by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : Investors deferred equity purchases on Friday, shrugging off a rebound in the rupee and a decline in global crude oil prices, as they turned their focus on key assembly elections for cues.
As a result, key equity indices ended slightly lower after a lacklustre trade on Friday.
Also weighing on sentiment was the fact that all the Asian markets closed the day with losses, an analyst said.
The Sensex settled 79.13 points lower at 35,158.55. It had opened at 35,258.13 from its previous close of 35,237.68. It touched an intra-day high of 35,287.29 and a low of 35,011.23.
The NSE Nifty closed 15 points lower at 10,582.90.
“Technically, the short-term trend for the Nifty is choppy at the key resistance of 10,600 level. There is a possibility of continuation of this rangebound movement in the early part of next week as well. A slight weakness may also be expected,” HDFC Securities’ Retail Research Head Deepak Jasani said.
“After this phase of consolidation/minor correction, the Nifty is expected to continue its upside momentum. Immediate supports to be watched are at 10,417-480 levels. On upsides, a breach of 10,616 could result in a move towards 10,710.”
Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana, and Mizoram go to assembly polls this month and the next. The BJP rules in 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.
European indices like FTSE 100, DAX and CAC 40, too, were trading in the red.
The rupee climbed 51 paise to end the day’s trade at 72.49 per US dollar, prompting investors to sell export-dependent stocks. The S&P BSE IT fell 1.19 per cent.
Metals, realty and energy counters also came under a heavy selling pressure. However, the financials managed to cling on to their gains.
The benchmark Brent crude slipped below the $70 a barrel mark.
India imports nearly 80 per cent of its crude oil requirements, and a rise in prices threatens to widen the current account deficit, fanning inflation in Asia’s third-largest economy.
The broader markets like the S&P BSE MidCap index gained 0.66 per cent, while the S&P BSE SmallCap index rose 0.58 per cent.
The market breadth was positive, with an advances to declines ratio of 1.22.
Provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 614.14 crore on Friday, while the domestic institutional investors sold scrips worth Rs 337.28 crore.
The top gainers on the BSE were led by Yes Bank, up 5.49 per cent at Rs 227.85; Adani Paints, up 3.79 per cent at Rs 1,298.20; Adani Ports, up 3.14 per cent at Rs 336.85; Sun Pharma, up 2.32 per cent at Rs 595.90; and Hero Moto Corp, up 2.08 per cent at Rs 2950.05 a share.
The major laggards on the Sensex included TCS and Reliance Industries, which fell 1.70 per cent and 1.55 per cent, respectively. TCS closed at Rs 1,909.80 apiece while Reliance Industries settled at 1,093.35 per share.
Others losers included State Bank of India, down 1.27 per cent at Rs 283, Infosys down 2.15 per cent at Rs 661.45 and Bharti Airtel down 2.45 at Rs 298.45 apeice.
—IANS
by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Despite negative global markets, the Indian stock indices surged by over two per cent on Monday, as value buying, along with an official announcement on fresh liquidity infusion in the debt market, uplifted investors’ sentiments.
According to market observers, value buying emerged after a correction which dragged both the S&P BSE Sensex and the Nifty50 to their respective seven-month lows last Friday.
On the liquidity front, the Reserve Bank of India’s announcement on a fresh bond buying programme in November to inject funds into the debt market soothed investors’ nerves, especially after caution prevailed over an impending credit crunch.
However, negative global markets and outflows of foreign funds capped gains.
Index-wise, the NSE Nifty50 settled higher by 220.85 points, or 2.20 per cent at 10,250.85 points.
Similarly, the S&P BSE Sensex made substantial gains. It opened at 33,549.88 points and closed higher by 718.09 points, or 2.15 per cent, at 34,067.40 points.
The Sensex swung over 800 points, touching a high of 34,154.60 points and a low of 33,341.80.
“Stock markets in India witnessed a relief rally today as key benchmark indices surged in opening trade and sustained the momentum through the day,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Overseas, Asian markets declined while European markets traded firm as investors tracked a number of political events and waited for further earnings reports.”
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty bouncing back, traders will need to watch if the recent rally can sustain and reverse the current downtrend.”
“Further upsides are likely once the immediate resistances of 10,274 points are taken out. Crucial supports to watch for any weakness are at 10,150 points,” he added.
In terms of investments, the week began with the continued trend of massive outflow of funds witnessed throughout October, as provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 2,230.79 crore.
Domestic institutional investors bought scrip worth Rs 2,526.90 crore.
As per data provided by the National Securities Depository (NSDL), the monthly outflow of foreign funds at Rs 38,797 crore from the equity segment was at its highest since 2002, while on a yearly basis, the outflow in the current year comes second just to the levels seen in 2008 when the foreign investors withdrew Rs 51,252 crore.
Nevertheless, the domestic currency closed nearly flat at Rs 73.44 to a dollar from its Friday’s close of 73.46. Brent crude, the benchmark oil price, was trading around $77.49 a barrel.
Top gainers on the Sensex was dominated by banking stocks, out of which ICICI Bank gained the most days after it reported a 55.84 per cent year-on-year decline in its standalone net profit for the quarter ended in September 30.
The private lender’s scrip closed higher by over 11 per cent to settle at Rs 349.15 a share. It was followed by State Bank of India, up 10.82 per cent at Rs 349.15; Adani Ports, up 7.33 per cent at Rs 326.60; Larsen and Tubro, up 5.25 per cent at Rs 1260.80; Tata Motors (DVR), up 5.04 per cent at Rs 95.95 and Bharti Airtel, up 0.83 per cent at Rs 298.30 and Axis Bank up 4.96 per cent at Rs 564.
The top losers were IndusInd Bank down 2.36 per cent at Rs 1,410.95; HDFC Bank, down 1.95 per cent at Rs 1,924; Kotak Mahindra Bank, down 1.85 per cent at Rs 1,137.55; and Bharti Airtel, down 1.56 per cent at Rs 293.65 and Hindustan Uniliver down 0.54 per cent at Rs 1,552.05 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Negative global cues along with a weak rupee led the the key domestic equity indices in the negative territory, during the afternoon session of the trade on Thursday.
Consequently, the barometer Sensex slipped below the 34,000-mark and the NSE’s Nifty50 also dropped below the psychological 10,200 point mark.
Except for IT, oil and gas counters, all the sectors witnessed heavy selling pressure led by banking, finance and healthcare stocks.
The domestic currency was trading at Rs 73.30 to a US dollar from its previous close of 73.15. Also, the crude oil prices continued to ease at around $75.76 a barrel.
The S&P BSE Sensex opened at 33,778.60 points from its previous close of 34,033.96 points and at 1.12 p.m it traded at 33,768.19 points down 265.77 points or 0.78 per cent.
It touched an intra-day high of 33,807.93 points and a low of 33,553.18 points.
The NSE Nifty50 traded at 10,149.10 points during the afternoon trade session, down 75.65 points and 0.74 per cent.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
By Rohit Vaid,
Mumbai : Second-quarter earnings result season, combined with the direction of foreign fund flows and the liquidity situation of the NBFC (non-banking financial companies) sector are expected to determine the trajectory of Indian stock market indices during the upcoming week.
In addition, the price of global crude oil and the rupee-US dollar matrix will also be other major market themes during the period.
“Markets next week would again focus on the developments in the liquidity situation of the NBFCs, HFCs (housing finance companies),” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
The liquidity availability to the sector has become a concern after the default by some of the IL&FS Group companies.
Last Friday, the Reserve Bank of India (RBI) came out with new measures to increase the liquidity flow to NBFCs and HFCs.
“The ongoing turmoil led by a financial crunch in the domestic economy, global risk-off and worries over upcoming elections are likely to maintain their burden in the equity market,” said Vinod Nair, Head of Research at Geojit Financial Services.
“At the same time, it is possible that a good portion of these risk factors have been digested by the market and the upcoming impacts will depend on developments like stability in global bond yield and the trade war.”
In terms of quarterly results, companies like Adani Ports, Ambuja Cements, TVS Motor, Bajaj Auto, Wipro, Bharti Airtel, Biocon, Maruti Suzuki, Yes Bank, Dr Reddys Labs, ICICI Bank and ITC are expected to announce their Q2 earnings next week.
“The sentiment would be driven by the moves in the NBFC and HFC stocks and earnings of Asian Paints, Bajaj Group of companies, Bharti Airtel, etc., which are due next week,” Nevgi said.
Apart from the Q2 results, the direction of flow of foreign funds assumes significance as outflows from the beginning of October have crossed the highest level in the last 12 months.
As per data complied from the stock exchanges, in just 13 trading sessions from October 1 onwards, foreign investors have sold stocks worth around Rs 19,500 crore.
The weekly provisional figures showed that foreign institutional investors (FIIs) sold scrips worth Rs 1,576.01 crore.
Besides, the rupee’s strength against the US dollar and global crude oil prices will be closely followed by investors.
In the previous week, a decline in crude oil prices to below $80 per barrel and a stable rupee in a range of 73 to a US dollar helped buoy investor sentiments.
The Indian rupee last week closed at Rs 73.32 to a dollar, strengthening by 24 paise from its previous week’s close of 73.56.
“Lower oil prices and weakness in the US Dollar Index can offset the weakness in local stocks and keep the rupee in a range for the next week,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, told IANS.
“… We can expect range-bound trading in the pair for the next week — between 73 and 74 levels on spot.”
On the technical charts, the National Stock Exchange (NSE) Nifty50 remains in an intermediate downtrend.
“Technically, with the Nifty again displaying weakness after the pullback rally seen in the previous week, the intermediate trend of the index remains down,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“The downtrend is likely to continue early next week once the immediate support of 10,250 points is broken. Crucial resistances to watch on the upside are at 10,436-10,526 points.”
Last week, mixed corporate earnings and fears of a slowdown in global economic growth, pulled the two main indices of the Indian stock market lower.
Consequently, on a weekly basis, the S&P Bombay Stock Exchange (BSE) Sensex closed at 34,315.63 points, down by 417.95 points or 1.20 per cent from its previous close.
Similarly, the wider Nifty50 of the NSE edged-lower. It closed at 10,303.55 points, down 168.95 points or 1.61 per cent from the previous week’s close.
(Rohit Vaid can be contacted at rohit.v@ians.in )
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : Broadly negative global markets, along with outflow of foreign funds and a marginal rise in crude oil prices, dragged the key domestic equity indices into the red on Friday.
In addition, mixed quarterly earning results combined with heavy selling pressure in IT, auto and consumer durable stocks eroded investors’ risk-taking appetite.
Index-wise, the S&P BSE Sensex opened at 34,563.29 points from its previous close of 34,779.58 points on Wednesday. The Indian stock and forex markets were shut on Thursday.
On Friday, the 30-scrip Sensex closed at 34,315.63 points down by 463.95 points or 1.33 per cent.
Similarly, the NSE Nifty50 of the National Stock Exchange (NSE) ended the day’s trade in the red.
The NSE Nifty50 closed at 10,303.55 points down 149.50 points and 1.43 per cent.
“Stock markets in India traded under pressure today as key benchmark stocks reeled under selling pressure and dragged indices lower. Tepid global markets further fuelled the negative sentiment as investors dogged fears about global growth,” said Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
“Additionally, the minutes of the (US) Fed’s September meeting, released earlier in the week, indicated that policymakers are prepared to forge ahead with increases and will likely hike rates again as early as December…”
According to Vinod Nair, Head of Research, Geojit Financial Services: “Market slid below 10,300 mark due to mixed earnings from index heavyweights and selling pressure in global market.”
“Despite the fall, rupee gained some weight supported by stability in oil prices. IT stocks slid the most due to stock specific sell off and concerns on tightening of US H1-B visa norms.”
On Friday, the Indian rupee closed at 73.33 to a USD, strengthened by 28 paise from its previous close of 73.61 per greenback.
Additionally, brent crude oil prices inched up to around $80 a barrel.
Investment-wise, provisional data with the exchanges showed that foreign institutional investors sold stocks in the tune of Rs 618.26 crore, whereas domestic institutional investors off-loaded scrip worth just Rs 2.14 crore.
HDFC Securities’ Retail Research Head Deepak Jasani said: “The weakness in the Nifty came on the back of selling in index heavyweights Reliance, HDFC and Infosys.”
“Technically, with the Nifty correcting further, traders will need to watch if the index can now hold above the immediate supports of 10,249 points; else a further correction is likely.”
The top gainers in the Sensex were Sun Pharma, up 2.52 per cent at Rs 608.40; Kotak Mahindra Bank, up 1.83 per cent at Rs 1,199.55; Vedanta up 1.51 per cent at Rs 211.15; Hindustan Unilever up 1.16 per cent at Rs 1,579.20; and ITC, up 0.73 per cent at Rs 288.45.
Major losers included Yes Bank, down 6.06 per cent at Rs 217.70; HDFC, down 4.32 per cent at Rs 1,661.30; Reliance Industries, down 4.11 per cent at Rs 1,101.65; Tata Motors DVR, down 4 per cent at Rs 95.95; and Hero MotoCorp, down 3.70 per cent at Rs 2,711 per share.
—IANS
