For the fifth consecutive day Sensex and Nifty have closed deep in red. Now S&P BSE Sensex sits at 46,874, down 6.5% from its all-time high of 50,184. Nifty 50 closed the day at 13,821. Broader markets closed in red. India VIX or the volatility gauge zoomed to breach 25 levels earlier in the day only to end with losses. Among sectoral indices, Nifty Bank, Nifty Private Bank, and Nifty Media ended with gains. Axis Bank was the top Sensex gainer, zooming 6%, followed by State Bank of India, ICICI Bank, and ONGC. HUL, Maruti Suzuki India, and HDFC Bank were the top drags.
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Sensex closed 535 points in red while Nifty 50 was just above 13,800 levels. India VIX breached 25 levels during the day but ended in the red.
Bank Nifty index turned positive and zoomed 0.50% just minutes ahead of the closing bell on Thursday. The index is currently at 30,437 points.
“Maruti Suzuki Ltd. reported consolidated revenue growth of 13.2% for Q3FY2021 to ₹22,241 crore due to strong demand for vehicles as the economy is coming back to normal, was in line with our expectation. In this quarter, sales volume increased due to pent up demand also. During the quarter the company posted a consolidated net profit of ₹1,996.7 crore as compared to net profit of ₹1,587.4 crore in Q3FY20 was up by 25.8%. Going forward, new product launches will be key monitorable for the company. We are bullish on the company as we expect good demand for vehicles for the company,” said Keshav Lahoti, Associate Equity Analyst, Angel Broking.
Despite a 36% on-year drop in net profit, private lender Axis Bank shaw its share price surge over 6% on Thursday making it the top Sensex gainer.
Just minutes ahead of the closing bell, Sensex was down near 450 points while Nifty 50 jumped back 13,800 as stock markets looked to cut some losses.
BSE Sensex tumbles 675 points or 1.42 per cent to 46,735, while NSE Nifty gives up 13,800, down 190 points or 1.36 per cent
The breaking of 14200-14250 was crucial for the markets and hence we have fallen on the back of high volumes. For the time being 13700 has acted as a good support point but if we fail to close above this, we can slide further and test 13500-13600. The upside resistance is at 14400-14500 and until we do not get past that on a closing basis, the trend remains in the control of the bears and any rally up should be looked at as an opportunity to short this market: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
One of the significant changes introduced by the Finance Act, 2020 was the abolishment of the Dividend Distribution Tax (“DDT”) and reinstating the classical system of taxing dividends, where the shareholder is liable to pay tax on the dividend income. This change had a major impact on the taxation of unitholders of Real Estate Investment Trusts and Infrastructure Investment Trusts (collectively referred to as “Business Trusts”), which derive a significant chunk of their returns from dividends earned by the Business Trusts.
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Sensex sits over 600 points in red with just over an hour to go till the closing bell. NSE Nifty 50 was below 13,800.
Post the F&O expiry we expect a pullback in the markets though upsides are going to be capped for the markets in the near term given very expensive valuations and negative global cues. We believe that the Nifty is likely to enter a period of consolidation post the sharp rally since the pandemic lows. Markets will be taking cues from the ongoing third-quarter results as well as the Union Budget on the 1st of February.:Jyoti Roy – DVP- Equity Strategist, Angel Broking Ltd
Current correction in the markets is not surprising and in line with our expectations post the ~27% rally in the markets since October end. The rally has been driven by strong FPI flows due to the risk-on environment post the outcome of the US elections. At current levels valuations at ~21xFY21 Nifty EPS estimates are expensive. The fall in the markets is also getting exaggerated due to negative global cues, F&O expiry and profit booking prior to the Union Budget on the 1st of February.: Jyoti Roy – DVP- Equity Strategist, Angel Broking Ltd
“Multiple factors have contributed to market fall. The markets were overheated because of stretched valuations, even as the economic challenges continued in the western world. From here, corporate earnings will continue to be key, but valuations also have to be back in a reasonable zone. So, a combination of price correction and time correction will provide better entry points for the market. Investors should keep in mind to hold healthy cash positions and should manage to buy quality stocks at attractive valuations,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities.
The upcoming budget will be strongly influenced by the pandemic backdrop in which it is being presented. While there is limited near-term fiscal leeway and discretion, it can be an opportunity to set solid long-term foundations to achieve sustainable economic growth. Primary focus areas must include improving capital availability and allocation. While the immediate growth will depend on household and government consumption, we expect steps to boost overall savings. Also needed are genuine steps towards attracting private capital and improving governance at public sector banks than yet another recapitalisation. With external balances and inflation in control, a more ambitious infrastructure build spending can be pursued. Further concessions for the real estate sector will help improve the employment outlook and also help drive a savings cycle. On the ‘Atmanirbhar’ theme as well, the focus should be on putting together the essential long-term growth building blocks, such as incentivising the creation of strong Intellectual Property, apart from including more sectors in the PLI scheme. Lastly, there’s still a lot to be done on simplification of the tax codes and hopefully, more steps will be taken in this regard: Nitin Sharma, Director Research, Fidelity International
Overall sell-off witnessed across global markets with investor concerns over valuations, sobered buying at current levels; and profit booking being witnessed ahead of Indian Budget: Aamar Deo Singh, Head, Advisory at Angel Broking
Only Nifty Auto and Nifty Media index were trading in green on Thursday. Sensex, Nifty trimmed losses but still trade in red.
Despite the massive amount of money that foreign institutional investors have pumped into Indian stock markets, Chris Wood, global head (equity strategy), Jefferies is not giving up on Dalal Street this year. His bullish views are supported by the scale of the cyclical recovery, expected this year after the heavy decline in the gross domestic product earlier in the second quarter. Chris Wood had recently increased India’s weightage in his Asia ex-Japan portfolio by one percentage point.
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Expectations are high that Finance Minister Nirmala Sitharaman will unveil a budget focused on growth. The catalyst that could propel India’s GDP into double digits and on which Nirmala Sitharaman could rely may be infrastructure. “We do believe that the government will go for a growth theme in the budget, to bring the economy back to normalcy and it would primarily focus on the push towards the infrastructure sector,” Ajit Mishra, VP Research, Religare Broking told Financial Express Online. Firms operating under the Capital good space could be the beneficiaries of this theme ahead of the Union budget.
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Bears have assumed full control of domestic equity markets with Sensex falling a massive 700 points. Nifty gave up 13,800. Index heavyweight, HDFC twins, Infosys, Kotak Mahindra Bank were all in red.
Bharti Airtel said that its current networks can run 5G for any user with supporting handsets from today, with government approval, however, it will only be justified to use it at its maximum potential once fresh bands are auctioned.
Rather than checking how far we can fall, it will be more fruitful to note that the NIFTY has dragged its resistance lower to 14200-14250 zone. Therefore, so long as the NIFTY stays below this zone, will see profit taking with each up move that the markets may witness. Short-term supports can be expected in the range of 13700-13800 levels.: Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services
The major reason for the sell-off in the markets is the onset of Risk-Off environment across equities as an asset class. This is reflected in the sharp improvement in the other safer assets like Bonds and Dollar Index. So, any such betterment of relative performance of safer asset will have negative impact on the equities.: Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services
Bharti Airtel today said it is the first telco in India to demonstrate 5G network capability.
HDFC Bank, Kotak Mahindra Bank were the top Sensex drags at 12 PM on Thursday. Both the private lender are down more than 3% each.
RIL share price gained 1.5 per cent to Rs 1,923.35 apiece on BSE today, after falling nearly 10 per cent in the last three trading sessions. Even as BSE Sensex was trading deep in red in today’s session, RIL shares were among top-performers on the index.
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“Yesterday Gold prices corrected sharply by 0.57% and closed at 48865 levels on the back of strength in Dollar and fadeout expectation of stimulus package in US economy. The safe-haven dollar rallied as Federal bank may come out with positive stance on US economy after two days meeting. Strong dollar and increasing bond yield putting pressure on gold and silver. As of now traders can go for sell in gold at 48900 levels with the stop loss of 49100 levels for the target of 48200 levels. They can also go for sell in silver at 66000 with the stop loss of 66700 for the target of 64800 levels,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.
Hindustan Unilever Ltd (HUL) share price fell as much as 2.5 per cent to Rs 2,330.75 apiece on BSE, after rising nearly a per cent in the opening trade. HUL reported a 19 per cent on-year rise in net profit to Rs 1,921 crore in the October-December quarter. While HUL’s revenue from operations surged 20 per cent on-year to Rs 11,682 crore during the quarter. While on the National Stock Exchange (NSE), the scrip fell 2.42 per cent to Rs 2,333.55 per share. So far in the intraday session, over 3.5 lakh shares were traded on the BSE, while 11.39 lakh shares exchanged hands on NSE, data from the respective stock exchanges showed.
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So far equities markets had seen a sell-off for past four consecutive session eroding nearly 5% of its valuation from all-time high, but the same did not translate in rupee weakness because FII inflows were constant. With excess liquidity being flushed in market on account of stimulus and lower lending rate by central banks had led to ballooning in the equity segment. However, seeing the global sell-off in equities investors seemed nervous which has led to foreign investors selling shares worth Rs 2453crs in past two trading sessions, thereby pressuring USDINR pair. Any steep fall in the pair shall be capped near 73.50 levels with the inflows lined up at one side and on the other side, RBI maintaining its stance on building FX reserve is capping gains in pair around 72.80 levels. As the overall sentiments remain cautious, momentum in the rupee could also be trapped within its present narrow-range of 72.80-73.50 levels. Thus any dips between 72.80-73.00 levels can be taken for buying and upticks above 73.40 shall be utilized to sell for near term exposures.: Amit Pabari, managing director, CR Forex Advisors
“14200-14250 was a key support which the market disrespected in a jiffy. The fall thereafter has happened on the back of very high volumes. We could slide further to test 13600. If we are unable to hold that level, we could fall more towards 13100-13200. As of right now, any up move can be utilised to short the Nifty. The resistance on the upside is at 14400-14500,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
“Markets, globally, have turned weak following the steady decline in the mother market US. The heightened speculative activity in certain segments in US markets have become an area of concern. Back home, in India, the third day of consecutive selling by FIIs ( Rs 1688) have turned the market mood bearish. The budget uncertainty will keep the bulls in restraint. On the positive side, Fed affirming the continuation of accommodative monetary policy and bond purchases of $ 120 billion every month ensures adequate liquidity for markets. In brief, a confuse set of market signals. Nifty has corrected around 5% from the peak. This is a healthy correction,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Sensex opened below 47,000 for the first time since December last year. Nifty index was below 13,800 levels. Volatility was high.
COMEX gold trades 0.5% lower near $1835/oz after a 0.3% decline yesterday. Gold weakened as the Fed painted a downbeat outlook for the US economy but did not hint towards additional measures. Fed’s downbeat growth outlook and ECB’s willingness to cut rates pushed the US dollar higher putting pressure on gold. ETF outflows also showed weaker investor interest. However, supporting price is lower bond yields, mixed economic data from major economies and rising virus cases. Gold has come under pressure but we may not see sustained decline as US economic outlook and stimulus expectations may limit upside in the US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Sensex and Nifty ended the pre-open session deep in red which means the benchmark indices will open with losses on Thursday morning.
Sensex was sitting 700 points lower during the pre-open session on Thursday morning. Nifty was down nearly 200 points.
Sensex began pre-open session down nearly 1,000 points but soon recouped some losses but it moved below 47,000. Nifty slipped below 14,800.
Markets have reversed their short term uptrend this week. The reversal was confirmed once the recent low of 14222 was broken on Wednesday. With the Nifty now trading below the 20 day SMA and the 14 day RSI in decline mode, the technical indicators too are confirming the weakness seen in the markets.
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Nifty futures were trading 99 points or 0.71 per cent down at 13,885.20 on Singaporean Exchange, suggesting a weak opening for BSE Sensex and Nifty 50 on the day of expiry of monthly derivative contracts. Corporate earnings, foreign fund flows, COVID-19 vaccine and Budget related developments will sway the market sentiment. Headline indices have wiped out all the gains made so far in the calendar year 2021, tumbling over 5 per cent from their record highs of January 21, 2021.
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“The market opened lower and closed at the lowest point of the day on the back of consistent weakness in global markets as well as selling from FIIs in the cash segment. We are of the view that hot money is exiting ahead of the major event of the Union Budget. The decline is steeper than expectations from traders and reversal is missing. We are approaching monthly expiry on Thursday and on a monthly basis, the market has erased all the gains despite the Nifty/Sensex moved to 14750/50185. Certainly, it is negative for the market in the medium term (1 to 3 weeks), however, in the short term, we could see relief rally from 14000/13900 (47500/47200) levels. The strategy should be to buy at current levels and keep a final stop loss at 13700/46500 (50 DAYs SMA) for the same,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
A total of 129 companies including Maruti Suzuki India, Lupin, InterGlobe Aviation, Bharat Electronics Ltd, IDBI Bank, IRCTC, Mahindra & Mahindra Financial Services, RBL Bank, Route Mobile, Shriram Transport Finance, Tata Chemicals, TVS Motor Company and Welspun Corp among others are slated to announce their quarterly earnings today.
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