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 : 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
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
By Rohit Vaid,
Mumbai : The Central government’s measures to arrest the drastic fall in rupee are expected to steer the equity market trajectory next week.
In addition, market observers opined that high crude oil prices along with global cues on trade protectionist measures will impact investors’ risk-taking appetite.
However, a positive reaction is expected from investors on the various measures announced by Finance Minister Arun Jaitley to curb the widening current account deficit, besides a policy to limit non-essential imports and to encourage exports.
The Minister had said the government is committed to maintain its fiscal deficit target even as it monitors the impact of external factors on the Indian economy.
Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, said: “Next week’s sentiment would be dominated by the announcements made by the government to rein in current account deficit and encourage foreign flows.
“Measures taken, though not drastic, would have a soothing effect on the INR sentiment in the short term… but would not open the floodgates for foreign flows.”
In recent days, geo-political developments over trade protectionist measures along with high crude oil prices and outflows of foreign funds have pulled the Indian rupee to fresh record intra-day and closing lows.
“Despite sharp fall in rupee and consolidation in domestic markets, we are outperforming other emerging markets. The reasons for this are revival in domestic earnings growth, better economic data and softening of CPI,” said Vinod Nair, Head of Research at Geojit Financial Services.
“However, some risk factor like surge in oil prices, strengthening of dollar and escalation of trade wars are creating headwinds for the markets. Considering this, market is expected to be volatile in the near term. For the week ahead, markets will closely monitor the outcome of economic review meeting this weekend.”
Last week, the Indian rupee touched a fresh low of 72.91 a US dollar. However, towards the end of the week it recovered to close at 71.85 on Friday, weaker by 12 paise from its previous week’s close of 71.73 per greenback.
“Unless some fresh measures are announced next week, risk remains that rupee can depreciate once again. The just announced measures, though are significant in streamlining inflows through the respective markets, will do little to help the rupee right now,” said Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities.
“Rupee will be driven by trend of EM currencies against USD, oil prices and RBI intervention. We expect volatility to increase and a wide range of 71.50 to 73 is expected over next week.”
Besides, the direction of foreign fund flows is likely to impact the trajectory of equity market.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 2,291.87 crore in the past week.
Figures from the National Securities Depository (NSDL) suggested that foreign portfolio investors (FPIs) divested Rs 3,076.38 crore, or $424.03 million, in the equities segment during the week ended September 14.
On technical levels, the underlying intermediate trend of the National Stock Exchange (NSE)’s Nifty50 “remains up”.
“Technically, while the Nifty has corrected this week, the intermediate trend of the Nifty remains up,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“The uptrend is likely to resume once the immediate resistance of 11,760 points is taken out. Crucial supports to watch on the downside are at 11,431-11,250 points.”
On a weekly basis, persistent depreciation in the Indian rupee along with high crude oil prices pulled the domestic equity market lower for the second consecutive week.
Consequently, the barometer S&P BSE Sensex closed at 38,090.64 points, lower 299.18 points or 0.77 per cent from its previous close.
Similarly, the wider Nifty50 on the National Stock Exchange on Friday ended at 11,515.20 points, down 73.9 points or 0.63 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, Markets, News
By Ravi Dutta Mishra and Rituraj Baruah,
Mumbai : The Indian equity market snapped its six-week-long gaining streak during the September 3-7 period as the rupee fell to record low levels, coupled with high crude oil prices and decline in the global markets.
However, gains in the indices by the end of the week helped curb losses. Three out of the five sessions were negative during the period.
The rupee breached 72 a US dollar-mark for the first time. However, towards the week-end it recovered marginally following intervention by the Reserve Bank of India (RBI), analysts said.
Investor sentiments in the global markets were subdued due to high crude oil prices and persistent US-China trade tensions.
On a weekly basis, the S&P BSE Sensex closed at 38,389.82 points, lower 255.25 points or 0.66 per cent from its previous close.
Similarly, the wider Nifty50 on the National Stock Exchange on Friday ended at 11,589.10 points, down 91.4 points or 0.78 per cent from the previous week’s close.
Heavy selling pressure was witnessed from Foreign Institutional Investors (FIIs) both in cash and futures segments, said Rahul Sharma, Senior Research Analyst at Equity99.
However, towards the fag-end of the week, market recovered from early losses. Domestic indices rose for the second consecutive session on Friday on gains in auto, metal and technology stocks, according to Prateek Jain, Director, Hem Securities.
Value buying and recovery in the rupee from its lows in the later part of the week helped the indices rise on Thursday and Friday, thereby partially paring weekly losses.
Auto stocks gained after Union Transport Minister Nitin Gadkari on Thursday announced that the government would do away with permits for commercial vehicles run on alternative fuels.
On the currency front, the rupee touched a record low of 72.11 per US dollar on Thursday, though it recovered to end the week at 71.73 per dollar — 73 paise weaker from the previous week’s close of 71 per dollar.
The rupee remained subdued for most of the week due to a rise in crude oil prices and a similar weak trend among its global peers.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 789.60 crore and the domestic institutional investors bought stocks worth Rs 1,167.85 crore in the past week.
Figures from the National Securities Depository Ltd (NSDL) showed that foreign portfolio investors (FPIs) divested Rs 504.03 crore, or $70.06 million in the equities segment during September 3-7.
Sector-wise, the top gainers during the week were pharma, IT, metal and energy indices and the major losers were public sectors, FMCG and media indices, said Deepak Jasani, Head of Retail Research at HDFC securities.
The top weekly Sensex gainers were Wipro (up 7.43 per cent at Rs 324.05), Bajaj Auto (up 6.47 per cent at Rs 2,924), Tata Motors (DVR) (up 4.11 per cent at Rs 148.05), Tata Motors (up 3.89 per cent at Rs 277.50) and Reliance Industries (up 2.88 per cent at Rs 1,276.75 per share).
The major losers were Hindustan Unilever (down 7.96 per cent at Rs 1,638.95), Yes Bank (down 5.81 per cent at Rs 323.45), State Bank of India (down 5.50 per cent at Rs 291.85), ONGC (down 4.33 per cent at Rs 172.15) and Maruti Suzuki (down 4.01 per cent at Rs 8,732.55 per share).
(Ravi Dutta Mishra can be contacted at ravidutta.m@ians.in and Rituraj Baruah can be contacted at rituraj.b@ians.in)
—IANS
