by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Mixed global cues, weakness in the Indian currency and heavy selling in the healthcare and finance stocks dragged the key equity indices on Friday, with Sensex and Nifty ending flat with a positive bias.
BSE Healthcare index tanked 2 per cent, while telecom scrips also witnessed heavy selling pressure, losing over 3 per cent.
The BSE Sensex closed higher 12.53 points, or 0.03 per cent, after touching a high of 36,469.98 and a low of 36,218.33 points.
The benchmark index opened higher on Friday, at 36,417.58 points from its previous close of 36,374.08.
The broader Nifty50 also ended in the green, up by a meagre 4.80 points, or 0.04 per cent.
Stocks-wise, Sun Pharma ended up as the top loser on Sensex. The scrip price declined to Rs 390.50 apiece, losing Rs 36.65, or 8.58 per cent, from its previous close of Rs 427.15.
The pharmaceutical major had tanked over 12 per cent at one point after reports of a complaint by a whistleblower against the company.
Other major losers on Sensex were Bharti Airtel, which slipped over 6 per cent, followed by Larsen and Tubro, Axis Bank and Yes Bank, all of which closed lower in the range of 1 to 2 per cent.
In contrast, the top gainer among the 30 scrips on Sensex were Reliance Industries, which jumped over 4 per cent following its healthy quarterly results on Thursday.
In was followed by Kotak Mahindra, HCL Tech, ONGC and Asian Paints, all of which gained up to 1.50 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Heavy fund outflows, along with a continuous rise in global crude oil prices and caution ahead of key micro-economic data, dragged the Indian equity market into the red on Friday.
Accordingly, the benchmark Brent crude futures price crossed the $62 a-barrel-mark.
Index-wise, the NSE Nifty50 declined by 33.55 points or 0.31 per cent to settle at 10,821.60 points.
The S&P BSE Sensex closed at 36,009.84 points, lower by 96.66 points or 0.27 per cent from the previous close of 36,106.50 points.
It had opened at 36,191.87 points and touched an intra-day high of 36,214.26 and a low of 35,840.60.
Besides, investors were cautious ahead of the key macro-economic figures like forex reserves, industrial production output figures.
“Stock markets in India opened the day on a positive note and edged higher in early trade,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“However, indices subsequently reversed trend and turned negative to finally close the day with marginal losses. Overseas, stocks in Asia and Europe were trading higher as investor sentiment improved following overnight gains on Wall Street.”
The Indian rupee ended the Friday’s trade session at Rs 70.49 to a dollar from its previous close of 70.41.
“Despite positive global cues, Nifty saw a broad based consolidation today as investors turned cautious over Q3 results and FII selling,” Geojit Financial Services’ Head Of Research Vinod Nair said.
“Currently, market is pricing (factoring) further downgrade in earnings given disappointment from initial set of results from banks and margin pressure in IT sector. INR is losing strength given rebound in oil prices on the back of production cut by OPEC and concern over populist tone as general elections nears.”
Investment-wise, FIIs sold Rs 687.20 crore while DIIs bought stocks worth over Rs 123.17 crore on Friday.
“Technically, with the Nifty correcting further, traders will need to watch if the index can now hold above the immediate supports of 10,739; else a further correction is likely,”said Deepak Jasani of HDFC Securities.
In terms of sector, IT, banking and finance counters witnessed heavy selling.
Realty sector stocks also ended 1.43 per cent lower after Finance Minister Arun Jaitley said at Thursday’s GST Council Meeting that owing to diverse opinions, a decision on the much-expected rate reduction for under-construction homes will be taken at a later meeting.
Stock-wise, the top gainers on Sensex were ITC with 2.02 per cent It was followed by ONGC Vedanta, Infosys and Axis Bank rising up to 1 per cent.
In contrast, IndusInd Bank lost 3.26 per cent followed by Tata Motors which lost 2.83 per cent. TCS, Tata Motors (DVR) declined over 2 per cent. Yes Bank lost 1.47 per cent.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Despite heavy volatility, fresh inflows of foreign funds and buying interest in FMCG, banking and realty stocks lifted the Indian equity market for the fourth straight session on Wednesday.
Accordingly, the BSE Sensex crossed the 36,000-mark while the NSE Nifty50 reclaimed the 10,850-level. The rise came after a sharp dip in the mid-afternoon session.
The domestic investor sentiment was boosted by firm global markets and expectations of healthy corporate earnings for the October-December quarter.
Globally, investor sentiment was upbeat after the US-China trade talks concluded during the day. Investors expect a positive outcome from the three-day talks.
Index-wise, the Nifty50 rose by 53 points or 0.49 per cent to settle at 10,855.15 points.
The Sensex closed at 36,212.91 points, higher by 231.98 points or 0.64 per cent from the previous close of 35,980.93 points. It had opened at 36,181.37 and touched an intra-day high of 36,250.54 and a low of 35,863.29 points.
“The market started on a positive note but took some caution ahead of major quarterly results scheduled tomorrow. In totality with expectation of a breather from the US-China meeting which concluded today led the market to close on a positive bias,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Buying interest has been seen across sectors led by private banks, IT and FMCG while PSU banks declined due to profit booking post recent gains.”
The Indian rupee stood weaker by 26 paise at Rs 70.46 per dollar from its previous close of 70.20. In just two days the rupee has lost over 75 paise.
On the other hand, Brent crude futures rose to around $59 per barrel.
“Technically, with the Nifty moving up further, traders will need to watch if the recent gains can sustain in the near term. Further upsides are likely once the immediate resistances of 10,870 are taken out,” said Deepak Jasani of HDFC Securities.
“Crucial supports to watch for resumption of weakness is at 10,815.”
Investment-wise, FIIs bought Rs 276.14 crore while DIIs bought stocks worth over Rs 439.67 crore on Wednesday.
Stock-wise, the top gainers on Sensex were Axis Bank, ITC, Tata Motors, Bharti Aitel, HDFC which inched up in the range of 1 to 3 per cent.
In contrast, Yes Bank lost 3.07 per cent and Tata Steel, ONGC, Heromoto Corp, NTPC declined up to 2 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Global cues such as an ease in US-China trade tension and dovish US Fed remarks, along with improving liquidity condition and a strong rupee, led the Indian equity markets to close Monday’s trade on a positive note.
Besides, expectations of higher domestic economic growth rate and positive quarterly results buoyed investors’ sentiments.
Consequently, the two key indices — Sensex and Nifty50 — advanced over 0.40 per cent as positive sentiments continued from Friday following reports of US-China trade talks, which was supported by strong US jobs data and a dovish tone by the US Federal Reserve.
“Asia and Europe advanced as a relatively dovish turn by the Federal Reserve, strong US jobs data and optimism over US-China trade talks,” Abhijeet Dey of BNP Paribas Mutual Fund said.
The US-China trade talks scheduled from Monday assumes special significance. Madhavi Arora of Edelweiss Securities, said: “The stakes are high as both sides face a resumption of tariffs in March if they don’t strike a deal.”
The two economic giants have agreed on a 90-day trade truce in early December.
Index-wise, the BSE Sensex settled 155.06 points or 0.43 per cent higher at 35,850.16 points after touching an intra-day high of 36,076.95 and a low of 35,809.23.
The NSE Nifty50 closed at 49.25 points or 0.46 per cent up at 10,776.60 points.
“Oil prices gained some strength on the back of supply cut by OPEC, which came into effect from January 1, and on hopes of an agreement between US-China on trade talks this week,” said Vinod Nair, Head of Research, Geojit Financial Services.
“On domestic front, easing liquidity situation, appreciation in INR and selective buying in FMCG, IT and private banks on expectation of strong earnings lifted sentiments.”
In addition, RBI Governor Shaktikanta Das on Monday said the apex bank is constantly monitoring the liquidity situation of Non Banking Financial Companies (NBFC), whose representatives he would meet on Tuesday.
Sector-wise, realty stocks gained on expectation that the GST Council meeting scheduled for January 10 will end with a cut in the GST rates for the under-construction houses from 18 to 12 per cent.
In contrast, auto and healthcare sectors ended lower.
The rupee grew stronger by 4 paise to Rs 69.68 per dollar from its previous close of 69.72.
“Technically, with the Nifty moving up further, traders will need to watch if the recent gains can sustain in the near term. Further upsides are likely once the immediate resistances of 10,836 are taken out,” said Deepak Jasani, Head – HDFC Securities Retail Research.
“Crucial supports to watch for resumption of weakness is at 10,741.”
The chart toppers were Axis Bank, Tata Motors and Tata Motors(DVR), which gained over 2 per cent. Other top gainers were NTPC and Infosys, which inched up in the range of 1 to 2 per cent.
In contrast, Bajaj Auto lost the most, 2.82 per cent, followed by Yes Bank declining 1.35 per cent, while Hero MotoCorp lost 1.11 per cent. Bajaj Finance and Sun Pharma shed 1.03 per cent and 0.64 per cent, respectively.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Rohit Vaid,
Mumbai : The upcoming quarterly results season, along with the release of macro-economic industrial production data and global developments on trade protectionist measures, are expected to determine the trajectory of key equity indices next week.
Market observers opined that other global cues such as crude oil prices, combined with the direction of foreign fund flows and the rupee’s movement against the US dollar, will also have a bearing on the risk-taking appetite of investors.
“Investors have turned cautious ahead of corporate earnings season beginning next week, with TCS and Infosys reporting December quarter results in the first round. Going forward, the market is expected to continue its volatile trade,” SMC Investments & Advisors CMD D.K. Aggarwal said.
“Besides, developments in the Winter Session of Parliament, the movement of rupee against the dollar and crude oil price movement will further give direction to the
market.” (The Winter Session will run for just two more days on Monday and Tuesday.)
The Q3 earnings result season will kick-off from next week. IT major TCS is expected to be the first bluechip firm to come out with its Q3 result on January 10 (Thursday).
“The ongoing volatility may continue in the near-term, due to premium valuation, slowdown in the domestic economy, muted earnings growth in the next two quarters and cascading effect of liquidity crunch in the urban and rural markets,” Geojit Financial Services Head of Research Vinod Nair said.
“Additionally, the short-term effect of the national election (in the next few months), with risk of populist measures and the global effect of current uncertainties may add to the near term volatility. Markets will look forward to US-China trade talks and Q3 results season starting next week.”
Apart from TCS, companies like Infosys, Bajaj Corp and IndusInd Bank are expected to announce their quarterly results in the coming week.
Besides Q3 results, investors will look out for the upcoming macro-economic data points such as the IIP (Index of Industrial Production).
The Central Statistics Office (CSO) is slated to release the macro-economic data points of IIP and CPI on January 11 (Friday).
On the currency front, the rupee is expected to be volatile as crude and bond yields indicate pressure on the local currency said Sajal Gupta, Edelweiss Securities’ Head of Forex and Rates.
“Liquidity expansion in China can also put pressure on Asian currencies in the near future.. and global slowdown worries are not moving away….”
The local currency strengthened during the week ended January 4. It gained 43 paise to 69.72 against the US dollar from its previous week’s close of 70.15.
Another key theme for next week will be the direction of foreign fund flows. On a weekly basis, provisional figures from the stock exchanges showed that FIIs sold stocks worth over Rs 2,000 crore in the week just-ended.
On technical levels, the underlying trend of the National Stock Exchange’s Nifty50 has turned flat.
“Technically, with the moving average and momentum readings turning flat and the Nifty stuck in a range, markets could continue to remain choppy and range-bound in the coming week,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“The Nifty could broadly trade between the 10,534-10,924 points levels in the coming week.”
Last week, Indian equity market ended lower as concerns over a global slowdown and weak domestic core industrial production data dented investors sentiments.
Consequently, the 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange edged lower by 381.62 points, or 1.05 per cent, to close at 35,695.10 points.
Similarly, the Nifty50 of the NSE declined. It went down by 132.55 points, or 1.22 per cent, to settle at 10,727.35 points.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
