by admin | May 25, 2021 | Economy, Finance, Markets, News
Mumbai : Positive global markets coupled with a strengthened rupee and short-covering led the key equity indices to gain around 0.73 per cent on Friday.
Besides, healthy buying in finance stocks after reports of fresh capital infusion in public sector banks led the gains. This sectoral index has the highest weightage among all the sectors on the BSE. It rose 1.13 per cent.
“Markets were up on the news of fresh infusion of capital in public sector banks,” Anuj Gupta of Angel Broking told IANS.
Index-wise, the BSE Sensex settled 269.44 points or 0.75 per cent higher at 36,076.72 points after touching an intra-day high of 36,194.78 and a low of 35,911.99.
The NSE’s Nifty50 gained 78.65 points or 0.73 per cent to finish at 10,858.45 points.
According to Vinod Nair, Head of Research at Geojit Financial Services, market extended the rally by taking positive cues from global market.
“Investors remain focused on global growth momentum while easing tension between US government and US Fed provided an opportunity to accumulate stocks after recent consolidation,” Nair said.
On the currency front, the Indian rupee gained over 40 paise against the US dollar and settled at 69.94 from its previous close of 70.35.
“The rupee has appreciated smartly in recent sessions on account of sharp decline in the crude oil prices in the international market. This bodes well for the rupee as weak crude oil prices may lead to further decline in inflation and narrow current account deficit,” said Rushabh Maru – Research Analyst, Anand Rathi Shares and Stock Brokers.
“However, there is lot of uncertainty and volatility in the global markets. Concerns regarding slowdown in global economic growth, trade tension, tightening of monetary policy etc may create jitters in the global markets.”
According to the provisional figures from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 119.60 crore, while domestic institutional investors (DIIs) bought Rs 1,199.40-crore stocks.
“Technically, with the Nifty surging higher, the short-term trend for the Nifty remains positive. Further upsides are likely once the immediate resistance of 10,893 is taken out,” said Deepak Jasani, Head – HDFC Securities’ Retail Research.
“Crucial supports to watch for any weakness are at 10,820.”
Stock-wise, Sun Pharma gained close to 3 per cent on Friday. Bajaj Finance, Vedanta, HDFC and Yes Bank gained in the range of 1 to 2 per cent.
In contrast, IT major TCS lost the most among the 30-stock Sensex. Bajaj-Auto, Asian Paints, Bharti Airtel and Hero Moto Corp and Coal India were the only other laggards which lost up to 1 per cent.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : A drop in oil prices, strengthening rupee and pick up in domestic macros provided a positive momentum to the major indices which rose for the fifth straight session on Monday.
Global factors such as broadly positive Asian markets also lent support to the upward trajectory.
“Asian stocks traded higher ahead of the US Federal Reserve meeting this week while US stocks dropped sharply on Friday after a batch of weaker-than-expected economic data out of China and Europe sparked fresh worries of slowing global growth,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
Index-wise, the S&P BSE Sensex settled 307.14 points higher at 36,270.07 points and the NSE Nifty50 gained 82.90 points to close at 10,888.35 points after touching a high of 10,900.35 points.
However, broader market indices like the BSE Mid-cap and Small-cap gained lesser than the barometer Sensex.
In terms of currency, the Indian rupee strengthened to 71.55 per US dollar from its previous close of 71.90.
Said Geojit Financial Services Head of Research Vinod Nair: “Market extended gains led by a strong rupee backed by narrowing trade deficit and inflow of foreign funds.
“Drop in oil prices, strengthening rupee and pick up in domestic macros are providing a positive momentum to the market. However, global market witnessed selling ahead of two days FOMC (Federal Open Market Committee) meet starting from tomorrow.”
Consequently, investors will remain cautious over the possibility of any impending hike in the US interest rates which can potentially drive away Foreign Portfolio Investors (FPIs) from emerging markets such as India.
On the investment front, Foreign Institutional Investors (FII) off-loaded shares worth Rs 60.95 crore on Friday while Domestic Institutional Investors (DII) sold stocks worth Rs 76.84 crore, provisional data from the BSE showed.
“Technically, with the Nifty rallying higher for the fifth consecutive session, the bulls remain in control. Further upsides are likely once the immediate resistances of 10,941 are taken out,” said HDFC Securities’ Retail Research Head Deepak Jasani.
“Crucial supports to watch for any weakness are at 10,816.”
Sector-wise, finance counters gained 0.98 per cent while energy shares rose over 2 per cent, followed by metal, oil and gas, and power stocks gained over 1 per cent.
In contrast, IT and Teck (technology, entertainment and media) stocks ended lower.
Tata Motors (DVR) closely followed by Tata Motors gained the most among the 30-stock on Sensex. The shares of the automobile major Tata Motors settled over 4 per cent up after news that its subsidiary Jaguar Land Rover will go for cost-cutting measures.
It was followed by Power Grid, HDFC and Coal India which advanced in the range of 2 to 3.5 per cent.
In contrast, Kotak Mahindra Bank lost 2.50 per cent. Infosys and Bharti Airtel lost in the range of 1 to 2 per cent.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Hopes of lower interest rates and more liquidity on the back of easing retail inflation and the Reserve Bank’s outreach efforts and foreign fund inflows aided the barometer S&P BSE Sensex to gain over 150 points while NSE Nifty50 ended the session just short of 10,800 points.
On a sector specific basis, the rise was supported by healthy buying in the state-owned banking stocks after Reserve Bank of India Governor Shaktikanta Das on Thursday held a meeting with heads of Mumbai-based public sector banks.
However, three days of upward movement gave investors a chance to book profits, capping the session’s gains.
Apart from banking stocks, most sectoral indices, especially interest-sensitive — auto and capital goods — shares on the BSE and NSE ended in the green.
Globally, major Asian markets closed on a positive note. European indices like FTSE 100, DAX and CAC 40 also traded in the green.
“In anticipation of some firm measures by the new RBI Governor to ease the credit squeeze, the markets rallied in the morning but cooled off in the 2nd half on some profit booking,” said Essel Mutual Fund CIO, Viral Berawala.
“Stocks with rural focus also gained momentum on expectations of some pro-rural announcements by the central government.”
Said Geojit Financial Services’ Head of Research Vinod Nair: “Benign CPI inflation at 2.3 per cent supported an improvement in RBI’s current stance of ‘calibrated tightening’.
“Additionally, pick up in industrial production at 8.1 per cent supported the continuation of the rally. Ease in US-China tensions and the UK PM wining the vote of confidence brought stability in the global market.”
The Nifty PSU Bank index gained 1.03 per cent. Banking stocks also rose as RBI is scheduled to purchase government securities and infuse liquidity worth Rs 10,000 crore on Thursday.
Index-wise, the Sensex settled 150.57 points up at 35,929.64 points, touching an intra-day high of 36,095.56 and a low of 35,794.51. The Nifty50 gained 53.95 points or 0.50 per cent to closed at 10,791.55.
In terms of broader markets, the BSE Mid-cap rose 0.82 per cent while the BSE Small-cap was down 0.65 per cent. The BSE market breadth was positive with 1,493 advances against 1,058 declines during the day.
On the currency front, V.K. Sharma, Head PCG and Capital Markets Strategy, HDFC Securities, said: “Rupee started on a stronger note following better than expected economic data. The inflation for November came at 2.33 per cent from previous months’ 3.38 per cent, the slowest pace in 17 months.
“The sentiment got a boost on stronger domestic equity markets and weakening of the US dollar against G-10 currencies.”
The rupee settled at 70.68-69 per US dollar from Thursday’s close of 70.86.
“Technically, with the Nifty rallying higher for the third consecutive session, the bulls remain in control. Further upsides are likely once the immediate resistances of 10,839 are taken out,” said HDFC Securities’ Retail Research Head Deepak Jasani.
“Crucial supports to watch for any weakness are at 10,750.”
Foreign Institutional Investors (FII) bought shares worth Rs 675.14 crore on Thursday while Domestic Institutional Investors (DII) sold stocks worth Rs 51.86 crore, provisional data from the BSE showed.
Stock wise, Yes Bank shares fell by 6.48 per cent, the most among the 30 shares on Sensex. Shares of the private lender declined steeply after its Board on Thursday could only finalise the Non-Executive Part-Time Chairman position.
Stock-wise, Wipro, Infosys, Kotak Mahindra Bank and Maruti Suzuki gained over 2 per cent. In contrast, Sun Pharma lost 2.12 per cent and TCS, Tata Steel and Adani Ports declined in the range of 1 to 2 per cent.
—IANS
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
