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Tag: Nifty

  • Nifty Surpasses 20,000 Milestone Amidst Strong Local Investments and Global Optimism

    Nifty Surpasses 20,000 Milestone Amidst Strong Local Investments and Global Optimism

    In a momentous achievement for India’s stock market, the Nifty index breached the 20,000 mark for the very first time, signaling resilience and optimism amidst a tumultuous global economic backdrop. The historic milestone comes as a result of robust investments from local investors, counterbalancing mixed and negative foreign investments, as per Dhiraj Relli, MD & CEO of HDFC Securities.

    After a previous attempt in July 2023, Nifty’s triumphant rise has once again gained momentum, driven by renewed confidence in the Indian market. India’s recent successes in space exploration and foreign diplomacy have bolstered sentiments towards Indian stocks, offering a glimmer of stability in a world grappling with uncertainty.

    Relli noted, “Small-cap and Mid-cap stocks have experienced significant surges, sometimes beyond justifiable levels. In this scenario, it is prudent for investors to review their asset allocation and consider booking profits or raising cash to mitigate potential risks.”

    Analysts and experts in the field have echoed this sentiment, emphasizing the need for prudent investment strategies in the current climate. Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the market’s bullish momentum has been underpinned by a breakout from a descending channel that occurred last week.

    “Market sentiment is expected to remain positive as long as the Nifty stays above the 19,900 level,” De emphasized. He also identified an immediate resistance zone between 20,100 and 20,200, noting that a convincing breakthrough above 20,200 could pave the way for the Nifty to advance further towards the 20,500 mark.

    This historic breach of the 20,000 mark showcases India’s resilience and attractiveness as an investment destination. It underscores the importance of a balanced investment strategy and staying attuned to the dynamic global economic landscape.

    • Nifty achieves a historic milestone, surpassing 20,000 points.
    • Local investors drive the rally, offsetting mixed foreign investment flows.
    • India’s recent achievements in space and foreign diplomacy boost investor sentiment.
    • Analysts advise reviewing asset allocation and considering profit booking amidst small-cap and mid-cap stock surges.
    • Market sentiment expected to remain positive as long as Nifty stays above 19,900.
    • Immediate resistance zone identified between 20,100 and 20,200, with potential for further gains beyond 20,200.
  • Sensex, Nifty extend winning run to 3rd day as financial, energy shares advance

    Sensex, Nifty extend winning run to 3rd day as financial, energy shares advance

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    Mumbai: Benchmark Sensex and Nifty closed higher for a third session in a row on Wednesday as fag-end buying in banking, financial and oil stocks helped the indices rebound from early lows amid a bearish trend in global equity markets.

    Covering-up of short positions by bears supported a late recovery in stocks and helped wipe off losses, traders said. However, a weak rupee against major rivals overseas weighed on market sentiment and restricted gains, they added.

    In a largely subdued session, the 30-share BSE Sensex ended 123.63 points or 0.21 per cent higher at 60,348.09 as 17 of its constituents gained and 13 declined. The barometer opened lower and stayed negative for most part of the trading session due to losses in Asian markets.

    Fag-end buying in select index heavyweights helped the index to pare all the losses and settle in the green. During the session, the index touched a high of 60,402.85.

    The broader NSE Nifty settled higher by 42.95 points or 0.24 per cent at 17,754.40. Nifty made a negative start and fell by more than 100 points during the day to a low of 17,602.25.

    IndusInd Bank was the biggest gainer on the Sensex chart, rising 4.75 per cent, followed by M&M, L&T, NTPC, ITC, Ultra Cement, Tata Steel, Maruti and SBI.

    In contrast, Bajaj Finance, Tech Mahindra, Infosys and Sun Pharma were among the losers, shedding up to 2.30 per cent.

    In the broader market, the BSE midcap gauge rose 0.61 per cent, and the smallcap index gained 0.28 per cent.

    Among the sectoral indices, utilities rose 1.91 per cent, power gained 1.79 per cent, capital goods by 1.23 per cent, and auto by 0.95 per cent.

    Realty, metal, consumer durable, IT and healthcare were among the laggards.

    “Domestic equities opened gap down in line with global markets post the hawkish commentary from US Fed Chair Jerome Powell. But value buying at lower levels led the markets to reverse their losses and close in green,” Siddhartha Khemka, Head – Retail Research, at Motilal Oswal Financial Services Ltd said.

    The Indian equities despite negative global sentiment witnessed a sharp rebound from the lower end. The Nifty index remains in a buy mode as long as it holds the support of 17,500 on the downside where fresh put writing has been observed, said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

    “The global market has fallen back into the grip of uncertainty as the Fed chief signalled the possibility of a prolonged and faster rate hike, contradicting a dovish comment made by another Fed official last week.

    “The market now anticipates a 50 bps rate hike, which has pushed the dollar index to a three-month high. However, a strong recovery was seen in the domestic market towards the end of the day, which kept the bulls on the move,” according to Vinod Nair, Head of Research at Geojit Financial Services.

    Going ahead, the market is likely to continue with its volatility till the next US Fed interest rate decision outcome (due later this month), where investors are now building in expectation of a 50-bps rate hike.

    As per the Fed Chair, the ultimate rate hike is likely to be higher than previously anticipated given the stubborn inflation. Till there is clarity on the interest rate front, the market is likely to be volatile in a broader range, Khemka said.

    Elsewhere in Asia, markets in Shanghai, Seoul and Hong Kong ended with losses, while Tokyo settled in the green.

    Equity exchanges in Europe were trading with losses in the afternoon session. The US markets had ended significantly lower in the overnight session.

    The rupee slipped 13 paise to close at 82.05 (provisional) against the US dollar on Wednesday. International oil benchmark Brent crude was trading 0.16 per cent lower at USD 83.16 per barrel.

    Foreign Institutional Investors (FIIs) were net buyers in capital markets as they bought shares worth Rs 3,671.56 crore on Monday, according to exchange data.

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    ( With inputs from www.siasat.com )

  • Sensex rebounds 377 pts, Nifty closes above 17,850 as RBI slows down rate hike

    Sensex rebounds 377 pts, Nifty closes above 17,850 as RBI slows down rate hike

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    Mumbai: Benchmark Sensex rebounded 377 points while Nifty closed above the 17,850 level on buying in IT, financial and oil stocks after the RBI slowed down the pace of interest rate hikes on Wednesday.

    Ending its two-day slide, the 30-share BSE Sensex rose by 377.75 points or 0.63 per cent to close at 60,663.79 with 24 of its constituents posting gains.

    The broader Nifty of the NSE spurted by 150.20 points or 0.85 per cent to settle at 17,871.70, riding on a rally in Adani Enterprises, Adani Ports and HDFC Life. The index opened higher and gained further to test the crucial hurdle at 17,900 in the day. Buying in index majors Reliance Industries, Infosys and TCS played a key role in the rebound.

    Vinod Nair, Head of Research at Geojit Financial Services said, “Bulls took charge of the markets as the RBI’s MPC meeting delivered a smaller rate hike in line with market expectations. The RBI has taken a more optimistic view on domestic growth by increasing the GDP forecast while cautiously keeping CPI inflation at 5.3 per cent for FY24”.

    US Federal Reserve chair Jerome Powell signalling that a strong jobs report would not by itself sway its stance on interest rate hikes also eased concerns over a sharp increase in interest rates.

    Among Sensex stocks, Bajaj Finance rose the most by 3.14 per cent. Ultratech Cement, Reliance Industries, Infosys, Wipro, HCL Tech, TCS, Bajaj Finserve, Tata Motors, Tech Mahindra, Titan and Maruti were among the major gainers.

    L&T declined the most by 1.62 per cent, followed by Bharti Airtel, Axis Bank, Kotak Bank and Hindustan Unilever.

    Shares of most of Adani group companies, hit by allegations of stock manipulation and accounting fraud by a US short seller, rallied after rating agencies allayed fears over debt taken by the group entities.

    Adani Enterprises rallied for a second day, closing sharply higher by 19.76 per cent after hitting the upper circuit limit.

    Adani Ports & SEZ also rose for the second day gaining 8.34 per cent. Adani Transmission rebounded by 5 per cent, Adani Wilmar by 4.99 per cent, and Adani Power by 4.99 per cent. However, Adani Green and Adani Total Gas closed lower by over 4 per cent.

    Meanwhile, the Reserve Bank of India slowed the pace of interest-rate increases for the second straight time when it on Wednesday expectedly increased borrowing costs by 25 basis points.

    The RBI also projected retail inflation to ease to 5.3 per cent in the next fiscal from 6.5 per cent this year on assumptions of lower imported inflation. It also upped its GDP growth estimate to 7 per cent from 6.8 per cent for FY23 and pegged the growth at 6.4 per cent for the next fiscal.

    Industry experts said that the 25 basis points hike in key policy rate was in line with expectations, and hopefully is the last in the current cycle of the rate increase, which started in May 2022 in view of rising inflation.

    Madan Sabnavis, Chief Economist, Bank of Baroda, said the major takeaway is that there will be a prolonged pause for sure before any further action is taken by the RBI and will be data-driven.

    Ajit Mishra, VP – Technical Research, Religare Broking Ltd said, “Markets resumed recovery after two days of subdued move and gained nearly a per cent, supported by upbeat global cues”.

    In the broader market, BSE Midcap spurted by 245 points or 1 per cent while the Smallcap advanced 0.76 per cent or 212.88 points.

    Among sectoral indices, BSE Commodities rose by 2.28 per cent, BSE IT by 1.51 per cent, BSE Healthcare by 1.2 per cent, BSE Metal by 1.04 per cent, and BSE Teck by 1.09 per cent. Among losers, Telecom declined by 0.43 per cent and Capital Goods by 0.33 per cent.

    Shares were mixed in Asia on Wednesday after US stocks rallied following comments by the Federal Reserve chair.

    Hong Kong, Sydney and Seoul rose while Tokyo and Shanghai declined. US futures edged lower while oil prices were little changed.

    Foreign Institutional Investors (FIIs) were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,559.96 crore, according to exchange data.

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    ( With inputs from www.siasat.com )

  • Sensex, Nifty close higher in volatile trade as IT, oil shares recover

    Sensex, Nifty close higher in volatile trade as IT, oil shares recover

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    Mumbai: Benchmark BSE Sensex and Nifty closed higher in a highly volatile trade on Monday, riding on the back of a recovery in IT, oil and financial stocks after a two-day fall even as investors remained cautious ahead of the Union budget and policy announcement by the US Federal Reserve.

    The 30-share Sensex recovered 169.51 points or 0.29 percent to settle at 59,500.41 as 17 of its constituents ended in the green. During the day, it rose by 313.34 points or 0.52 percent to 59,644.24.

    The broader NSE Nifty gained 44.60 points or 0.25 percent to end at 17,648.95 as 29 of its stocks advanced. The index moved in a range of 17,709.15 to 17,405.55 during the day.

    Shares of Adani group firms closed on a mixed note with flagship Adani Enterprises climbing 4.21 percent.

    However, Adani Transmission dropped 14.91 percent, Adani Green by 20 percent, Adani Total Gas by 20 percent, Adani Power by 5 percent, and Adani Wilmar by 5 percent, a day after the group released a 413-page response to allegations of wrongdoing brought by a US-based short seller Hindenburg Research.

    “The response by Adani had a mixed effect on the stock group and market. The saga is likely to continue as a hanging risk in the minds of the investors in the medium-term. Now the focus of the market will be on Budget and Fed policy,” said Vinod Nair, Head of Research at Geojit Financial Services.

    “Volatility continued to be the order of the day, as benchmark Sensex gyrated nearly 1000 points intra-day before staging a smart comeback in late trades on selective buying. Two big events, the interest rate decision by the US Federal Reserve and the Union Budget are keeping investors nervous,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

    Among Sensex stocks, Bajaj Finance rose the most by 4.61 percent on positive quarterly results. Ultratech Cement rose by 2.51 percent, Bajaj Finserv by 2.22 percent and NTPC by 1.53 percent.

    IT stocks also recovered with HCL Tech rising by 1.85 percent, Infosys by 1.37 percent and TCS by 0.72 percent. Reliance Industries, Maruti, Wipro, M&M, Kotak Bank, Sun Pharma, ICICI Bank also gained.

    Among losers, Power Grid fell the most by 3.38 percent, IndusInd Bank by 2.56 percent, L&T by 2.11 percent, Tata Steel by 1.62 percent, HUL by 1.55 percent and Tata Motors by 0.45 percent.

    State Bank of India and HDFC were also among the laggards.

    In the broader market, the BSE midcap gauge dipped 0.22 percent and smallcap index fell 0.10 percent.

    Among sectoral indices, utilities slumped 5.74 percent, power declined 5.30 percent, oil & gas (4.06 percent), energy (3.12 percent), capital goods (1.30 percent) and metal (1.19 percent).

    IT, teck, consumer durables, telecommunication, consumer discretionary and commodities were the winners.

    Elsewhere in Asia, equity markets in Seoul and Hong Kong ended lower, while Tokyo and Shanghai settled in the green.

    European markets were trading lower during mid-session deals. Markets in the US had ended higher on Friday.

    International oil benchmark Brent crude dipped 0.25 percent to USD 86.44 per barrel.

    Foreign Institutional Investors (FIIs) offloaded shares worth Rs 5,977.86 crore on Friday, according to exchange data.

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    ( With inputs from www.siasat.com )

  • Sensex, Nifty go into a tailspin after ‘fraud’ report on Adani group

    Sensex, Nifty go into a tailspin after ‘fraud’ report on Adani group

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    Mumbai: Benchmark indices Sensex and Nifty plunged over 1 per cent to close at three-month lows on Friday due to selling in banking, financials, utilities and oil shares triggered by an unfavourable report on Adani group as well as FIIs taking a cautious stance ahead of the Union budget.

    Continuing its decline for a second session, the 30-share BSE benchmark tanked 874.16 points or 1.45 per cent, its biggest single day loss in more than a month, to settle at 59,330.90. This is the lowest closing level since October 21.

    During the day, Sensex plunged 1,230.36 points or 2.04 per cent to 58,974.70.

    The broader NSE Nifty fell 287.60 points or 1.61 per cent to end at a three-month low of 17,604.35, also marking its worst single-day fall since December 23, 2022.

    “Indian benchmark equity gauges Sensex and Nifty hit their over three month lows on Friday, dragged by massive selling mainly in Adani group and banking stocks. Adani shares were in the line of the fire following the Hindenburg report accusing the group of serious irregularities,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.

    Vinod Nair, Head of Research at Geojit Financial Services also said that the sharp slump in the Indian market was triggered by an unfavourable research report on Asia’s richest promoter group companies.

    “This is also affecting the banking stocks even though the results of the sector are optimistic due to high group lending, indicating potential risk. PSU banks are the most impacted compared to private banks owing to high exposure. The FIIs’ cautious stance ahead of the Union Budget and FOMC meetings also fuelled the collapse.”

    From the Sensex pack, SBI fell the most by 5.03 per cent. ICICI Bank by 4.41 per cent, IndusInd Bank by 3.43 per cent, Axis Bank by 2.07 per cent, Kotak Bank by 2.03 per cent, HDFC Bank by 1.96 per cent, Reliance by 1.9 per cent and HDFC by 1.87 per cent.

    Bucking the trend, auto stocks Tata Motors and Mahindra & Mahindra closed with gains. Tata Motors, which returned to profitability in the third quarter of FY23, rose the most by 6.34 per cent among Sensex shares. Mahindra & Mahindra advanced 0.71 per cent.

    ITC and UltraTech Cement were also among the winners.

    In the broader market, the BSE smallcap gauge tanked 1.89 per cent and midcap index fell by 1.29 per cent.

    Among sectoral indices, utilities tanked 7.34 per cent, power tumbled 6.79 per cent while oil & gas (5.75 per cent), energy (5.22 per cent), telecommunication (3.79 per cent), commodities (3.27 per cent), bankex (3.06 per cent) and financial services (2.48 per cent) also declined.

    FMCG, healthcare and auto ended in the green.

    Adani group stocks took a beating falling up to 20 per cent after the US-based investment research firm Hindenburg Research made damaging allegations.

    The group’s flagship Adani Enterprises, which launched the Rs 20,000 crore FPO on Friday, tanked 18.52 per cent. Adani Ports plunged 16 per cent, Adani Power by 5 per cent, Adani Green Energy by 19.99 per cent, and Adani Total Gas by 20 per cent.

    In two days, the Adani group firms have lost a whopping Rs 4,17,824.79 crore from their market valuation. The market valuation of Adani Total Gas plummeted Rs 1,04,580.93 crore while that of Adani Transmission by Rs 83,265.95 crore.

    Adani Enterprises market capitalisation fell by Rs 77,588.47 crore, Adani Green Energy lost Rs 67,962.91 crore and Adani Ports by Rs 35,048.25 crore.

    The market valuation of Ambuja Cements declined by Rs 23,311.47 crore, Adani Power by Rs 10,317.31 crore, ACC by Rs 8,490.8 crore and Adani Wilmar by Rs 7,258.7 crore.

    Elsewhere in Asia, equity markets in Seoul, Tokyo and Hong Kong ended in the green.

    European benchmarks were trading higher during mid-session deals. Markets in the US had ended higher on Thursday.

    Stock markets were closed on Thursday on account of Republic Day.

    International oil benchmark Brent crude climbed 1.35 per cent to USD 88.65 per barrel.

    Foreign Institutional Investors (FIIs) offloaded shares worth Rs 2,393.94 crore on Wednesday, according to exchange data.

    “Traders will now gear up for the next 2-big catalysts; interest-rate decision from the Federal Reserve to trickle in on February 1, and the Union Budget for 2023-24 to be presented on the same day,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd.

    (Except for the headline, this story has not been edited by Siasat staff and is published from a syndicated feed.)

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    ( With inputs from www.siasat.com )