by admin | May 25, 2021 | Economy, Markets, News
By Ravi Dutta Mishra & Rohit Vaid,
Mumbai : Fears over a slowdown in global growth on the back of US-China trade tensions, along with domestic concerns on lower industrial production, spooked investors and led the key Indian equity indices to a negative weekly close.
Even a rebound on Friday triggered by signs of an ease in US-China trade tension as reports said that a US delegation will visit China next week to participate in trade talks failed to enthuse.
Index-wise, the S&P BSE Sensex lost 381.62 points, or 1.05 per cent, to close at 35,695.10, whereas the 50-share Nifty of the NSE declined by 132.55 points, or 1.22 per cent, to settle at 10,727.35.
In the just-concluded week, global markets witnessed volatile trade due to weak US economic data which added to fears of a global slowdown.
The fears over the global slowdown were again supplemented by data showing a contraction in China’s factory activity. Additionally a lowered financial forecast by tech major Apple subdued investor sentiments.
On the domestic front, data showing the Indian manufacturing activity expanded at a slower pace in December acted as a dampener.
“Back at home, the domestic market looked cautious driven by concerns about a global growth slowdown, amid news reports that the government is planning a massive farm relief package that may further worsen the fiscal health of the economy,” SMC Investments & Advisors CMD D.K. Aggarwal said.
Besides, the Indian markets were dented by an outflow of foreign funds, as FIIs sold shares worth over Rs 2,000 crore as against domestic institutional investors, who bought over Rs 500 crore worth of stocks, provisional data on BSE showed.
In contrast, the local currency strengthened by 43 paise to 69.72 against the US dollar from its previous week’s close of 70.15.
“The rupee closed the week stronger… which was a bit surprising on the back of crude moving up by 15 per cent in last week from lows of around $50,” said Sajal Gupta, Edelweiss Securities’ Head of Forex and Rates.
On sector-specific levels, PSU banks, realty and Bank Nifty led the gains this week on the indices, while auto, metal and energy indices dragged.
Stock-wise, the realty sector outperformed the benchmark indices during the volatile week, partly on the expectation that the GST Council at its January 10 meeting will slash tax rate on under-construction housing to 5 per cent from 12 per cent.
“The market breadth was negative in three out of the five trading sessions of the week. The top sectoral gainers for the week were the PSU Banks, realty and Bank Nifty indices. The top losers were the auto, metal and energy indices,” Deepak Jasani of HDFC Securities said.
The top gainers on the BSE and the NSE were Yes Bank which gained 4.38 per cent and Bharti Airtel which was up 2.02 per cent. Sun Pharma, Asian Paints and ICICI Bank gained in the range up to 2 per cent.
In contrast, export-oriented Mahindra & Mahindra lost heavily this week after lower than expected sales figures dragged its shares down 9.59 per cent.
Tata Steel lost 5.06 per cent followed by Hero MotoCorp, which slid by 4.40 per cent, and Maruti Suzuki which declined by 3.46 per cent.
(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, 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, Markets, News
By Ravi Dutta Mishra and Rituraj Baruah,
Mumbai : The Indian equity market snapped its six-week-long gaining streak during the September 3-7 period as the rupee fell to record low levels, coupled with high crude oil prices and decline in the global markets.
However, gains in the indices by the end of the week helped curb losses. Three out of the five sessions were negative during the period.
The rupee breached 72 a US dollar-mark for the first time. However, towards the week-end it recovered marginally following intervention by the Reserve Bank of India (RBI), analysts said.
Investor sentiments in the global markets were subdued due to high crude oil prices and persistent US-China trade tensions.
On a weekly basis, the S&P BSE Sensex closed at 38,389.82 points, lower 255.25 points or 0.66 per cent from its previous close.
Similarly, the wider Nifty50 on the National Stock Exchange on Friday ended at 11,589.10 points, down 91.4 points or 0.78 per cent from the previous week’s close.
Heavy selling pressure was witnessed from Foreign Institutional Investors (FIIs) both in cash and futures segments, said Rahul Sharma, Senior Research Analyst at Equity99.
However, towards the fag-end of the week, market recovered from early losses. Domestic indices rose for the second consecutive session on Friday on gains in auto, metal and technology stocks, according to Prateek Jain, Director, Hem Securities.
Value buying and recovery in the rupee from its lows in the later part of the week helped the indices rise on Thursday and Friday, thereby partially paring weekly losses.
Auto stocks gained after Union Transport Minister Nitin Gadkari on Thursday announced that the government would do away with permits for commercial vehicles run on alternative fuels.
On the currency front, the rupee touched a record low of 72.11 per US dollar on Thursday, though it recovered to end the week at 71.73 per dollar — 73 paise weaker from the previous week’s close of 71 per dollar.
The rupee remained subdued for most of the week due to a rise in crude oil prices and a similar weak trend among its global peers.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 789.60 crore and the domestic institutional investors bought stocks worth Rs 1,167.85 crore in the past week.
Figures from the National Securities Depository Ltd (NSDL) showed that foreign portfolio investors (FPIs) divested Rs 504.03 crore, or $70.06 million in the equities segment during September 3-7.
Sector-wise, the top gainers during the week were pharma, IT, metal and energy indices and the major losers were public sectors, FMCG and media indices, said Deepak Jasani, Head of Retail Research at HDFC securities.
The top weekly Sensex gainers were Wipro (up 7.43 per cent at Rs 324.05), Bajaj Auto (up 6.47 per cent at Rs 2,924), Tata Motors (DVR) (up 4.11 per cent at Rs 148.05), Tata Motors (up 3.89 per cent at Rs 277.50) and Reliance Industries (up 2.88 per cent at Rs 1,276.75 per share).
The major losers were Hindustan Unilever (down 7.96 per cent at Rs 1,638.95), Yes Bank (down 5.81 per cent at Rs 323.45), State Bank of India (down 5.50 per cent at Rs 291.85), ONGC (down 4.33 per cent at Rs 172.15) and Maruti Suzuki (down 4.01 per cent at Rs 8,732.55 per share).
(Ravi Dutta Mishra can be contacted at ravidutta.m@ians.in and Rituraj Baruah can be contacted at rituraj.b@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Finance, Markets, News
By Rituraj Baruah,
Mumbai : Firm global cues lifted the Indian equity market for the sixth consecutive week as both the key indices — S&P BSE Sensex and the NSE Nifty50 — rose by over one per cent during the August 27-31 period.
Accordingly, the BSE Sensex hit an all time high of 38,989.65 points and the NSE Nifty50 touched a record level of 11,760.20 points. Both, Sensex and Nifty also set new respective closing highs of 38,896.63 points and 11,738.50 points during the week.
Global investor sentiments firmed up earlier in the week as US and Mexico reached an agreement on revising the North American Free Trade Agreement enforced since 1994.
The global development strengthened sentiments as trade-war concerns have off-late heightened investment risk across the globe, analysts told IANS.
The indices, however were subdued in the later part of the week as the Indian rupee slumped to unprecedented low levels against the US dollar and the fears over US-China trade war flared.
On a weekly basis, the S&P BSE Sensex closed at 38,645.07 points, higher 393.27 points or 1.03 per cent from its previous close.
Similarly, the wider Nifty50 on the National Stock Exchange on Friday ended at 11,680.50 points, higher 123.40 points or 1.07 per cent from the previous week’s close.
“Benchmark indices gained for the sixth week in a row on favourable global cues,” said Rahul Sharma, Senior Research Analyst at Equity99.
Sharma, however added renewed US-China trade war concern capped gains.
According to Hem Securities’ Director Prateek Jain, US-China tariff war hurt the emerging markets and also pushed the rupee to an all-time low.
The Indian rupee touched a new low of 71 per dollar on Friday. It settled at 70.99-71 per greenback, around Rs 1.09 weaker than the previous week’s close of 69.91 per dollar.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 579.20 crore and the domestic institutional investors bought stocks worth Rs 605.27 crore in the past week.
Figures from the National Securities Depository Ltd (NSDL) showed that foreign portfolio investors (FPIs) invested Rs 46.36 crore, or $6.47 million in the equities segment during August 27-31.
Sector-wise, metal, IT and pharma stocks were the top gainers while the major losers were media and energy stocks, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
The top weekly Sensex gainers were Power Grid (up 5.11 per cent at Rs 200.60), Tata Steel (up 4.55 per cent at Rs 601.65), Tata Motors (up 4.50 per cent at Rs 267.10), Infosys (up 4.35 per cent at Rs 1,440) and Bharti Airtel (up 4.03 per cent at Rs 383.35 per share).
The major losers were Yes Bank (down 8.34 per cent at Rs 343.40), Reliance Industries (down 2.90 per cent at Rs 1,240.95), Asian Paints (down 1.54 per cent at Rs 1,240.95), Coal India (down 1.48 per cent at Rs 286.10) and IndusInd Bank (down 1.21 per cent at Rs 1,903.85 per share).
(Rituraj Baruah can be contacted at rituraj.b@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rituraj Baruah,
Mumbai : The Indian equity market rose for the fifth consecutive week and scaled new highs during the August 20-24 period amid concerns of global trade war escalation.
Healthy buying in pharma and metal stocks, among others, supported the gains on the indices, analysts said.
On Thursday, both key indices — S&P BSE Sensex and the NSE Nifty50 — touched their respective intra-day all-time high levels of 38,487.63 points and 11,620.70 points, before settling at their record closing levels of 38,336.76 points and 11,582.75 points, respectively.
Both major indices are currently hovering around record levels and any minor gain in trade makes the indices touch fresh benchmarks.
A positive outlook for the Indian economy by the global credit ratings and research firm Moody’s Investors Service also supported sentiments.
However, in the later part of the week, concerns of rise in the US-China trade conflict made the traders cautious and limited the gains, analysts said.
On a weekly basis, the S&P BSE Sensex closed at 38,251.80 points, higher 303.92 points or 0.80 per cent from its previous close.
Similarly, the wider Nifty50 on the National Stock Exchange made gains. On Friday, it ended at 11,557.10 points, higher 86.35 points or 0.75 per cent from the previous week’s close.
“Benchmark indices once again hit fresh life-time highs and settled the week with a decent gain despite escalating trade war tensions and firmness in crude oil prices,” said Rahul Sharma, Senior Research Analyst, Equity99.
Sharma said sentiments were boosted after Moody’s report said that the Indian economy is expected to grow by around 7.5 per cent in 2018 and 2019, supported by strong urban and rural demand and improved industrial activity.
Hem Securities’ Director Prateek Jain said: “Towards the fag end of the week, market reflected correction due to Indian currency’s depreciation.”
“Meanwhile, US-China discussions did not reach any conclusion. China and the US both imposed tariffs of $16 billion on each other’s products,” Jain added. This resurgence in trade tensions further limited the gains in the Indian indices.
The rupee depreciated significantly on Thursday and closed at over the psychological mark of 70 per dollar — at 70.12 per dollar — which dampened the domestic sentiments.
According to Kotak Mutual Fund’s Head of Equity Research, Shibani Kurian, rise in trade deficit along with trends of a strong US dollar and the over-valuation of the Indian rupee in real effective exchange rate basis exerted pressure on the domestic currency.
However, it recovered on Friday and on a weekly basis the Indian currency settled 69.91 per dollar, appreciating by 25 paise from its previous week’s close of 70.16 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors bought scrips worth Rs 128.64 crore and the domestic institutional investors purchased stocks worth Rs 1,837.84 crore in the past week.
Figures from the National Securities Depository Ltd (NSDL) showed that foreign portfolio investors (FPIs) divested Rs 468.41 crore, or $66.24 million, from the equities segment during August 20-24.
Sector-wise, the top gainers were energy, pharma, infra and metal indices and the top losers were Bank Nifty, realty and public sector banks, said Deepak Jasani, Head of Retail Research, HDFC Securities.
The top weekly Sensex gainers were Larsen and Toubro (up 8.91 per cent at Rs 1,342.80), Vedanta (up 7.38 per cent at Rs 223.95), ONGC (up 6.58 per cent at Rs 174.90), Reliance Industries (up 6.49 per cent at Rs 1,278.05) and Wipro (up 4.45 per cent at Rs 292.30 per share).
The major losers were Infosys (down 3.18 per cent at Rs 1,379.95), Indusind Bank (down 2.82 per cent at Rs 1,927.25), Hero MotoCorp (down 2.24 per cent at Rs 3,212.60), ICICI Bank (down 1.30 per cent at Rs 330.10) and Yes Bank (down 1.07 per cent at Rs 374.65 per share).
(Rituraj Baruah can be contacted at rituraj.b@ians.in)
—IANS
