by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Negative global cues along with a weak rupee led the the key domestic equity indices in the negative territory, during the afternoon session of the trade on Thursday.
Consequently, the barometer Sensex slipped below the 34,000-mark and the NSE’s Nifty50 also dropped below the psychological 10,200 point mark.
Except for IT, oil and gas counters, all the sectors witnessed heavy selling pressure led by banking, finance and healthcare stocks.
The domestic currency was trading at Rs 73.30 to a US dollar from its previous close of 73.15. Also, the crude oil prices continued to ease at around $75.76 a barrel.
The S&P BSE Sensex opened at 33,778.60 points from its previous close of 34,033.96 points and at 1.12 p.m it traded at 33,768.19 points down 265.77 points or 0.78 per cent.
It touched an intra-day high of 33,807.93 points and a low of 33,553.18 points.
The NSE Nifty50 traded at 10,149.10 points during the afternoon trade session, down 75.65 points and 0.74 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Second-quarter earnings result season, combined with the direction of foreign fund flows and the liquidity situation of the NBFC (non-banking financial companies) sector are expected to determine the trajectory of Indian stock market indices during the upcoming week.
In addition, the price of global crude oil and the rupee-US dollar matrix will also be other major market themes during the period.
“Markets next week would again focus on the developments in the liquidity situation of the NBFCs, HFCs (housing finance companies),” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
The liquidity availability to the sector has become a concern after the default by some of the IL&FS Group companies.
Last Friday, the Reserve Bank of India (RBI) came out with new measures to increase the liquidity flow to NBFCs and HFCs.
“The ongoing turmoil led by a financial crunch in the domestic economy, global risk-off and worries over upcoming elections are likely to maintain their burden in the equity market,” said Vinod Nair, Head of Research at Geojit Financial Services.
“At the same time, it is possible that a good portion of these risk factors have been digested by the market and the upcoming impacts will depend on developments like stability in global bond yield and the trade war.”
In terms of quarterly results, companies like Adani Ports, Ambuja Cements, TVS Motor, Bajaj Auto, Wipro, Bharti Airtel, Biocon, Maruti Suzuki, Yes Bank, Dr Reddys Labs, ICICI Bank and ITC are expected to announce their Q2 earnings next week.
“The sentiment would be driven by the moves in the NBFC and HFC stocks and earnings of Asian Paints, Bajaj Group of companies, Bharti Airtel, etc., which are due next week,” Nevgi said.
Apart from the Q2 results, the direction of flow of foreign funds assumes significance as outflows from the beginning of October have crossed the highest level in the last 12 months.
As per data complied from the stock exchanges, in just 13 trading sessions from October 1 onwards, foreign investors have sold stocks worth around Rs 19,500 crore.
The weekly provisional figures showed that foreign institutional investors (FIIs) sold scrips worth Rs 1,576.01 crore.
Besides, the rupee’s strength against the US dollar and global crude oil prices will be closely followed by investors.
In the previous week, a decline in crude oil prices to below $80 per barrel and a stable rupee in a range of 73 to a US dollar helped buoy investor sentiments.
The Indian rupee last week closed at Rs 73.32 to a dollar, strengthening by 24 paise from its previous week’s close of 73.56.
“Lower oil prices and weakness in the US Dollar Index can offset the weakness in local stocks and keep the rupee in a range for the next week,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
“… We can expect range-bound trading in the pair for the next week — between 73 and 74 levels on spot.”
On the technical charts, the National Stock Exchange (NSE) Nifty50 remains in an intermediate downtrend.
“Technically, with the Nifty again displaying weakness after the pullback rally seen in the previous week, the intermediate trend of the index remains down,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“The downtrend is likely to continue early next week once the immediate support of 10,250 points is broken. Crucial resistances to watch on the upside are at 10,436-10,526 points.”
Last week, mixed corporate earnings and fears of a slowdown in global economic growth, pulled the two main indices of the Indian stock market lower.
Consequently, on a weekly basis, the S&P Bombay Stock Exchange (BSE) Sensex closed at 34,315.63 points, down by 417.95 points or 1.20 per cent from its previous close.
Similarly, the wider Nifty50 of the NSE edged-lower. It closed at 10,303.55 points, down 168.95 points or 1.61 per cent from the previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : Broadly negative global markets, along with outflow of foreign funds and a marginal rise in crude oil prices, dragged the key domestic equity indices into the red on Friday.
In addition, mixed quarterly earning results combined with heavy selling pressure in IT, auto and consumer durable stocks eroded investors’ risk-taking appetite.
Index-wise, the S&P BSE Sensex opened at 34,563.29 points from its previous close of 34,779.58 points on Wednesday. The Indian stock and forex markets were shut on Thursday.
On Friday, the 30-scrip Sensex closed at 34,315.63 points down by 463.95 points or 1.33 per cent.
Similarly, the NSE Nifty50 of the National Stock Exchange (NSE) ended the day’s trade in the red.
The NSE Nifty50 closed at 10,303.55 points down 149.50 points and 1.43 per cent.
“Stock markets in India traded under pressure today as key benchmark stocks reeled under selling pressure and dragged indices lower. Tepid global markets further fuelled the negative sentiment as investors dogged fears about global growth,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Additionally, the minutes of the (US) Fed’s September meeting, released earlier in the week, indicated that policymakers are prepared to forge ahead with increases and will likely hike rates again as early as December…”
According to Vinod Nair, Head of Research, Geojit Financial Services: “Market slid below 10,300 mark due to mixed earnings from index heavyweights and selling pressure in global market.”
“Despite the fall, rupee gained some weight supported by stability in oil prices. IT stocks slid the most due to stock specific sell off and concerns on tightening of US H1-B visa norms.”
On Friday, the Indian rupee closed at 73.33 to a USD, strengthened by 28 paise from its previous close of 73.61 per greenback.
Additionally, brent crude oil prices inched up to around $80 a barrel.
Investment-wise, provisional data with the exchanges showed that foreign institutional investors sold stocks in the tune of Rs 618.26 crore, whereas domestic institutional investors off-loaded scrip worth just Rs 2.14 crore.
HDFC Securities’ Retail Research Head Deepak Jasani said: “The weakness in the Nifty came on the back of selling in index heavyweights Reliance, HDFC and Infosys.”
“Technically, with the Nifty correcting further, traders will need to watch if the index can now hold above the immediate supports of 10,249 points; else a further correction is likely.”
The top gainers in the Sensex were Sun Pharma, up 2.52 per cent at Rs 608.40; Kotak Mahindra Bank, up 1.83 per cent at Rs 1,199.55; Vedanta up 1.51 per cent at Rs 211.15; Hindustan Unilever up 1.16 per cent at Rs 1,579.20; and ITC, up 0.73 per cent at Rs 288.45.
Major losers included Yes Bank, down 6.06 per cent at Rs 217.70; HDFC, down 4.32 per cent at Rs 1,661.30; Reliance Industries, down 4.11 per cent at Rs 1,101.65; Tata Motors DVR, down 4 per cent at Rs 95.95; and Hero MotoCorp, down 3.70 per cent at Rs 2,711 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Profit booking, along with a slight rise in global crude oil prices and depreciation in the Indian rupee, pulled the key Indian equity indices lower on Wednesday after three consecutive days of gains.
Sector-wise, except for IT and FMCG stocks, all others witnessed heavy selling pressure led by auto, finance and banking counters.
Index-wise, the benchmark S&P BSE Sensex settled at 34,779.58 points, down 382.90 points or 1.09 per cent.
The NSE Nifty closed at 10,453.05 points, down 131.70 points, or 1.24 per cent.
The volatility during the trade session can be gauged by the 878.27 points swing in Sensex from an intra-day high of 35,605.43 points and a low of 34,727.16.
Vinod Nair, Head of Research, Geojit Financial Services said: “Market slid below 10,500 mark as rise in oil price and volatility in INR influenced investors to book profit.”
“Global market remain mixed ahead of the release of FOMC minutes later in the day to get cues about rate hike trajectory. Currently the market valuation has moderated to some extent and bond yield has reduced. However, the outcome of Q2 earnings will have a say on the market.”
According to Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund: “Initial positive momentum gave way to heavy selling pressure as stock markets in India wiped off intra-day gains and plummeted into negative terrain.”
“Selling in auto and financial stocks put pressure on bourses. Meanwhile, US President Donald Trump continued his criticism of the Federal Reserve, calling it his biggest threat as it was raising rates too fast. Trump had previously said that the Fed has ‘gone crazy’ and attributed last week’s plunge on Wall Street to the US central bank.”
On Wednesday, the Indian rupee closed at 73.60, down 14 paise from its previous close of 73.46 per US dollar.
In addition, brent crude oil prices inched up to over $81.60 a barrel.
Provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 140.02 crore, whereas domestic institutional investors sold scrip Rs 343.11 crore.
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty correcting sharply, traders will need to watch if the index can now hold above the immediate supports of 10,410 points; else a further correction is likely.”
The top gainers in the Sensex were ITC, up 1.34 per cent at Rs 286.35; Coal India, up 1.28 per cent at Rs 280.05; Wipro up 1.20 per cent at Rs 324 ;Infosys up 1.16 per cent at Rs 704.50; and Hindustan Uniliver, up 1.08 per cent at Rs 1,561.05.
Major losers included Yes Bank, down 6.85 per cent at Rs 231.75; Adani Ports, down 5.41 per cent at Rs 315; Maruti Suzuki, down 3.79 per cent at Rs 6,878.70; Tata Motors, down 3.40 per cent at Rs179.20; and Tata Steel, down 3.39 per cent at Rs 554.65 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : A positive start to the second quarter results season, along with a stable rupee and low crude oil prices, pushed both the key equity indices — S&P BSE Sensex and NSE Nifty50 — higher for the third consecutive session on Tuesday.
The day’s trade saw all sectors close on a high note led by finance, banking and energy stocks.
Index-wise, the benchmark S&P BSE Sensex settled at 35,162.48 points, up 297.38 points or 0.85 per cent. It touched an intra-day high of 35,215.79 points and a low of 34,913.06 points.
Similarly, the NSE Nifty50 ended the day’s trade on a positive note. It closed at 10,584.75 points, up 72.25 points, or 0.69 per cent.
Vinod Nair, Head of Research, Geojit Financial Services said: “Market maintained a positive momentum as healthy start to the earnings season and gaining strength in rupee supported the sentiment.”
“Though rally was broad based, financials led from the front. However, global market remain mixed due to trade tensions. Earnings season will dictate the trend in the market as investors are gradually shifting their focus from global volatility to domestic triggers.”
According to Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund: “On the macro front, India’s merchandise trade deficit during April-September 2018 was reported at $94.32 billion. The trade deficit for September 2018 was at $13.98 billion, which is the lowest in the last 5 months, despite high oil prices.”
On Tuesday, the Indian rupee closed at 73.46, recovering 37 paise from its previous close of 73.83 per US dollar.
Provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 1,165.63 crore, whereas domestic institutional investors bought scrip Rs 1,059.44 crore.
HDFC Securities’ Retail Research Head Deepak Jasani told: “Technically, the underlying trend of Nifty continues to be positive. At the same time one needs to be cautious of long trading positions at the highs.”
“Resistance for the Nifty is now at 10,720-10,754 band. Immediate supports to
be watched is at 10,490 levels.”
The top gainers in the Sensex were Mahindra and Mahindra, up 3.97 per cent at Rs 778.30; Adani Ports, up 3.54 per cent at Rs 333; ONGC up 3.44 per cent at Rs 165.50; SBI up 2.60 per cent at Rs 270.20; and ICICI Bank, up 2.51 per cent at Rs 321.05.
Major losers included HDFC Bank, down 0.77 per cent at Rs 1,992.40; Bajaj Auto, down 0.54 per cent at Rs 2,611.15; Maruti Suzuki, down 0.45 per cent at Rs 7,149.95; Infosys, down 0.39 per cent at Rs 696.40; and IndusInd Bank, down 0.37 per cent at Rs 1,620.85 per share.
—IANS
