BSE Sensex plunged 500 points and breached the crucial 51,000 while the broader Nifty 50 index gace up the psychological level of 15,000 in the afternoon deals.
Inspite of RBI buying close to $160 billion over the past 9 months, INR has appreciated against the US Dollar, but much less than what other currencies have against USD. USDINR is at lowest level since March 2020. There is scope of USDINR to decline further from 72.60 towards 72.00 levels. High premium or badla on futures of USDINR incentivise short sellers to sell USDINR and rollover on expiry. This is referred to as carry trade and works well when USDINR is on a declining path. Expectation of strong growth in US and emerging markets can continue to draw foreign capital flows in EMs like India. Reforms, PLI scheme for manufacturing and drive towards privatisation has potential to attract significant foreign capital flows in India Positive for Rupee. Overall view remains bullish on Rupee and bearish on the US Dollar.: Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities
There is a negative correlation between gold and US bond yields. The selling pressure in gold is on hopes that US and global growth will recover more quickly as vaccines roll out. Also, the fears that additional fiscal stimulus will increase inflation are keeping US yields higher. So with yields rising and technical levels under fire, the fall may continue. MCX gold prices continue to trade with a negative bias. And the bearish outlook for the counter will stay until prices trade below 47000. Bounce will face resistance until then and prices will slip towards 45525/45110/44800 areas. A decisive break above 47000 is required for the bulls to make any meaningful comeback: Rahul Gupta, Head Of Research-Currency, Emkay Global Financial Services
Gold prices have slipped below the crucial Rs 46,000/10gm level, to hit an 8-month low. The rise in the US Treasury yield & stronger dollar, optimism of a larger economic stimulus package, and the vaccination drive has led to downside pressure on gold prices. The rising treasury yield is indicative of a recovery in the US economy. The yellow metal has also lost investor’s interest as the vaccination drive picks up pace, new cases are under worldwide. Gold prices in India have lost over Rs 10,000/10gm or 18% from its highs witnessed in August 2020. Going forward risk of a second wave of cases, easy liquidity, global economic recovery will guide gold prices.: Nish Bhatt, Founder & CEO, Millwood Kane International
Oil and gas stocks were in focus on Friday after Prime Minister Narendra Modi said that the government is committed to bring natural gas Goods and Services Tax (GST). This will help to make the prices uniform and cheaper in the country. The government has also planned to spend over Rs 7.5 lakh crore in the country’s oil and gas infrastructure in the next five years. When GST was implemented in 2017, only five petro-products — petrol, diesel, crude oil, natural gas, and aviation turbine fuel (ATF) — were kept out of its purview. Read full story
The sharp rise in corporate profits in the third quarter, and the resulting series of earnings upgrades are now pushing the Dalal Street further up, taking over from the Budget-driven share market rally. The aggregate profit growth of BSE 500 companies has accelerated to nearly 46% on-year in the fiscal third quarter, hinting at broad-based recovery and not just in select few big names. Along with a jump in profits, cost optimization has resulted in EBITDA growth, which has further led to sequential earnings upgrades, something that does not come very often on Dalal Street.
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Investments into the startup ecosystem by micro venture capital funds, investments under USD 30 million, have jumped manifold to USD 341 million in the past three years through 730 deals across 566 startups, says an industry report.
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Agrichemicals manufacturer Heranba Industries’ Rs 625-crore initial public offering (IPO) will open for subscription on Tuesday, February 23, 2021, and will be available for subscription till Thursday, February 25, 2021. The subscription for anchor investors will open on February 22, 2021. The basis of share allotment is likely to be finalised on March 2 and shares are expected to be credited to demat account on March 4.
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The markets have opened below 15100 which is a short term support for the Nifty. We need to evaluate today’s closing price: for the markets to continue remaining bullish, we would need to close above 15100. A break of this level on a closing basis would alert the bearish triggers of the market and it can drop to 14800 and then 14600. It would be better to evaluate the index on Monday with new weekly support and resistance levels.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
A host of socio-economic factors in play now could sow the seeds of a rally in tourism and related industry stocks, often dubbed as the ‘back to normal’ trade. India’s economy is now beginning to get in the groove with growth projections being revised upwards for the next fiscal year; cases of coronavirus have not resurfaced in the form of a second wave; and vaccination drive is picking up steam. “As the economy is now coming out of covid induced pain, we expect tourism to witness sharp recovery in FY22E,” said ICICI Direct in a note. The brokerage firm has picked five stocks to build a multicap portfolio that could benefit from tourism activity getting back to its old normal.
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Markets globally have been consolidating and even slowly drifting down during this week. This trend is due to high valuations and the absence of any fresh positive triggers to take the market higher. This trend might linger for some more time before some trigger leads to a breakout. Meanwhile, investors can utilize the drift in the market to buy quality stocks with good earnings visibility. IT is one sector that looks promising. The broader market is witnessing frenzied activity, particularly in PSU stocks. The speculative activity in this segment has been on the rise following the privatization proposals in the Budget: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Sectorally, barring Nifty PSU Bank and Nifty Media indices, all the sectoral indices were trading in red. Nifty Metal index fell over 1 per cent
Top Sensex draggers were ICICI Bank, HDFC Bank, Infosys, Housing Development Finance Corporation (HDFC) and Axis Bank
Reliance Industries Ltd (RIL) was the top BSE Sensex gainer, up over 1 per cent, followed by Larsen & Toubro, Hindustan Unilever Ltd (HUL), Bharti Airtel, ONGC, among others.
BSE Sensex was trading 222 points or 0.43 per cent down at 51,102, while the broader Nifty 50 index gave up 15,100.
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IndusInd Bank, Power Grid Corporation of India, Reliance Industries Ltd (RIL), ICICI Bank were among top Sensex laggards in pre-open.
BSE Sensex was flat to negative at 51,259, while the broader Nifty 50 index was ruling above 15,150 in the pre-open on Friday.
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COMEX gold trades 0.3% lower near $1769/oz and has tested the lowest level since June 2020. Weighing on gold price is higher bond yields and continuing ETF outflows which show weaker investor interest. However, supporting price is the loose monetary policy stance of major central banks, mixed economic data and hopes of additional US stimulus. Gold’s sharp sell-off makes it vulnerable to further losses however the losses seems overstretched given the emphasis on continuing with stimulus measures.: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Nifty futures were ruling 85.50 points or 0.57 per cent down at 15,029.50 on Singaporean Exchange, indicating a gap-down opening for BSE Sensex and Nifty 50 on Friday. Previous session marked the third straight fall in the headline indices due to concerns over stretched valuations and weak global cues.
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The short term trend of Nifty is down amidst a range movement. Lack of strength in decline and positive market breadth could indicate possibility of a comeback of bulls from the lower levels. We expect Nifty to show upside bounce from the lows of around 15000 levels in the next 1-2 sessions. On the flip side, a decisive move below 14950 is likely to trigger more weakness in the near term.: Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The Reserve Bank of India (RBI) on Thursday partially devolved the government bond auction upon primary dealers for the second time in as many weeks. The devolvement of an auction generally signifies that the central bank is not willing to accept bids at yields higher than what it is comfortable with.
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Sensex and Nifty have slipped for three consecutive sessions now. After Thursday’s fall, BSE Sensex now sits at 51,324 while the 50-stock NSE Nifty is at 15,118 points. However, defying the benchmark indices, broader markets have continued to show strength and inched higher. The consolidation in domestic markets could continue, according to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services. He added that the weakness in markets could remain till concerns over rising inflation recede. On Friday morning, SGX Nifty was down 45 points, hinting at a gap-down start.
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Stocks on Wall Street ended down with Dow Jones Industrial Average falling 0.38 per cent. The S&P 500 lost 0.44 per cent, and the Nasdaq Composite dropped 0.72 per cent.
Asian stocks were trading deep in red in early trade on Friday, following overnight fall on Wall Street. Japan’s Nikkei 225 was down 0.87 per cent while the Topix index lost 0.78 per cent. South Korea’s Kospi declined by nearly one per cent.
Nifty futures were ruling 48.50 points or 0.32 per cent down at 15,066.50 on Singaporean Exchange.
Bharti Airtel continues to add maximum number of wireless users, for the fifth month in a row. Airtel added 4.05 million wireless subscribers in December to take its base to 338.70 million, followed by Reliance Jio, which added 478,917 subscribers to take its base to 408.77 million.
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