by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : A global sell-off along with caution ahead of the Assembly election results and a rise in crude oil prices suppressed the key Indian equity indices deep into the red on Monday.
At the end of the day’s trade, the Nifty50 on the National Stock Exchange (NSE) fell below the 10,500 mark and the S&P BSE Sensex climbed down from the psychologically significant level of 35,000 points.
In the initial trade hours, the key indices – the S&P BSE Sensex and NSE Nifty50 – had a gap-down opening and subsequently shed over 750 points and 215 points each on an intra-day low basis.
The Nifty was dragged lower due to weakness in index pivotals Reliance Industries, Kotak Mahindra Bank, HDFC and Infosys.
Market observers said that caution prevailed before the outcome for the Assembly election results which will be known on Tuesday in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram.
Exit polls say the Bharatiya Janata Party is facing a tough challenge. The elections are seen as a crucial indicator of public mood before the Lok Sabha elections in 2019.
In global markets, crude oil prices rose on Monday after the Organization of Petroleum Exporting Countries and Russia on Friday agreed to reduce supplies from January 2019.
In addition, there was a spike in trade war concerns after China on Sunday summoned US Ambassador Terry Branstad over the US arrest warrant for Huawei’s global CFO Meng Wanzhou, who was taken into custody in Canada last week.
Major Asian markets closed on a negative note while European indices like FTSE 100, DAX and CAC 40 traded in the red.
Index-wise, wider NSE Nifty50 closed lower by 205.25 points or 1.92 per cent to 10,488.45 points.
The barometer 30-scrip Sensitive Index (Sensex), which opened at 35,204.66 points, closed at 34,959.72 points — lower by 713.53 points or two per cent — from its previous session’s close of 35,673.25 points.
It touched an intra-day high of 35,246.97 and a low of 34,915.77 points.
“Markets ended with hefty losses on Monday as selling pressure continued during the day after a weak opening. The weakness came on the back of weak global cues amid rising tensions between the US and China as well as disappointing Chinese trade data for November,” said HDFC Securities Retail Research Head Deepak Jasani.
Said Geojit Financial Services Head of Research Vinod Nair: “Investor’s sentiment turned fragile due to worries over slowing global growth and caution ahead of the final outcome of state elections.”
“Unfavourable exit poll results for the ruling party has impacted the sentiment of the market,” Nair told IANS.
On the currency front, the Indian rupee weakened to 71.34 against the US dollar from its previous close of 70.81 on last Friday.
In terms of investment, provisional data from the BSE showed that foreign Institutional Investors (FII) bought stocks worth Rs 116.22 crore, whereas the Domestic Institutional Investors (DII) sold shares worth Rs 145.80 crore,
Sector-wise, there were no gainers on the BSE.
On the other hand, the S&P BSE banking index plunged 605.06 points, the capital goods index fell 373.31 points and the consumer durables index was down 262.46 points.
The top gainers on the Sensex were Coal India, up 0.76 per cent, at Rs 238.60 and Maruti Suzuki, up 0.49 per cent, at Rs 7,350.10.
In contrast, the major Sensex losers were Kotak Mahindra Bank, down 6.56 per cent, at Rs 1,198.15; Reliance Industries, down 3.95 per cent, at Rs 1,088.50; Adani Ports, down 3.85 per cent, at Rs 359.35; Asian Paints, down 3.48 per cent, at Rs 1,272.70; and Tata Motors, down 3.45 per cent, at Rs 156.85.
Other major companies that slipped during the day’s trade were Tata Motors DVR, down 3.25 per cent, at Rs 86.25; Bharti Airtel, down 3.16 per cent, at Rs 294.30; Sun Pharma, down 3.03 per cent, at Rs 398.85; Larsen and Toubro, down 2.29 per cent, at Rs 1,366.45; and HDFC, down 2.21 per cent, at Rs 1,909.20 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rahul Agarwal,
Market volatility is not a friend of the average retail investor; generally, ordinary investors do not have the patience to stay invested when markets behave irrationally or when they witness steep corrections.
At the time of the 2008 financial crisis, the Nifty50 had lost more than 50 per cent in a single year and eroded wealth of most of the investors as they scrambled to exit in panic and booked huge losses in the process. The markets made a sharp recovery the following year when the Nifty returns were approximately 75 per cent. At its bottom in October 2008, the Nifty50 had touched 3,096 whereas it today stands at 10,650, which amounts to an absolute return of approximately 240 per cent.
Several good quality stocks which were beaten down black and blue at that time are up multifold times from those levels.
This is indicative of a typical market cycle, witnessing a few extremely good years followed by a bad year then possibly a very bad year. It’s not uncanny and it’s the reflection of the boom-bust cycles of the economy. If an investor gets caught up in the vortex of volatility and ends up exiting his/her positions at the wrong time he/she not only books huge losses but also misses out on the opportunity of making handsome gains when the market recovers.
The proven strategy to generate wealth in equity market is to””Buy Right, Sit Tight”. “Buy Right” equates to buying the right companies or good quality names at a reasonable price and “Sit Tight” means staying invested in them for a long time to realise the full growth potential of the stocks and to not get bogged down by the volatility in the markets.
When markets are in correction mode, there are opportunities where good quality names are available at deep discounts. Investors should take advantage of these situations to either create a long-term portfolio and obtain good quality stocks at a discounted price.
Take, for instance, HDFC. An investor who bought HDFC bank during the market correction in 2008 would be sitting on a 900 per cent gain (excluding dividend, bonus and split) in a 10-year time-frame. This is just one example. There are numerous other names where investors who were brave enough to handle the market volatility at that time made some astounding returns on their investments.
It is important to remember that investors have to take some degree of risk while investing in the equity markets and only in the long term can one extract the true value of their portfolios. Short-term volatility or market corrections are bound to happen during an investment life cycle, the key to success is to invest in good quality names and ignore the short-term noise.
There is, however, a word of caution that investors need to be cognisant of — buying right and sitting tight does not mean that investors turn a blind eye to their investment portfolios. A portfolio should be monitored at regular intervals — and if things have materially changed, affecting the investment thesis for a particular stock, then one should not sit tight or do nothing. An immediate remedy in these situations is to exit the particular stock, even if it means incurring losses.
(Rahul Agarwal is Director of Wealth Discovery/EZ Wealth. The views expresssed are personal. He can be contacted at rahul@wealthdiscovery.in )
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Latest global trade protectionist measures, along with high crude oil prices and a depreciation in rupee’s value, dragged the Indian equity market in the red for a second consecutive session on Tuesday.
Sector-wise, heavy selling pressure was witnessed in the interest sensitive stocks like banking, auto and capital goods.
Index-wise, the wider NSE Nifty50 provisionally closed at 11,278.90 points, lower by 98.85 points or 0.87 per cent from the previous close of 11,377.75 points.
The S&P BSE Sensex, which had opened at 37,660.19 points, provisionally closed at 37,290.67 points, lower by 294.84 points or 0.78 per cent from the previous close of 37,585.51 points.
It touched a high of 37,745.44 points and a low of 37,242.85 during the day’s trade.
“Carrying on from Monday, markets continued to dive on Tuesday to close in the red for the second consecutive session. The Nifty had in fact opened on a positive note, but selling soon resumed and pulled the index lower,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“The weakness came on the back of rising global trade tensions after (US President Donald) Trump said he will impose tariffs on an additional $200 billion worth of Chinese imports, escalating the trade conflict.”
According to Vinod Nair, Head of Research, Geojit Financial Services: “Selling pressure increased on the bourses due to spike in oil prices led by factors like implication of US sanction on Iran and supply constraints.
“Domestic triggers failed to add momentum despite ease in inflation, government policies to contain CAD and consolidation in PSUBs. This situation will ease once the global bond and currency market stabilise which is currently under pressure given the chaos over oil and Fed rate hike.”
On the currency front, the Indian rupee closed at 72.98, weakening 47 paise from its previous close of 72.51 per greenback.
Investment-wise, provisional data with the exchanges showed that foreign institutional investors sold scrip worth Rs 1,143.73 crore and domestic institutional investors bought stocks worth Rs 264.66 crore.
Sector-wise, only FMCG stocks on the BSE ended in the green, gaining 102.11 points.
On the other hand, the S&P BSE banking index lost 510.20 points, the auto index was down 353.54 points and the capital goods ended 250.56 points lower from its previous close.
The top gainers on the Sensex were Hindustan Unilever, up 3.87 per cent at Rs 1,666.15; Yes Bank, up 1.43 per cent at Rs 323.15; Wipro, up 1.02 per cent at Rs 332.50; ONGC, up 0.93 per cent at Rs 173.35; and ITC, up 0.23 per cent at Rs 302.60 per share.
The losers were State Bank of India, down 4.06 per cent at Rs 274; Tata Motors, down 3.36 per cent at Rs 251.45; Bajaj Auto, down 2.84 at Rs 2,775.90; Axis Bank, down 2.81 per cent at Rs 608.45; Tata Motors(DVR),down 2.45 per cent at Rs 137.55 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Broadly negative global cues such as high crude oil prices and concerns over escalation in global protectionist measures coupled with a weak rupee depressed the Indian equity markets on Tuesday.
According to market observers, heavy selling pressure was witnessed in consumer durables, banking and auto stocks.
Index-wise, the Nifty50 on the National Stock Exchange (NSE) closed at 11,520.30 points, lower 62.05 points or 0.54 per cent from its previous close of 11,582.35 points.
Similarly, the barometer S&P BSE Sensex closed in the negative territory. It had opened at 38,460.96 points, closed at 38,157.92 points, lower by 154.60 points or 0.40 per cent from the previous close of 38,312.52 points.
The Sensex registered an intra-day high of 38,518.56 points and a low of 38,098.60 points during the day’s trade.
“Selling continued at Dalal Street as the markets corrected further on Tuesday to end in negative territory for the second consecutive session,” said Deepak Jasani, Head of Retail of Research, HDFC Securities.
“Major Asian markets have closed on a positive note barring the Jakarta and Nikkei indices. European indices like FTSE 100, DAX and CAC 40 traded in the red.”
Geojit Financial Services’ Head of Research, Vinod Nair, said: “Continued weakness in currency and surge in oil price dragged the indices to a consolidation.
“Additionally, concerns on widening deficit and inflation trajectory led domestic bond yield to break 8 per cent mark. Weak global market on account of trade tensions further steered the investor’s sentiment.”
On the currency front, the Indian rupee crashed to close at a record low of 71.58 against the US dollar, weaker by 37 paise than its previous close of 71.21 per greenback.
Investment-wise, provisional data with exchanges showed that foreign institutional investors bought scrips worth Rs 32.64 crore and domestic institutional investors sold stocks worth Rs 21.41 crore.
Sector-wise, only the S&P BSE Teck (technology, entertainment and media) index was in the positive, up by 102.11 points.
In contrast, the S&P BSE consumer durables index declined by 562.61 points, the banking index fell by 443.96 and auto stocks ended 434.70 points lower than its previous close.
In a major stock-wise development, market capitalisation (m-cap) of Tata Consultancy Services (TCS) crossed Rs 8 lakh crore for the first time. It is the second company to reach the landmark level after Reliance Industries.
The m-cap of TCS closed at Rs 8.01 crore on the BSE. Share price of TCS on the BSE Sensex closed at Rs 2,093.20 higher by Rs 38.25 or 1.86 per cent from its previous close.
The top gainers at the Sensex were Infosys up 2.64 per cent at Rs 735.65, TCS up 1.86 per cent at Rs 2,093.20; Wipro, up 1.42 per cent at Rs 313.55; Axis Bank, up 1.39 per cent at Rs 640.50, and Reliance Industries, up 0.97 per cent at Rs 1,242.35.
The majors losers were Asian Paints, down 3.49 per cent at Rs 1,312.05; State Bank of India, down 3.20 per cent at Rs 296.60; Hindustan Unilever, down 2.80 per cent at Rs 1,651.40; Coal India, down 2.61 per cent at Rs 279.95 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Trade-war concerns and the resultant weak global sentiments subdued the key Indian equity indices on Friday, halting the recent record run.
Of late, the Indian equity market has been hovering around record levels, and on Thursday both the key indices of S&P BSE Sensex and the NSE Nifty50 had touched their respective all-time intra-day and closing highs.
On Friday, however, sentiments in both the domestic and global markets were subdued as China and the US could not achieve a major breakthrough in their latest round of talks. Rather, the trade war escalated on Thursday as both the countries enforced 25 per cent tariffs on each other’s goods worth $16 billion.
Index-wise, the wider Nifty50 on the National Stock Exchange closed at 11,557.10 points, down by 25.65 points or 0.22 per cent from its previous close of 11,582.75 points.
The benchmark BSE Sensex, which had opened at 38,366.79 points, closed at 38,251.80 points, lower by 84.96 points or 0.22 per cent from its previous close of 38,336.76 points. It touched an intra-day low of 38,172.77 points.
In the broader markets, the S&P BSE Mid-cap declined by 0.26 per cent and the S&P BSE small-cap ended 0.34 per cent lower than its previous close. The BSE market breadth was bearish with 1,569 declines and 1,140 advances.
“Sentiments turned sour after it became evident that there will be no major progress with respect to the ongoing trade conflict between China and the US,” said Abhijeet Dey, Senior Fund Manager for Equities at BNP Paribas Mutual Fund.
On the currency front, the Indian rupee opened on a weak note but recoverd to settle at 69.91 per dollar, 21 paise stronger than its previous close of 70.12 per dollar.
Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrips worth Rs 75.78 crore whereas domestic institutional investors purchased stocks worth Rs 904.75 crore.
Sector-wise, the S&P BSE metal index rose 249.30 points, the oil and gas index 63.98 points and the healthcare index 55 points.
In contrast, the S&P BSE banking index declined 254.91 points, the consumer durable index fell 172.66 points and auto index ended 112.52 points lower from its previous close.
The top gainers on the Sensex were Vedanta, up 4.26 per cent at Rs 223.95; ONGC, up 1.83 per cent at Rs 174.90; Axis Bank, up 1.23 at Rs 639.60; Wipro, up 0.97 per cent at Rs 292.30; and Mahindra and Mahindra, up 0.74 per cent at Rs 968.80 per share.
The majors losers were Yes Bank, down 3.52 per cent at Rs 374.65; Hero Motocorp, down 2.08 per cent at Rs 3,212.60; ICICI Bank, down 2.02 per cent at Rs 330.10; Adani Port, down 1.98 per cent at Rs 376.20 per share; and Indus Bank, down 1.57 per cent at Rs 1,927.25 per share.
—IANS
