Taking Stock | Investors cautious ahead of inflation data; Sensex, Nifty end lower
BSE midcap and smallcap indices ended on a flat note…. Read More
Kunal Shah, Senior Technical Analyst at LKP Securities
The Bank Nifty index witnessed a volatile trading session on the weekly expiry day, and this trend is likely to continue in the near term.
The bulls, in order to gain control, must surpass the immediate hurdle of 42500, where fresh call writing is visible. The bears are riding the upper hand, and if the index breaks 41500, the down move will accelerate.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty ended lower for the third consecutive session on January 12 though it recovered part of the intra-day losses. At close, Nifty was down 0.21% or 37.5 points at 17858.2. Smallcap index fell less than the Nifty even though the advance decline ratio fell to 0.74:1.
World stocks held on to modest gains on Thursday on cautious optimism that U.S. inflation data due this evening will confirm inflation is softening lifting pressure on the US Fed to keep raising rates sharply.
Nifty marginally breached the support of 17774 (intra-day low 17762), but recovered well later. The past two days are witnessing recoveries from intra-day lows although selling pressure are emerges at higher levels. Nifty could rise some more once it crosses 17976.
Ajit Mishra, VP – Technical Research, Religare Broking
Markets traded volatile and ended marginally lower on the weekly expiry day. After the flat start, the tone was negative for most of the session however rebound in the final hours trimmed the losses. Consequently, the Nifty index settled at 17858 levels; down by 0.21%.
The majority of sectoral indices traded in tandem with the benchmark and ended lower wherein the pressure in the energy and banking majors was weighing on the sentiment.
Markets will react to the IT majors viz. Infosys and HCL Technologies numbers in early trades on Friday. Besides, the reaction of the global markets to the US inflation will also be on the radar.
On the benchmark front, we feel the prevailing tussle around 17,800 in Nifty will end soon. Meanwhile, the focus should be on sector/stock-specific opportunities while keeping a check on position size.
Vinod Nair, Head of Research at Geojit Financial Services
The domestic market continued to remain volatile as investors eagerly awaited the earnings of other IT majors after a cautious warning from TCS.
FIIs continue to dump Indian equities in search of cheaper investment avenues. Uncertainties over upcoming inflation numbers at home and the US kept the domestic market unstable, even as western peers stayed optimistic.
Infosys Q3 profit jumps 13% to Rs 6,586 cr
Infosys on January 12 reported 13.4 percent rise in its consolidated net profit for quarter ended December 2022 at Rs 6,586 crore. The country’s second largest IT firm had reported a net profit of Rs 5,809 crore in the same quarter last year.
Its consolidated revenue from operations increased 20.2 percent to Rs 38,318 crore against Rs 31,867 crore in the corresponding quarter last year, Infosys said in an exchange filing.
Avinash Gorakshakar, Head Research, Profitmart Securities
Alibaba selling shares in Paytm could be good news for shareholders as it reflects that Chinese shareholding is reducing in the company. This would benefit them in FDI and as the company is already on path to profitability, this will further allay investor concerns.
Alibaba seems to be on the exit move from India as it has sold shares in its major investments like BigBasket, Zomato and Paytm. This is a positive for shareholders, as it clears many regulatory paths. In the case of Paytm, the company is on the fastrack to profitability, and has been delivering good business updates.
Indian rupee closed flat at 81.55 per dollar against previous close of 81.57.
Market Close: Benchmark indices ended lower in the volatile session on January 12.
The Sensex was down 147.47 points or 0.25% at 59,958.03, and the Nifty was down 37.50 points or 0.21% at 17,858.20. About 1590 shares have advanced, 1813 shares declined, and 152 shares are unchanged.
Divis Labs, Reliance Industries, BPCL, Axis Bank and Tata Motors were among the top lowers on the Nifty, while gainers were SBI Life Insurance, UltraTech Cement, Larsen and Toubro, HCL Technologies and Cipla.
Among sectors, oil & gas index fell 1 percent and bank indes shed 0.5 percent, while capital goods and information technology indices rises 0.5 percent each.
BSE midcap and smallcap indices ended on flat note.
Oil steadied on Thursday as optimism over China’s demand outlook was tempered by caution over whether upcoming inflation data from the United States will point to a slower increase in interest rates.
Top oil importer China is reopening its economy after the end of strict COVID-19 curbs, boosting optimism that demand for fuel will grow in 2023.
Brent crude rose 37 cents, or 0.5%, to $83.04 a barrel at 0912 GMT, while U.S. West Texas Intermediate crude gained 5 cents to $77.46. Both benchmarks rose 3% on Wednesday driven by optimism about the global economy.
Yen jumps, dollar steady ahead of U.S. inflation data
The yen got a boost on Thursday on expectations that the Bank of Japan will review the side effects of its monetary easing, while the dollar held near a seven-month low against the euro ahead of U.S. inflation data later in the day.
The Japanese yen rose as much as 0.8% to a session high of 131.36 per dollar in Asian trade, following a Yomiuri report that the BOJ will review the side effects of its monetary easing at next week’s policy meeting and may take additional steps to correct distortions in the yield curve. The yen last bought 131.70 per dollar.
Nomura initiates ‘Neutral’ rating on ITC, target Rs 360
-Initiate neutral rating, target at Rs 360 per share
-Rising risks in cigarettes, budget pivotal for stock could trigger de-rating
-FMCG growth has moderated to normalised levels
-Margin improvement to remain gradual; contribution to overall business to remain modest
-Assign low probability of divestment of FMCG business
-Trades at 21x/19x March FY24/FY25 EPS
ITC was quoting at Rs 329.90, down Rs 1.85, or 0.56 percent on the BSE.