by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Upbeat quarterly corporate earnings along with influx of foreign funds and major decisions undertaken by the government during the week catapulted the key Indian equity indices — the Sensex and the Nifty50 — to record high levels.
The benchmark indices extended their bull run for the seventh consecutive week with banking and IT stocks giving a major thrust to the upward trajectory, said market observers.
The barometer 30-scrip Sensitive Index (Sensex), which crossed the psychologically important 35,000-mark during the week, augmented by a substantial 919.19 points or 2.66 per cent to close at a fresh level of 35,511.58 points.
The wider Nifty50 of the National Stock Exchange (NSE) crossed the 10,900-points-level for the first time this week.
However, the Nifty50 failed to sustain that level at the closing on Friday. The index closed trade at a fresh high of 10,894.70 points — up 213.45 points, or 2 per cent, from its previous week’s close.
The indices also touched their new 52-week highs. On Friday, the Sensex scaled a fresh intra-day high of 35,542.17 points and the Nifty50 of 10,906.85 points.
“The recent rally was undoubtedly dominated by the technology and banking space. The banking stocks got lured on Thursday after the news that the government is mulling allowing 100 per cent FDI (foreign direct investment) in the sector,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
On the global front, stock markets across the globe rallied on the back of optimism in the US economy and expectations for a strong earnings season, Aggarwal said.
“Investors’ interest resumed in the market again after the Goods and Services Tax (GST) Council announced cut in the tax rate on 29 goods and 54 categories of services,” Arpit Jain, AVP at Arihant Capital Markets, told IANS.
“Encouraging Q3 FY18 results by blue-chip firms like HDFC Bank and ITC added to the cheer,” he said.
In a major decision on Thursday, the GST Council slashed the rates on 54 services and 29 items, including old and used motor vehicles, public transport buses run on bio-fuel, sugar-boiled confectionery and packaged water, which cheered investors.
On the investment side, provisional figures from the stock exchanges showed that foreign institutional investors purchased scrips worth Rs 4,234.46 crore, while domestic institutional investors divested stocks worth Rs 698.65 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors bought equities worth Rs 3,596.2 crore, or $563.3 million, during January 15-19.
“The announcement of the Ministry of Finance that the government will reduce the additional borrowing of dated securities for FY18 to Rs 200 billion from Rs 500 billion that was earlier announced helped alleviate some of the uncertainty,” Shibani Kurian, Senior Vice President and Head of Equity Research, Kotak Mutual Fund, told IANS.
“The government has reassessed its additional borrowing requirements, taking note of revenue receipts and expenditure patterns,” added Kurian.
On the currency front, the rupee weakened by 22 paise to close at 63.85 against the US dollar from its last week’s close at 63.63.
“Sectorally, the top gainers were the Bank Nifty, IT, PSU banks and FMCG indices. The top losers were the realty, metal and energy indices,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
The top weekly Sensex gainers were: ICICI Bank (up 11.32 per cent at Rs 353.55); HDFC (up 7.90 per cent at Rs 1,900.45); Tata Consultancy Services (up 6.56 per cent at Rs 2,954.75); Axis Bank (up 6.21 per cent at Rs 590.25); and Infosys (up 6.01 per cent at Rs 1,143.25).
The losers were: Coal India (down 7.65 per cent at Rs 284.45); Tata Motors (down 3.94 per cent at Rs 418.95); Tata Motors (DVR) (down 3.39 per cent at Rs 243.95); ONGC (down 3.32 per cent at Rs 193.60); and Hero MotoCorp (down 2.58 per cent at Rs 3,590.75).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Extending gains for the third consecutive session, the key Indian equity indices on Friday zoomed to new highs, with the NSE Nifty50 crossing the psychologically important 10,900-mark for the first time.
According to market observers, positive global cues, coupled with upbeat quarterly corporate earnings and healthy buying in banking stocks, gave momentum to the upward rally of the key indices.
In addition, the Goods and Services Tax (GST) Council’s decision on Thursday to slash the GST rate on 54 services and 29 items, including old and used motor vehicles, public transport buses run on bio-fuels, sugar-boiled confectionery and packaged water, cheered investors.
The wider Nifty50 of the National Stock Exchange (NSE) touched a record intra-day high of 10,906.85 points.
However, the Nifty50 failed to sustain the 10,900-mark and closed at a new high of 10,894.70 points — higher by 77.70 points, or 0.72 per cent, from its previous close.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex) provisionally closed at a new high of 35,511.58 points — up 251.29 points or 0.71 per cent from its previous session’s close — after touching a fresh high of 35,542.17 points during intra-day trade.
In contrast, the BSE market breadth remained bearish as 1,506 stocks declined as compared to 1,393 advances.
“Markets surged higher in late afternoon trade to yet another new record high after opening on a negative note,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Sentiments were boosted on the back of firmness in global markets and slashing the tax rate on 54 services and 29 items by the GST council in its latest meet and also the proposal for simplifying return filing process for businesses,” he added.
In the broader markets, the S&P BSE mid-cap index fell sharply to close higher by 0.77 per cent and the small-cap index by 0.88 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “The government’s decision to cut GST rate for a few more items and a good start to earnings season added energy in the market.
“The market is anticipating a sea change in the earnings with a growth of 15-20 per cent in PAT (profit after tax) led by revamp in businesses and low base effect. Moreover, positive trend in global market and drop in crude prices influenced buying pattern.”
On the currency front, the Indian rupee strengthened by three paise to close flat at 63.85 against the US dollar.
Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 988.25 crore, and the domestic institutional investors worth Rs 209.86 crore.
“Markets ended with spectacular record highs and closed in green for the third straight time, led by financial stocks. Both indices posted their seventh consecutive weekly gains,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
All the 19 sub-indices of the BSE ended with gains. The S&P BSE banking index surged the most — up 456.01 points — followed by capital goods index by 183.62 points and metals index by 137.48 points.
Major Sensex gainers on Friday were: Adani Ports, up 4.68 per cent at Rs 433.75; Yes Bank, up 2.37 per cent at Rs 348.30; ICICI Bank, up 2.15 per cent at Rs 353.55; State Bank of India, up 2.08 per cent at Rs 309.05; and Tata Consultancy Services, up 1.53 per cent at Rs 2,954.75.
Major Sensex losers were: Infosys, down 0.82 per cent at Rs 1,143.25; Sun Pharma, down 0.74 per cent at Rs 572; Power Grid, down 0.61 per cent at Rs 196; Maruti Suzuki, down 0.40 per cent at Rs 9,321.35; and ONGC, down 0.23 per cent at Rs 193.60.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Domestic macro-economic data indicating easing inflation, coupled with an optimism surrounding quarterly corporate earnings, pushed the key Indian equity indices to record high levels, with the NSE Nifty50 index crossing the 10,700-mark for the first time.
The Sensex and the Nifty50 touched fresh closing as well as intra-day highs as investors’ sentiments were lifted by positive Asian cues, along with a strong rupee and healthy buying in banking, consumer durables and finance stocks, added market observers.
The wider Nifty50 of the National Stock Exchange (NSE) scaled a new intra-day high level of 10,782.65 points.
The Nifty50 rose by 60.30 points or 0.56 per cent to close at a fresh level of 10,741.55 points.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex) surged over 300 points to touch a new high of 34,963.69 points on an intra-day basis.
The Sensex closed at a record high of 34,843.51 points — up 251.12 points or 0.73 per cent — from its previous session’s close.
The BSE market breadth remained bullish as 1,547 stocks advanced as compared to 1,387 declines.
“Markets surged higher on Monday with the Nifty touching a new record high of 10,783. Selling pressure, however, emerged from these highs which saw the Nifty losing some of its morning gains,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Both the Sensex and the Nifty hit record highs on intra-day as well as closing basis. Major Asian markets have closed on a positive note, barring the Shanghai and Hang Seng indices, while the European indices like FTSE 100, DAX and CAC 40 traded in the red,” Jasani said.
In the broader markets, the S&P BSE mid-cap index closed a tad lower by 0.04 per cent, while the small-cap index closed higher by 0.27 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market rallied to a new high in line with the start of third quarter earnings season and ease in WPI (Wholesale Price Index) inflation to 3.58 per cent despite rise in CPI (Consumer Price Index) inflation supported the sentiment.”
Official data released during the market hours showed that lower food prices pulled India’s annual rate of inflation based on wholesale prices to a three-month low of 3.58 per cent in December from 3.93 per cent in November.
“Bank Nifty led from the front owing to encouraging growth in industrial activity which raised the expectation for credit cycle improvement, while healthy domestic liquidity and strong rupee kept the direction intact,” Nair added.
On the currency front, the Indian rupee strengthened by 14 paise to close at 63.49 against the US dollar from its previous close at 63.63.
Sectorwise, the S&P BSE banking index surged by 364.85 points, followed by consumer durables index by 268.24 points and finance index by 96.89 points.
On the other hand, the S&P BSE auto index slipped by 235.20 points, oil and gas index by 114.15 points and capital goods index by 64.32 points.
Major Sensex gainers on Monday were: HDFC, up 6.17 per cent at Rs 1,869.95; ICICI Bank, up 3.73 per cent at Rs 329.45; Kotak Bank, up 1.94 per cent at Rs 1,039.15; Tata Steel, up 1.58 per cent at Rs 783.20; and HDFC Bank, up 1.55 per cent at Rs 1,894.65.
Major Sensex losers were: Tata Motors (DVR), down 2.50 per cent at Rs 246.20; ONGC, down 1.85 per cent at Rs 196.55; Hero MotoCorp, down 1.57 per cent at Rs 3,627.75; IndusInd Bank, down 1.41 per cent at Rs 1,681.50; and Yes Bank, down 1.38 per cent at Rs 335.95.
—IANS
by admin | May 25, 2021 | Economy, Finance, Investing, Markets, News
By Porisma P. Gogoi,
Mumbai : Consistent investments by domestic institutions propelled the key Indian equity indices — the Sensex and the Nifty50 — to close the week’s trade at record high levels, continuing their winning streak for the sixth consecutive week.
Despite some volatility, the benchmark indices moved higher riding on optimism surrounding the ongoing earnings season, market observers said.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) surged by 438.54 points or 1.28 per cent to close Friday’s trade at a fresh level of 34,592.39 points.
The wider Nifty50 of the National Stock Exchange (NSE) crossed the 10,600-points-level for the first time this week.
The Nifty50 closed trade at a fresh high of 10,681.25 points, up 122.4 points or 1.16 per cent from its previous week’s close.
The indices also touched their new 52-week highs. On Friday, the Sensex scaled a fresh intra-day high of 34,638.42 points and the Nifty50 of 10,690.25 points.
“With the constant inflow of funds in the domestic market, markets moved higher on optimism surrounding corporate earnings amid mixed global cues,” D. K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
During the week, two global software majors — Tata Consultancy Services (TCS) and Infosys — came out with their earnings for the third quarter of 2017-18.
While TCS reported 4 per cent annual decline in consolidated net profit to Rs 6,545 crore for the period under review, Infosys’ net profit was reported at a record 38 per cent annually in rupee terms.
“Continuous buying by domestic institutional investors (DIIs) and expectation of recovery in this earnings season led to the rise in indices. Domestic institutions bought shares worth Rs 1,446 crore in the past 10 sessions,” Arpit Jain, AVP at Arihant Capital Markets, told IANS.
Provisional figures from the stock exchanges showed that DIIs purchased stocks worth Rs 2,383.11 crore during the week, while foreign institutional investors (FIIs) sold 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.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Liquidity from FIIs and DIIs continues to support domestic market sentiments. On the global front, strong global metal prices and rising crude prices continue attract positive investor sentiments.”
“Further, US investors remained optimistic on strong economic growth outlook led by better than expected quarterly earnings,” Nair added.
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.
In another economic development, the Union Cabinet this week opened up Air India for foreign investors and brought in changes in key sectors by allowing 100 per cent foreign investment in single brand retail and construction development through the automatic route.
“Besides spurring growth in the economy, this step is likely to contribute to growth of investment, income and employment,” Aggarwal said.
“Sectorally, the top gainers were the realty, IT, media and metal indices. The top losers were the PSU bank, infra and auto indices,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
The top weekly Sensex gainers were: Coal India (up 9.96 per cent at Rs 306.50); Infosys (up 6.21 per cent at Rs 1,075); Wipro (up 3.13 per cent at Rs 319.45); Tata Consultancy Services (up 2.78 per cent at Rs 2,759); and Reliance Industries (up 2.26 per cent at Rs 943.85).
The losers were: Bharti Airtel (down 6.06 per cent at Rs 507.30); Bajaj Auto (down 3.43 per cent at Rs 3,165.25); NTPC (down 2.40 per cent at Rs 173.10); Hero MotoCorp (down 1.91 per cent at Rs 3,668); and Power Grid (down 1.79 per cent at Rs 197.30).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The key Indian equity indices — Sensex and Nifty50 — slipped from record highs to close in the red on Friday as investors turned cautious ahead of the start of the quarterly earnings result season on January 11.
IT major Tata Consultancy Services (TCS) is expected to be the first blue-chip company to come out with its third quarter results on January 11, followed by Infosys on Friday.
According to market observers, broadly negative global cues and heavy selling pressure in consumer durables, auto and banking stocks added to the downward trajectory of the key indices.
On a closing basis, the wider Nifty50 of the National Stock Exchange (NSE) edged lower by 4.80 points or 0.05 per cent to 10,632.20 points.
The barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE), which opened at a record high level of 34,538.78 points, touched a fresh high of 34,565.63 points on an intra-day basis.
The Sensex closed at 34,433.07 points — down 10.12 points or 0.03 per cent — from its previous session’s close.
The BSE market breadth was bearish as 1,629 stocks declined as compared to 1,299 advances.
“Markets traded in a narrow range on Wednesday before finally closing with marginal losses,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Major Asian markets have closed on a negative note, barring the Shanghai and Hang Seng indices. European indices like DAX and CAC 40 traded in the red,” Jasani said.
In the broader markets, the S&P BSE mid-cap index closed lower by 0.31 per cent and the small-cap index by 0.04 per cent.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, caution prevailed in the equity markets ahead of the corporate results season kicking in towards the end of the week.
“Benchmark indices gave up gains as investors remained cautious ahead of key corporate earnings later this week and the federal budget next month,” Desai told IANS.
On the currency front, the Indian rupee strengthened by 12 paise to close at 63.59 against the US dollar from its previous close at 63.71.
Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 572.26 crore, while the domestic institutional investors purchased stocks worth Rs 600.24 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Investors turned little nervous ahead of earnings season, while IT index outperformed on account of relief from US H1B visa norms and expectation of positive outlook helped to recoup the losses.”
Sectorwise, the S&P BSE auto index declined by 180.37 points, followed by consumer durables index by 156.80 points and banking index by 90.67 points.
On the other hand, the S&P BSE IT index rose by 209.76 points, Teck index by 93.70 points and realty index by 31.55 points.
Major Sensex gainers on Wednesday were: TCS, up 3.64 per cent at Rs 2,807.10; Wipro, up 2.66 per cent at Rs 326.05; Coal India, up 1.33 per cent at Rs 308.10; Adani Ports, up 1.05 per cent at Rs 423.75; and Infosys, up 0.99 per cent at Rs 1,051.60.
Major Sensex losers were: Dr Reddy’s Lab, down 1.45 per cent at Rs 2,422.80; Tata Motors (DVR), down 1.31 per cent at Rs 253.20; NTPC, down 1.25 per cent at Rs 173.95; Asian Paints, down 1.22 per cent at Rs 1,177.40; and Bajaj Auto, down 1.10 per cent at Rs 3,205.35.
—IANS
