by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Profit booking, along with a slight rise in global crude oil prices and depreciation in the Indian rupee, pulled the key Indian equity indices lower on Wednesday after three consecutive days of gains.
Sector-wise, except for IT and FMCG stocks, all others witnessed heavy selling pressure led by auto, finance and banking counters.
Index-wise, the benchmark S&P BSE Sensex settled at 34,779.58 points, down 382.90 points or 1.09 per cent.
The NSE Nifty closed at 10,453.05 points, down 131.70 points, or 1.24 per cent.
The volatility during the trade session can be gauged by the 878.27 points swing in Sensex from an intra-day high of 35,605.43 points and a low of 34,727.16.
Vinod Nair, Head of Research, Geojit Financial Services said: “Market slid below 10,500 mark as rise in oil price and volatility in INR influenced investors to book profit.”
“Global market remain mixed ahead of the release of FOMC minutes later in the day to get cues about rate hike trajectory. Currently the market valuation has moderated to some extent and bond yield has reduced. However, the outcome of Q2 earnings will have a say on the market.”
According to Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund: “Initial positive momentum gave way to heavy selling pressure as stock markets in India wiped off intra-day gains and plummeted into negative terrain.”
“Selling in auto and financial stocks put pressure on bourses. Meanwhile, US President Donald Trump continued his criticism of the Federal Reserve, calling it his biggest threat as it was raising rates too fast. Trump had previously said that the Fed has ‘gone crazy’ and attributed last week’s plunge on Wall Street to the US central bank.”
On Wednesday, the Indian rupee closed at 73.60, down 14 paise from its previous close of 73.46 per US dollar.
In addition, brent crude oil prices inched up to over $81.60 a barrel.
Provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 140.02 crore, whereas domestic institutional investors sold scrip Rs 343.11 crore.
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty correcting sharply, traders will need to watch if the index can now hold above the immediate supports of 10,410 points; else a further correction is likely.”
The top gainers in the Sensex were ITC, up 1.34 per cent at Rs 286.35; Coal India, up 1.28 per cent at Rs 280.05; Wipro up 1.20 per cent at Rs 324 ;Infosys up 1.16 per cent at Rs 704.50; and Hindustan Uniliver, up 1.08 per cent at Rs 1,561.05.
Major losers included Yes Bank, down 6.85 per cent at Rs 231.75; Adani Ports, down 5.41 per cent at Rs 315; Maruti Suzuki, down 3.79 per cent at Rs 6,878.70; Tata Motors, down 3.40 per cent at Rs179.20; and Tata Steel, down 3.39 per cent at Rs 554.65 per share.
—IANS
by admin | May 25, 2021 | Banking, Economy, Finance, Markets, News
Mumbai : A positive start to the second quarter results season, along with a stable rupee and low crude oil prices, pushed both the key equity indices — S&P BSE Sensex and NSE Nifty50 — higher for the third consecutive session on Tuesday.
The day’s trade saw all sectors close on a high note led by finance, banking and energy stocks.
Index-wise, the benchmark S&P BSE Sensex settled at 35,162.48 points, up 297.38 points or 0.85 per cent. It touched an intra-day high of 35,215.79 points and a low of 34,913.06 points.
Similarly, the NSE Nifty50 ended the day’s trade on a positive note. It closed at 10,584.75 points, up 72.25 points, or 0.69 per cent.
Vinod Nair, Head of Research, Geojit Financial Services said: “Market maintained a positive momentum as healthy start to the earnings season and gaining strength in rupee supported the sentiment.”
“Though rally was broad based, financials led from the front. However, global market remain mixed due to trade tensions. Earnings season will dictate the trend in the market as investors are gradually shifting their focus from global volatility to domestic triggers.”
According to Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund: “On the macro front, India’s merchandise trade deficit during April-September 2018 was reported at $94.32 billion. The trade deficit for September 2018 was at $13.98 billion, which is the lowest in the last 5 months, despite high oil prices.”
On Tuesday, the Indian rupee closed at 73.46, recovering 37 paise from its previous close of 73.83 per US dollar.
Provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 1,165.63 crore, whereas domestic institutional investors bought scrip Rs 1,059.44 crore.
HDFC Securities’ Retail Research Head Deepak Jasani told: “Technically, the underlying trend of Nifty continues to be positive. At the same time one needs to be cautious of long trading positions at the highs.”
“Resistance for the Nifty is now at 10,720-10,754 band. Immediate supports to
be watched is at 10,490 levels.”
The top gainers in the Sensex were Mahindra and Mahindra, up 3.97 per cent at Rs 778.30; Adani Ports, up 3.54 per cent at Rs 333; ONGC up 3.44 per cent at Rs 165.50; SBI up 2.60 per cent at Rs 270.20; and ICICI Bank, up 2.51 per cent at Rs 321.05.
Major losers included HDFC Bank, down 0.77 per cent at Rs 1,992.40; Bajaj Auto, down 0.54 per cent at Rs 2,611.15; Maruti Suzuki, down 0.45 per cent at Rs 7,149.95; Infosys, down 0.39 per cent at Rs 696.40; and IndusInd Bank, down 0.37 per cent at Rs 1,620.85 per share.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key equity indices rose on Monday, wiping off initial losses, as wholesale inflation grew at a slower pace and amid bets of robust corporate earnings in the second quarter ended September 30.
However, a slight rise in global crude oil prices pressured the Indian rupee, capping the gains.
Healthy buying was witnessed in information technology and healthcare counters, market participants said.
“Market traded in a rangebound manner, ending on a positive note. However, concerns about global growth due to trade war (between the US and China) and rising cost of funds are weighing on the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
The benchmark S&P BSE Sensex settled at 34,865.10 points, up 131.52 points or 0.38 per cent. The NSE Nifty closed at 10,512.50, up 40 points or 0.38 per cent. The Sensex touched an intra-day high of 35,008.65 and a low of 34,559.98.
India’s annual rate of inflation based on wholesale prices accelerated 5.13 per cent on year in September from a 4.53 per cent increase in August, official data showed here on Monday.
“The rupee continued to be under pressure, as oil prices resumed an uptrend due to tension between the US and Saudi Arabia. Second-quarter results began on a positive note,” said V.K. Sharma, Head, PCG and Capital Markets Strategy, HDFC Securities.
Astha Jain, Senior Analyst, Hem Securities, told IANS: “Today’s rise can be attributed to healthy buying after the major correction last week.”
On Monday, the Indian rupee closed at 73.83, sliding 27 paise from its previous close of 73.56 per US dollar.
Provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 67.86 crore, whereas domestic institutional investors bought Rs 294.78 crore worth of stocks.
The top gainers in Sensex were Infosys, up 2.95 per cent at Rs 699.10; ITC, up 2.51 per cent at Rs 281.60; ONGC, up 1.78 per cent at Rs 160; TCS, up 1.60 per cent at Rs 1,949.15.
Major losers included Hindustan Uniliver, down 2.68 per cent at Rs 1,526.60; Mahindra and Mahindra, down 2.63 per cent at Rs 748.60; ICICI Bank, down 1.76 per cent at Rs 313.20; Vedanta, down 1.52 per cent at Rs 210.95; and Axis Bank, down 1.51 per cent at Rs 575.85 per share.
—IANS
by admin | May 25, 2021 | Economy, Finance, Markets, News
By Rohit Vaid,
Mumbai : The second-quarter earnings result season, along with the direction of foreign fund flows and macro-economic data points, are expected to determine the trajectory of key Indian equity indices next week.
Market analysts said that crude oil prices coupled with rupee’s strength against the US dollar will also influence the market moves.
“The markets next week would get some sentimental support from stability in INR and crude oil prices,” Devendra Nevgi, Founder and Principal Partner, Delta Global Partners, told IANS.
“The earnings season would be closely tracked as a factor to mitigate some of the volatility in the markets.”
Companies like ACC, Cyient, Reliance Industries, Infosys, Hero MotoCorp, IndusInd Bank and UltraTech Cement are expected to announce their Q2 earning results next week.
“Currently, broader markets look attractive while investors may seek more clarity from upcoming quarterly results,” said Vinod Nair, Head of Research at Geojit Financial Services.
“The continuity of this trend largely depends on stability on bond yields and INR. However, worries about US Fed rate hike, US-China trade dispute and political uncertainties in India on account of upcoming state elections may impact the sentiment in the short-term.”
Apart from the Q2 results, investors will look forward to the macro-economic data points of WPI (Wholesale Price Index) and India’s trade figures.
The Central Statistics Office (CSO) is slated to release the macro-economic data points of WPI on October 15.
“The trade deficit number due next week would be crucial for the INR moves,” Nevgi said.
On a weekly basis, the rupee closed at 73.56 last Friday, strengthening by 21 paise from its previous week’s close of 73.77 per greenback.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 8,335.12 crore last week.
At present, outflows in just the nine trading sessions in October have reached over Rs 17,000 crore.
This has been one of the worst months in over a decade in terms of fund outflows.
On technical charts, the National Stock Exchange (NSE) Nifty50 remains in an uptrend as it has closed at new life highs.
“Technically, while the Nifty has bounced back smartly, the intermediate trend remains down,” HDFC Securities’ Retail Research Head Deepak Jasani told IANS.
“The downtrend is likely to continue once the immediate support of 10,138 points is broken. Crucial resistances to watch on the upside are at 10,492-10,605 points. A break of 10,866 points would change the trend of the Nifty.”
Last week, both the key Indian equity indices — S&P Bombay Stock Exchange (BSE) Sensex and the NSE Nifty50 — came in for some rough weather due to global worries over high crude oil prices and US interest rates during the period, but managed to catch the upside in the final session of trade.
The market swung widely with major losses of over 2 per cent in just one session — thereby pulling stock prices and the Indian currency lower.
Notwithstanding the general downturn, a timely plunge in crude oil prices, attractive valuations and liquidity infusion by the Reserve Bank of India (RBI) lured investors back to the Indian market.
Consequently, the S&P BSE Sensex closed at 34,733.58 points, up 353.54 points or 1.02 per cent from its previous close.
Similarly, the wider Nifty50 of the National Stock Exchange also made gains. It closed at 10,472.50 points, up 156.05 points or 1.51 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
By Rituraj Baruah,
Mumbai : The domestic equity market’s movement in the coming week will be driven by the rupee’s movements well as futures and options expiry, besides the message from the Finance Minister’s meeting with the heads of public sector banks (PSBs).
Market analysts feel the indices could offer some relief in the upcoming week, after largely bearish trade last week.
Movement in the rupee would be a factor in the market, they said. On Tuesday, the Indian rupee touched a new low of 72.91 per US dollar, although it recovered somewhat later.
Concerns over the US-China trade war would also impact the global and domestic market sentiments. On Friday, China cancelled talks with the US after the latter imposed more tariffs on Chinese imports.
According to reports, a White House official has said the US is optimistic about finding a way forward in the ongoing trade dispute with China.
“Global headwinds are also subsiding slowly. Hence, the market may shake off its earlier losses to witness new highs,” said Prateek Jain, Director of Hem Securities.
He, however, added: “Amidst the global optimism, the market could witness a little volatility as traders adjust their positions on account of monthly derivatives expiry, which is scheduled to take place on Thursday, September 27.
“Further, there will be some buzz from the banking sector, as investors will keep an eye on the meeting of the Finance Ministry and top management of the public sector banks on September 25.”
Technically, for the Nifty50 on the National Stock Exchange (NSE), 11,050 points would be a major support level while immediate resistance level would be 11,250 points, said Deepak Jasani, Head of Retail Research at HDFC Securities.
In the week gone by, the Indian equity market slumped over three per cent due to a depreciating rupee along with high oil and credit risk concerns.
On a weekly basis, the Sensex of the Bombay Stock Exchange (BSE) closed at 36,841.60 points, lower by 1,249.04 points or 3.28 per cent from the previous week.
Similarly, the wider Nifty50 on Friday closed at 11,143.10 points, down 372.1 points or 3.23 per cent from the previous week’s close.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 2,674.12 crore, while the domestic institutional investors (DIIs) bought Rs 1,782.63 crore worth of stocks in the truncated week.
According to National Securities Depository (NSDL) figures, foreign portfolio investors (FPIs) divested Rs 2,231.37 crore, or $306.04 million, in the equities segment during the week ended September 21.
On the currency front, the Indian rupee closed at 72.20 a US dollar on Friday, depreciating 35 paise from the previous week’s close of 71.85.
(Rituraj Baruaah can be contacted at rituraj.b@ians.in)
—IANS
