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 | Economy, Markets, News
By Ravi Dutta Mishra and Rituraj Baruah,
Mumbai : Quarterly results, along with manufacturing PMI and fiscal deficit data, are likely to drive the Indian equity market in the coming week.
Market participants and analysts expect value buying in the indices as the market has been largely bearish in the last couple of weeks.
In terms of quarterly results, companies like Bank of Baroda, Tata Power, Tata Motors, Union Bank of India, Lupin, DLF, HDFC, Axis Bank, Punjab National Bank, SAIL and Vedanta are likely to announce their second quarter earnings in the coming week.
Further, the Nikkei Manufacturing Purchasing Managers’ Index (PMI) for October will be released on Thursday, November 1, and the fiscal deficit data for September is due on Wednesday, October 31. This macroeconomic data would be key for the market sentiments.
“Manufacturing PMI and infrastructure output numbers will be seen crucially while leads will also be taken from ICICI Bank’s result (released on Friday). Mostly the trend will be in tandem with the global markets and indices such as S&P 500,” said Mustafa Nadeem, CEO, Epic Research.
On the technical front, the Nifty50 is seen receiving support at 9,951 points and 10,139 would be the immediate resistance level, analysts said.
In the week gone by, the National Stock Exchange (NSE) Nifty50 lost 273.55 points, or 2.65 per cent, on a weekly basis to settle at 10,030 points on Friday.
Similarly, the S&P Bombay Stock Exchange (BSE) Sensex lost 966.32 points, or 2.81 per cent during the week, to close at 33,349.31 points.
On Friday, both the Sensex and the Nifty dropped to seven-month lows.
“During the ongoing Q2 corporate earnings, companies declared lower-than-expected numbers which led to disappointment on the street. FII selling, lower-than-expected earnings and global markets sell-off combined, led to major selling in the markets,” said Rahul Sharma, Senior Research Analyst at Equity99.
In the coming week, the direction of flow of foreign funds will assume significance as there have been massive outflows in October, as investors pulled out from emerging markets to redeploy their capital in safe-havens such as US securities.
According to data provided by the National Securities Depository (NSDL), the monthly outflow of foreign funds at Rs 24,186 crore from the equity segment was at its highest so far in October.
The NSDL website has data from 2002, as Indian markets received minuscule funds from foreign investors prior to that, said Deepak Jasani, Head of HDFC Securities.
During the week just-ended, provisional figures from the stock exchanges showed that foreign institutional investors sold shares worth Rs 5,751.17 crore, whereas domestic institutional investors bought Rs 4,508.62 crore worth of stocks.
Figures from the NSDL showed that foreign portfolio investors divested Rs 4,563.31 crore, or $622.5 million, in the equities segment during the week ended October 26.
Besides, the rupee’s movement against the US dollar and global crude oil prices will also be closely followed by investors.
The Indian rupee on Friday closed at Rs 73.46 to a US dollar, weakening by 14 paise from its previous week’s close of 73.32.
(Ravi Dutta Mishra and Rituraj Baruah can be contacted at ravidutta.m@ians.in and rituraj.b@ians.in )
—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 : 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
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
