by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Signs of easing Indo-Pak tensions and expectations of a breakthrough in US-China trade talks buoyed the Indian equity market on Friday, snapping a three-day losing streak.
Additionally, expectations of a further lending rate cut by the RBI to prop-up growth and healthy buying in small and mid-cap stocks, supported the upward movement of key indices.
In terms of sectors, all indices gained except for telecom. Healthy buying was seen in the index pivotals — finance and banking — stocks.
Consequently, the S&P BSE Sensex closed 196.37 points or 0.55 per cent higher at 36,063.81 points, while the NSE Nifty ended 71 points up at 10,863.50 points.
“Market rallied as cues on ease in border tensions and expectation of US-China trade agreement uplifted the sentiment. Outperformance was seen in bank, small and mid-caps in expectation of a rate cut from the RBI, after a slowdown in GDP growth in the third quarter,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Investors are gradually churning their portfolios to high quality small and midcaps, where valuation looks attractive.”
Stock-wise, Bharti Airtel, Asian Paints, Bajaj-Auto, Axis Bank and Reliance Industries were the only scrips that ended lower.
On the other hand, Stocks of Tata Motors (DVR), IndusInd Bank, Yes Bank, Vedanta and HeroMoto Corp gained in the range of 1 to 3 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : A strengthening rupee and easing US-China trade tension boosted investor sentiments on Monday leading to a healthy rise in the key equity indices, with the BSE Sensex advancing over 340 points and the Nifty closing higher at 10,880.
Global markets reacted positively after US President Donald Trump on Sunday said that he would be delaying the increase in tariffs scheduled for March 1.
“Assuming both sides make additional progress, we will be planning a summit for President Xi (Jinping) and myself,” Trump said in a tweet.
The Sensex ended 341.90 points or 0.95 per cent higher at 36,213.38 from its previous close of 35,871.48, while the Nifty ended with a gain of 88.45 points or 0.82 per cent at 10,880.10.
Among the sectors, Deepak Jasani of HDFC Securities said, the Banks, IT and sugar stocks were in favour, while Realty index fell despite the GST relief granted over the weekend.
Nifty closed at its highest in 10 sessions as global cues remained favourable and gains in Chinese markets denoted a bull market after rising more than 20 per cent from the lows of January 2019, Jasani added.
“…government’s reforms and strengthening rupee is boosting investor sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
“However, the stability of premium valuation will be tested based on the outcome of Q3FY19 GDP… The consensus is showing moderation in growth to 6.7 per cent,” he said.
The top Sensex performers were Yes Bank and TCS, gaining over 3 per cent, followed by Infosys, IndusInd Bank and HCL Tech, among others.
Among the laggards were Coal India, Asian Paints, State Bank of India (SBI), ONGC and Larsen and Toubro (L&T).
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Profit booking along with caution ahead of release of key macro-data and subdued quarterly earnings pulled the two key Indian equity indices lower on Monday.
Accordingly, the S&P BSE Sensex fell 150 points, while the Nifty ended below the 10,900-point mark.
Barring the IT and Teck stocks, all other sectors ended lower. On the NSE, PSU Bank Nifty closed 1.74 per cent down. The pharma sector also witnessed heavy selling pressure.
Selling pressure continued in the market despite a rebound in global markets as investors turned risk-averse due to upcoming elections, said Vinod Nair, Head of Research, Geojit Financial Services.
Besides, third quarterly results have failed to enthuse investors as the “scope of downgrade in earnings further dampened the sentiment”, he added.
The BSE Sensex closed 151.45 points or 0.41 per cent lower at 36,395.03 from its previous close of 36,546.48 points, while the Nifty closed 54.80 points down at 10,888.80.
“Global trade deal and risk of slowdown in growth continue to give caution, while investors remain focused on tomorrow’s (Tuesday) CPI inflation and IIP data to get some direction,” Nair said.
According to Kotak Securities Head of Fundamental Research Rusmik Oza: “Broader participation is not happening. Also, we are witnessing some profit booking post the Interim Budget and RBI rate cut.”
“In the run-up to the general elections, investors are looking at sectors which are less susceptible to domestic factors. Therefore, the export-oriented IT stocks are gaining.”
Provisional data from the BSE showed that FIIs bought stocks worth Rs 125.05 crore and DIIs offloaded stocks worth Rs 232.55 crore.
On the other hand, rupee gained 14 paise to settle at Rs 71.17 per US dollar from its previous close of 71.31.
Tata Steel emerged the top gainer, up 2.31 per cent on Sensex, followed by Power Grid, HCL Tech, Maruti Suzuki and Tata Motors, which gained up to 1.50 per cent.
Among losers in the Sensex pack, Mahindra and Mahindra shed over 5 per cent, followed by ONGC, Bajaj Finance, Reliance Industries and State Bank of India.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Macro-economic data points combined with the direction of foreign fund flows and the rupee’s movement against the US dollar are expected to influence the Indian equity market next week, analysts opined.
The ongoing quarterly results season, along with crude oil price fluctuations, will also impact investors’ risk-taking appetite.
“Market will closely watch the macroeconomic data, which are scheduled to release next week, crude oil prices, rupee movement and inflow or outflow of the funds by foreign and domestic investors,” SMC Investments and Advisors Chairman and Managing Director, D.K. Aggarwal told IANS.
Vinod Nair, Geojit Financial Services Head of Research: “A fall in interest rates and improving outlook for consumption oriented sectors after interim budget will provide support to the market.”
“On the global front, pessimism over growth and trade disputes may lead to volatility.”
The Central Statistics Office (CSO) is slated to release the macro-economic data points of Index of Industrial Production (IIP), Consumer Price Index (CPI) on February 12.
Besides, investors will look forward to the macro-economic data points of WPI (Wholesale Price Index) and India’s trade figures.
“Next week government will unveil CPI inflation and IIP date which will be keenly watched by the investors,” Nair added.
Apart from the macro-data economic data points, the week ahead will be heavily influenced by Q3 corporate earnings.
Companies like Eicher Motors, India Cements, Motherson Sumi Systems, SpiceJet, Coal India, Hindalco Industries, Indian Hotels, Bharat Forge, Fortis Healthcare, GMR Infra, ONGC and Voltas are expected to announce their quarterly results in the coming week.
In addition, direction of foreign fund flows will become other major sentiment driver.
The week ended on February 8 also witnessed an inflow of foreign funds as FIIs were net buyers to the tune of over Rs 2,265 crore, provisional data on the BSE showed.
On technical charts, the National Stock Exchange (NSE) Nifty50 broke-out of a two month trading range last week.
“Technically, the break-out was not followed up by follow-through up-move but sell-off at the end of the week. This made the breakout look less convincing as the Nifty has closed well below the highs of the week,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“We expect the Nifty to continue to trade in a range between the 10,852-11,082 levels for the coming week.”
Last week, both the key Indian equity indices — S&P Bombay Stock Exchange (BSE) Sensex and the NSE Nifty50 — rose on the back of Reserve Bank of India’s rate cut along with healthy foreign fund inflows.
Consequently, the S&P BSE Sensex rose 289.79 points, 0.8 per cent, over the week to end at 36,546.48 points.
The broader NSE Nifty50 finished at 10,943.60, up 1 per cent or 112.65 points from its previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Expectations of rate cut in the Reserve Bank of India (RBI)’s bi-monthly monetary policy outcome due on Thursday, along with some healthy quarterly results, lifted the key equity indices on Wednesday.
Besides, healthy foreign fund inflows also aided the upward movement of market.
Sector-wise, auto, IT and metal stocks led the gains on Sensex, while the consumer durables and utilities declined.
“Domestic market rallied 1 per cent led by broad-based buying across sectors. Nifty breached its narrow trading band of 10,650-10,950 on expectation of a shift in RBI’s policy stance and strong FII inflows,” said Vinod Nair, Head of Research, Geojit Financial Services.
Additionally, drop in bond yield and marginal strength in rupee added strength to the expectation of lowering of rates, said Nair.
The BSE Sensex closed 358.42 points or 0.98 per cent higher at 36,975.23, while the Nifty finished the trade 128 points or 1.17 per cent higher at 11,062.45.
Except for Axis Bank and IndusInd Bank, all other Sensex stocks gained.
Bajaj Finance and Tata Steel closed over 4 per cent higher. ONGC, Bajaj Auto and Tata Motors(DVR) gained in the range of 2 to 3 per cent.
—IANS
