by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Apart from developments on the domestic front, the Indian equity markets would seek direction from global markets during the coming week, said market analysts.
“With the results season almost over, all the focus will continue to remain on the global cues,” Arpit Jain, AVP at Arihant Capital Markets, told IANS.
“Last week, the Dow Jones increased by 4.5 per cent and recovered 50 per cent of its recent losses. Hence, once the domestic concerns settle, Indian indices are likely to take part in global rally,” he added.
In addition to global cues, the movement of funds and crude oil prices are expected to influence the market sentiment next week.
“It is expected that volatility of global stock markets, along with rupee-dollar movement, inflow of funds from both foreign and domestic market participants and crude oil prices are expected to influence the domestic market going forward,” D. K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
Last week, the rupee strengthened by 18-19 paise to close at 64.21-22 against the US dollar.
Provisional figures from the stock exchanges showed that foreign institutional investors remained net sellers last week and sold off scrips worth Rs 2,849.1 crore.
However, domestic institutional investors purchased scrips worth Rs 2,368.01 crore.
With various developments taking place in the banking sector of the country, analysts were of the view that the NSE Nifty50 could be further dragged lower by the Bank Nifty index — which has a greater weightage — the following week.
“What we saw during the past week was a ‘time-wise’ correction. Next week, we will be proceeding towards the next leg of correction and may see markets drifting lower,” said Sacchitanand Uttekar, Assistant Vice-President, Research at Tradebulls.
According to Uttekar, banks were leading the downward rally because of domestic cues like the $1.8 billion Punjab National Bank (PNB) fraud and the state-run banks drifting lower.
“Since the last two sessions, the scenario has changed with the private banks also taking a hit. The Bank Nifty index was dragging the Nifty50 lower,” Uttekar told IANS.
A massive sell-off in the banking sector stocks was triggered last week after the Reserve Bank of India (RBI) announced new norms to deal with non-performing assets.
Besides, the multi-crore fraud detected at one of the Mumbai branches of PNB led to a drastic decline in the shares of the company, along with the PSU Bank Nifty index.
“Going forward, banks could see much deeper levels and magnitude of the fall could be higher for the Bank Nifty,” Uttekar added.
On technical levels, Deepak Jasani, Head, Retail Research, HDFC Securities, said: “With the Nifty continuing to correct the past week after breaking a trend line support a few weeks back, the underlying short-term trend remains down.”
“Further downsides are likely early next week once the immediate support of 10,434 is broken. Any pull-back rallies could find resistance at 10,618,” Jasani told IANS.
Last week, trade in the Indian equity markets was almost flat with a slew of domestic developments like the PNB fraud impacting the market mood.
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 closed a bit lower by 2.65 points or 0.02 per cent at 10,452.30 points.
(Porisma P. Gogoi can be contacted at porisma.g@ians.in )
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Broadly positive global cues, coupled with healthy buying in energy, consumer durables and capital goods stocks, pushed key Indian equity indices to trade at fresh highs during the mid-afternoon trade session on Monday.
According to market observers, upbeat quarterly corporate earnings along with continuous inflow of foreign funds lifted investors’ risk-taking appetite.
The wider Nifty50 of the National Stock Exchange (NSE) traded firmly above the 10,900-level and scaled a new high of 10,929.85 points during intra-day trade.
At 1.07 p.m., the Nifty50 traded 21 points or 0.19 per cent higher at a fresh level of 10,915.70 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE crossed the 35,700 mark during intra-day trade and touched a new high of 35,700.72 points.
The Sensex traded at a fresh level of 35,636.05 points (at 1.07 p.m.) — up 124.47 points or 0.35 per cent — from its previous session’s close.
The Sensex has so far touched a high of 35,664.01 points during intra-day trade.
The BSE market breadth was bullish — 1,485 stocks advanced and 1,257 declined.
“Indian shares traded up after opening little changed on continued overseas funds buying after robust corporate earnings signaled economic growth reversal in near terms. Asian shares traded flat following the US federal government shutdown which hurt investors risk-appetite,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Both benchmarks, Nifty and Sensex, climbed to fresh record in early trade on hopes of government meeting the fiscal deficit target as it announced generating Rs 370 billion through stake sale in petroleum refinery. BSE Sensex rose 189.14 points to hit a new all time high of 35,700 while the Nifty 50 gained 31.75 points to clock a fresh record of 10,926,” he added.
On Friday, positive global cues, coupled with upbeat quarterly corporate earnings and healthy buying in banking stocks, propelled the key indices to close at new record highs.
The Nifty50 closed at 10,894.70 points, while the Sensex closed at 35,511.58 points.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Bargain hunting by investors after previous two session’s losses lifted the key Indian equity indices on Thursday, with the BSE Sensex gaining over 300 points and the NSE Nifty50 closing firmly above the 10,100 level.
According to market observers, robust buying in auto, consumer durables and capital goods stocks lifted the benchmark indices.
On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) edged higher by 122.60 points or 1.22 per cent to 10,166.70 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,949.21 points — up 352.03 points or 1.08 per cent — from its previous close.
The BSE market breadth was bullish — 1,860 advances and 818 declines.
“Markets bounced back strongly on Thursday after the sell-off seen in the previous session. Investors seemed to be bargain buying after the recent fall. A sharp fall in oil prices in global commodities market yesterday (Wesdnesday) also boosted market sentiments,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Technically, while the Nifty has bounced back smartly, the underlying trend remained down. The Nifty would need to cross the previous intermediate high of 10,410 to reverse the current downtrend,” he added.
In the broader markets, the S&P BSE mid-cap index closed higher by 1.38 per cent and the small-cap index by 1.29 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market smartly recouped from the yesterday’s losses which were triggered by Reserve Bank of India’s (RBI) hawkish policy and weakness in global market. However, RBI reiterating an economic growth of 6.7 per cent for FY18 uplifted the sentiment.
“Upcoming state election in Gujarat and rupee movement against dollar ahead of US tax reform will be keenly watched for further momentum in the market.”
On the currency front, the rupee weakened by 4-5 paise at 64.57-56 against the US dollar from its previous close at 64.52.
All the 19 sub-indices of the BSE ended in the positive territory, led by the S&P BSE consumer durables index, which augmented by 523.55 points, followed by auto index by 488.19 points and capital goods index by 378.66 points.
Major Sensex gainers on Thursday were: Bharti Airtel, up 6.08 per cent at Rs 513.35; Asian Paints, up 3.29 per cent at Rs 1,140.50; Maruti Suzuki, up 3.26 per cent at Rs 8,881.10; Tata Steel, up 2.97 per cent at Rs 687.90; and Bajaj Auto, up 2.78 per cent at Rs 3,195.
Major Sensex losers were: Coal India, down 0.64 per cent at Rs 263.30; Tata Consultancy Services, down 0.52 per cent at Rs 2617.65; Cipla, down 0.50 per cent at Rs 592.50; Wipro, down 0.34 per cent at Rs 281.35; and Sun Pharma, down 0.26 per cent at Rs 510.20.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key Indian equity indices on Wednesday scaled record highs yet again as positive global cues, coupled with a strong rupee and robust buying activities in banking, metals and FMCG stocks, gave a boost to investor sentiments.
According to market observers, expectations of upbeat quarterly results, as well as the latest report that India for the first time has moved into the top 100 in the World Bank’s Ease of Doing Business global rankings riding on sustained government reforms, added to the upward trajectory of the indices.
Both the indices breached their earlier record levels, both on closing and intra-day basis, scaled on October 30.
The broader Nifty50 of the National Stock Exchange (NSE) breached the 10,400-mark for the first time and stayed above that level on closing basis.
The Nifty50 rose by 105.20 points, or 1.02 per cent, to close at a fresh high of 10,440.50 points — cracking its earlier closing high level of 10,363.65 points.
On an intra-day basis, the Nifty50 scaled a new high of 10,451.65 points, surpassing its previous high of 10,384.50 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE too closed at a fresh high of 33,600.27 points — surging 387.14 points or 1.17 per cent — higher than its earlier record closing at 33,266.16 points.
The Sensex touched a high of 33,651.52 points during intra-day trade, breaching its previous record high of 33,340.17 points.
The BSE market breadth was bullish — 1,516 advances and 1,274 declines.
“The Nifty closed above the 10,400 level for the first time. Banking and telecom stocks were in limelight. The Nifty witnessed a gap-up opening before touching new life highs as the session progressed,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Market sentiments were boosted by the latest World Bank report, which elevated India by 30 notches at 100 in the World Bank’s Ease of Doing Business rankings. Positive global cues also supported the rally,” he added.
The broader market indices underperformed the BSE Sensex. The S&P BSE mid-cap index closed higher by 0.35 per cent and the small-cap index by 0.55 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market extended gain on account of continued buying in banks in expectation of credit growth and negating the concern on premium valuation. Telecom stocks are gaining positive sentiment in view of attaining attractive competition after tariff revision by key players.”
“Further, positive global cues and expectation of unchanged policy outcome from today’s (Wednesday’s) FED meet is providing a better way to the domestic market.”
On the currency front, the rupee strengthened by 15-16 paise to close at 64.59-60 against the US dollar from its previous close at 64.75.
“The benchmark indices ended the day at record highs on Wednesday after the index heavyweight Bharti Airtel hit its highest in nearly a decade post its September quarter numbers. Traders await the start of central bank meetings and the nomination of the next Fed chair,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Strong moves on banks — PSUs and private — along with metals, FMCG, and infrastructure stocks also added to the sentiment,” he added.
Sector-wise, the S&P BSE banking index surged by 568.76 points, followed by metal index by 277.96 points and FMCG index by 136.20 points.
On the other hand, the S&P BSE consumer durables index fell by 112.86 points, automobile index by 52.03 points and healthcare index by 22.92 points.
Major Sensex gainers on Wednesday were: Bharti Airtel, up 8.19 per cent at Rs 538.40; State Bank of India, up 4.58 per cent at Rs 319.80; ICICI Bank, up 4.42 per cent at Rs 313.20; HDFC, up 2.58 per cent at Rs 1,751.35; and Axis Bank, up 2.05 per cent at Rs 533.75.
Major Sensex losers were: Dr Reddy’s Lab, down 2.90 per cent at Rs 2,360.90; Power Grid, down 1.06 per cent at Rs 210.50; Hero MotoCorp, down 0.99 per cent at Rs 3,816.45; Sun Pharma, down 0.89 per cent at Rs 548.45; and Bajaj Auto, down 0.60 per cent at Rs 3,240.50.
—IANS
by admin | May 25, 2021 | Economy, Investing, Markets, News
Mumbai : Better-than-expected macroeconomic data boosted investors’ sentiment, which helped key Indian equity indices to touch a record high on Monday.
The 30-scrip Sensitive Index (Sensex) was trading 122.17 points or 0.38 per cent higher during the afternoon trade.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading 39.45 points or 0.39 per cent higher at 10,206.90 points.
The Sensex of the BSE, which opened at 32,488.23 points, was trading at 32,554.86 points (at 1.54 p.m.), higher 122.17 points or 0.38 per cent from Friday’s close at 32,432.69 points.
The Sensex touched a high of 32,687.32 points and a low of 32,445.43 points in the trade so far.
“India’s benchmark Sensex and Nifty indices on Monday hit an all-time high after better-than-expected macroeconomic data boosted investor confidence. BSE Sensex rose 192.38 points, or 0.59 per cent, to 32,625.07, while the Nifty 50 gained 64.35 points, or 0.63 per cent, to 1″,231.80,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
Cooling of food prices helped ease India’s annual rate of inflation based on the Wholesale Price Index (WPI) in September to 2.6 per cent, official data showed on Monday.
According to data released by the Commerce Ministry, the WPI, with the revised base year of 2011-12, eased from 3.24 per cent in August. The wholesale inflation rate was at 1.36 per cent during Sepetember 2016.
“The rate of inflation based on WPI Food Index consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group decreased from 4.41 per cent in August to 1.99 per cent in September,” the statement said.
—IANS
