by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key equity indices rose on Monday, wiping off initial losses, as wholesale inflation grew at a slower pace and amid bets of robust corporate earnings in the second quarter ended September 30.
However, a slight rise in global crude oil prices pressured the Indian rupee, capping the gains.
Healthy buying was witnessed in information technology and healthcare counters, market participants said.
“Market traded in a rangebound manner, ending on a positive note. However, concerns about global growth due to trade war (between the US and China) and rising cost of funds are weighing on the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
The benchmark S&P BSE Sensex settled at 34,865.10 points, up 131.52 points or 0.38 per cent. The NSE Nifty closed at 10,512.50, up 40 points or 0.38 per cent. The Sensex touched an intra-day high of 35,008.65 and a low of 34,559.98.
India’s annual rate of inflation based on wholesale prices accelerated 5.13 per cent on year in September from a 4.53 per cent increase in August, official data showed here on Monday.
“The rupee continued to be under pressure, as oil prices resumed an uptrend due to tension between the US and Saudi Arabia. Second-quarter results began on a positive note,” said V.K. Sharma, Head, PCG and Capital Markets Strategy, HDFC Securities.
Astha Jain, Senior Analyst, Hem Securities, told IANS: “Today’s rise can be attributed to healthy buying after the major correction last week.”
On Monday, the Indian rupee closed at 73.83, sliding 27 paise from its previous close of 73.56 per US dollar.
Provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 67.86 crore, whereas domestic institutional investors bought Rs 294.78 crore worth of stocks.
The top gainers in Sensex were Infosys, up 2.95 per cent at Rs 699.10; ITC, up 2.51 per cent at Rs 281.60; ONGC, up 1.78 per cent at Rs 160; TCS, up 1.60 per cent at Rs 1,949.15.
Major losers included Hindustan Uniliver, down 2.68 per cent at Rs 1,526.60; Mahindra and Mahindra, down 2.63 per cent at Rs 748.60; ICICI Bank, down 1.76 per cent at Rs 313.20; Vedanta, down 1.52 per cent at Rs 210.95; and Axis Bank, down 1.51 per cent at Rs 575.85 per share.
—IANS
by admin | May 25, 2021 | Economy, Finance, Markets, News
By Rohit Vaid,
Mumbai : The second-quarter earnings result season, along with the direction of foreign fund flows and macro-economic data points, are expected to determine the trajectory of key Indian equity indices next week.
Market analysts said that crude oil prices coupled with rupee’s strength against the US dollar will also influence the market moves.
“The markets next week would get some sentimental support from stability in INR and crude oil prices,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The earnings season would be closely tracked as a factor to mitigate some of the volatility in the markets.”
Companies like ACC, Cyient, Reliance Industries, Infosys, Hero MotoCorp, IndusInd Bank and UltraTech Cement are expected to announce their Q2 earning results next week.
“Currently, broader markets look attractive while investors may seek more clarity from upcoming quarterly results,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The continuity of this trend largely depends on stability on bond yields and INR. However, worries about US Fed rate hike, US-China trade dispute and political uncertainties in India on account of upcoming state elections may impact the sentiment in the short-term.”
Apart from the Q2 results, investors will look forward to the macro-economic data points of WPI (Wholesale Price Index) and India’s trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of WPI on October 15.
“The trade deficit number due next week would be crucial for the INR moves,” Nevgi said.
On a weekly basis, the rupee closed at 73.56 last Friday, strengthening by 21 paise from its previous week’s close of 73.77 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 8,335.12 crore last week.
At present, outflows in just the nine trading sessions in October have reached over Rs 17,000 crore.
This has been one of the worst months in over a decade in terms of fund outflows.
On technical charts, the National Stock Exchange (NSE) Nifty50 remains in an uptrend as it has closed at new life highs.
“Technically, while the Nifty has bounced back smartly, the intermediate trend remains down,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“The downtrend is likely to continue once the immediate support of 10,138 points is broken. Crucial resistances to watch on the upside are at 10,492-10,605 points. A break of 10,866 points would change the trend of the Nifty.”
Last week, both the key Indian equity indices — S&P Bombay Stock Exchange (BSE) Sensex and the NSE Nifty50 — came in for some rough weather due to global worries over high crude oil prices and US interest rates during the period, but managed to catch the upside in the final session of trade.
The market swung widely with major losses of over 2 per cent in just one session — thereby pulling stock prices and the Indian currency lower.
Notwithstanding the general downturn, a timely plunge in crude oil prices, attractive valuations and liquidity infusion by the Reserve Bank of India (RBI) lured investors back to the Indian market.
Consequently, the S&P BSE Sensex closed at 34,733.58 points, up 353.54 points or 1.02 per cent from its previous close.
Similarly, the wider Nifty50 of the National Stock Exchange also made gains. It closed at 10,472.50 points, up 156.05 points or 1.51 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
By Rituraj Baruah,
Mumbai : The domestic equity market’s movement in the coming week will be driven by the rupee’s movements well as futures and options expiry, besides the message from the Finance Minister’s meeting with the heads of public sector banks (PSBs).
Market analysts feel the indices could offer some relief in the upcoming week, after largely bearish trade last week.
Movement in the rupee would be a factor in the market, they said. On Tuesday, the Indian rupee touched a new low of 72.91 per US dollar, although it recovered somewhat later.
Concerns over the US-China trade war would also impact the global and domestic market sentiments. On Friday, China cancelled talks with the US after the latter imposed more tariffs on Chinese imports.
According to reports, a White House official has said the US is optimistic about finding a way forward in the ongoing trade dispute with China.
“Global headwinds are also subsiding slowly. Hence, the market may shake off its earlier losses to witness new highs,” said Prateek Jain, Director of Hem Securities.
He, however, added: “Amidst the global optimism, the market could witness a little volatility as traders adjust their positions on account of monthly derivatives expiry, which is scheduled to take place on Thursday, September 27.
“Further, there will be some buzz from the banking sector, as investors will keep an eye on the meeting of the Finance Ministry and top management of the public sector banks on September 25.”
Technically, for the Nifty50 on the National Stock Exchange (NSE), 11,050 points would be a major support level while immediate resistance level would be 11,250 points, said Deepak Jasani, Head of Retail Research at HDFC Securities.
In the week gone by, the Indian equity market slumped over three per cent due to a depreciating rupee along with high oil and credit risk concerns.
On a weekly basis, the Sensex of the Bombay Stock Exchange (BSE) closed at 36,841.60 points, lower by 1,249.04 points or 3.28 per cent from the previous week.
Similarly, the wider Nifty50 on Friday closed at 11,143.10 points, down 372.1 points or 3.23 per cent from the previous week’s close.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 2,674.12 crore, while the domestic institutional investors (DIIs) bought Rs 1,782.63 crore worth of stocks in the truncated week.
According to National Securities Depository (NSDL) figures, foreign portfolio investors (FPIs) divested Rs 2,231.37 crore, or $306.04 million, in the equities segment during the week ended September 21.
On the currency front, the Indian rupee closed at 72.20 a US dollar on Friday, depreciating 35 paise from the previous week’s close of 71.85.
(Rituraj Baruaah can be contacted at rituraj.b@ians.in)
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Latest global trade protectionist measures, along with high crude oil prices and a depreciation in rupee’s value, dragged the Indian equity market in the red for a second consecutive session on Tuesday.
Sector-wise, heavy selling pressure was witnessed in the interest sensitive stocks like banking, auto and capital goods.
Index-wise, the wider NSE Nifty50 provisionally closed at 11,278.90 points, lower by 98.85 points or 0.87 per cent from the previous close of 11,377.75 points.
The S&P BSE Sensex, which had opened at 37,660.19 points, provisionally closed at 37,290.67 points, lower by 294.84 points or 0.78 per cent from the previous close of 37,585.51 points.
It touched a high of 37,745.44 points and a low of 37,242.85 during the day’s trade.
“Carrying on from Monday, markets continued to dive on Tuesday to close in the red for the second consecutive session. The Nifty had in fact opened on a positive note, but selling soon resumed and pulled the index lower,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“The weakness came on the back of rising global trade tensions after (US President Donald) Trump said he will impose tariffs on an additional $200 billion worth of Chinese imports, escalating the trade conflict.”
According to Vinod Nair, Head of Research, Geojit Financial Services: “Selling pressure increased on the bourses due to spike in oil prices led by factors like implication of US sanction on Iran and supply constraints.
“Domestic triggers failed to add momentum despite ease in inflation, government policies to contain CAD and consolidation in PSUBs. This situation will ease once the global bond and currency market stabilise which is currently under pressure given the chaos over oil and Fed rate hike.”
On the currency front, the Indian rupee closed at 72.98, weakening 47 paise from its previous close of 72.51 per greenback.
Investment-wise, provisional data with the exchanges showed that foreign institutional investors sold scrip worth Rs 1,143.73 crore and domestic institutional investors bought stocks worth Rs 264.66 crore.
Sector-wise, only FMCG stocks on the BSE ended in the green, gaining 102.11 points.
On the other hand, the S&P BSE banking index lost 510.20 points, the auto index was down 353.54 points and the capital goods ended 250.56 points lower from its previous close.
The top gainers on the Sensex were Hindustan Unilever, up 3.87 per cent at Rs 1,666.15; Yes Bank, up 1.43 per cent at Rs 323.15; Wipro, up 1.02 per cent at Rs 332.50; ONGC, up 0.93 per cent at Rs 173.35; and ITC, up 0.23 per cent at Rs 302.60 per share.
The losers were State Bank of India, down 4.06 per cent at Rs 274; Tata Motors, down 3.36 per cent at Rs 251.45; Bajaj Auto, down 2.84 at Rs 2,775.90; Axis Bank, down 2.81 per cent at Rs 608.45; Tata Motors(DVR),down 2.45 per cent at Rs 137.55 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Amid negative global cues along with a depreciating rupee, the key equity indices closed over a per cent lower on Monday after two consecutive positive sessions.
Reports that the US might impose fresh tariffs on China weighed down the global market sentiments.
Further, weakening of the rupee during the day, despite the government announcing measures to arrest the fall of rupee in the weekend, dampened domestic sentiments.
Index-wise, the Nifty50 of the National Stock Exchange (NSE) closed at 11,377.75 points, lower by 137.45 points or 1.19 per cent from its previous close of 11,515.20 points.
The barometer S&P BSE Sensex, which had opened at 38,027.81 points, closed at 37,585.51 points, lower by 505.13 points or 1.33 per cent from its previous close of 38,090.64 points.
It touched an intra-day high of 38,027.81 points and a low of 37,548.93 points.
In the broader markets, the S&P BSE Mid-cap declined by 0.76 per cent and the S&P BSE Small-cap ended 0.05 per cent lower from its previous close.
The BSE market breadth was bearish with 1,441 declines against 1,282 advances. The total number of stocks traded on the exchange was 2,914, with 191 ending unchanged.
The weakness came on the back of weak global cues amid reports US could soon announce a new round of tariffs on Chinese imports, said Deepak Jasani, Head of Retail Research, HDFC Securities.
Major Asian markets closed on a negative note and European indices like FTSE 100, DAX and CAC 40 traded in the red, he said.
On the currency front, the Indian rupee slipped below the 72-mark again, to close at 72.51, weakening 66 paise from its previous close of 71.85 per greenback on Friday.
Investment-wise, provisional data with the exchanges showed that foreign institutional investors sold scrip worth Rs 106.54 crore and domestic institutional investors sold stocks worth Rs 180.36 crore.
Sector-wise, only three indices on the BSE ended in the green, with marginal gains. The S&P BSE realty index gained 28.03 points, the power index rose 2.86 points and the utilities index gained just 0.81 points.
On the other hand, the S&P BSE banking index lost 330.74 points, the consumer durables index was down 259.43 points and the auto index ended 243.10 points lower from its previous close.
The top gainers on the Sensex were Power Grid, up 0.70 per cent at Rs 201.50; Tata Consultancy Services, up 0.40 per cent at Rs 2,071.60; Adani Ports, up 0.37 per cent at Rs 381.45; IndusInd Bank, up 0.07 per cent at Rs 1,875; and Tata Steel, up 0.05 per cent at Rs 615.65 per share.
The losers were Sun Pharma, down 2.85 per cent at Rs 646.15; HDFC, down 2.47 per cent at Rs 1,878.60; Tata Motors, down 2.35 at Rs 260.20; Tata Motors(DVR), down 2.15 per cent at Rs 141.00; Relaince Industries, down 2.12 per cent at Rs 1,226.25 per share.
—IANS
