by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Firm global cues, a persistent decline in crude oil prices, and value buying lifted the Indian equities higher on Monday.
However, a strong demand for US dollars from importers coupled with domestic political uncertainty due to state elections and concerns over global growth limited the gains.
Buying was witnessed in FMCG and consumer durables stocks.
The index pivotals — finance and banking — gained 1.32 per cent and 1 per cent, respectively.
The S&P BSE Sensex settled up 373.06 points or 1.07 per cent at 35,354.08 points, from its previous close of 34,981.02 points. It touched an intra-day high of 35,397.24 and a low of 34,896.07.
The NSE Nifty50 gained 101.85 points or 0.97 per cent to finish the day at 10,628.60.
The overall market breadth on the BSE was negative, with 1,067 stocks advancing and 1,536 declining.
“Broad market indices like the BSE Mid-cap index gained less, thereby underperforming the main indices,” said Deepak Jasani, Retail Research Head, HDFC Securities.
“Technically, with the Nifty bouncing back after three sessions of weakness, traders will need to watch if the recent gains can sustain. Further upsides are likely once the immediate resistances of 10,646 points are taken out. Crucial supports to watch for any weakness are at 10,490 points.”
According to Vinod Nair, Head of Research, Geojit Financial Services: “Market regained strength amid volatility, supported by positive global cues and improvement in domestic macros on account of sharp fall in crude and firming rupee.”
“Recapitalisation announcement of Rs 42,000 crore to PSU Banks is likely to provide respite to the current liquidity issues, which also boosted the sentiment.”
Globally, major Asian markets closed on positive note, while European indices like FTSE 100, DAX and CAC 40 traded in the green.
Heavy US dollar demand from importers weakened the domestic currency to Rs 70.87 against the greenback, from its previous close of 70.67.
“The recent appreciation in the rupee is a golden opportunity for the importers… Given the volatility and uncertainty in the global financial markets, importers are rushing to hedge their exposure for the next 2-3 months,” said Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers.
Provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 62.74 crore on Monday while the domestic institutional investors bought scrips worth Rs 351.78 crore.
Top gainers on the Sensex were Hero MotoCorp, up 5.02 per cent at Rs 3,062.10; Hindustan Uniliver, up 4.21 per cent at Rs 1,745.15; Wipro, up 3.71 per cent at Rs 318.85; Asian Paints, up 2.72 per cent at Rs 1,349.60 and Axis Bank, up 2.69 per cent at Rs 630.80.
The laggards were Yes Bank, down 3.89 per cent at Rs 187.95; ONGC, down 3.58 per cent at Rs 146.75; Sun Pharma, down 2.88 per cent at Rs 510.65; Coal India, down 2.36 per cent at Rs 250.70, and Vedanta, down 1.90 per cent at Rs 195.85 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : India’s benchmark indices fell for a second straight day on Wednesday, tailing global peers and led by a slump in software exporters.
However, a fall in international crude oil price arrested what could have been a sharper decline.
Heavy selling pressure was witnessed in the IT counters, which fell over 3 per cent, followed by Teck (technology, entertainment and media) and energy stocks.
Consequently, the S&P BSE Sensex settled down 274.71 points or 0.77 per cent at 35,119.80, from its previous close of 35,474.51 points.
Similarly, the NSE Nifty50 lost 56.15 points or 0.53 per cent to finish at 10,600.05 points.
The overall market breadth was flat and the broader market indices like Mid and Small-cap segments of the NSE closed higher by 0.50 per cent and 0.48 per cent respectively.
Market observers attributed Wednesday’s fall to a sell-off in global stocks, which was triggered by growing concerns about slowing global growth.
“Domestic stocks began the day on a negative note on subdued Asian indices. A sudden sell-off in index pivotals dragged the indices to intra-day lows in morning trade,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Despite a subsequent mild recovery, the benchmark indices continued to trade under pressure and finally closed the day with losses of over 0.50%.”
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market traded on a weak note despite a positive opening in European market and further slide in oil prices.”
“A rebound in PSU banks due to extension of the timeline for the full implementation of Basel 3 norms, and gains in pharma stocks helped the market trim some losses in early hours of trade. However, continued selling in IT stocks on account of a strong rupee restricted the recovery.”
The Brent crude oil price fell below $64-per-barrel mark.
“Crude oil prices are falling as US inventories rose last week. US inventories are at their highest level since 2015. Crude oil remains under pressure amid expectations of slowing global demand,” Anuj Gupta, Deputy Vice President, Research, Commodities and Forex, Angel Broking, told IANS.
The short-term trend of the Nifty has turned weak.
“The Nifty is currently placed at the key lower support of 10,620-10,558 levels, as per the concept of change in polarity,” said Deepak Jasani, Retail Research Head, HDFC Securities.
“As long as this support holds, there is a possibility of a bounceback. Support on breach of these levels could come in at 10,452.”
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 1,652.04 crore on Wednesday while the domestic institutional investors bought scrips worth Rs 606.73crore.
Top gainers on the Sensex were Yes Bank, up 2.83 per cent at Rs 198; Axis Bank, up 2.20 per cent at Rs 626.35; Adani Ports, up 1.91 per cent at Rs 360.90; Asian Paints, up 1.25 per cent at Rs 1,322.90 and State Bank of India (SBI), up 1.24 per cent at Rs 286.55.
The laggards were Tata Consultancy Services (TCS), down 3.51 per cent at Rs 1,811.75; Infosys, down 3.14 per cent at Rs 620.95; Power Grid, down 2.74 per cent at Rs 182.85; Wipro, down 2.38 per cent at Rs 314.05, and Reliance Industries, down 2.31 per cent at Rs 1,112.30 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
By Ravi Dutta Mishra and Rohit Vaid,
Mumbai : A slide in global crude oil prices, along with a healthy influx of foreign funds and a strengthened rupee buoyed the Indian equity market indices during the just-concluded week.
In addition, healthy macro-economic inflation and trade data as well as credit rating agency Fitch affirming India’s ‘Long-Term Foreign-Currency Issuer Default Rating’ (IDR) at ‘BBB-‘ with a stable outlook, enhanced the risk-taking appetite of investors.
Consequently, the S&P BSE Sensex gained 298.61 points, or 0.8 per cent, to close at 35,457.16 points.
Similarly, the 50-share Nifty of the National Stock Exchange (NSE) advanced 97 points, or 0.91 per cent, to settle at 10,682.20 points.
“Markets were steady as crude prices continued to drop and led to a consequent decline in bond yields and appreciation in USD…,” Sanjeev Zarbade, Vice President, PCG Research at Kotak Securities, said.
Accordingly, the benchmark Brent crude price which had touched $86 a barrel in early October closed last week’s trade at $67.74.
The fall has key significance for India, which is the third largest importer of crude oil. A steep fall in global prices eases the country’s concerns about inflation and fiscal and current account deficit.
In terms of currency, the rupee on Friday closed at 71.92 per dollar, 3.42 per cent higher from its life-time low of Rs 74.47 to a US dollar which it hit on October 11. Its previous weeks close was at Rs 72.49.
On foreign fund flows, the provisional investment figures from the stock exchanges showed that foreign institutional investors bought scrips worth Rs 3,502.46 crore in the week ended November 16 which was 22 times more than the previous week.
“The ongoing liquidity crunch for NBFCs appears to be fading away as almost all the NBFC’s were able to roll over to meet their commitments coupled with mixed earning season that concluded this week has helped rejuvenate confidence in FIIs…,”
said Rahul Sharma, Senior Research Analyst with Equity99.
The change in trend was further affirmed on Friday after the Associated Chambers of Commerce and Industry of India (Assocham) said it expects foreign institutional investors (FIIs) to “stage a strong comeback” owing to the strengthening rupee, low inflation and weakening oil prices.
“We expect foreign institutional investors to stage a strong comeback into India sooner than later with the rupee improving and getting stable,” Assocham said in a statement.
The rupee and the US dollar equation, along with an uncertain domestic and global economic growth outlook, had triggered a massive foreign fund outflow from the country’s capital markets in October.
However, the domestic institutional investors sold Rs 1,275.61 crore worth of stocks in the past week.
Sector-wise gainers for the week were consumer durables, FMCG and bank indices.
Losers for the week were pharma, auto, IT, realty and metals indices, said Deepak Jasani, Head – Retail Research at HDFC Securities.
The top weekly Sensex gainers were Bharti Airtel, up 9.57 per cent at Rs 327; ICICI Bank up 2.95 per cent at Rs 366.30; Adani Ports up 2.58 per cent at Rs 345.55; Axis Bank up 1.22 per cent at Rs 620.05; and Maruti Suzuki up 0.89 per cent at Rs 7,330 per share.
The major losers were Yes Bank, down 16.68 per cent at Rs 189.85; Sun Pharma down 13.26 per cent at Rs 516.90; Tata Motors (DVR) down 5.81 per cent at Rs 98.90; Power Grid down 2.11 per cent at Rs 187.45; and TCS down 1.93 per cent at Rs 1,873 per share.
(Ravi Dutta Mishra can be reached at ravidutta.m@ians.in and Rohit Vaid at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The benchmark Sensex rose on Tuesday, as a drop in global crude oil prices eased concerns about India’s current account deficit.
The benchmark Brent Crude oil eased to $69.23 a barrel after it had breached above the $71-mark on Monday.
As a result, the S&P BSE Energy index gained 1.87 per cent, while oil and gas stocks rose 1.72 per cent.
Finance and banking stocks also traded in the green, after retail inflation cooled to 3.31 per cent in October, reducing the odds of an interest rate increase when the central bank reviews the monetary policy in December.
The Sensex gained 331.50 points to settle at 35,144.49. It had opened at 34,846.19, touching an intra-day high of 35,187.75 and a low of 34,672.20.
The NSE Nifty closed 100.30 points or 0.96 per cent higher at 10,582.50.
“Oil prices fell by more than 1 per cent on Tuesday, with the Brent crude sliding below $70 a barrel and WTI below $60, after US President Donald Trump put pressure on oil cartel OPEC not to cut supply to prop up the market,” said Anuj Gupta, Deputy Vice President – Research – Commodities and Forex, Angel Broking.
“We expect the WTI crude to slip to $58 to $55,” he said.
Jet Airways rose 5.23 per cent to settle Rs 254.70 a share as crude oil prices fell. The private carrier had closed 6 per cent lower on Monday on expectations of losses in its second-quarter results.
In a post-market announcement on Monday, the airline reported a Rs 1,297 crore loss for the quarter ended September.
Other aviation stocks also closed higher buoyed by easing oil prices.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rituraj Baruah,
Mumbai : Macro-economic indicators such as inflation, factory output as well as global crude oil prices will dictate the stock market trend next week, analysts said.
A string of assembly elections, starting November 12, will also drive investor sentiments after range-bound movement the previous week.
The government will release Consumer Price Index (CPI) and Wholesale Price Index (WPI) data for October next week.
Retail inflation for September was at 3.77 per cent, up from 3.69 in August. The wholesale inflation rose to 5.13 per cent in September, from 4.53 per cent in August.
Assembly elections kickstart with the first phase of elections in Chhattisgarh on Monday, November 12. Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana and Mizoram go to polls this month and the next to reconstitute their respective assemblies.
The Bharatiya Janata Party (BJP) rules Madhya Pradesh, Rajasthan and Chhattisgarh, and a return to power in these states will bolster Prime Minister Narendra Modi’s chances of winning next year’s general election.
Also, crude oil prices, which have eased recently, would guide the equity market next week, analysts said.
In the week ended November 9, crude prices fell significantly from their recent highs. Brent crude oil is currently hovering around $70 per barrel, compared to $86 in early October.
India imports about 80 per cent of its crude oil requirements, and a spike in global rates triggers inflation concerns in Asia’s third-largest economy.
Strength of the rupee against the dollar would also be a key factor. On Friday, November 9, the Indian currency closed at 72.49 per dollar after logging a single-day gain of 51 paise. It had closed at 72.44 the previous week.
In a holiday-truncated week, the S&P Bombay Stock Exchange (BSE) Sensex gained 146.9 points, or 0.41 per cent, to close at 35,158.55 on Friday.
Similarly, the Nifty of the National Stock Exchange (NSE) advanced 32 points, or 0.30 per cent, to settle at 10,585.20.
The markets were shut on Thursday on the occasion of “Laxmi Pujan”. On Diwali the previous day, the BSE and the NSE conducted a special “Muhurat” trading between 5.30 p.m. and 6.30 p.m.
The provisional figures from the stock exchanges showed that foreign institutional investors bought scrips worth Rs 157.79 crore in the week ended November 9.
The domestic institutional investors sold Rs 813.42-crore stocks in the past week.
The Nifty is expected to face resistance at 10,755, while support is seen at 10,444, said Deepak Jasani, Head of Retail Reseach at HDFC Securities.
(Rituraj Baruah can be contacted at rituraj.b@ians.in )
—IANS
