by admin | May 25, 2021 | Economy, Markets, News
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By Rohit Vaid,
Mumbai : The ongoing earnings result season, along with macro-economic inflation and trade data points, are expected to influence the Indian equity market next week.
Market observers opined that global crude oil prices and the rupee’s movement against the US dollar will act as other major triggers.
“Markets next week will continue to focus on earnings of corporates such as Zee, Bharti, Adani, Wipro, MindTree, etc. Earning results, so far, have been in line with expectations,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
Companies like Hindustan Unilever, Adani Ports & SEZ, Bharti Airtel, ITC, Hindustan Zinc, UltraTech Cement, HDFC Bank, Reliance Industries and Wipro are expected to announce their quarterly results in the coming week.
Besides Q3 results, investors will look out for upcoming macro-economic inflation data points such as the WPI (Wholesale Price Index) and Balance of Trade figures.
Market participants will also give their first reaction to the IIP (Index of Industrial Production) and CPI (Consumer Price Index) figures which were released after the market hours on Friday (Jan 12).
“Over the next week, market will react to the sharp jump in IIP for November to 8.4 per cent and CPI for December to 5.2 per cent. Restocking in the consumer non-durables space and healthy activity in the capital goods sector are responsible for the sharp increase in IIP,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
In terms of investments, provisional figures from the stock exchanges showed that domestic institutional investors (DIIs) purchased stocks worth Rs 2,383.11 crore during the week, while foreign institutional investors (FIIs) sold company scrips worth Rs 965.16 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors bought equities worth Rs 554.03 crore, or $88.34 million, during January 8-12.
On the currency front, the rupee weakened by 26 paise to close at 63.63 against the US dollar from its last week’s close at 63.37.
“As far as levels are concerned, we look forward to 63.25-30 as the near-term support for USD-INR and 63.90-64 as a major resistance,” Banerjee said.
As per technical readings, Nifty is expected to surge higher and breach new record highs during the upcoming week.
“Technically, with the Nifty surging higher to new record highs, the underlying intermediate uptrend remains intact,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Further upsides are likely once the immediate resistances of 10,690 points are taken out. Weakness could emerge if the supports of 10,490 points are broken.”
Last week, “consistent investments” from domestic institutions propelled the the key equity indices — the Sensex and the Nifty50 — to close at record high levels.
Consequently, the barometer 30-scrip S&P Sensex of the Bombau Stock Exchange surged by 438.54 points or 1.28 per cent to 34,592.39 points.
Similarly, the wider Nifty50 of the National Stock Exchange made healthy gains. It rose 122.4 points or 1.16 per cent to 10,681.25 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The upcoming quarterly results season, along with the release of macro-economic data points on industrial production and inflation, are expected to determine the trajectory of key equity indices next week.
According to market observers, global cues such as crude oil prices, combined with the direction of foreign fund flows and the rupee’s movement against the US dollar, will also impact investors’ risk-taking appetite.
“Earnings season for Q3 (third quarter) with IndusInd Bank and TCS (Tata Consultancy Services) release would be closely watched, as the same have to catch up with the recent PE (price-to-earnings) expansion,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The CPI (Consumer Price Index) data out on Friday would be closely watched. If much above 5 per cent, this would dampen the sentiment in the markets, especially for the banking and NBFC sectors given the fact that the GDP (2017-18) provisional estimates were already lower.”
The Q3 earnings result season will be kicked-off from next week. IT major TCS is expected to be the first bluechip firm to come out with its Q3 result on January 11, (Thursday).
“The market is trading at premium valuation supported by strong liquidity on expectation of earnings revival and positive global cues. In recent times, higher oil prices, rising inflation and the RBI’s hawkish stance are warning signs for the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Further, the market is wary of a populist budget given this is the last (full) one before the general election. In the immediate future, the market will look for more budget-related cues and progress of the Q3 results season.”
Apart from TCS, companies like Infosys, Gail, Bajaj Corp, IndusInd Bank and Shree Cement are expected to announce their quarterly results in the coming week.
“It is expected that December quarter earnings would positively surprise the street in select companies,” said D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors.
“Besides, global cues, macro-economic data, investment by foreign and domestic institutional investors (FIIs ad DIIs), the movement of rupee against the dollar and crude oil price movement will dictate the trend of the market in the week ahead.”
Apart from the Q3 results, investors will look out for the upcoming macro-economic data points such as the IIP (Index of Industrial Production) and Balance of Trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on January 12, Thursday.
On the currency front, the rupee had strengthened by 50 paise to close at 63.37 against the US dollar during the week ended on January 5.
Investment-wise, provisional figures from the stock exchanges showed that FIIs turned net buyers and purchased scrips worth Rs 1,738.44 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 1,618.27 crore, or $254.14 million, from January 1-5.
On technical levels, the underlying trend of the National Stock Exchange’s (NSE) Nifty50 remains bullish.
“Further upsides are likely once the immediate resistances of 10,566 points are taken out. Weakness could emerge if the supports of 10,520 points are broken,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — rose for the fifth consecutive week.
Consequently, the 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange closed higher by 97.02 points or 0.28 per cent at 34,153.85 points.
Similarly, the Nifty50 of the NSE rose by 28.15 points or 0.26 per cent to 10,558.85 points.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Macro-economic data points coupled with the direction of foreign fund flows and fears of higher inflationary pressure are expected to influence the Indian equity markets during the upcoming week.
According to market observers, triggers such as the global geo-political situation and crude oil price movement can unleash volatility.
“The markets next week would start with the PMI (Purchasing Managers’ Index) data for advance clues on where the manufacturing and services economy is going,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“As global investors mostly return to work late in the next week, the fresh year’s allocations would be critical. Markets would also look for support from domestic investors continuing in the new calendar year. Crude oil prices have already breached $66.5 per barrel, this combined with higher inflationary expectations may dampen the sentiment.”
Key macro-economic data points like the monthly automobile sales’ numbers, eight core industries’ (ECI) output, PMI manufacturing and services’ figures will be released during the week staring January 1, 2018.
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors: “Macroeconomic data, trend in global markets, investment by foreign and domestic investors, the movement of rupee against the dollar and crude oil price movement will dictate trends on the bourses in the first week of the new year.”
Analysts opined that the direction of foreign fund flows and near-term trends in the rupee’s movement against the US dollar will also affect market sentiments.
Provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) bought stocks worth Rs 1,676.07 crore, while domestic institutional investors (DIIs) purchased scrip worth Rs 25 crore during last week.
On the currency front, the rupee is expected to trade in the range of 63.60-64.10 to a US dollar. Last week, it had strengthened by 18 paise to closed at 63.87 to a greenback.
“The Indian rupee is expected to remain firm due to a weak dollar and healthy inflows into the Indian debt and equity markets. The immediate short-term range is expected to be between 63.60-64.10,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
On technical levels, the underlying trend of the National Stock Exchange’s (NSE) Nifty remains bullish.
“Nifty is expected to trade between 10,400-10,650 levels while bank nifty is expected to trade between 25,300-25,850 levels,” Aggarwal predicted.
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — rose for the fourth consecutive week.
Consequently, the 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange closed higher by 116.53 points or 0.34 per cent to 34,056.83 points.
Similarly, the Nifty50 of the NSE rose by 37.7 points or 0.35 per cent to 10,530.70 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Parliamentary proceedings — including passage of key bills — along with macro-economic data on the fiscal deficit will be keenly watched by market participants and will have a bearing on the domestic equity indices in the coming week.
Additionally, the trajectory of the two key indices is expected to be influenced by global cues — especially crude oil prices — and thin volumes due to the year-end holiday season.
“The winter session of the Indian parliament will reopen on December 27. The progress on passing of bills will be keenly watched,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The domestic investors supported the markets last week after FPIs (foreign portfolio investors) net sold stocks. Crude oil prices globally are closer to $65 per barrel. Any rise next week could dampen the market sentiment.”
Besides parliamentary proceedings, macro-economic points like Index of Eight Core Industries’ (ECI) figures, along with the country’s fiscal deficit numbers up to November and its external debt data will be keenly watched by investors.
“The fiscal deficit figures are due late next week; it could give clues on whether government will resort to extra borrowings in the current financial year,” Nevgi said.
Investment-wise, provisional figures from stock exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 2,620.76 crore during the week ended on December 22.
On the currency front, the rupee closed flat at 64.05 against the US dollar.
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors: “Going ahead, with the assembly elections out of the way, now the focus of market participants would shift towards macros and third-quarter earnings in India.”
“Nifty is expected to trade in the range of 10,350-10,600 points levels.”
Technical charts showed that the underlying trend of the National Stock Exchange’s (NSE) Nifty remains bullish with further upside expected once the immediate resistance at 10,501 points-mark is taken out.
“Technically, with the NSE Nifty surging higher after two sessions of weakness, the underlying intermediate uptrend remains intact,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Further, upsides are likely once the immediate resistances of 10,501 points are taken out. Weakness could emerge if the supports of 10,373 points are broken.”
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — rose for the third consecutive week on the back of BJP’s political victory in the Gujarat and Himachal Pradesh assembly elections, along with global cues and investments by domestic institutional investors (DIIs).
Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE soared 477.33 points or 1.42 per cent to 33,940.30 points.
Similarly, the Nifty50 of the NSE edged higher by 159.75 points or 1.55 per cent to 10,493 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : The outcome of the Gujarat assembly elections, along with the announcement on implementing the “e-way” bill and global cues — especially the US tax reforms — are expected to drive sentiments in the key domestic equity indices in the coming week.
Market analysts observed that cues from Parliament’s winter session, coupled with the direction of foreign fund flows and the rupee’s movement against the US dollar will also impact investors’ risk-taking appetite.
“The next week would begin with the Assembly election results being declared. All eyes would be on the outcome. While the exit polls predict a victory for the NDA (National Democratic Alliance), the margin of the same will matter more for the market sentiment,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The market is already pricing the best case scenario and some short covering had helped the sentiment too. A high vote share would raise the chances of NDA winning in the 2019 general elections. With the foreign investors in holiday mood, the activity levels are likely to be lower with support from DIIs (domestic institutional investors).”
According to Vinod Nair, Head of Research, Geojit Financial Services: “The verdict of the Himachal (Pradesh) and Gujarat state elections will be the key trigger for the market next week.”
“Cues from the winter session will also be closely followed. Any deviation from the exit polls could negatively impact the market sentiment in the near to medium term. After the election results, the markets will also look towards global cues and US tax reforms,” Nair said.
In terms of economic indicators, the healthy exports figures for November released after market hours on last Friday are expected to give a fillip to the equity markets.
Currency-wise, the rupee had strengthened by 41 paise to close at 64.04 against the US dollar from its last week’s close at 64.45.
“The rupee has been one of the best-performing currencies in the world… We continue to expect inflows in debt and equity. As a result, rupee can range between 63.80 and 64.30,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
“We can see equities rallying and so too currency once the results are out. However, do not expect a repeat of the post-Uttar Pradesh impact, as positioning is already aggressively in long rupee and long equities.”
As per provisional figures from the stock exchanges, foreign institutional investors (FIIs) sold scrips worth Rs 609.91 crore during the week.
On technical levels, the National Stock Exchange (NSE) Nifty’s upside faces an immediate resistance at 10,410 points-mark.
“Technically, while the Nifty has surged higher, traders will need to watch if the recent rally can sustain early next week,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Further, upsides are likely once the immediate resistances of 10,410 points are taken out. Weakness could resume if the supports of 10,265 points are broken.”
Last week, the key Indian equity indices — the BSE Sensex and the NSE Nifty50 — rose as expectations of the BJP’s political victory in the Gujarat and Himachal Pradesh
assembly elections grew.
Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE rose by 428.77 points, or 1.3 per cent, to close at 33,462.97 points.
Similarly, the Nifty50 of the NSE edged higher by 67.6 points, or 0.66 per cent, to close the week’s trade at 10,333.25 points.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
