the rupee as weak crude oil prices may lead to further decline in inflation and narrow current account deficit,” said Rushabh Maru – Research Analyst, Anand Rathi Shares and Stock Brokers.
“However, there is lot of uncertainty and volatility in the global markets. Concerns regarding slowdown in global economic growth, trade tension, tightening of monetary policy etc may create jitters in the global markets.”
According to the provisional figures from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 119.60 crore, while domestic institutional investors (DIIs) bought Rs 1,199.40-crore stocks.
“Technically, with the Nifty surging higher, the short-term trend for the Nifty remains positive. Further upsides are likely once the immediate resistance of 10,893 is taken out,” said Deepak Jasani, Head – HDFC Securities’ Retail Research.
“Crucial supports to watch for any weakness are at 10,820.”
Stock-wise, Sun Pharma gained close to 3 per cent on Friday. Bajaj Finance, Vedanta, HDFC and Yes Bank gained in the range of 1 to 2 per cent.
In contrast, IT major TCS lost the most among the 30-stock Sensex. Bajaj-Auto, Asian Paints, Bharti Airtel and Hero Moto Corp and Coal India were the only other laggards which lost up to 1 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Noting a mixed trend in the global markets, the key Indian equity indices ended their volatile trade on Tuesday on a flat note.
Although the indices had opened in the red, they pared their losses around an hour into the trade, with the BSE Sensex gaining over 100 points by the afternoon session.
By the end of the day’s trade, the indices ended flat, with minor gains, noting mixed global cues — weak Asian markets and positive Europeran markets.
Depreciation in the Indian rupee also eroded investor sentiments during the day, analysts said.
Index-wise, the wider Nifty50 of the National Stock Exchange (NSE) closed at 10,769.15 points, up 6.70 points or 0.06 per cent from the previous close of 10,762.45 points.
Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which had opened at 35,355.72 points, closed at 35,490.04 points — up 19.69 points or 0.06 per cent — from its previous session’s close of 35,470.35 points.
The Sensex touched an intra-day high of 35,616.64 and a low of 35,338.09 points. The BSE market breadth, however, was bearish so far with 1,786 declines and 850 advances.
“Sensex and Nifty closed marginally higher on Tuesday, amid mixed sentiment in global equity markets. European stocks edged higher despite a sell-off in Asian markets amid escalating trade tensions between the US and other major economies,” said Tradebulls Director and Chief Operating Officer Dhruv Desai.
HDFC Securities’ Head of Retail Research, Deepak Jasani told IANS: “Markets ended flat on Tuesday after a volatile intra-day session that saw the Nifty swinging from positive to negative territory several times during the day.”
On the currency front, the Indian rupee weakened by 12 paise against the US dollar to 68.25, from its previous close of 68.13 per greenback.
Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 538.40 crore while the domestic institutional investors bought stocks worth Rs 238.05 crore.
Sector-wise, the S&P BSE consumer durables index rose by 107.77 points, the FMCG stocks were up 85.13 and the IT stocks ended 83.38 points higher from its previous close.
On the other hand, S&P BSE auto index fell by 117.02 points, the healthcare index was down 83.02 points and the capital goods index ended lower by 59.56 points.
Stock-wise, the major gainers on the Sensex were Coal India, up 2.10 per cent at Rs 264.50; Maruti Suzuki, up 1.80 per cent at Rs 8,950.10; Tata Consultancy Services (TCS), up 1.77 per cent at Rs 1,852.70; Bharti Airtel, up 1.75 per cent at Rs 380.15; and Asian Paints, up 1.57 per cent at Rs 1,273.70 per share.
The top losers were Tata Motors, down 4.31 per cent at Rs 277.35; Reliance Industries, down 2.48 per cent at Rs 978.70; Power Grid, down 1.82 per cent at Rs 191.45, Tata Motors (DVR), down 1.69 per cent at Rs 165.90; and Tata Steel, down 1.64 per cent at Rs 549.35 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Profit booking, along with broadly negative global markets and a weak rupee, subdued the key domestic equity indices during a volatile trade session on Friday.
Market observers pointed out that heavy selling pressure in banking, capital goods and FMCG stocks also depressed the key indices.
However, some of the losses were pared on the back of healthy buying in pharma and IT stocks.
Index-wise, the 30-scrip Sensitive Index (Sensex) closed lower by 19.41 points or 0.05 per cent.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also settled on a flat-to-negative note. It slipped by 0.70 points or 0.01 per cent to close at 10,767.65 points.
The S&P BSE Sensex, which opened at 35,406.47 points, closed at 35,443.67 points, 19.41 points or 0.05 per cent lower from the previous day’s close at 35,463.08 points.
The Sensex touched a high of 35,484.94 points and a low of 35,260 points during the intra-day trade.
“Markets ended flat on Friday after a smart recovery in the late afternoon session. Today’s flat close came after two sessions of healthy gains,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“Weak global cues capped the gains. Banks fell while IT and Pharma shares gained. Major Asian markets have closed on a negative note. European indices like FTSE 100, CAC 40 and DAX are trading in the red.”
Geojit Financial Services’ Head of Research Vinod Nair said: “Market reversed from low despite weak global sentiment as positive cues on pharma stocks and prospects of government measures on PSU banks supported the market to end flat.”
“Weakening rupee and favourable US FDA outcome on domestic pharma helped to regain positive sentiment in the sector. Volatility in oil price and mixed earnings in the fourth quarter may led the market to stay on the consolidation path.”
On the currency front, the Indian rupee weakened against the US dollar to 67.51, from its previous close at 67.13 per greenback.
Provisional data with exchanges showed that foreign institutional investors sold scrips worth Rs 222.50 crore, while the domestic institutional investors bought stocks worth Rs 459.44 crore.
Sector-wise, the S&P BSE Healthcare index gained 468.38 points, the IT index was higher by 103.09 points and the oil and gas index ended 87.72 points higher.
In contrast, S&P BSE banking index was lower by 71.39 points, capital goods down 44 points and FMCG index slipped by 40.07 points.
The major gainers on the Sensex were Sun Pharma, up 8.13 per cent at Rs 528.20; DrReddy’s Labs, up 4.92 per cent at Rs 2,062.90; Tata Motors DVR, up 3.56 per cent at Rs 186.20; Tata Motors, up 1.56 per cent at Rs 310.05; and State Bank of India, up 1.28 per cent at Rs 272.70 per share.
The top losers were PowerGrid, down 2.12 per cent at Rs 198.50; HDFC, down 1.42 per cent at Rs 1,840.20; Axis Bank, down 1.05 per cent at Rs 536.45; ITC, down 0.98 per cent at Rs 267.85; and Mahindra and Mahindra, down 0.91 per cent at Rs 910.90 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rituraj Baruah and Rohit Vaid,
Mumbai : Even as the equity brokers are trying to figure out a way to cope with the longer trading hours on equity derivatives, many feel the benefit of “real-time” alignment with global markets would outweigh infrastructure challenges.
Some Indian brokerage majors have already started to shore-up their manpower and other resources after the Securities and Exchange Board of India (SEBI) permitted stock exchanges to extend trading hours for the equity derivatives from October 1, 2018.
The market regulator has allowed stock exchanges to set their trading hours between 9 am and 11.55 pm, similar to the trading hours for commodity derivatives segment.
At present, trade in equity derivatives takes place from 9.15 am till 3.30 pm.
Equity derivative are instruments whose value is at least partly derived from the underlying equity security. Such derivates can be used to hedge the risk associated with taking a position on equity by setting a limit on losses.
“Currently too, commodities markets are opened till midnight, so the learning and infrastructure is already in place. It is just about increasing headcounts, which can be better planned once more details are published by exchanges,” Santanu Syam, Chief Operating Officer of Angel Broking, told IANS.
“From customers’ perspective it is a positive step as they can take benefit of any global news or impact. Currently most of them are not able to participate during such odd hours,” he added.
“It’s a welcome move as Indian markets would be aligned with all major markets, beginning with Tokyo and (ending with) New York and all in between,” Tradebulls Securities’ Director and COO Dhruv Desai said.
“As of now we see an escalation in the manpower of our advisory teams in the offline business and some minor staff increases in the risk management and other back office units. We may need some staff to work on shifts as change settles down,” said Desai, adding that the online business would have no impact as the requisite infrastructure was adequate to manage the extended hours.
According to him, initially, the market volume would spread across the number of hours, but over a period of time, the volume would increase in the market.
However, details are still awaited on risk management system from stock exchange, working of clearing corporations, framework for settlement process, monitoring of positions, system capability and surveillance systems.
The advantage of digital framework, which India currently has, will come in handy, said Equity99’s Senior Research Analyst, Rahul Sharma.
“All the market management processes are digitised. There should not be any transition issues for brokers. However, their fixed costs could go up as the brokers will need more manpower. Let’s hope for the best that rise in volumes will offset the expenses,” Sharma told IANS.
(Rituraj Baruah can be contacted at rituraj.b@ians.in and Rohit Vaid at rohit.v@ians.in)
—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