by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The key indices of the Indian equity market — S&P BSE Sensex and NSE Nifty50 — ended in the negative territory on Monday after a volatile trade session.
According to market observers, both the key indices had gained nearly a per cent each during the initial trade hour but failed to sustain the northward trajectory as caution over Reserve Bank of India’s (RBI) second monetary policy review of the fiscal eroded investor’s risk-taking appetite.
The Monetary Policy Committee (MPC) of the RBI began its three-day meet from June 4 to 6 here on Monday.
Accordingly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed the day’s trade in the red. It closed lower by 67.70 points or 0.63 per cent to 10,628.50 points from its previous close.
The Sensex of the BSE, which opened at 35,503.24 points, closed at 35,011.89 points, 215.37 points or 0.61 per cent lower from the previous session’s close at 35,227.26 points.
The Sensex touched a high of 35,555.59 points and a low of 34,982.25 during the trade session.
“Markets corrected further on Monday after a positive morning session led by banking and realty stocks,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Investors turned cautious ahead of RBI monetary policy review meet which began today. Broad market indices like the BSE Mid Cap and Small Cap indices fell more, thereby underperforming the main indices.”
Geojit Financial Services Head of Research Vinod Nair said: “Market erased early gains despite positive momentum in the global market as investors are gradually factoring a rate hike ahead of RBIs monetary policy.”
“As the result season is over, market participants are keen on macros, the movement of oil price and rupee will remain the key trigger. On the other hand, the tailwinds caused by prognosis of good monsoon and uptick in economic activity in Q4FY18 will boost consumption led story and rural economy.”
On the currency front, the Indian rupee weakened against the US dollar to 67.11-12, from its previous close at 67.06 per greenback.
Sector-wise, the S&P BSE banking index fell by 422.97 points, the consumer durables index was down by 376.37 points and the capital goods index ended 236.38 points lower.
On the other hand, S&P BSE IT index gained 55.34 points followed by the metal index which rose by 31.70 points and the TECK index ended 22.53 points higher.
The major gainers on the Sensex were Dr Reddy’s Labs, up 2.86 per cent at Rs 1,996.95; Infosys, up 1.59 per cent at Rs 1,239.60; Mahindra and Mahindra, up 1.45 per cent at Rs 914.60; Tata Steel, up 1.18 per cent at Rs 566.95; and Reliance Industries, up 1.09 per cent at Rs 939.35 per share.
The top losers were HDFC Bank, down 2.99 per cent at Rs 2,046.55; Bharti Airtel, down 2.81 per cent at Rs 371.85; Adani Ports, down 2.47 per cent at Rs 377.60; PowerGrid, down 2.06 per cent at Rs 201.65; and Hindustan Unilever, down 1.73 per cent at Rs 1,562.20 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Rohit Vaid,
Mumbai : The Reserve Bank of India’s (RBI) second monetary policy review for 2018-19, combined with the direction of foreign fund flows and global crude oil prices are expected to set the course for the key equity indices in the coming week.
Market participants will follow the monsoon’s progress and the rupee’s movement against the US dollar for further cues, analysts opined.
“With the earnings season almost coming to an end, the markets next week would look forward to the RBIs monetary policy,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
The Monetary Policy Committee (MPC) of the RBI is slated to meet from June 4 to 6 for the second bi-monthly monetary policy statement for 2018-19.
In its last review, the country’s central bank had maintained the status quo on its key short-term lending rate at 6 per cent, along with its “neutral” stance.
“Given the higher GDP growth rate released last week, the chances of a policy rate hike has risen, though not assured, as RBI would take a wait-and-watch approach,” Nevgi said.
“A rate hike, if it comes accompanied by hawkish policy language, would hit the market sentiment, especially the banks and the NBFCs.”
According to SMC Investments and Advisors’ Chairman and Managing Director D.K. Aggarwal: “Now markets across the globe are closely watching each development regarding US trade policy, Italy ‘s politics and the dynamics unfolding in the global crude market.”
The National Stock Exchange’s (NSE) 50-share “Nifty is expected to move in the range of 10,500-10,900 levels and Bank Nifty is expected to trade between 26,300-27,200 levels”, he added.
Besides, fluctuations in global crude oil prices, along with the movement of Indian rupee against the US dollar and the composite PMI data will also affect investor sentiments.
On a weekly basis, the rupee strengthened by 72 paise to close at 67.06 against the US dollar from its previous week’s close of 67.78 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 2,707.41 crore during the last trade week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 2,756.63 crore, or $405.08 million, during the week ended June 1.
As per the technical charts, the underlying trend of NSE Nifty50 remains bullish.
“Technically, the Nifty seems to have taken a breather after two sessions of gains,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“With the underlying trend remaining up, the bulls seem to have an upper hand for the coming week. Further upsides are likely once the immediate resistances of 10,765 points are taken out. Crucial supports to watch for any weakness are at 10,620 points level.”
Last week, both the key Indian equity indices — S&P Bombay Stock Exchange (BSE) Sensex and NSE Nifty50 — edged higher on the back of a healthy improvement in the country’s GDP growth rate, along with predictions of a normal monsoon and easing crude oil prices.
Consequently, the barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 302.39 points or 0.87 per cent to 35,227.26 points.
Similarly, the wider Nifty50 of the NSE closed the week’s trade at 10,696.20 points — up 91.05 points or 0.86 per cent — from its previous close.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Broadly negative global cues, along with persistent selling by foreign investors and profit booking subdued the Indian equity indices on Tuesday.
According to market observers, a depreciation in the rupee and a slight rise in global crude oil prices also eroded investor sentiments.
Index-wise, the broader Nifty50 of the National Stock Exchange (NSE) closed at 10,633.30 points — down by 55.35 points or 0.52 per cent — from its previous close of 10,688.65 points.
Similarly, the barometer 30-scrip Sensitive Index (Sensex), which had opened at 35,213.14 points ended in the red. It closed at 34,949.24 points — lower by 216.24 points or 0.61 per cent — from its previous session’s close of 35,165.48 points.
The Sensex touched a high of 35,234.14 points and a low of 34,922.18 points during the intra-day trade.
In the broder market the S&P BSE mid-cap declined by 0.44 per cent and the S&P BSE small-cap ended 0.26 per cent lower that its previous close. The BSE market breadth was tilted towards the bears with 1,470 declines against 1,214 advances.
“Markets corrected on Tuesday after three sessions of gains. The weakness came on the back of weak global cues mainly led by crisis in Italy and its repercussions on EU (European Union),” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Jasani further told IANS: “Major Asian markets have closed on a negative note. European indices like FTSE 100, CAC 40 and DAX are trading in the red.”
Tradebulls’s Director and Chief Operating Officer, Dhruv Desai said: “Sensex and Nifty traded on the lower side, following mixed sentiment in global equities and selling by foreign investors.”
Further, on the currency front, the Indian rupee weakened by 43 paise against the US dollar to 67.87, from its previous close at 67.44 per greenback.
Besides, provisional data with exchanges showed that foreign institutional investors sold scrips worth Rs 795.06 crore, while the domestic institutional investors bought stocks worth Rs 1,017.65 crore.
Sector-wise, the S&P BSE auto index rose by 106.12 points, the oil and gas index was up by 69.44 points and the IT index gained by 44.81 points.
On the other hand, the S&P BSE banking index plunged by 480.26 points, the consumer durable index fell by 162.89 points and the healthcare index ended 105.90 points lower.
The major gainers on the Sensex were Mahindra and Mahindra, up 2.26 per cent at Rs 868.80; Bharti Airtel, up 1.08 per cent at Rs 378.25; Tata Consultancy Services (TCS), up 0.54 per cent at Rs 3,522.70; Hero MotoCorp, up 0.43 per cent at Rs 3,612.35; and Infosys, up 0.18 per cent at Rs 1,216.65 per share.
The top losers were ICICI Bank, down 2.87 per cent at Rs 290.65; State Bank of India, down 2.70 per cent at Rs 264.90; IndusInd Bank, down 2.08 per cent at Rs 1,877.55; Yes Bank, down 1.78 per cent at Rs 338.45; and Asian Paints, down 1.54 per cent at Rs 1,299.15 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rituraj Baruah,
Mumbai : The key Indian equity indices settled with marginal gains in the week ended Friday after largely volatile trade throughout the week.
Value buying, a fall in global crude oil prices and appreciation in rupee on Friday led to a nearly one per cent rise in both the BSE and NSE on the week’s last trading day, which eventually lifted the indices on a week-on-week basis.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 76.57 points or 0.22 per cent to close at 34,924.87 points on a weekly basis.
The wider Nifty50 of the NSE closed the week’s trade at 10,605.15 points — up 8.75 points or 0.08 per cent — from its previous close.
“Markets ended the week with marginal gains after a sharp bounce back from the lows of 10,417 points (on Nifty) towards the end of the week. Buying by domestic institutions, stabilisation of rupee and crude prices helped the Nifty to make a sharp recovery. This week’s marginal gain came after the sharp fall seen last week,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Equity99’s Senior Research Analyst, Rahul Sharma said: “Volatility was high last week due to political developments in Karnataka. Also, weak global clues and high crude prices added to sentiments.”
“Markets last week ended flat, but (there was) extremely high volatility influenced by quarterly results, crude oil price movement and geopolitical news,” said Prateek Jain, Director of Hem Securities, adding that market observed a slump in the crude oil and dollar improved the frail macro indicators lighting a fire in the Nifty.
On the currency front, the rupee strengthened by 23 paise to close at 67.78 against the US dollar from its previous week’s close of 68.01 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 3,227.06 crore, while the domestic institutional investors purchased stocks worth Rs 4,364.93 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 2,988.86 crore, or $438.81 million, in the week ended May 25.
Sector-wise, PSU Banks, IT and pharmaceuticals gained the most, while realty, energy and FMCG lost the most, Jasani told IANS.
The top weekly Sensex gainers were: State Bank of India (up 11.62 per cent at Rs 267); Bharti Airtel (up 4.06 per cent at Rs 376.65); Infosys (up 3.81 per cent at Rs 1,228.80); Coal India (up 3.62 per cent at Rs 276.05); and ICICI Bank (up 3.53 per cent at Rs 296.50 per share).
The major losers were: ONGC (down 5.24 per cent at Rs 175.35); Tata Motors (DVR) (down 4.74 per cent at Rs 171.75); Tata Steel (down 4.11 per cent at Rs 567.20); ITC (down 3.62 per cent at Rs 271.95); and Tata Motors (down 3.62 per cent at Rs 294.20 per share).
(Rituraj Baruah can be contacted at rituraj.b@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Persistent outflow of foreign funds along with weak global cues and a depreciation in the rupee led to the key Indian equity indices plunging on Wednesday.
According to market observers, rise in domestic transportation fuel prices as well as renewed global geopolitical tensions and trade disputes between the US and China eroded investor sentiments.
Consequently, the wider Nifty50 of the National Stock Exchange (NSE) closed at 10,430.35 points, down 106.35 points or 1.01 per cent from the previous close of 10,536.70 points.
Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE tumbled nearly one per cent. It opened at 34,656.63 points and closed at 34,344.91 points — down 306.33 points or 0.88 per cent — from its previous session’s close of 34,651.24 points.
In terms of intra-day trade, Sensex touched a high of 34,668.47 points and a low of 34,302.89 points. The BSE market breadth was bearish with 1,587 declines and 1,168 advances.
“Markets corrected sharply on Wednesday after witnessing a minor bounce on Tuesday. The weakness came on the back of weak global cues as investors were concerned about trade tensions, the possible cancellation of North Korea summit planned in June, economic issues in Turkey and commodity prices fall,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“Major Asian markets have closed on a negative note, barring the KOSPI and Jakarta indices. European indices like FTSE 100, CAC 40 and DAX are trading in the red.”
Geojit Financial Services’ Head of Research Vinod Nair said: “Market edged lower amid pessimism on global trade talks and below par fourth quarter earnings.”
“Metals sank while PSU bank outperformed and prevented the market from a nose dive correction. Investors expect that the worst is over related to PSU banks NPA with adequate provisions and expectation of recapitalisation from government.
“On the other hand, rupee continued to fall and the fear of inflationary pressure may lead the market to consolidate,” Nair added.
On the currency front, the Indian rupee weakened by 38 paise against the US dollar to 68.43, from its previous close at 68.05 per greenback.
Besides, provisional data with exchanges showed that foreign institutional investors sold scrips worth Rs 311.11 crore, while the domestic institutional investors bought stocks worth Rs 789.78 crore.
Sector-wise, the S&P BSE consumer durables index and the capital goods index gained by 62.06 points and 10.54 points respectively.
On the other hand, the S&P BSE metal index plunged by 534.27 points, followed by the oil and gas index, which receded by 491.72 points and the auto index that ended lower by 130.31 points.
The major gainers on the Sensex were State Bank of India, up 3.56 per cent at Rs 263.20; NTPC, up 0.82 per cent at Rs 166.35; Larsen and Toubro, up 0.55 per cent at Rs 1,327.20; Tata Motors, up 0.49 per cent at Rs 309.25; and Mahindra and Mahindra, up 0.05 per cent at Rs 831.25 per share.
The top losers were Tata Steel, down 6.57 per cent at Rs 539.25; ONGC, down 4.75 per cent at Rs 175.55; Dr Reddy’s Lab, down 2.92 per cent at Rs 1,955; IndusInd Bank, down 2.80 per cent at Rs 1,856.70; and ITC, down 1.92 per cent at Rs 273.45 per share.
—IANS
