by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Attractive valuations, along with healthy quarterly results supported the key Indian equity indices closed Tuesday’s volatile trade session on a positive note after five consecutive days of decline.
After opening on a negative note, the indices rose to intra-day high levels in the early hours of trade, before ceding most of their gains due to weakness in global markets and rise in crude oil prices.
Index-wise, the broader Nifty50 of the National Stock Exchange (NSE) closed at 10,536.70 points — up by 20 points or 0.19 per cent — from its previous close of 10,516.70.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which had opened at 34,601.49 points, closed higher by 35.11 points or 0.1 per cent, at 34,651.24 points.
The Sensex touched a high of 34,754.60 points and a low of 34,550.22 points during the intra-day trade.
“After a choppy morning trade, indices firmed up in the afternoon and managed to settle with small gains,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Jasani further told IANS: “Broad market indices like the BSE mid-cap and small-cap indices gained more, thereby outperforming the main indices.”
Both the S&P BSE mid-cap and small-cap ended 0.65 per cent from their respective previous closing levels.
Consequently, the BSE market breadth was tilted towards the bulls with 1,405 advances against 1,219 declines. On the NSE, too, the market breadth was positive.
On the currency front, the Indian rupee strengthened by eight paise against the US dollar to 68.05, from its previous close at 68.13 per greenback.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 1,651.63 crore, while the domestic institutional investors bought stocks worth Rs 1,496.83 crore.
Sector-wise, the S&P BSE auto index rose the most, by 413.76 points, followed by the metal index which increased by 211.32 points and the healthcare index that ended 143.12 higher from its previous close.
On the other hand, the S&P BSE oil and gas index fell by 59.23 points, followed by the energy index, which ended 11.10 points lower and the FMCG index that fell by 10.97 points.
On the NSE, according to BNP Paribas Mutual Fund’s Senior Fund Manager for Equities, Abhijeet Dey, barring the FMCG index, which closed in the red, all other sectoral indices closed the trading day in the positive zone.
Dey further said, auto stocks gained the most among the sectors due to expectation that China may cut import duty on passenger cars.
The major gainers on the Sensex were Dr Reddy’s Lab, up 6.30 per cent at Rs 2,013.75; Bajaj Auto, up 3.86 per cent at Rs 2,825; Tata Motors, up 3.78 per cent at Rs 307.75; State Bank of India, up 3.69 per cent at Rs 254.15; and Coal India, up 3.23 per cent at Rs 278.45 per share.
The top losers were Tata Consultancy Services, down 1.40 per cent at Rs 3,508.05; Asian Paints, down 1.27 per cent at Rs 1,283.5; Axis Bank, down 1.27 per cent at Rs 522; IndusInd Bank, down 1.19 per cent at Rs 1,898.50; and ITC, down 1.17 per cent at Rs 278.8 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Macro-economic data points, coupled with fourth quarter (Q4) earning results, are expected to influence the Indian equity markets during the upcoming truncated week.
According to market observers, the US Fed’s open market committee meet along with the trajectory of global crude oil prices and the rupee’s movement against the US dollar can trigger volatility during the week’s trade sessions.
“The earnings momentum would again be critical since HDFC, Kotak Bank and Dabur will be releasing their numbers. For PSU and other banks, the key question is whether the peak in NPA (non-performing assets) reporting cycle is near,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
Companies like HDFC, Kotak Mahindra Bank, HCL Technologies, Hero MotoCorp, Interglobe Aviation, Marico, Welspun Corp and Adani Ports and Special Economic Zone are expected to announce their Q4 earning results next week.
“Earnings and (the Karnataka) election will be the main triggers for the market while investors will have to keep an eye on domestic headwinds like rise in oil price and rupee movement,” said Vinod Nair, Head of Research at Geojit Financial Services.
“On the other hand, the earnings season has started on a positive note led by private sector banks and IT companies. Global market sentiment will be based on the outcome of two-day FOMC meet which is scheduled to start from May 1.”
Apart from Q4 results, investors will look out for upcoming macro-economic data points such as the eight core industries’ (ECI) output, the country’s fiscal deficit numbers and PMI manufacturing and services’ figures which will be released during the week starting April 30.
“Next week, the fiscal deficit for the full financial year would be available and the data would be scrutinised in detail for any slippages, especially in the month of March,” Nevgi said.
“The PMI would be tracked, too, for the economic progress. Crude prices would be tracked closely for any spurt.”
Nevgi added that DIIs (domestic institutional investors) have supported the market as they remained net buyers, whereas FPIs (foreign portfolio investors) have been net sellers since April 13.
The provisional figures from the stock exchanges showed that during last week, foreign institutional investors (FIIs) sold scrips worth Rs 3,060.41 crore, while the domestic institutional investors purchased stocks worth Rs 2,649.61 crore.
In terms of currency, the rupee weakened by 54 paise to close at 66.67 against the dollar on last Friday.
On technical charts, the underlying trend for the National Stock Exchange’s (NSE) Nifty remains bullish.
“Technically, the near-term trend of Nifty is positive and one may expect further upside in the early part of next week. Nifty could face resistance at the 10,750-10,800 band for the next week,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
Last week, healthy Q4 earnings lifted the benchmark equity indices as they settled at their highest closing levels in over three months.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) rose by 554.12 points or 1.61 per cent to close at 34,969.70 points.
Similarly, the wider Nifty50 made gains during the week ended April 27. It closed trade at 10,692.30 points — up 128.25 points or 1.21 per cent from its previous week’s close.
The Indian equity indices will remain closed on Tuesday to observe Maharashtra Day.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
