by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The benchmark Sensex rose on Tuesday, as a drop in global crude oil prices eased concerns about India’s current account deficit.
The benchmark Brent Crude oil eased to $69.23 a barrel after it had breached above the $71-mark on Monday.
As a result, the S&P BSE Energy index gained 1.87 per cent, while oil and gas stocks rose 1.72 per cent.
Finance and banking stocks also traded in the green, after retail inflation cooled to 3.31 per cent in October, reducing the odds of an interest rate increase when the central bank reviews the monetary policy in December.
The Sensex gained 331.50 points to settle at 35,144.49. It had opened at 34,846.19, touching an intra-day high of 35,187.75 and a low of 34,672.20.
The NSE Nifty closed 100.30 points or 0.96 per cent higher at 10,582.50.
“Oil prices fell by more than 1 per cent on Tuesday, with the Brent crude sliding below $70 a barrel and WTI below $60, after US President Donald Trump put pressure on oil cartel OPEC not to cut supply to prop up the market,” said Anuj Gupta, Deputy Vice President – Research – Commodities and Forex, Angel Broking.
“We expect the WTI crude to slip to $58 to $55,” he said.
Jet Airways rose 5.23 per cent to settle Rs 254.70 a share as crude oil prices fell. The private carrier had closed 6 per cent lower on Monday on expectations of losses in its second-quarter results.
In a post-market announcement on Monday, the airline reported a Rs 1,297 crore loss for the quarter ended September.
Other aviation stocks also closed higher buoyed by easing oil prices.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rituraj Baruah,
Mumbai : Macro-economic indicators such as inflation, factory output as well as global crude oil prices will dictate the stock market trend next week, analysts said.
A string of assembly elections, starting November 12, will also drive investor sentiments after range-bound movement the previous week.
The government will release Consumer Price Index (CPI) and Wholesale Price Index (WPI) data for October next week.
Retail inflation for September was at 3.77 per cent, up from 3.69 in August. The wholesale inflation rose to 5.13 per cent in September, from 4.53 per cent in August.
Assembly elections kickstart with the first phase of elections in Chhattisgarh on Monday, November 12. Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana and Mizoram go to polls this month and the next to reconstitute their respective assemblies.
The Bharatiya Janata Party (BJP) rules Madhya Pradesh, Rajasthan and Chhattisgarh, and a return to power in these states will bolster Prime Minister Narendra Modi’s chances of winning next year’s general election.
Also, crude oil prices, which have eased recently, would guide the equity market next week, analysts said.
In the week ended November 9, crude prices fell significantly from their recent highs. Brent crude oil is currently hovering around $70 per barrel, compared to $86 in early October.
India imports about 80 per cent of its crude oil requirements, and a spike in global rates triggers inflation concerns in Asia’s third-largest economy.
Strength of the rupee against the dollar would also be a key factor. On Friday, November 9, the Indian currency closed at 72.49 per dollar after logging a single-day gain of 51 paise. It had closed at 72.44 the previous week.
In a holiday-truncated week, the S&P Bombay Stock Exchange (BSE) Sensex gained 146.9 points, or 0.41 per cent, to close at 35,158.55 on Friday.
Similarly, the Nifty of the National Stock Exchange (NSE) advanced 32 points, or 0.30 per cent, to settle at 10,585.20.
The markets were shut on Thursday on the occasion of “Laxmi Pujan”. On Diwali the previous day, the BSE and the NSE conducted a special “Muhurat” trading between 5.30 p.m. and 6.30 p.m.
The provisional figures from the stock exchanges showed that foreign institutional investors bought scrips worth Rs 157.79 crore in the week ended November 9.
The domestic institutional investors sold Rs 813.42-crore stocks in the past week.
The Nifty is expected to face resistance at 10,755, while support is seen at 10,444, said Deepak Jasani, Head of Retail Reseach at HDFC Securities.
(Rituraj Baruah can be contacted at rituraj.b@ians.in )
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : Investors deferred equity purchases on Friday, shrugging off a rebound in the rupee and a decline in global crude oil prices, as they turned their focus on key assembly elections for cues.
As a result, key equity indices ended slightly lower after a lacklustre trade on Friday.
Also weighing on sentiment was the fact that all the Asian markets closed the day with losses, an analyst said.
The Sensex settled 79.13 points lower at 35,158.55. It had opened at 35,258.13 from its previous close of 35,237.68. It touched an intra-day high of 35,287.29 and a low of 35,011.23.
The NSE Nifty closed 15 points lower at 10,582.90.
“Technically, the short-term trend for the Nifty is choppy at the key resistance of 10,600 level. There is a possibility of continuation of this rangebound movement in the early part of next week as well. A slight weakness may also be expected,” HDFC Securities’ Retail Research Head Deepak Jasani said.
“After this phase of consolidation/minor correction, the Nifty is expected to continue its upside momentum. Immediate supports to be watched are at 10,417-480 levels. On upsides, a breach of 10,616 could result in a move towards 10,710.”
Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana, and Mizoram go to assembly polls this month and the next. The BJP rules in Madhya Pradesh, Rajasthan, and Chhattisgarh, and a return to power in these states will bolster Prime Minister Narendra Modi’s chances of winning next year’s general election.
European indices like FTSE 100, DAX and CAC 40, too, were trading in the red.
The rupee climbed 51 paise to end the day’s trade at 72.49 per US dollar, prompting investors to sell export-dependent stocks. The S&P BSE IT fell 1.19 per cent.
Metals, realty and energy counters also came under a heavy selling pressure. However, the financials managed to cling on to their gains.
The benchmark Brent crude slipped below the $70 a barrel mark.
India imports nearly 80 per cent of its crude oil requirements, and a rise in prices threatens to widen the current account deficit, fanning inflation in Asia’s third-largest economy.
The broader markets like the S&P BSE MidCap index gained 0.66 per cent, while the S&P BSE SmallCap index rose 0.58 per cent.
The market breadth was positive, with an advances to declines ratio of 1.22.
Provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 614.14 crore on Friday, while the domestic institutional investors sold scrips worth Rs 337.28 crore.
The top gainers on the BSE were led by Yes Bank, up 5.49 per cent at Rs 227.85; Adani Paints, up 3.79 per cent at Rs 1,298.20; Adani Ports, up 3.14 per cent at Rs 336.85; Sun Pharma, up 2.32 per cent at Rs 595.90; and Hero Moto Corp, up 2.08 per cent at Rs 2950.05 a share.
The major laggards on the Sensex included TCS and Reliance Industries, which fell 1.70 per cent and 1.55 per cent, respectively. TCS closed at Rs 1,909.80 apiece while Reliance Industries settled at 1,093.35 per share.
Others losers included State Bank of India, down 1.27 per cent at Rs 283, Infosys down 2.15 per cent at Rs 661.45 and Bharti Airtel down 2.45 at Rs 298.45 apeice.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : A weak rupee, along with outflow of foreign funds and caution over upcoming quarterly results, pulled the key Indian equity indices into the red on Tuesday.
Accordingly, heavy selling pressure was witnessed in select market heavyweights including those in banking, oil and gas and energy sectors, while all the other counters ended in the green on the BSE, led by IT and pharma stocks which rose due to depreciation in the rupee value.
However, lower global crude oil prices arrested the downward spiral.
Consequently, the S&P BSE Sensex closed 176.27 points down at 0.52 per cent. It opened at 34,891.13, from its previous close of 34,067.40.
The NSE Nifty50 ended at 10,198.40, down 52.45 points and 0.51 per cent.
In terms of broader markets, S&P BSE MidCap gained 0.91 per cent, while S&P BSE SmallCap was up by 0.94 per cent.
Nevertheless, the BSE market breadth was positive as heavy selling occurred in market heavyweights.
“Investors turned stock-specific in the on-going result season while maintaining a cautious view due to upcoming state elections,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Weak global cues and selling pressure in stocks that unveiled below than expected results dragged the indices. Drop in oil prices will provide leeway to maintain support in the market while triggers like upcoming trade talks between US and China give more cues to investors.”
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty taking a breather, traders will need to watch if the recent rally can sustain and
move higher.”
“Further upsides are likely once the immediate resistances of 10,255 points are taken out. Crucial supports to watch for any weakness are at 10,150 points.”
In terms of investments, foreign fund outflows continued as provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 1,592.02 crore.
On the other hand, domestic institutional investors bought scrip worth Rs 1,363.04 crore.
As per data provided by the National Securities Depository (NSDL), the monthly outflow of foreign funds at Rs 27,385 crore from the equity segment was at its highest since 2002.
Currency-wise, the rupee closed at Rs 73.68 to a US dollar from its previous close of 73.44. Brent crude, the benchmark oil price, eased to around $76.20 a barrel.
The top gainers on BSE were: Infosys, up 2.48 per cent at Rs 659.75; Hindustan Unilever, up 2 per cent at Rs 1,585; State Bank India, up 1.90 per cent at Rs 273.15; Tata Consultancy Services (TCS), up 1.37 per cent at Rs 1,895.40; and Tata Motors, up 1.11 per cent at Rs 177.30 a share.
The top losers were: IndusInd Bank down 3.50 per cent at Rs 1,363.50; Coal India, down 3.47 per cent at Rs 277.10; Reliance Industries, down 2.84 per cent at Rs 1,057.15; Sun Pharma, down 1.92 per cent at Rs 561.65 and Power Grid down 1.79 per cent at Rs 186.10 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Despite negative global markets, the Indian stock indices surged by over two per cent on Monday, as value buying, along with an official announcement on fresh liquidity infusion in the debt market, uplifted investors’ sentiments.
According to market observers, value buying emerged after a correction which dragged both the S&P BSE Sensex and the Nifty50 to their respective seven-month lows last Friday.
On the liquidity front, the Reserve Bank of India’s announcement on a fresh bond buying programme in November to inject funds into the debt market soothed investors’ nerves, especially after caution prevailed over an impending credit crunch.
However, negative global markets and outflows of foreign funds capped gains.
Index-wise, the NSE Nifty50 settled higher by 220.85 points, or 2.20 per cent at 10,250.85 points.
Similarly, the S&P BSE Sensex made substantial gains. It opened at 33,549.88 points and closed higher by 718.09 points, or 2.15 per cent, at 34,067.40 points.
The Sensex swung over 800 points, touching a high of 34,154.60 points and a low of 33,341.80.
“Stock markets in India witnessed a relief rally today as key benchmark indices surged in opening trade and sustained the momentum through the day,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Overseas, Asian markets declined while European markets traded firm as investors tracked a number of political events and waited for further earnings reports.”
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty bouncing back, traders will need to watch if the recent rally can sustain and reverse the current downtrend.”
“Further upsides are likely once the immediate resistances of 10,274 points are taken out. Crucial supports to watch for any weakness are at 10,150 points,” he added.
In terms of investments, the week began with the continued trend of massive outflow of funds witnessed throughout October, as provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 2,230.79 crore.
Domestic institutional investors bought scrip worth Rs 2,526.90 crore.
As per data provided by the National Securities Depository (NSDL), the monthly outflow of foreign funds at Rs 38,797 crore from the equity segment was at its highest since 2002, while on a yearly basis, the outflow in the current year comes second just to the levels seen in 2008 when the foreign investors withdrew Rs 51,252 crore.
Nevertheless, the domestic currency closed nearly flat at Rs 73.44 to a dollar from its Friday’s close of 73.46. Brent crude, the benchmark oil price, was trading around $77.49 a barrel.
Top gainers on the Sensex was dominated by banking stocks, out of which ICICI Bank gained the most days after it reported a 55.84 per cent year-on-year decline in its standalone net profit for the quarter ended in September 30.
The private lender’s scrip closed higher by over 11 per cent to settle at Rs 349.15 a share. It was followed by State Bank of India, up 10.82 per cent at Rs 349.15; Adani Ports, up 7.33 per cent at Rs 326.60; Larsen and Tubro, up 5.25 per cent at Rs 1260.80; Tata Motors (DVR), up 5.04 per cent at Rs 95.95 and Bharti Airtel, up 0.83 per cent at Rs 298.30 and Axis Bank up 4.96 per cent at Rs 564.
The top losers were IndusInd Bank down 2.36 per cent at Rs 1,410.95; HDFC Bank, down 1.95 per cent at Rs 1,924; Kotak Mahindra Bank, down 1.85 per cent at Rs 1,137.55; and Bharti Airtel, down 1.56 per cent at Rs 293.65 and Hindustan Uniliver down 0.54 per cent at Rs 1,552.05 per share.
—IANS
