Seems like the unwinding session of carry trades have ended as a result of which the USDINR began retracing after hitting highs near 73.80 levels. Further, rupee has remained on a defensive mode led by dollar selling by exporters and PSU’s apparently on behalf of RBI, thereby keeping the pair well below 73.50 mark in onshore. Unlike previous two trading sessions where panic buying had taken pair above 73.75 levels in NDF, yesterday’s session suggests that the pressure on the rupee has been released in offshore too as the momentum in the pair remained muted and losses were capped at 73.55 levels. If RBI begins unwinding of accumulated dollar forward that it bought so far, spikes close to 73.60-73.80 shall not be surprising by March end. However, erratic losses in the rupee shall be capped due to channel inflows and improved global sentiments. Overall, short term range for USDINR is 72.80-74.50 levels. Amit Pabari, managing director, CR Forex Advisors
On domestic front, the pipeline of IPO’s are lined up worth a cumulative Rs 12,000 crore and are expected to hit the market over the next 3-5 weeks thereby bringing more inflows to the country• Easy Trip Planners Rs 510-crore IPO• Kalyan Jewellers Rs 1,750 crore IPO• Laxmi Organics Rs 800-crore IPO• Craftsman Automation Rs 150 crore• Anupam Rasayan Rs 760 crore• Suryoday Small Finance Bank • Aadhar Housing Finance Rs 7,300 crore (Amit Pabari, managing director, CR Forex Advisors)
The Nifty has opened well above the resistance zone of 14950. We need the markets to keep above this level for a few hours which would cement the bullish trend. The index can thereafter claim higher targets of 15300 and then 15500. 14700-14800 has now become a good support range for the markets.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Barring Nifty Auto and Nifty Pharma indices, all the sectoral indices were trading in the green. The Nifty Metal index surged over 2.5 per cent.
Nifty Midcap 100 index hit a record high of 24,384.35 in Wednesday’s strong trade. Similarly, Nifty SmallCap 100 index surged nearly one per cent to scale a fresh 52-week high of 8,423.40.
Bajaj-Auto was the top index loser, followed by Maruti Suzuki, HCL Tech, Mahindra and Mahindra, TCS and Tech Mahindra.
Index heavyweights such as State Bank of India (SBI), Power Grid Corporation of India, Housing Development Finance Corporation (HDFC), Axis Bank and ONGC were among top BSE Sensex gainers.
BSE Sensex jumped 400 points or 0.80 per cent to 50,700, while the broader Nifty 50 index gained 132 points or 0.88 per cent to trade at 15,050.70.
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MTAR Technologies Initial Public Offering (IPO) opens for subscription today. The company is looking to raise Rs 596 crore through the public issue which is an amalgamation of an Offer for Sale (OFS) by existing shareholders and a fresh issue of equity shares. MTAR Technologies, a leading maker of nuclear, defence & aerospace equipment, fabrication facilities and fuel cells. Through the issue, promoters of the company will prune their stake from the existing 62.24% to 50.25%, while public shareholding in the company will increase to 49.75% from 37.76% pre-issue.
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COMEX gold trades little changed near $1732/oz after a 0.6% gain yesterday. Gold has recovered from June 2020 amid retreat in US dollar and bond yields from recent highs, optimism about US stimulus package, renewed virus concerns, mixed economic data, loose monetary policy stance of central banks and minor ETF inflows. Gold may continue to sway along with US dollar however a sustained rise is unlikely until there is sharp correction in bond yields or concrete measures on US stimulus.: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
The market has formed a continuation formation followed by the formation of the Harami pattern which it has formed on Monday. It is bullish for the market. Also, the Nifty/Sensex closed between the bearish gap, which it had left between 15065-14919 / 50250-50991 last Friday. The market breadth was also encouraging as along with IT and FMCG we saw bullish activity in financials. Based on the daily chart the Nifty/Sensex is heading for the minimum target of 15065/50750.
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BSE Sensex jumped 458 points to 50,754, while the broader Nifty 50 index gained 265 points to trade at 15,184.50 in the pre-opening session.
Nifty futures were trading 33.50 points or 0.22 per cent up at 15,017 on Singaporean Exchange. On Wednesday, the Nifty 50 index may open above the 15,000-mark after a three-day gap. Market participants will track global cues, stock-specific developments, oil movement and rupee trajectory for further cues. According to a technical analyst, the Nifty/Sensex is heading for the minimum target of 15065/50750 based on the daily chart.
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Krishna Institute of Medical Sciences Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 700 crore through an initial public offering (IPO). The issue comprises a fresh issue of shares aggregating up to Rs 200 crore and an offer for sale of up to 2.13 crore equity shares from promoters and existing shareholders, according to draft red herring prospectus (DRHP).
MTAR Technologies, a precision engineering solutions company, on Tuesday said it has raised Rs 179 crore from anchor investors ahead of its share-sale, which opens for public subscription on Wednesday.
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In overnight trade on Wall Street, US stock indices fell as market participants watched the bond market and progress on next round of fiscal stimulus. The Dow Jones Industrial Average fell 0.46 per cent to close at 31,391.52. The S&P 500 slipped 0.81 per cent to finish at 3,870.29 while the Nasdaq Composite dropped 1.69 per cent to settle at 13,358.79.
Asian stock markets were trading in the positive territory on Wednesday, with Japan’s Nikkei and South Korea’s Kospi up marginally.
Trends on SGX Nifty suggested a flat opening for BSE Sensex and Nifty 50 on Wednesday. Nifty futures were up just 18 points.
Domestic equity markets have now gained for two consecutive sessions, zooming 2.5% as they look to reverse last week’s losses. S&P BSE Sensex now sits at 50,296 while the Nifty 50 is still shy of the 15,000 mark. On Wednesday morning, SGX Nifty was up in the green, hinting at a gap-up start and continuation of the upward movement of indices. On the technical front, Nifty is on the verge of moving above and filling the opening downside and upside gaps of last week, according to Nagaraj Shetti, Technical Research Analyst, HDFC Securities, which could propel the index higher.
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Reliance Jio Infocomm Ltd (RJIL) on Tuesday said it has acquired the right to use spectrum in all 22 circles across India in the latest spectrum auction. The company will pay Rs 57,123 crore for the right to use the technology-agnostic spectrum for a period of 20 years. “With our increased spectrum footprint, we are ready to further expand the digital footprint in India as well as get ourselves ready for the imminent 5G rollout,” said Mukesh D Ambani, Chairman, Reliance Industries in a statement.
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