by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key Indian equity indices tumbled during the late-afternoon session on Wednesday to provisionally close on a lower note after further trade protectionist measures were imposed on each other by two major global economies.
Besides, investors remained cautious ahead of the outcome of the central bank’s first bi-monthly monetary policy of 2018-19 on Thursday.
Market observers said that except for S&P BSE auto index, all the other indices slumped.
The barometer 30-scrip Sensitive index (Sensex) of the BSE shed almost 500 points from its day’s high at 33,505.53 points to provisionally close the day’s trade at 33,019.07 points.
On a session-wise basis, the BSE Sensex at 3.30 p.m. closed lower by 351.56 points or 1.05 per cent to 33,019.07 points from its previous session’s close.
On the National Stock Exchange (NSE), the wider Nifty50 declined by 116.60 points or 1.14 per cent to close at 10,128.40 points.
According to market observers, the domestic equity markets reacted to intensifying trade war fears after China on Wednesday unveiled a list of products worth $50 billion imported from the US that will be subject to higher tariffs, including soybeans, cars and chemical goods.
The Customs Tariff Commission of the State Council decided to impose additional tariff of 25 per cent on 106 items of products under 14 categories as a countermeasure after the US administration published a list of about 1,300 Chinese products it plans to hit with a 25 per cent tariff.
On Tuesday, the equity indices closed with appreciable gains — despite volatility in the global markets — led by healthy buying in banking, auto, oil and gas, and healthcare stocks.
The Nifty50 edged higher by 33.20 points or 0.33 per cent to close at 10,245 points, while the Sensex closed at 33,370.63 points — up 115.27 points or 0.35 per cent from its previous session’s close.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Key equity indices — NSE Nifty50 and BSE Sensex — receded to their 5-month low levels on Friday as investors got spooked after major world economies imposed new trade protectionist measures.
The global sell-off which impacted the Indian equity market was triggered after the US imposed new levies and tariffs on imports from China which in turn led to retaliatory actions by the Chinese government.
Besides fears over trade wars, a rise in crude oil prices pulled the the Nifty50 of the National Stock Exchange (NSE) below the 10,000-points-level. On a closing basis, the NSE Nifty50 declined by 116.70 points or 1.15 per cent to 9,998.05 points.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE closed at 32,596.54 points — down 409.73 points or 1.24 per cent from the previous session’s close.
During the intra-day trade, the Sensex fell over 500 points to touch a low of 32,483.84 points.
The BSE market breadth was tilted towards the bears with 2,149 declines and 558 advances.
“Markets ended sharply lower on Friday. The weakness came triggered by the latest escalation in trade war between the two large global economies,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“The Nifty closed at its lowest level since October 11, 2017, while the Sensex closed at its lowest since October 23, 2017. In its upmove, the Nifty had closed above 10,000 points on July 26, 2017 and now it has closed below that level,” he added.
In terms of the broader markets, the S&P BSE mid cap index dipped by 1.36 per cent and the small cap index by 1.54 per cent.
According to Prateek Jain, Director at Hem Securities: “Global trade war tensions spooked investors today after US President Donald Trump ordered at least $50 billion in tariffs on Chinese imports and China announced plans for reciprocal tariffs on $3 billion of imports from the US.”
“Sentiment remained weak following weak clues from the global market. Overnight, US stocks fell sharply on Thursday, with major indices suffering their worst day in weeks as the threat of a trade war with China sparked a widespread sell-off. The market breadth, indicating the overall health of the market, was quite weak,” said Jain.
On the currency front, the Indian rupee strengthened by 10 paise at 65.01 against the US dollar from its previous close at 65.11.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 1,628.19 crore, while the domestic institutional investors sold stocks worth Rs 935.41 crore.
“Volatility expanded and market is losing its grip due to escalating tensions of trade war and spike in oil prices,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Market corrected 10 per cent from its peak while metal and PSU banks continue to be the laggards. We expect domestic chaos to stabilise as pressure of redemption will be over by the end of FY18 but pre-election volatility may take some time,” Nair added.
Almost all the sub-indices of the BSE ended in the red, barring the IT index (up 23.62 points) and Teck (technology, media and entertainment) index (up 20.61 points).
The S&P BSE banking index plunged by 562.95 points, followed by metal index by 388.51 points, capital goods index by 286.20 points, auto index by 203.77 points and healthcare index by 196.43 points.
Major Sensex gainers on Friday were: Adani Ports, up 0.99 per cent at Rs 361.70; Infosys, up 0.75 per cent at Rs 1167.45; Power Grid, up 0.54 per cent at Rs 194.25; Mahindra and Mahindra, up 0.47 per cent at Rs 733.25; and Coal India, up 0.09 per cent at Rs 269.25.
The Sensex losers were: Yes Bank, down 3.87 per cent at Rs 286.70; Axis Bank, down 3.34 per cent at Rs 501; State Bank of India, down 2.90 per cent at Rs 234.60; ICICI Bank, down 2.73 per cent at Rs 275.80; and Tata Steel, down 2.40 per cent at Rs 566.60.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Value buying by investors, along with positive global markets on the back of easing of trade war fears, propelled the key Indian equity indices on Thursday — snapping a six-day losing streak.
The barometer 30-scrip Sensitive Index (Sensex) of the BSE surged over 400 points to scale an intra-day high of 33,439.97 points, with healthy buying in banking, auto and capital goods stocks adding to the upward trajectory.
The Sensex closed at 33,351.57 points — up 318.48 points or 0.96 per cent from its previous session’s close.
However, the BSE market breadth was bearish with 1,530 declines and 1,197 advances.
On the National Stock Exchange (NSE), the wider Nifty50 rose by 88.45 points or 0.87 per cent to close at 10,242.65 points.
“Markets bounced back on Thursday after six consecutive sessions of losses. Bottom fishing on the back of gains in Asian stocks amid news of potential US tariff exemptions helped to boost the market sentiments,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
“Major Asian markets have closed on a positive note, while European indices like CAC 40 and FTSE 100 traded in the green. Broad market indices like the BSE mid-cap and small-cap indices gained less, thereby underperforming the main indices,” Jasani added.
The S&P BSE mid-cap index edged higher by 0.56 per cent and the small-cap index by 0.50 per cent.
On the currency front, the Indian rupee weakened by 26 paise to close at 65.15 against the US dollar from its previous close at 64.89.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 364.80 crore, while domestic institutional investors purchased stocks worth Rs 675.26 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market reversed from the last six days losing streak as ease in trade war concerns and short covering in PSU banks supported the rally.”
“Mid and small-caps continued to underperform as investors were still jittery waiting for further ease in valuation,” Nair added.
Sectorwise, the S&P BSE banking index augmented by 389.41 points, auto index by 220.70 points and capital goods index by 203.84 points.
On the other hand, the S&P metals index fell by 65.01 points, healthcare index by 33.36 points and the FMCG index by 21.38 points.
Major Sensex gainers on Thursday were: State Bank of India, up 4.09 per cent at Rs 256.75; ICICI Bank, up 3.58 per cent at Rs 296.95; Adani Ports, up 2.95 per cent at Rs 388.60; Mahindra and Mahindra, up 2.45 per cent at Rs 727.25; and Reliance Industries, up 2.25 per cent at Rs 911.60.
The Sensex losers were: Tata Steel, down 1.98 per cent at Rs 635.20; Sun Pharma, down 1.85 per cent at Rs 515.40; Yes Bank, down 1.63 per cent at Rs 307.80; Tata Consultancy Services, down 0.92 per cent at Rs 3,001.50; and Tata Motors, down 0.60 per cent at Rs 345.90.
—IANS
