by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Despite healthy macro-economic indicators, the Indian equity markets turned volatile and gave up gains during the week over prospects of political instability, along with the ongoing turmoil in the banking sector and weak global cues.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE slipped by 131.14 points or 0.39 per cent to close at 33,176 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,195.15 points — down 31.7 points or 0.31 per cent from its previous week’s close.
“Domestic markets remained volatile amid sluggish global cues and trade war concerns, weighed by oil and technology stocks,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Also, the sentiments got further dented amid political upheaval after the Telugu Desam Party (TDP) formally decided to quit the NDA government. However, fertiliser stocks gained after the continuation of a government subsidy for urea,” said Aggarwal.
According to Gaurav Jain, Director at Hem Securities, robust industrial production growth in January coupled with the slowing down of retail inflation in February were among the major factors that propped up sentiments during the week.
Official data released during the week showed that India’s factory production growth in January stood at 7.5 per cent — double the 3.5 per cent recorded in the same month last year — while retail inflation for February eased down to 4.4 per cent.
“However, profit booking coupled with reports that the country’s monsoon could be below normal due to El Nino impact, caused some panic off-loading in the market towards the end of the week, erasing gains,” Jain told IANS.
“Political instability after TDP broke ties with the ruling NDA added to the woes. On the global front, traders are watching the tariff issue which is hogging the market sentiments,” he added.
On the currency front, the rupee strengthened by 24 paise to close at 64.93 against the US dollar from its previous week’s close at 65.17.
“Volatility has become the name of the game for equity markets in India of late and our expectations are that this may persist for some more time this year even as the structural uptrend in the market remains intact,” said Shibani Kurian, Senior Vice President and Head of Equity Research, Kotak Mutual Fund.
“During the week, market participants continued to grapple with news flow relating to the fraud at PNB (Punjab National Bank) and balance sheet stress for the banking system as a whole,” Kurian told IANS.
Provisional figures from the stock exchanges showed that foreign institutional investors FIIs purchased scrips worth Rs 6,288.23 crore and the domestic institutional investors (DIIs) worth Rs 202.69 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 6,713.73 crore, or $324.81 million, during March 12-16.
The top weekly Sensex gainers were: Bharti Airtel (up 4.04 per cent at Rs 418.20); Wipro (up 3.70 per cent at Rs 295.75); Axis Bank (up 3.58 per cent at Rs 523.45); Yes Bank (up 3.11 per cent at Rs 312.90); and ICICI Bank (up 1.84 per cent at Rs 298.10).
The losers were: Coal India (down 8.53 per cent at Rs 278.70); Tata Consultancy Services (down 6.89 per cent at Rs 2,825.50); Kotak Bank (down 2.21 per cent at Rs 1,061); Larsen and Toubro (down 1.75 per cent at Rs 1,267.60); and Adani Ports (down 1.66 per cent at Rs 371.05).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : The bears, tracking weak global cues, under-performance by banking sector stocks and outflow of foreign funds, ruled the Indian equity markets during the week ended Friday which saw the BSE Sensex and Nifty50 indices dropping over 2 per cent.
Fears of a global trade war following US President Donald Trump’s proposal to impose tariff on import of metals, along with the turmoil in the domestic banking sector, continued to erode the risk-taking appetite of investors.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE shed 739.8 points or 2.17 per cent to close at 33,307.14 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,226.85 points — down 231.5 points or 2.21 per cent from its previous week’s close.
“The week gone by saw the Nifty resuming its intermediate downtrend after a minor loss witnessed last week. There were no sectoral gainers, while the top losers were metal, PSU bank, pharma and infra indices,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, domestic market closed the week in red tracking weak global cues.
“Actually, market participants across the globe reacted to President Donald Trump’s decision to impose tariffs on metal imports,” Aggarwal told IANS.
“Oil prices fell for a second consecutive week as the dollar strengthened and concerns over rising US crude production continued to mount on signs of an inventory build-up at a key US storage hub,” he added.
On the currency front, the rupee closed flat at 65.17 against the US dollar.
“Markets continued to trade lower even though economy growth numbers been positive. The Punjab National Bank fraud (PNB) has taken a big toll on the markets and has resulted in a sell-off in almost all the banks stocks,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
Desai pointed out that the country’s IT sector has emerged as an outperforming sector in the recent correction witnessed in the markets.
“The S&P BSE IT index rose nearly 10 per cent compared to a one per cent fall seen in the S&P BSE Sensex so far in the year 2018,” Desai told IANS.
Vinod Nair Head Of Research at Geojit Financial Services, said: “Market continued to be under pressure on concerns impending global trade war, extension of PSU NPA (non-performing assets) worries and rise in bond yields.”
PSU Bank index — the key underperformer — declined by 5 per cent during the week, Nair said.
“FIIs (foreign institutional investors) are pulling out money given negative cues from both domestic as well on global front. The introduction of Long Term Capital Gains, scam in PNB, repeated signals from the US Fed to hike interest rates rapidly and possibility of downgrades of India weightage from MSCI index are the key factors which is turning FIIs cautious on domestic market,” he added.
Provisional figures from the stock exchanges showed that FIIs sold-off scrips worth Rs 280.74 crore, while domestic institutional investors (DIIs) purchased scrips worth Rs 131.07 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 1,384.36 crore, or $212.98 million, during March 5-9.
The top weekly Sensex gainers were: Asian Paints (up 0.73 per cent at Rs 1,127.75); NTPC (up 0.55 per cent at Rs 163.90); HDFC (up 0.32 per cent at Rs 1,818.45); Infosys (up 0.27 per cent at Rs 1,163.40); and Hero MotoCorp (up 0.21 per cent at Rs 3,587).
The losers were: Tata Steel (down 10.32 per cent at Rs 605.60); Tata Motors (down 7.86 per cent at Rs 341.70); Tata Motors (DVR) (down 7.34 per cent at Rs 192.60); Adani Ports (down 6.95 per cent at Rs 377.30); and Bharti Airtel (down 5.81 per cent at Rs 401.95).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : After three weeks of consecutive losses, the key Indian equity indices bounced back from their lows to close this week with humble gains on value buying by investors.
Market observers said futures and options (F&O) expiry infused volatility in the domestic markets, amid global cues and a slew of domestic developments like the $1.8 billion fraud reported by the Punjab National Bank (PNB) and a weakening rupee due to the continuous outflow of foreign funds.
However, losses were trimmed as bargain-hunting by investors on the last trading day of the week lifted the benchmark indices.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) edged higher by 131.39 points or 0.39 per cent to close at 34,142.15 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,491.05 points — up 38.75 points or 0.37 per cent from its previous week’s close.
“The week gone by saw the Nifty bouncing back from a low of 10,302 to finally end with a modest gain. This week’s gains came after three weeks of losses,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
According to D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, markets across the globe fluctuated wildly — highlighting the market’s fragility — as investors continued to assess the quickening pace of economic growth and the prospects of the US Federal Reserve’s tightening efforts.
“Back home, the sentiment of market participants have been dented by factors such as surging US bond yields, a multi-crore fraud in India’s second-largest public sector lender PNB and the return of long-term capital gains (LTCG) tax on equities, which put a break on the record-setting market rally,” he added.
During the eight trading sessions following the detection of a $1.8 billion fraud in one of the branches of the PNB, the bank’s shares on the BSE have plunged almost 30 per cent to Rs 113.40 per share.
Gitanjali Gems, the other listed entity involved in the fraud case, also witnessed an eight-day fall in its shares, nosediving 60.54 per cent to Rs 24.80 per share.
“The consolidation in the domestic market continued due to the NPA (non-performing assets) issue in public-sector banks, trade deficit, conflict between NSE and SGX, rise in bond yield and depreciation in rupee due to selling by FIIs (foreign institutional investors),” said Vinod Nair, Head of Research, Geojit Financial Services.
On the currency front, the rupee weakened by 51-52 paise to close at 64.73 against the US dollar from last week’s close of 64.21-22.
Provisional figures from the stock exchanges showed that FIIs sold-off scrips worth Rs 5,781.98 crore, while domestic institutional investors (DIIs) purchased scrips worth Rs 5,972.69 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors off-loaded equities worth Rs 3,054.94 crore, or $468.06 million, during February 20-23.
Sectorwise, Jasani said: “The top sectoral gainers were IT, metal and Bank Nifty indices. The top losers were auto, realty and pharma indices.”
The top weekly Sensex gainers were: Tata Consultancy Services (up 4.76 per cent at Rs 3,076.90); Yes Bank (up 3.75 per cent at Rs 323.60); Infosys (up 2.74 per cent at Rs 1,155.65); Kotak Bank (up 2.67 per cent at Rs 1,079.85); and Coal India (up 2.49 per cent at Rs 310.55).
The losers were: Bajaj Auto (down 3.70 per cent at Rs 2,988); Asian Paints (down 3.65 per cent at Rs 1,101.90); Mahindra and Mahindra (down 3.29 per cent at Rs 719.30); Tata Motors (down 2.73 per cent at Rs 360.45); and Tata Motors (DVR) (down 2.32 per cent at Rs 203.85).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : The weekly trade in the Indian equity markets was almost flat. However, a slew of domestic developments like a $1.8 billion fraud reported by the Punjab National Bank (PNB) and release of major macro-economic data impacted the movements of the two key equity indices, analysts said.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) rose a tad by 5 points or 0.01 per cent to close at 34,010.76 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,452.30 points — bit lower by 2.65 points or 0.02 per cent from its previous week’s close.
“Local factors were more at work during this week. Globally, the markets — especially the US markets — have done very well over the last six sessions. But upper moves in the domestic markets have been limited because of local factors,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“The market sentiments kept facing new challenges one after the other. This caused some concern in terms of their financial impact and/or political repercussions,” he added.
According to Jasani, it was the third consecutive week of losses for the Nifty50 index.
During the week, a massive-sell off in the banking sector stocks was triggered after the Reserve Bank of India (RBI) announced new norms to deal with non-performing assets on Monday.
Besides RBI’s latest move, the massive $1.8 billion fraud detected at one of the Mumbai branches of PNB — the country’s second largest public sector bank — on February 14 also spooked investors.
The markets were closed on Tuesday for Mahashivratri.
“The truncated week began with a gap-up opening on Monday; however, bulls failed to keep the momentum and eventually ended the week on lower note as the sentiments got further dented by a $1.77 billion fraud reported by the PNB earlier this week,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
PNB shares started to decline after the bank detected a multi-crore fraud case and authorities blamed billionaire diamond trader Nirav Modi for the fraud along with wife Ami, brother Nishal and maternal uncle and business partner Mehul Choksi.
The bank’s shares plunged drastically following the news — over 9 per cent — along with the stocks of Choksi-promoted jewellery company Gitanjali Gems, which plunged almost 20 per cent.
On the macro-front, Aggarwal said: “The CPI (Consumer Price Index) fell marginally to 5.07 per cent in January, while industrial activity has shown growth of 7.1 per cent in December.”
“The December growth showed not only a robust year-on-year growth but also a strong chronological improvement in the industrial activity,” he added.
On the currency front, the rupee strengthened by 18-19 paise to close at 64.21-22 against the US dollar from its last week’s close at 64.40.
Provisional figures from the stock exchanges showed that foreign institutional investors sold off scrips worth Rs 2,849.1 crore, while domestic institutional investors purchased scrips worth Rs 2,368.01 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors off-loaded equities worth Rs 3,006.58 crore, or $467.77 million, during February 12-16.
“The benchmark index Nifty closed below 10,500 levels as banking stocks dragged after the PNB fraud case,” Arpit Jain, AVP at Arihant Capital Markets, told IANS.
“On the domestic front the country’s exports increased by 9 per cent in January, while trade deficit touched a three-year high of $16.3 billion due to an increase in crude oil imports,” he added.
Sector-wise, banks, consumer durables and auto fell the most, while metals, FMCG, and oil and gas indices ended marginally in the positive.
The top weekly Sensex gainers were: Tata Steel (up 2.52 per cent at Rs 688.30); Reliance Industries (up 2 per cent at Rs 921.70); Asian Paints (up 1.75 per cent at Rs 1,143.70); Dr Reddy’s Lab (up 1.55 per cent at Rs 2,212.75); and Hindustan Unilever (up 1.51 per cent at Rs 1,352.45).
The losers were: State Bank of India (down 9.85 per cent at Rs 271.75); Yes Bank (down 6.91 per cent at Rs 311.90); Axis Bank (down 5.41 per cent at Rs 537.75); ICICI Bank (down 4.05 per cent at Rs 321); and ITC (down 2.67 per cent at Rs 266.35).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Following a massive global sell-off, the Indian equity markets turned bearish for the second consecutive week — with the BSE Sensex dropping over a 1,000 points and the Nifty50 index over 300 points.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) tanked 1,060.99 points or 3.02 per cent to close trade at 34,005.76 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed the week’s trade at 10,454.95 points — shedding 305.65 points or 2.84 per cent from its previous week’s close.
Since February 1, the BSE Sensex has shed around 1,900 points and the NSE Nifty over 500 points.
“In the week gone by, global stock market witnessed huge sell-off amid the fear of interest rates hike and this too sent the bond yields higher,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Back at home, the Union Budget 2018 verdict played a catalyst role and since then market has been tumbling down. Though market recovered and closed in green on Thursday but on Friday market closed red tracking lower Asian and US markets,” he added.
Aggarwal said in line with expectations, the Reserve Bank of India — in its final bi-monthly monetary policy review of the fiscal on Wednesday — kept key interest rate unchanged at 6 per cent with neutral stance, citing concerns about the inflationary push by rising global crude oil prices.
On the currency front, the rupee weakened by 34 paise to close at 64.40 against the US dollar from its last week’s close at 64.06.
Provisional figures from the stock exchanges showed that foreign institutional investors sold off scrips worth Rs 8,260.96 crore, while domestic institutional investors purchased scrips worth Rs 6,286.58 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors off-loaded equities worth Rs 4,738.66 crore, or $738.24 million, during February 5-9.
“The week gone by saw the Nifty correcting further. The Nifty ended with week-on-week losses of 2.84 per cent,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Sectorally, the top gainers were the pharma, metal and media indices. The top losers were the Bank Nifty, infra, FMCG and auto indices,” he added.
The top weekly Sensex gainers were: Sun Pharma (up 5.72 per cent at Rs 582.65); Dr Reddy’s Lab (up 3.43 per cent at Rs 2,194.80); Coal India (up 2.84 per cent at Rs 300.45); Tata Steel (up 2.08 per cent at Rs 683.65); and Power Grid (up 0.36 per cent at Rs 193.20).
The losers were: Yes Bank (down 6.99 per cent at Rs 325.55); HDFC (down 6.84 per cent at Rs 1,773.20); Larsen and Toubro (down 6.01 per cent at Rs 1,329.35); IndusInd Bank (down 5.94 per cent at Rs 1,651.40); and Tata Consultancy Services (down 5.62 per cent at Rs 2,972.30).
—IANS
