by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Signs of easing Indo-Pak tensions and expectations of a breakthrough in US-China trade talks buoyed the Indian equity market on Friday, snapping a three-day losing streak.
Additionally, expectations of a further lending rate cut by the RBI to prop-up growth and healthy buying in small and mid-cap stocks, supported the upward movement of key indices.
In terms of sectors, all indices gained except for telecom. Healthy buying was seen in the index pivotals — finance and banking — stocks.
Consequently, the S&P BSE Sensex closed 196.37 points or 0.55 per cent higher at 36,063.81 points, while the NSE Nifty ended 71 points up at 10,863.50 points.
“Market rallied as cues on ease in border tensions and expectation of US-China trade agreement uplifted the sentiment. Outperformance was seen in bank, small and mid-caps in expectation of a rate cut from the RBI, after a slowdown in GDP growth in the third quarter,” said Vinod Nair, Head of Research, Geojit Financial Services.
“Investors are gradually churning their portfolios to high quality small and midcaps, where valuation looks attractive.”
Stock-wise, Bharti Airtel, Asian Paints, Bajaj-Auto, Axis Bank and Reliance Industries were the only scrips that ended lower.
On the other hand, Stocks of Tata Motors (DVR), IndusInd Bank, Yes Bank, Vedanta and HeroMoto Corp gained in the range of 1 to 3 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : A strengthening rupee and easing US-China trade tension boosted investor sentiments on Monday leading to a healthy rise in the key equity indices, with the BSE Sensex advancing over 340 points and the Nifty closing higher at 10,880.
Global markets reacted positively after US President Donald Trump on Sunday said that he would be delaying the increase in tariffs scheduled for March 1.
“Assuming both sides make additional progress, we will be planning a summit for President Xi (Jinping) and myself,” Trump said in a tweet.
The Sensex ended 341.90 points or 0.95 per cent higher at 36,213.38 from its previous close of 35,871.48, while the Nifty ended with a gain of 88.45 points or 0.82 per cent at 10,880.10.
Among the sectors, Deepak Jasani of HDFC Securities said, the Banks, IT and sugar stocks were in favour, while Realty index fell despite the GST relief granted over the weekend.
Nifty closed at its highest in 10 sessions as global cues remained favourable and gains in Chinese markets denoted a bull market after rising more than 20 per cent from the lows of January 2019, Jasani added.
“…government’s reforms and strengthening rupee is boosting investor sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
“However, the stability of premium valuation will be tested based on the outcome of Q3FY19 GDP… The consensus is showing moderation in growth to 6.7 per cent,” he said.
The top Sensex performers were Yes Bank and TCS, gaining over 3 per cent, followed by Infosys, IndusInd Bank and HCL Tech, among others.
Among the laggards were Coal India, Asian Paints, State Bank of India (SBI), ONGC and Larsen and Toubro (L&T).
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Profit booking along with caution ahead of release of key macro-data and subdued quarterly earnings pulled the two key Indian equity indices lower on Monday.
Accordingly, the S&P BSE Sensex fell 150 points, while the Nifty ended below the 10,900-point mark.
Barring the IT and Teck stocks, all other sectors ended lower. On the NSE, PSU Bank Nifty closed 1.74 per cent down. The pharma sector also witnessed heavy selling pressure.
Selling pressure continued in the market despite a rebound in global markets as investors turned risk-averse due to upcoming elections, said Vinod Nair, Head of Research, Geojit Financial Services.
Besides, third quarterly results have failed to enthuse investors as the “scope of downgrade in earnings further dampened the sentiment”, he added.
The BSE Sensex closed 151.45 points or 0.41 per cent lower at 36,395.03 from its previous close of 36,546.48 points, while the Nifty closed 54.80 points down at 10,888.80.
“Global trade deal and risk of slowdown in growth continue to give caution, while investors remain focused on tomorrow’s (Tuesday) CPI inflation and IIP data to get some direction,” Nair said.
According to Kotak Securities Head of Fundamental Research Rusmik Oza: “Broader participation is not happening. Also, we are witnessing some profit booking post the Interim Budget and RBI rate cut.”
“In the run-up to the general elections, investors are looking at sectors which are less susceptible to domestic factors. Therefore, the export-oriented IT stocks are gaining.”
Provisional data from the BSE showed that FIIs bought stocks worth Rs 125.05 crore and DIIs offloaded stocks worth Rs 232.55 crore.
On the other hand, rupee gained 14 paise to settle at Rs 71.17 per US dollar from its previous close of 71.31.
Tata Steel emerged the top gainer, up 2.31 per cent on Sensex, followed by Power Grid, HCL Tech, Maruti Suzuki and Tata Motors, which gained up to 1.50 per cent.
Among losers in the Sensex pack, Mahindra and Mahindra shed over 5 per cent, followed by ONGC, Bajaj Finance, Reliance Industries and State Bank of India.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Expectations of rate cut in the Reserve Bank of India (RBI)’s bi-monthly monetary policy outcome due on Thursday, along with some healthy quarterly results, lifted the key equity indices on Wednesday.
Besides, healthy foreign fund inflows also aided the upward movement of market.
Sector-wise, auto, IT and metal stocks led the gains on Sensex, while the consumer durables and utilities declined.
“Domestic market rallied 1 per cent led by broad-based buying across sectors. Nifty breached its narrow trading band of 10,650-10,950 on expectation of a shift in RBI’s policy stance and strong FII inflows,” said Vinod Nair, Head of Research, Geojit Financial Services.
Additionally, drop in bond yield and marginal strength in rupee added strength to the expectation of lowering of rates, said Nair.
The BSE Sensex closed 358.42 points or 0.98 per cent higher at 36,975.23, while the Nifty finished the trade 128 points or 1.17 per cent higher at 11,062.45.
Except for Axis Bank and IndusInd Bank, all other Sensex stocks gained.
Bajaj Finance and Tata Steel closed over 4 per cent higher. ONGC, Bajaj Auto and Tata Motors(DVR) gained in the range of 2 to 3 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Concerns over a rise in US-China trade tensions along with caution ahead of the interim budget kept the major equity indices in a tight range and eventually led them to end on a flat-to-negative note on Tuesday.
In addition, caution prevailed over the ongoing third quarter results season and stock-specific volatility reined in the market’s upward movement.
Globally, investor sentiments were subdued as the US-China trade conflict intensified after the US Justice Department filed criminal charges against Huawei accusing the world’s second-largest smartphone marker of bank fraud, obstruction of justice and theft of technology.
On sector specific basis, oil and gas stocks ended 0.92 per cent lower, while the key finance and banking stocks ended on a flat to negative note.
Consequently, the S&P BSE Sensex ended 64 points or 0.18 per cent lower at 35,592.50, while the NSE Nifty50 closed 9.35 points or 0.09 per cent down at 10,652.20.
“The market opened on a negative note due to uncertainties surrounding the global market and upcoming US Fed policy. However, towards the closing, market managed to recoup some of the losses supported by strengthening rupee and short covering ahead of F&O expiry,” said Vinod Nair, Head of Research, Geojit Financial Services.
“The market is not completely out of the wood as volatility may extend in the coming days due to interim budget and election led uncertainty.”
On the upcoming interim budget, Sajal Gupta, Head Forex & Rates, Edelweiss Securities, said that the fiscal fragilities had been weighing both on the currency and debt market space for some time now.
“Upcoming interim budget will likely confirm government slipping on the budgeted print of 3.3 per cent of GDP by 0.2 percentage points to 3.5 per cent.”
Gupta added that the markets were already bracing for the slippage, largely amid massive revenue shortfalls in GST collections so far.
The rupee on Tuesday closed on a flat note at 71.11 per dollar from its previous close of 71.10.
On the technical front, Sameet Chavan of Angel Broking said that during the first half, there were a couple of attempts made to inch towards the 10,700 mark; however due to strong selling at higher levels, these attempts got sold into.
“… post the mid-session, the selling aggravated to eventually push the Nifty below 10,600.”
Investment-wise, foreign institutional investors (FII) sold Rs 354.36 crore worth of stocks on Tuesday while the domestic institutional investors (DII) bought Rs 81.27 crore worth of stocks.
The top gainers on the BSE were Sun Pharma, Bajaj Finance, Tata Motors (DVR), TCS and IndusInd Bank, while the top losers were Yes Bank, Larsen and Toubro, HDFC, Reliance Industries Ltd and HDFC Bank.
—IANS
