by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key Indian equity indices on Monday hit their lowest levels since December 6, 2017, with the BSE Sensex slipping below the 33,000-mark and the Nifty50 of the National Stock Exchange (NSE) falling below the psychologically important 10,100-level.
According to market observers, India’s widening current account deficit (CAD), along with weak global cues ahead of the US Federal Reserve meet on March 20-21, dented investors’ risk-taking appetite.
The wider NSE Nifty50 declined by 100.90 points or 0.99 per cent to close on a lower note for the fourth consecutive trade session at 10,094.25 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,923.12 points — the fifth straight session of losses — down 252.88 points or 0.76 per cent from its previous close.
The BSE market breadth was bearish with 2,235 declines and 514 advances.
In terms of the broader markets, the S&P BSE mid-cap index declined by 1.58 per cent and the small-cap index by 1.98 per cent.
“Markets ended with heavy losses on Monday. It was the fourth consecutive session of losses for the Nifty. The weakness came on the back of weak global cues ahead of the US Federal Reserve policy decision later in the week,” Deepak Jasani, Head – Retail Research, HDFC Securities.
“Investors were also worried about the sharp widening of current account deficit (CAD) in December quarter. Metals and bank shares came under selling pressure,” he added.
Data released by the Reserve Bank of India (RBI) post market hours on Friday revealed that India’s CAD widened to $13.5 billion during the third quarter of 2017-18 from $7.2 billion in the second quarter and $8 billion in the corresponding period in 2016-17.
On Monday, all the 19 sub-indices of the BSE closed in the red, with the S&P BSE metals index falling by 368.35 points, followed by consumer durables index by 318.81 points, banking index by 301.46 points, oil and gas index by 254.73 points and IT index by 243.58 points.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market continues to drag under global market volatility ahead of the FOMC (Federal Open Market Committee) meet tomorrow, where consensus hints at a 25 basis points rate hike.
“Bond yield remains at elevated levels and concern on trade tensions is influencing investors to book profit. Back home, rupee weakened due to widening current account deficit and led investors to remain cautious,” Nair added.
On the currency front, the Indian rupee weakened by 23 paise to close at 65.17 against the US dollar from its previous close at 64.94.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 292.23 crore, while domestic institutional investors sold stocks worth Rs 191.52 crore.
Major Sensex gainers on Monday were: NTPC, up 1.03 per cent at Rs 167.05; Maruti Suzuki, up 1 per cent at Rs 8,777.65; Power Grid, up 0.99 per cent at Rs 194.15; Larsen and Toubro, up 0.95 per cent at Rs 1,279.70; and Hindustan Unilever, up 0.80 per cent at Rs 1,309.45.
The Sensex losers were: Tata Steel, down 4.24 per cent at Rs 575.05; Bharti Airtel, down 4.16 per cent at Rs 400.80; Wipro, down 2.60 per cent at Rs 288.05; Yes Bank, down 2.57 per cent at Rs 304.85; and Coal India, down 2.51 per cent at Rs 271.70.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Volatility may persist in the key Indian equity indices, as global cues — prospects of trade wars, rise in US interest rates — and fears of domestic political instability are expected to dent investors’ risk-taking appetite, market observers opined.
“Markets would continue to face headwinds from the evolving political scenario domestically and the prospects of a trade war globally,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“Mixed macros data (points), fiscal year-end issues, higher IPO supply will keep the markets capped and range-bound, with lower bias.”
According to Vinod Nair, Head of Research at Geojit Financial Services: “The long-term outlook for the domestic market continues to be strong. However, rising concerns of global trade headwinds, domestic NPA issues and upcoming state elections will keep the market in tenterhooks.”
“Currently, the market is finding it difficult to stay float at support levels as volatility in global market brought the benchmark indices towards the 200 DMA. US Fed policy meet next week is the key event and the market expects a 0.25 basis points hike.”
Besides US Fed’s meet from March 20-21, investors are expected to keep a close watch on the direction of foreign fund flows and the rupee’s movement against the US dollar.
“Last week, news of the BJP’s defeat in by-polls increased the political risk premium on the rupee. We are in a pre-election year, where every regional electoral event will be seen through the lens of 2019,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
“Over the next week, the most important economic event remains the US Fed’s decision on monetary policy. We expect a 25 basis points hike and a hawkish tone, which can be positive for the US dollar. As a result, USD-INR may witness a rally towards 65.30 levels on spot. We expect a broad range of 64.80 and 65.30 levels on spot.”
Last week, the rupee strengthened by 24 paise to close at 64.93 against the US dollar from its previous week’s close at 65.17.
On the investment front, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) purchased scrips worth Rs 6,288.23 crore and the domestic institutional investors (DIIs) worth Rs 202.69 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) invested Rs 6,713.73 crore, or $324.81 million, during March 12-16.
On technical levels, the National Stock Exchange’s (NSE) Nifty50 remains in downtrend.
“Technically, the Nifty remains in downtrend and further downsides are likely early next week once the immediate supports of 10,141 points are broken,” said Deepak Jasani, Head of Retail Research for HDFC Securities.
“Immediate resistance is now at 10,405 points.”
Last week, the key Indian equity indices — the Bombay Stock Exchange (BSE) Sensex and the NSE Nifty50 — receded on the back of political instability, along with the ongoing turmoil in the banking sector and weak global cues.
Consequently, the barometer 30-scrip Sensitive Index (Sensex) slipped by 131.14 points or 0.39 per cent to close at 33,176 points.
Similarly, the wider Nifty50 of the NSE closed the week’s trade at 10,195.15 points — down 31.7 points or 0.31 per cent from its previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Despite healthy macro-economic indicators, the Indian equity markets turned volatile and gave up gains during the week over prospects of political instability, along with the ongoing turmoil in the banking sector and weak global cues.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE slipped by 131.14 points or 0.39 per cent to close at 33,176 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,195.15 points — down 31.7 points or 0.31 per cent from its previous week’s close.
“Domestic markets remained volatile amid sluggish global cues and trade war concerns, weighed by oil and technology stocks,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Also, the sentiments got further dented amid political upheaval after the Telugu Desam Party (TDP) formally decided to quit the NDA government. However, fertiliser stocks gained after the continuation of a government subsidy for urea,” said Aggarwal.
According to Gaurav Jain, Director at Hem Securities, robust industrial production growth in January coupled with the slowing down of retail inflation in February were among the major factors that propped up sentiments during the week.
Official data released during the week showed that India’s factory production growth in January stood at 7.5 per cent — double the 3.5 per cent recorded in the same month last year — while retail inflation for February eased down to 4.4 per cent.
“However, profit booking coupled with reports that the country’s monsoon could be below normal due to El Nino impact, caused some panic off-loading in the market towards the end of the week, erasing gains,” Jain told IANS.
“Political instability after TDP broke ties with the ruling NDA added to the woes. On the global front, traders are watching the tariff issue which is hogging the market sentiments,” he added.
On the currency front, the rupee strengthened by 24 paise to close at 64.93 against the US dollar from its previous week’s close at 65.17.
“Volatility has become the name of the game for equity markets in India of late and our expectations are that this may persist for some more time this year even as the structural uptrend in the market remains intact,” said Shibani Kurian, Senior Vice President and Head of Equity Research, Kotak Mutual Fund.
“During the week, market participants continued to grapple with news flow relating to the fraud at PNB (Punjab National Bank) and balance sheet stress for the banking system as a whole,” Kurian told IANS.
Provisional figures from the stock exchanges showed that foreign institutional investors FIIs purchased scrips worth Rs 6,288.23 crore and the domestic institutional investors (DIIs) worth Rs 202.69 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors invested in equities worth Rs 6,713.73 crore, or $324.81 million, during March 12-16.
The top weekly Sensex gainers were: Bharti Airtel (up 4.04 per cent at Rs 418.20); Wipro (up 3.70 per cent at Rs 295.75); Axis Bank (up 3.58 per cent at Rs 523.45); Yes Bank (up 3.11 per cent at Rs 312.90); and ICICI Bank (up 1.84 per cent at Rs 298.10).
The losers were: Coal India (down 8.53 per cent at Rs 278.70); Tata Consultancy Services (down 6.89 per cent at Rs 2,825.50); Kotak Bank (down 2.21 per cent at Rs 1,061); Larsen and Toubro (down 1.75 per cent at Rs 1,267.60); and Adani Ports (down 1.66 per cent at Rs 371.05).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The key Indian equity indices on Monday witnessed the biggest intra-day gains in around two years with the benchmark BSE Sensex index surging by over 600 points and the Nifty50 of the National Stock Exchange (NSE) by almost 200 points.
According to market observers, across-the-board buying, as well as positive cues from the global markets on easing trade war fears and hopes of easing inflation in the Consumer Price Index (CPI) data at home slated for release after market hours, lifted the indices by gains last seen in March 2016.
On the NSE, the wider Nifty50 edged higher by 194.55 points, or 1.90 per cent, to close trade at 10,421.40 points.
The barometer 30-scrip Sensitive Index (Sensex) closed at 33,917.94 points — up 610.80 points, or 1.83 per cent, from the previous session’s close.
The Sensex touched a high of 33,962.48 points and a low of 33,468.16 points during the intra-day trade.
However, the BSE market breadth remained tilted to the bearish with 1,370 declines and 1,346 advances.
“Markets rallied sharply today with the Nifty breaking out of the 10,444 resistance in the process. The gains came on the back of positive global equity markets as international trade-war concerns took a backseat to economic optimism following a stronger US jobs report released over the weekend,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Gains were led by ITC, HDFC and Reliance Industries. Broad market indices like the BSE mid-cap and small-cap indices gained less, thereby underperforming the main indices,” Jasani added.
In terms of the broader markets, the S&P BSE mid-cap index edged higher by 0.76 per cent and the small-cap index by 0.56 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Firm global cues and expectation of ease in domestic inflation to 4.74 per cent excited investors to utilise the bargain opportunity.”
“Investors are positive on blue chips on expectation of faster recovery, however, mid and small cap witnessed reluctance due to high valuation,” Nair said.
On the currency front, the Indian rupee strengthened by 13 paise to close at 65.04 against the US dollar from its last week’s close at 65.17.
Provisional data with the exchanges showed that foreign institutional investors turned net buyers and purchased scrips worth Rs 374.65 crore. However, domestic institutional investors sold stocks worth Rs 464.59 crore.
All the 19 sub-indices of the BSE closed with gains led by the S&P BSE banking index, which escalated by 437.70 points.
It was followed by the auto (up 335.17 points), metal (up 325.30 points), oil and gas (up 321.28 points), capital goods (up 228.70 points) and FMCG (up 219.37 points) indices.
Major Sensex gainers on Monday were: Bharti Airtel, up 4.68 per cent at Rs 420.75; NTPC, up 4.33 per cent at Rs 171; ITC, up 4.09 per cent at Rs 270; Tata Motors, up 3.07 per cent at Rs 352.20; and Tata Steel, up 2.82 per cent at Rs 622.70.
The Sensex losers were: Coal India, down 2.26 per cent at Rs 297.80 and State Bank of India, down 0.12 per cent at Rs 252.85.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Value buying by investors, along with positive global markets on the back of easing of trade war fears, propelled the key Indian equity indices on Thursday — snapping a six-day losing streak.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE surged over 400 points to scale an intra-day high of 33,439.97 points, with healthy buying in banking, auto and capital goods stocks adding to the upward trajectory.
The Sensex closed at 33,351.57 points — up 318.48 points or 0.96 per cent from its previous session’s close.
However, the BSE market breadth was bearish with 1,530 declines and 1,197 advances.
On the National Stock Exchange (NSE), the wider Nifty50 rose by 88.45 points or 0.87 per cent to close at 10,242.65 points.
“Markets bounced back on Thursday after six consecutive sessions of losses. Bottom fishing on the back of gains in Asian stocks amid news of potential US tariff exemptions helped to boost the market sentiments,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Major Asian markets have closed on a positive note, while European indices like CAC 40 and FTSE 100 traded in the green. Broad market indices like the BSE mid-cap and small-cap indices gained less, thereby underperforming the main indices,” Jasani added.
The S&P BSE mid-cap index edged higher by 0.56 per cent and the small-cap index by 0.50 per cent.
On the currency front, the Indian rupee weakened by 26 paise to close at 65.15 against the US dollar from its previous close at 64.89.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 364.80 crore, while domestic institutional investors purchased stocks worth Rs 675.26 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market reversed from the last six days losing streak as ease in trade war concerns and short covering in PSU banks supported the rally.”
“Mid and small-caps continued to underperform as investors were still jittery waiting for further ease in valuation,” Nair added.
Sectorwise, the S&P BSE banking index augmented by 389.41 points, auto index by 220.70 points and capital goods index by 203.84 points.
On the other hand, the S&P metals index fell by 65.01 points, healthcare index by 33.36 points and the FMCG index by 21.38 points.
Major Sensex gainers on Thursday were: State Bank of India, up 4.09 per cent at Rs 256.75; ICICI Bank, up 3.58 per cent at Rs 296.95; Adani Ports, up 2.95 per cent at Rs 388.60; Mahindra and Mahindra, up 2.45 per cent at Rs 727.25; and Reliance Industries, up 2.25 per cent at Rs 911.60.
The Sensex losers were: Tata Steel, down 1.98 per cent at Rs 635.20; Sun Pharma, down 1.85 per cent at Rs 515.40; Yes Bank, down 1.63 per cent at Rs 307.80; Tata Consultancy Services, down 0.92 per cent at Rs 3,001.50; and Tata Motors, down 0.60 per cent at Rs 345.90.
—IANS
