by admin | May 25, 2021 | Economy, Markets, News
By Porisma P. Gogoi,
Mumbai : The Indian equity markets witnessed the steepest fall since November 2016 — when demonetisation was put into effect — after the long-term capital gains (LTCG) tax on equities was re-introduced in the Union Budget for 2018-19, leading the Sensex to shed over 800 points and the Nifty50 over 200 points in a single day.
Breaking an eight-week winning streak, the key equity indices gave way to the bears following a huge sell-off in the markets on the last trading day of the week.
On a weekly basis, the barometer 30-scrip Sensitive Index (Sensex) tanked 983.60 points or 2.73 per cent to close trade at 35,066.75 points.
The wider Nifty50 of the National Stock Exchange (NSE) closed the week’s trade at 10,760.60 points — shedding 309.05 points or 2.79 per cent from its previous week’s close.
Market observers said disappointing announcements in the Budget like on the LTCG tax and a higher-than-expected fiscal deficit target for 2018-19 dampened the risk-taking appetite of investors.
“Domestic markets closed lower as investors were disappointed after the government proposed 10 per cent LTCG tax on equity gains above Rs 1 lakh in the Union Budget. The sentiments also got spooked after the finance minister revised upward its fiscal deficit target,” D.K. Aggarwal, Chairman and Managing Director of SMC Investments and Advisors, told IANS.
“Also, market mood got badly suffered after Fitch Ratings on Friday said high debt burden of the government constrains India’s rating upgrade. Meanwhile, the divestment target for 2018-19 has been set at Rs 80,000 crore,” he added.
In the Budget announced on Thursday, Finance Minster Arun Jaitley proposed to tax LTCG on equities exceeding Rs 1 lakh at 10 per cent, which is expected to bring in revenue of Rs 20,000 crore.
The government also revised upwards its fiscal deficit target for 2017-18 to 3.5 per cent of the gross domestic product, or the equivalent of Rs 5.9 lakh crore, which was higher than the earlier target of 3.2 per cent for the current fiscal.
“The week gone by saw the Nifty correcting sharply. This week’s losses came after eight consecutive weeks of gains,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Sectorally, there were no gainers. The top losers were the realty, pharma, PSU banks and energy indices,” he added.
On the currency front, the rupee weakened by 51 paise to close at 64.06 against the US dollar from its last week’s close at 63.55.
Provisional figures from the stock exchanges showed that foreign institutional investors purchased scrips worth Rs 2,099.45 crore, while domestic institutional investors worth Rs 145.73 crore during the week.
Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors bought equities worth Rs 2,923.18 crore, or $460.08 million, during January 29 and February 2.
Arpit Jain, AVP at Arihant Capital Markets, said: “This week, the Indian equity benchmarks fell 2.75 per cent the most since demonetisation week.”
“Both the indices fell by 2.4 per cent a day after government announced to tax equity investments held for more than a year to boost its revenue,” Jain told IANS.
The top weekly Sensex gainers were: Mahindra and Mahindra (up 1.73 per cent at Rs 768.50); Indusind Bank (up 1.54 per cent at Rs 1,755.60); Hero MotoCorp (up 1.51 per cent at Rs 3,623.65); Tata Consultancy Services (up 1 per cent at Rs 3,149.15); and Hindustan Unilever (up 0.11 per cent at Rs 1,372.70).
The losers were: Dr. Reddys Lab (down 15.25 per cent at Rs 2,122.10); Tata Steel (down 8.60 per cent at Rs 669.70); Axis Bank (down 7.95 per cent at Rs 564.95); ONGC (down 7.59 per cent at Rs 192.45); and Bharti Airtel (down 6.81 per cent at Rs 421.80).
(Porisma P. Gogoi can be contacted at porisma.g@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The barometer Sensex of the BSE plunged almost 500 points on Friday as the re-introduction of long-term capital gains (LTCG) tax for investing in equities infused huge volatility in the market.
The Nifty50 too, slipped over 150 points to touch a low of 10,826.50 points.
In his Budget speech on Thursday, Finance Minister Arun Jaitley proposed to tax long-term capital gains on equities exceeding Rs 1 lakh at 10 per cent.
According to market observers, heavy selling pressure in consumer durables, banking, capital goods, auto and metals stocks added to the downward trajectory of the indices.
Around 11 a.m., the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 35,707.60 points, traded at 35,401.63 points — down 505.03 points or 1.41 per cent from its previous close.
The BSE market breadth was bearish as 2,311 stocks declined as against 213 advances.
On the the National Stock Exchange, the wider Nifty50 declined by 155.75 points or 1.41 per cent to trade at 10,861.15 points.
“Sensex and Nifty traded in negative after Jaitley proposed a long-term capital gains tax.
“Just Dial and PC Jewellers slumped 25 per cent and 57.39 per cent respectively, its steepest fall since one month,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“IT stocks, however, traded higher,” he added.
On Thursday, the benchmark indices had closed trade on a lower note.
The Nifty50 fell by 10.80 points or 0.10 per cent to 11,016.90 points, while the Sensex closed at 35,906.66 points — down 58.36 points or 0.16 per cent.
—IANS
by admin | May 25, 2021 | Economy, Finance, Markets, News
Mumbai : Ahead of the Union Budget 2018-19 presentation by Finance Minister Arun Jaitley in Parliament, the key Indian equity indices on Thursday traded with appreciable gains.
According to market observers, expectation of sops from the Union Budget, along with positive Asian markets and healthy buying in consumer durables, capital goods and banking stocks, lifted investors’ risk-taking appetite.
Around 10 a.m., the wider Nifty50 of the National Stock Exchange (NSE) traded higher by 63.35 points or 0.57 per cent at 11,091.05 points.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex), which reclaimed the 36,000-mark at the opening, traded at 36,188.50 points — up 223.48 points or 0.62 per cent from its previous close.
The Sensex has so far touched a high of 36,226.97 points and a low of 36,021.88 points during intra-day trade.
The BSE market breadth was bullish with 1,495 advances and 636 declines.
“Indian indices opened in the green following Asian Indices which are trading in the positive territory,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.
“Fertilisers, consumer durables, automobile, oil and gas, banking are among the key sectors which will be carefully watched ahead of Budget 2018-19 to be presented by Finance Minister Arun Jaitley later today,” he added.
On Wednesday, the benchmark indices closed in the negative territory on the back of negative global cues and heavy selling pressure in healthcare, consumer durables and capital goods stocks.
The Nifty50 fell by 21.95 points or 0.20 per cent to close at 11,027.70 points, while the Sensex closed lower by 68.71 points or 0.19 per cent at 35,965.02 points.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Caution ahead of the Union Budget 2018-19 presentation led the key Indian equity indices to close in the negative territory for the second consecutive session on Wednesday.
Market observers said negative global cues and heavy selling pressure in healthcare, consumer durables and capital goods stocks pulled the equity indices lower.
However, some late-hour buying helped the key indices to recover from their day’s lows and the Nifty50 reclaimed the psychologically important 11,000-level.
The wider Nifty50 of the National Stock Exchange (NSE) fell by 21.95 points or 0.20 per cent to close at 11,027.70 points.
However, the barometer 30-scrip Sensitive Index (Sensex) of the BSE closed below the 36,000-mark at 35,965.02 points — down 68.71 points or 0.19 per cent from its previous close.
The BSE market breadth was bearish as 1,776 stocks declined against 1,036 advances.
“Markets corrected on Wednesday ahead of the Union Budget 2018-19 on Thursday, February 1. Investors and traders were turning cautious ahead of the event,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.
“Some late hour recovery was seen in the indices post 2.30 p.m. Broad market indices like the BSE mid-cap and small-cap indices lost more, thereby underperforming the main indices,” said Jasani.
In the broader markets, the S&P BSE mid-cap index closed lower by 1.29 per cent and the small-cap index by 0.83 per cent.
Provisional data with the exchanges showed that both foreign institutional investors turned net sellers and sold scrips worth Rs 136.63 crore.
However, domestic institutional investors invested in stocks worth Rs 1,294.66 crore.
The Indian rupee strengthened by two paise to close at 63.58 against the US dollar from its previous close at 63.60.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Selling extended in the market as investors were awaiting the big budget day while the expectation for this budget is muted compared to what was anticipated over the last 2-years. The main requirement is to have a good balance between fiscal discipline and growth reforms.”
“Rural economy will be the key in the budget but infrastructure development and reforms are also likely to be highlighted. Some tinkering can be expected on corporate and individual taxation. If these basic points are addressed in the budget, we feel that market will maintain it’s luminous in the short to long-term,” Nair added.
Sectorwise, the S&P BSE healthcare index declined by 240.39 points, followed by capital index by 231.32 points and consumer durables index by 221.90 points.
On the other hand, the S&P BSE banking index edged higher by 124.79 points, oil and gas index by 77.60 points and energy index by 25.97 points.
Major Sensex gainers on Wednesday were: Kotak Bank, up 1.85 per cent at Rs 1,109.75; Reliance Industries, up 1.25 per cent at Rs 961.15; HDFC, up 1.16 per cent at Rs 1,955.70; IndusInd Bank, up 1 per cent at Rs 1,754.15; and Tata Motors, up 0.77 per cent at Rs 399.25.
Major Sensex losers were: Dr Reddy’s Lab, down 3.75 per cent at Rs 2,225.25; Tata Steel, down 3.49 per cent at Rs 705.05; Coal India, down 2.32 per cent at Rs 298.60; Hindustan Unilever, down 2.13 per cent at Rs 1,369.65; and Sun Pharma, down 2.02 per cent at Rs 579.35.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Projection of India’s healthy economic growth outlook, along with bullish global cues lifted the key Indian equity indices to their new highs during the morning trade session on Tuesday.
Accordingly, the S&P BSE Sensex and the NSE Nifty50 breached their previous respective intra-day high levels.
In the process, the barometer Sensex crossed the 36,000-points-mark and the NSE Nifty50 climbed above 11,000 points.
Market analysts pointed-out other factors such as positive Q3 results, fresh inflows of foreign funds and buying support in metals, oil and gas, IT, banking and consumer durables stocks that aided the key indices’ upward trajectory.
At 10.30 a.m., the 30-scrip S&P BSE Sensex, which had closed at 35,798.01 points on Monday, traded higher at 36,019.40 points, up by 221.39 points or 0.62 per cent.
The Sensex touched a high of 36,051.86 points and a low of 35,863.98 during the intra-day trade so far.
The BSE market breadth was bullish — 1,516 advances and 889 declines.
At the National Stock Exchange (NSE), the broader Nifty50 quoted at 11,046.50 points, up by 80.30 points or 0.73 per cent.
Dhruv Desai, Director and Chief Operating Officer of Tradebulls told IANS: “Indian shares open at record Tuesday as investors received a boost from International Monetary Fund’s projection that India could emerge as the fastest-growing country in the world in 2018 at 7.4 per cent amid optimism over Prime Minister Narendra Modi’s address to the World Economic Forum.”
“Also investors’ expectation from the Union Budget, that is due next week, helped market to reach new highs.”
According to Deepak Jasani, Head – Retail Research, HDFC Securities, Nifty which touched 11,000 points in the early trade on Tuesday gained the last 1,000 points in about six months.
“The Sensex rose to touch 36,000 mark today gaining the last 1,000 points in four days,” Jasani told IANS.
“The bull run in the equity markets continue in India. The turnaround in the industrial growth in October 2017, along with big policy announcements related to Bank recap and Bharatmala led to a good up move in October 2017.”
“In January 2018, we are witnessing FIIs returning to the buy side in a big way after a break. The forthcoming Budget could aid in determining the future direction of markets from hereon,” Jasani said.
On Monday, the equity indices closed on record high levels on the back of upbeat quarterly corporate earnings, along with appreciable influx of foreign funds and healthy buying in IT stocks.
Consequently, the wider Nifty50 closed higher by 71.50 points or 0.66 per cent at a new level of 10,966.20 points.
Similarly, the Sensex closed at a fresh high level of 35,798.01 points — up 286.43 points or 0.81 per cent — from its previous session’s close.
—IANS
