by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Despite earlier gains, the key Indian equity indices closed in the red on Tuesday as banking stocks tanked substantially and investors also continued to trade with caution.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 33,317.20 points — down 429.58 points, or 1.27 per cent, from its previous close of 33,746.78 points.
Similarly, the wider Nifty50 of the National Stock Exchange (NSE) also plummeted by 109.60 points, or 1.06 per cent, to close at 10,249.25 points.
In the intra-day, the S&P BSE Sensex touched a high of 34,060.13 points and a low of 33,209.76 points.
“Early positivity that rode on global markets’ pull back proved to be brief, as turmoil in banking sector and persistent selling by FIIs dragged stocks lower,” said Anand James, Chief Market Strategist, Geojit Financial Services.
Banking stocks fell as ICICI Bank chief Chanda Kochhar and Axis Bank’s Shikha Sharma had been summoned by Serious Fraud Investigation Office in Mumbai in the bank fraud case involving jeweller Nirav Modi and his partner and uncle Mehul Choksi.
“Market gave up gains despite positive trade in global market. Consolidation continues led by broad selling across all sector. Market has broken ye’terday’s low while banks continue to struggle due to NPA issue, higher bond yield & cost of funds. Investors are little nervous to start accumulating and are waiting for major triggers to get direction,” said Vinod Nair, Head of Research, Geojit Financial Services.
Sector-wise, almost all the sectors ended in red. Major selling pressure was seen in banking, capital goods, auto and realty sectors.
S&P BSE banking index plummeted by 1.44 per cent, capital goods index by 1.31 per cent, auto index by 1.36 per cent and realty index by 2.21 per cent.
Only consumer durables sector remained in the green.
There were only three Sensex gainers on Tuesday: IndusInd Bank, up 1.21 per cent at Rs 1,707.10; Tata Steel, up 0.79 per cent at Rs 660.50 and Hero MotoCorp, up 0.35 per cent at Rs 3,570.
The major Sensex losers were: Sun Pharma, down 2.95 per cent at Rs 531.70; State Bank of India, down 2.77 per cent at Rs 256.50; ICICI Bank, down 2.64 per cent at Rs 295.10 and Mahindra and Mahindra, down 2.52 per cent at Rs 720.35.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : Release of key domestic macro-economic data, combined with global market volatility and movement of funds, are expected to dictate the direction of the Indian equity markets during the week ahead, say market analysts.
“Apart from other developments on the domestic front, the Indian equity markets would seek direction from global markets as the results (earnings) season is almost over,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Also, the movement of funds and crude oil prices are expected to influence the market sentiment next week,” he added.
Provisional figures from the stock exchanges showed that last week foreign institutional investors (FIIs) sold off scrips worth Rs 5,781.98 crore, while domestic institutional investors (DIIs) purchased scrips worth Rs 5,972.69 crore.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) off-loaded equities worth Rs 3,054.94 crore, or $468.06 million, from February 20 to 23.
“On the macro front, fiscal deficit data, core sector data for January and estimates for October-December GDP (gross domestic product) data will be announced on February 28. Automobile sales data by automakers and Nikkei Manufacturing PMI (Purchasing Manager’s Index) for February will be announced on March 1,” Arpit Jain, Assistant Vice President at Arihant Capital Markets, told IANS.
In addition, the Central Statistics Office (CSO) is expected to release the macro-economic data points of Index of Industrial Production (IIP) on February 28.
According to Vinod Nair, Head of Research, Geojit Financial Services, investors will wait for fresh triggers to get direction in the week ahead.
“As per the quarter results, the corporate earnings have started to pick up but concern on inflation and hike in interest rate may add pressure on the near-term valuation,” said Nair.
“The sustainability in the global market is another key factor which may influence domestic investors’ sentiments,” he added.
Analysts were optimistic that the upcoming week could witness a recovery of the key indices from lower levels.
“Nifty and Sensex made a strong come-back post the bad expiry series for February, closing above the 10,490 and 34,000 marks, respectively, on the first day of March derivative series on February 23,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
“Therefore we believe that the final week of February should see a termination of the down move and a reversal sign is in the offing which could turn the tide in favour of bulls soon,” Desai told IANS.
Last week, the key Indian equity indices bounced back from their lows to close with humble gains on value buying by investors after three weeks of consecutive losses.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) of the Bombay Stock Exchange (BSE) edged higher by 131.39 points or 0.39 per cent to close at 34,142.15 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed trade at 10,491.05 points — up 38.75 points or 0.37 per cent from its previous week’s close.
The equity markets will remain closed on March 2 (Friday) for Holi.
(Porisma P. Gogoi can be contacted at porisma.g@ians.in )
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : A massive sell-off in banking sector stocks pulled the key Indian equity indices — S&P BSE Sensex and NSE Nifty50 — lower on Wednesday.
According to market observers, heavy selling pressure was witnessed in banking, healthcare and automobile stocks.
On Wednesday, the barometer 30-scrip Sensitive Index (Sensex) of the BSE receded by 144.52 points or 0.42 per cent to 34,155.95 points from Monday’s close. The equity markets were closed on Tuesday.
Similarly, the wider Nifty50 of the National Stock Exchange declined by 38.85 points or 0.37 per cent to 10,500.90 points.
In terms of the broader markets, the S&P BSE mid-cap index inched up by 0.17 per cent and the small-cap index by 0.16 per cent.
The intra-day trade saw the barometer Sensex touch a high of 34,473.43 points on the back of positive cues from global markets and a low of 34,028.68 points which was led by a massive sell-off in the banking sector stocks.
The BSE market breadth was bullish as 1,368 stocks advanced as against 1,470
declines.
“Markets corrected on Wednesday thereby resuming the intermediate downtrend,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Selling accelerated in the afternoon session led by a drop in PSU banking stocks on the back of news that Punjab National Bank (PNB) had detected a $ 1,771.69 million fraud at a single branch in Mumbai.”
“Major Asian markets have closed on a positive note, barring the Nikkei and Straits indices. European indices like FTSE 100, DAX and CAC 40 are trading in the green.”
The massive-sell off in the banking sector stocks was triggered after the Reserve Bank of India’s (RBI) announced new norms to deal with the NPAs on Monday.
“The PSU banks witnessed sell-off as RBI scrapped a number of loan-restructuring schemes which may lead to further jump in provisions impacting profitability of these banks,” said Vinod Nair, Head of Research, Geojit Financial Services.
Besides RBI’s latest moves, the massive $1.8 billion fraud detected at one of the Mumbai branches of PNB, the second largest public sector bank in India also spooked investors.
“PNB fell 9.8 per cent as investors wondered about the impact of the fraud on the
profits or book value of the bank even as they await data about the
possibility and extent of recovery that is possible,” Jasani told IANS.
“If no recovery is possible, the impact could be Rs.42-46 per share out of which the stock price has already fallen — Rs 16 today.”
On a closing basis, the scrip of PNB closed at Rs 145.80, down by Rs 15.85 or 9.81 per cent from its previous close of Rs 161.65.
Apart from PNB, stocks of other lenders like Yes Bank, State Bank of India, Axis Bank and ICICI Bank were also impacted.
On the currency front, the Indian rupee strengthened by 22 paise to close at
64.09 against the US dollar from its previous close at 64.31.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 728.71 crore while domestic institutional investors off-loaded stocks worth Rs 152.39 crore.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Following a massive global sell-off, the Indian equity markets turned bearish for the second consecutive week — with the BSE Sensex dropping over a 1,000 points and the Nifty50 index over 300 points.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) tanked 1,060.99 points or 3.02 per cent to close trade at 34,005.76 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed the week’s trade at 10,454.95 points — shedding 305.65 points or 2.84 per cent from its previous week’s close.
Since February 1, the BSE Sensex has shed around 1,900 points and the NSE Nifty over 500 points.
“In the week gone by, global stock market witnessed huge sell-off amid the fear of interest rates hike and this too sent the bond yields higher,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Back at home, the Union Budget 2018 verdict played a catalyst role and since then market has been tumbling down. Though market recovered and closed in green on Thursday but on Friday market closed red tracking lower Asian and US markets,” he added.
Aggarwal said in line with expectations, the Reserve Bank of India — in its final bi-monthly monetary policy review of the fiscal on Wednesday — kept key interest rate unchanged at 6 per cent with neutral stance, citing concerns about the inflationary push by rising global crude oil prices.
On the currency front, the rupee weakened by 34 paise to close at 64.40 against the US dollar from its last week’s close at 64.06.
Provisional figures from the stock exchanges showed that foreign institutional investors sold off scrips worth Rs 8,260.96 crore, while domestic institutional investors purchased scrips worth Rs 6,286.58 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors off-loaded equities worth Rs 4,738.66 crore, or $738.24 million, during February 5-9.
“The week gone by saw the Nifty correcting further. The Nifty ended with week-on-week losses of 2.84 per cent,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Sectorally, the top gainers were the pharma, metal and media indices. The top losers were the Bank Nifty, infra, FMCG and auto indices,” he added.
The top weekly Sensex gainers were: Sun Pharma (up 5.72 per cent at Rs 582.65); Dr Reddy’s Lab (up 3.43 per cent at Rs 2,194.80); Coal India (up 2.84 per cent at Rs 300.45); Tata Steel (up 2.08 per cent at Rs 683.65); and Power Grid (up 0.36 per cent at Rs 193.20).
The losers were: Yes Bank (down 6.99 per cent at Rs 325.55); HDFC (down 6.84 per cent at Rs 1,773.20); Larsen and Toubro (down 6.01 per cent at Rs 1,329.35); IndusInd Bank (down 5.94 per cent at Rs 1,651.40); and Tata Consultancy Services (down 5.62 per cent at Rs 2,972.30).
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Bargain hunting by investors after seven consecutive days of losses propelled key Indian equity indices to close on a higher note on Thursday.
According to market observers, healthy buying in healthcare, banking and auto stocks added to the upward trajectory of the key indices.
The wider Nifty50 of the National Stock Exchange (NSE) closed higher by 100.15 points or 0.96 per cent at 10,576.85 points.
The 30-scrip Sensitive Index (Sensex) of the BSE closed at 34,413.16 points — up 330.45 points or 0.97 per cent from its previous session’s close.
The BSE market breadth was bullish with 2,197 advances and 625 declines.
In the broader markets, the S&P BSE mid-cap index edged higher by 1.82 per cent and the small-cap index by 2.25 per cent.
“Stocks advanced as bargain hunting emerged after seven straight sessions of sell-off in the domestic equities,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Sectorally, all the sectors of broader market have closed in positive trend and no sectors have showed any weakness for the day,” he added.
Talking about the global markets, Jasani said all the Asian markets closed on a positive note, except for Taiwan and Shanghai, while the European indices like FTSE 100, DAX and CAC 40 traded in the negative territory.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market rebounded as prospects of economic growth and earnings revival encouraged investors to start accumulate equities.”
“The 10-year-bond yield fell from yesterday’s high of 7.61 per cent to 7.49 per cent and rupee strengthened which is positive for investors,” Nair said.
On the currency front, the Indian rupee strengthened by two paise to close at 64.26 against the US dollar from its previous close at 64.28.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 2,297.09 crore while domestic institutional investors bought stocks worth Rs 2,373.59 crore.
“After several straight sessions of ending in the red, the Indian equity market shrugged off negative global cues and recouped some losses, majorly led by gains in shares of banks and pharmaceutical companies,” said Karthikraj Lakshmanan, Senior Fund Manager – Equities, BNP Paribas Mutual Fund.
All the sectoral indices closed with gains barring the S&P BSE oil and gas index which fell by 38.61 points.
Sector-wise, the S&P BSE healthcare index surged by 405.77 points, followed by banking index by 324.24 points and auto index by 292.11 points.
Major Sensex gainers on Thursday were: Sun Pharma, up 6.32 per cent at Rs 583.40; Dr Reddy’s Lab, up 3.18 per cent at Rs 2,178.95; State Bank of India, up 2.97 per cent at Rs 301.45; Infosys, up 2.33 per cent at Rs 1,134.55; and Axis Bank, up 1.75 per cent at Rs 568.50.
Major Sensex losers were: Power Grid, down 1.20 per cent at Rs 193.55; Tata Motors, down 0.70 per cent at Rs 374.85; NTPC, down 0.70 per cent at Rs 163.65; ONGC, down 0.66 per cent at Rs 188.55; and Adani Ports, down 0.43 per cent at Rs 405.
—IANS
