by admin | May 25, 2021 | Economy, Markets, News
Mumbai : India’s barometer stock indices, Sensex and Nifty, rose over 1 per cent each on Thursday, as bets that the US Federal reserve will slow its pace of rate tightening and lower oil prices burnished the appeal for equities.
The Fed’s rate-raising spree had triggered a rush of capital outflows, pressuring the rupee and depressing equities as well as sovereign debt.
However, the oil price crash and the Fed’s recent dovish stance on rates have boosted the rupee, renewing foreign investor interest in Indian financial markets.
The gains, the fourth in a row, were also triggered by short covering ahead of the monthly derivatives expiry on Thursday.
On Thursday, the Indian rupee gained 78 paise to close at Rs 69.84 from its previous close of Rs 70.62.
The S&P BSE Sensex settled 453.46 points up or 1.27 per cent at 36,170.41, from its previous close of 35,716.95. It touched an intra-day high of 36,253.85 and a low of 35,946.24.
The NSE Nifty50 gained 129.85 points or 1.21 per cent to finish at 10,858.70.
“The gains came on the back of a rally in global equity markets after a dovish comment by US Federal Reserve Chairman Jerome Powell pushed up appetite for risk assets. Sentiments were also boosted by a fall in crude oil prices and a firm rupee,” said Deepak Jasani, Retail Research Head, HDFC Securities.
“Broad market indices like the BSE Mid-cap and Small-cap gained less, underperforming the main indices.”
The Brent crude oil price declined to $57.94 a barrel.
The financials, which led the gains, were up over 1.5 per cent while selling pressure was witnessed in the export-dependent IT stocks as the rupee strengthened.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market held on to its strong gap-up momentum fuelled by the US Fed’s dovish tone on interest rate cycle coupled with a fall in US bond yield to 2.99.”
“Tailwinds in domestic macros led by a sharp fall in oil prices and a strong rupee supported the trend. Any ease in global trade tension after the G20 meet this weekend will also boost global sentiment.”
The provisional data with the exchanges showed that foreign institutional investors pumped in Rs 823.47 crore on Thursday while the domestic institutional investors bought shares worth Rs 973.31-crore.
Top gainers on the Sensex were Bajaj Auto, up 4.68 per cent at Rs 2,725.05; Kotak Mahindra Bank, up 4.24 per cent at Rs 1,210.15; Mahindra and Mahindra, up 3.31 per cent at Rs 773.10; Vedanta, up 3.19 per cent at Rs 199.10; and IndusInd Bank, up 2.83 per cent at Rs 1,659.75 apiece.
The top laggards were Power Grid, down 1.55 per cent at Rs 181.20, ONGC, down 1.33 per cent at Rs 140.75; Infosys, down 1.01 per cent at Rs 659.60; Tata Consultancy Services, down 0.87 per cent at Rs 1,959.45; and NTPC, down 0.84 per cent at Rs 1142.30 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Expected improvement in India’s economic-macros due to falling crude oil prices aided the Indian equity market indices to advance for a second straight session on Tuesday.
Additionally, inflows of foreign funds which boosted the domestic currency gave further upside to the market trajectory.
However, during the intra-day session, market indices remained range bound but bounced-back sharply during the late trade hours.
Consequently, the S&P BSE Sensex settled up 159.06 points or 0.45 per cent at 35,513.14 points, from its previous close of 35,354.08 points.
It touched an intra-day high of 35,555.16 and a low of 35,262.97.
Similarly, the NSE Nifty 50 made gains. It rose 57 points or 0.54 per cent to end the day’s trade at 10,685.60.
“Market smartly recovered from day’s low amid global trade tensions ahead of G20 meet this week and mixed Asian peers,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Risk element on inflation is subsiding with rise in oil production, strong rupee and drop in yield, CPI inflation is expected to be under the control range. IT outperformed due to favourable valuation while ease in liquidity concern on PSU banks supported the sentiment.”
In contrast, the overall market breadth on the BSE was negative, with 1,222 stocks advancing and 1,350 declining.
“While markets traded in the positive zone, investors were a bit cautious ahead of the expiry of futures and options (F&O) contracts on Thursday (November 29) and the release of India’s gross domestic product data for the September quarter on Friday (November 30),” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
Sector-wise, while the healthcare, metals and media indices closed in the red, sharp gains were seen in the PSU bank and information technology indices.
The Nifty PSU Bank index gained 1.15 per cent after the Centre on Monday announced it would pump Rs 42,000 crore into the debt-laden banks by March.
Currently, 11 of the 21 state-run banks are under the central bank’s Prompt Corrective Action (PCA) framework, restricting their ability to lend and expand branches. The move is expected to provide them a leeway out of the PCA framework.
In terms of crude oil, prices remained subdued at $60.24 per barrel at the time markets closed here, while the Indian rupee ended at Rs 70.76 per US dollar from its previous close of 70.87.
On investments, provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 811.52 crore on Tuesday while the domestic institutional investors bought shares worth Rs 31.21 crore.
“Technically, with the Nifty rallying higher and breaking out of the recent trading range, the bulls seem to be in control,” said Deepak Jasani, Retail Research Head, HDFC Securities.
“Further upsides are likely once the immediate resistances of 10,695 points are taken out. Crucial supports to watch for any weakness are at 10,596 points.”
Top gainers on the Sensex were Infosys, up 2.53 per cent at Rs 637; Tata Consultancy Services, up 2.29 per cent at Rs 1,888.35; Reliance Industries, up 1.61 per cent at Rs 1,127.50; IndusInd Bank, up 1.29 per cent at Rs 1,584.45 and Maruti Suzuki, up 1.27 per cent at Rs 7,629.60.
The laggards were Sun Pharma, down 3.34 per cent at Rs 493.60; HeroMoto Corp, down 3.10 per cent at Rs 2,967.20; Yes Bank, down 2.55 per cent at Rs 183.15; Wipro, down 2.18 per cent at Rs 311.90, and Bajaj Auto, down 2.01 per cent at Rs 2,598.60 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Firm global cues, a persistent decline in crude oil prices, and value buying lifted the Indian equities higher on Monday.
However, a strong demand for US dollars from importers coupled with domestic political uncertainty due to state elections and concerns over global growth limited the gains.
Buying was witnessed in FMCG and consumer durables stocks.
The index pivotals — finance and banking — gained 1.32 per cent and 1 per cent, respectively.
The S&P BSE Sensex settled up 373.06 points or 1.07 per cent at 35,354.08 points, from its previous close of 34,981.02 points. It touched an intra-day high of 35,397.24 and a low of 34,896.07.
The NSE Nifty50 gained 101.85 points or 0.97 per cent to finish the day at 10,628.60.
The overall market breadth on the BSE was negative, with 1,067 stocks advancing and 1,536 declining.
“Broad market indices like the BSE Mid-cap index gained less, thereby underperforming the main indices,” said Deepak Jasani, Retail Research Head, HDFC Securities.
“Technically, with the Nifty bouncing back after three sessions of weakness, traders will need to watch if the recent gains can sustain. Further upsides are likely once the immediate resistances of 10,646 points are taken out. Crucial supports to watch for any weakness are at 10,490 points.”
According to Vinod Nair, Head of Research, Geojit Financial Services: “Market regained strength amid volatility, supported by positive global cues and improvement in domestic macros on account of sharp fall in crude and firming rupee.”
“Recapitalisation announcement of Rs 42,000 crore to PSU Banks is likely to provide respite to the current liquidity issues, which also boosted the sentiment.”
Globally, major Asian markets closed on positive note, while European indices like FTSE 100, DAX and CAC 40 traded in the green.
Heavy US dollar demand from importers weakened the domestic currency to Rs 70.87 against the greenback, from its previous close of 70.67.
“The recent appreciation in the rupee is a golden opportunity for the importers… Given the volatility and uncertainty in the global financial markets, importers are rushing to hedge their exposure for the next 2-3 months,” said Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers.
Provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 62.74 crore on Monday while the domestic institutional investors bought scrips worth Rs 351.78 crore.
Top gainers on the Sensex were Hero MotoCorp, up 5.02 per cent at Rs 3,062.10; Hindustan Uniliver, up 4.21 per cent at Rs 1,745.15; Wipro, up 3.71 per cent at Rs 318.85; Asian Paints, up 2.72 per cent at Rs 1,349.60 and Axis Bank, up 2.69 per cent at Rs 630.80.
The laggards were Yes Bank, down 3.89 per cent at Rs 187.95; ONGC, down 3.58 per cent at Rs 146.75; Sun Pharma, down 2.88 per cent at Rs 510.65; Coal India, down 2.36 per cent at Rs 250.70, and Vedanta, down 1.90 per cent at Rs 195.85 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : India’s benchmark indices fell for a second straight day on Wednesday, tailing global peers and led by a slump in software exporters.
However, a fall in international crude oil price arrested what could have been a sharper decline.
Heavy selling pressure was witnessed in the IT counters, which fell over 3 per cent, followed by Teck (technology, entertainment and media) and energy stocks.
Consequently, the S&P BSE Sensex settled down 274.71 points or 0.77 per cent at 35,119.80, from its previous close of 35,474.51 points.
Similarly, the NSE Nifty50 lost 56.15 points or 0.53 per cent to finish at 10,600.05 points.
The overall market breadth was flat and the broader market indices like Mid and Small-cap segments of the NSE closed higher by 0.50 per cent and 0.48 per cent respectively.
Market observers attributed Wednesday’s fall to a sell-off in global stocks, which was triggered by growing concerns about slowing global growth.
“Domestic stocks began the day on a negative note on subdued Asian indices. A sudden sell-off in index pivotals dragged the indices to intra-day lows in morning trade,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Despite a subsequent mild recovery, the benchmark indices continued to trade under pressure and finally closed the day with losses of over 0.50%.”
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market traded on a weak note despite a positive opening in European market and further slide in oil prices.”
“A rebound in PSU banks due to extension of the timeline for the full implementation of Basel 3 norms, and gains in pharma stocks helped the market trim some losses in early hours of trade. However, continued selling in IT stocks on account of a strong rupee restricted the recovery.”
The Brent crude oil price fell below $64-per-barrel mark.
“Crude oil prices are falling as US inventories rose last week. US inventories are at their highest level since 2015. Crude oil remains under pressure amid expectations of slowing global demand,” Anuj Gupta, Deputy Vice President, Research, Commodities and Forex, Angel Broking, told IANS.
The short-term trend of the Nifty has turned weak.
“The Nifty is currently placed at the key lower support of 10,620-10,558 levels, as per the concept of change in polarity,” said Deepak Jasani, Retail Research Head, HDFC Securities.
“As long as this support holds, there is a possibility of a bounceback. Support on breach of these levels could come in at 10,452.”
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 1,652.04 crore on Wednesday while the domestic institutional investors bought scrips worth Rs 606.73crore.
Top gainers on the Sensex were Yes Bank, up 2.83 per cent at Rs 198; Axis Bank, up 2.20 per cent at Rs 626.35; Adani Ports, up 1.91 per cent at Rs 360.90; Asian Paints, up 1.25 per cent at Rs 1,322.90 and State Bank of India (SBI), up 1.24 per cent at Rs 286.55.
The laggards were Tata Consultancy Services (TCS), down 3.51 per cent at Rs 1,811.75; Infosys, down 3.14 per cent at Rs 620.95; Power Grid, down 2.74 per cent at Rs 182.85; Wipro, down 2.38 per cent at Rs 314.05, and Reliance Industries, down 2.31 per cent at Rs 1,112.30 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Ravi Dutta Mishra and Rohit Vaid,
Mumbai : A slide in global crude oil prices, along with a healthy influx of foreign funds and a strengthened rupee buoyed the Indian equity market indices during the just-concluded week.
In addition, healthy macro-economic inflation and trade data as well as credit rating agency Fitch affirming India’s ‘Long-Term Foreign-Currency Issuer Default Rating’ (IDR) at ‘BBB-‘ with a stable outlook, enhanced the risk-taking appetite of investors.
Consequently, the S&P BSE Sensex gained 298.61 points, or 0.8 per cent, to close at 35,457.16 points.
Similarly, the 50-share Nifty of the National Stock Exchange (NSE) advanced 97 points, or 0.91 per cent, to settle at 10,682.20 points.
“Markets were steady as crude prices continued to drop and led to a consequent decline in bond yields and appreciation in USD…,” Sanjeev Zarbade, Vice President, PCG Research at Kotak Securities, said.
Accordingly, the benchmark Brent crude price which had touched $86 a barrel in early October closed last week’s trade at $67.74.
The fall has key significance for India, which is the third largest importer of crude oil. A steep fall in global prices eases the country’s concerns about inflation and fiscal and current account deficit.
In terms of currency, the rupee on Friday closed at 71.92 per dollar, 3.42 per cent higher from its life-time low of Rs 74.47 to a US dollar which it hit on October 11. Its previous weeks close was at Rs 72.49.
On foreign fund flows, the provisional investment figures from the stock exchanges showed that foreign institutional investors bought scrips worth Rs 3,502.46 crore in the week ended November 16 which was 22 times more than the previous week.
“The ongoing liquidity crunch for NBFCs appears to be fading away as almost all the NBFC’s were able to roll over to meet their commitments coupled with mixed earning season that concluded this week has helped rejuvenate confidence in FIIs…,”
said Rahul Sharma, Senior Research Analyst with Equity99.
The change in trend was further affirmed on Friday after the Associated Chambers of Commerce and Industry of India (Assocham) said it expects foreign institutional investors (FIIs) to “stage a strong comeback” owing to the strengthening rupee, low inflation and weakening oil prices.
“We expect foreign institutional investors to stage a strong comeback into India sooner than later with the rupee improving and getting stable,” Assocham said in a statement.
The rupee and the US dollar equation, along with an uncertain domestic and global economic growth outlook, had triggered a massive foreign fund outflow from the country’s capital markets in October.
However, the domestic institutional investors sold Rs 1,275.61 crore worth of stocks in the past week.
Sector-wise gainers for the week were consumer durables, FMCG and bank indices.
Losers for the week were pharma, auto, IT, realty and metals indices, said Deepak Jasani, Head – Retail Research at HDFC Securities.
The top weekly Sensex gainers were Bharti Airtel, up 9.57 per cent at Rs 327; ICICI Bank up 2.95 per cent at Rs 366.30; Adani Ports up 2.58 per cent at Rs 345.55; Axis Bank up 1.22 per cent at Rs 620.05; and Maruti Suzuki up 0.89 per cent at Rs 7,330 per share.
The major losers were Yes Bank, down 16.68 per cent at Rs 189.85; Sun Pharma down 13.26 per cent at Rs 516.90; Tata Motors (DVR) down 5.81 per cent at Rs 98.90; Power Grid down 2.11 per cent at Rs 187.45; and TCS down 1.93 per cent at Rs 1,873 per share.
(Ravi Dutta Mishra can be reached at ravidutta.m@ians.in and Rohit Vaid at rohit.v@ians.in)
—IANS
