Equity benchmark indices rebounded in early trade on October 27 after facing massive drubbing of late amid recovery in Asian markets.
| Photo Credit: Paul Noronha

Equity benchmark indices rebounded in early trade on October 27 after facing massive drubbing of late amid recovery in Asian markets.

The 30-share BSE Sensex jumped 411.17 points to 63,559.32 in early trade. The Nifty climbed 115.9 points to 18,973.15.

Among the Sensex firms, NTPC, Mahindra & Mahindra, State Bank of India, Infosys and Maruti were the major gainers.

Asian Paints emerged as the only laggard from the pack.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the positive territory.

The U.S. markets ended lower on October 26.

The European Central Bank left interest rates unchanged on October 26 for the first time in over a year.

“After six continuous days of losses triggered by the elevated bond yields in the U.S. and tensions in West Asia, the market appears to be oversold,” V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

He added that the US economy’s resilience is surprising.

“The Q3 GDP growth at 4.9% means the Fed will continue to be hawkish and the likely ‘higher for longer’ interest rate regime is negative from the stock market perspective,” Mr. Vijayakumar added.

On the positive side, valuations in India, which were high, have now turned fair, and in sectors like banking valuations are attractive, he said.

Global oil benchmark Brent crude jumped 1.25% to $89.03 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹7,702.53 crore on October 26, according to exchange data.

The BSE benchmark slumped 900.91 points or 1.41% to settle below the 64,000 mark at 63,148.15 on October 26. The Nifty dived 264.90 points or 1.39% to 18,857.25.

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| Photo Credit: Reuters

Equity benchmark indices Sensex and Nifty declined for the second straight session on October 13, following selling in banking, financial and select IT shares amid a weak trend in global markets.

The 30-share BSE Sensex dropped by 125.65 points or 0.19% to close at 66,282.74 as 16 of its constituents fell and 14 advanced. The index opened lower and fell further by around 513 points to the day’s low of 65,895.41 in morning deals.

However, a rebound in auto shares helped Sensex trim losses and touch a high of 66,478.90 in the pre-close session before settling lower.

The broader Nifty of NSE fell by 42.95 points or 0.22% to close at 19,751.05, with 27 of its components ending in the red and 23 in the green.

“Weak revenue guidance of the IT sector and the current uptick in crude prices weighed on the sentiment. While higher-than-expected U.S. inflation data pulled down the week’s early uptrend, which was positive on a remark of a less hawkish U.S. Fed meeting.

“However, some optimism was visible from domestic factors such as a steep decline in domestic inflation and impressive industrial production data, along with bright earnings expectations for Q2,” Vinod Nair, Head of Research at Geojit Financial Services, said.

In the broader market, BSE Midcap declined by 17.11 points or 0.05% to 32,305.62 and SmallCap by 13.67 points or 0.04% to 38,184.83.

Key Asian indices declined following losses in the U.S. markets due to a rebound in U.S. bond market yields. The Hang Seng in Hong Kong dropped 2.2% and the Shanghai Composite index fell 0.6% after weak Chinese trade data. Japan’s Nikkei 225 declined 0.6%. Stock markets in France, Germany and the U.K. also traded lower.

“Rising U.S. 10-year bond yield as well as a fall in Asian markets impacted domestic equities,” analysts said. Foreign Institutional Investors (FIIs) were net sellers on Thursday as they sold shares worth ₹1,862.57 crore, according to data available with BSE.

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Benchmark equity indices Sensex and Nifty erased early gains to trade lower on October 12 as IT shares declined after TCS stated that headwinds continue for the sector amid a sluggish economic climate.

The 30-share Sensex opened higher and rose further by 104 points to hit a high of 66,577.60 as banking, auto and metal shares advanced in line with positive global markets.

However, the gains were offset by losses in IT shares, dragging to the 30-share index down by 84.16 points or 0.13% to 66,388.89 at 9.50 a.m.

The broader Nifty also retreated from early highs to trade 23.70 points or 0.12% down at 19,787.65. It moved between a high of 19,843.30 and a low of 19,784.55 in morning trade.

Rate-sensitive stocks gained after the U.S. Federal Reserve’s meeting minutes released on October 11 suggested that the U.S. central bank would not raise interest rates in the near future amid uncertain economic conditions.

Among Sensex shares, IndusInd Bank, Axis Bank, SBI, Tata Motors, JSW Steel, ICICI Bank, Maruti, Tata Steel, and M&M advanced in early trade. However, the gains were negated by more than 1% fall in IT major TCS which emerged as leading Sensex loser.

The company has stated that the headwinds for the IT sector continue amid a sluggish economic climate. The country’s largest software exporter TCS on Wednesday reported an 8.7% increase in its September quarter net profit to ₹11,342 crore.

The Tata Group company also announced a ₹17,000-crore share buyback on top of committing a nearly ₹3,300-crore dividend payout.

Other IT stocks such as Tech Mahindra, Infosys and Wipro also declined. Losses in Reliance, HUL, L&T and Bharti Airtel also weighed on the benchmark index.

V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “There are positive developments that can strengthen the rally in the market.”

“Steadily declining trend in the dollar index and the U.S. bond yields, declining crude and sharp dip in FII selling in the cash market are big positives for the market. If the U.S. CPI inflation data expected tonight dips below 3.6% that will be a shot in the arm for the bulls.” Asian markets, including Japan, China and Hong Kong, were trading with gains following advances in the U.S. markets overnight.

The Hang Seng in Hong Kong advanced 1.75%, Nikkei 225 in Japan gained 1.48% while South Korea’s Kospi was up 0.93%.

On the domestic front, Sensex had spurted by 393.69 points or 0.6% to close at 66,473.05 while Nifty climbed 121.50 points or 0.62% to settle at 19,811.35 on Wednesday.

Foreign Institutional Investors (FIIs) continued to be net sellers as they offloaded shares worth ₹421.77 crore on Wednesday, according to data available with the Bombay Stock Exchange.

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Benchmark equity indices tumbled in early trade on October 9 as escalating tensions in Middle East triggered a risk-off in the market.

Market analysts said investors preferred to remain on the sidelines and refrained from taking big risks as the Israel-Hamas conflict has introduced a huge uncertainty for the markets The 30-share BSE Sensex plunged 407.19 points or 0.62% to 65,588.44 points in early trade. The Nifty declined 142.70 points or 0.72% to 19,510.80 points.

State Bank of India, Tata Steel, Titan, IndusInd Bank and Asian Paints were among the major laggards. On the other hand IT majors HCL Technologies, Tech Mahindra, TCS, Wipro and Infosys, Hindustan Unilever and Sun Pharma defied the broader market trend and were trading in the positive territory.

The BSE benchmark had climbed 364.06 points or 0.55% to settle at 65,995.63 points on Friday. The Nifty had advanced 107.75 points or 0.55% to end at 19,653.50.

“The Israel-Hamas conflict has introduced a huge uncertainty for the markets. Nobody knows how this war is going to evolve,” V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

He said that even though it is unlikely to cause major disruption in oil supplies at present, the situation will change if Iran, a major Hamas supporter, is drawn into the war. “That can disrupt oil supplies causing a spike in crude, which can trigger a risk-off in the market. This is a time to be cautious,” he added.

Traders are also expected to remain cautious ahead of macroeconomic data to be announced later this week. The industrial production and manufacturing data for August are scheduled to be announced on October 12. Simultaneously, inflation rate for September will be announced followed by Wholesale Price Index (WPI) data on October 13.

On Friday, the Reserve Bank of India expectedly left its key interest rate unchanged and signalled it would keep liquidity tight using bond sales to bring prices closer to target.

The six-member monetary policy committee of RBI held the benchmark repurchase rate (repo) at 6.50% in a unanimous decision for the fourth consecutive meeting in a row. It also retained a ‘withdrawal of accommodation’ stance. Asian markets are trading lower on Monday as Chinese and Hong Kong shares fell.

European markets finished broadly higher on Friday with Germany’s DAX gaining 1.06%. France’s CAC 40 was up 0.88% and London’s FTSE 100 closed 0.58% higher.

The U.S. markets ended higher on Friday with S&P 500 closing with a gain of 1.18% and Dow Jones Industrial Average Index up 0.87%.

Meanwhile, global oil benchmark Brent crude witnessed a sharp rise of 3.68% to $87.69 a barrel on Monday. Foreign Institutional Investors (FIIs) offloaded equities worth ₹90.29 crore on Friday, according to exchange data.

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Equity benchmark indices rebounded in early trade on September 22 after a three-day decline but later gave up initial gains to quote in the negative territory.

The 30-share BSE Sensex climbed 187.71 points to 66,417.95 in early trade. The Nifty advanced 49.8 points to 19,792.15.

But, later both the benchmark indices pared early gains and were trading lower. The Sensex quoted 123.33 points lower at 66,106.91 and the Nifty traded 71.25 points down at 19,671.10.

Among the Sensex firms, State Bank of India, Bajaj Finserv, IndusInd Bank, Maruti and Mahindra & Mahindra were the major gainers. Wipro, Power Grid, Titan and Tata Steel were among the laggards.

In Asian markets, Seoul and Tokyo were trading in the negative territory while Shanghai and Hong Kong quoted in the green. The U.S. markets ended in the negative territory on September 21.

“FIIs have reversed their ‘Buy India strategy’ which they have been following in the last three months with selling to the tune of ₹16,934 crore in September,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“Countering this negative trend is the hugely positive news of JP Morgan including India in the emerging market bond index with a weightage of 10% from June 2024 onwards,” Vijayakumar said.

“This will reduce bond yields and the consequent decline in the cost of borrowing will boost the bottom line of companies,” he added. Global oil benchmark Brent crude climbed 0.53% to $93.79 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,007.36 crore on Thursday, according to exchange data.

“India’s inclusion in JP Morgan emerging markets bond index is great news which would give a booster access to global investors to participate in the world’s fastest-growing large economy,” Rakeshh Mehta, Chairman, Mehta Equities Limited said.

The BSE benchmark fell 570.60 points or 0.85% to settle at 66,230.24 on Thursday. The Nifty declined 159.05 points or 0.80% to end at 19,742.35.

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Equity benchmark indices declined in early trade on September 21, falling for the third day running, due to a weak trend in global markets and foreign fund outflows.

Global equities fell after the U.S. Federal Reserve signalled that they expect to raise rates once more this year to fight inflation.

The 30-share BSE Sensex fell 333.64 points to 66,467.20. The Nifty declined 99.8 points to 19,801.60.

Among the Sensex firms, HCL Technologies, ICICI Bank, Tata Consultancy Services, Larsen & Toubro, UltraTech Cement, Nestle, HDFC Bank and ITC were the major laggards. State Bank of India, Tata Steel, Axis Bank and NTPC were among the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the negative territory. The U.S. markets ended in the red on Wednesday.

The Federal Reserve left its key interest rate unchanged on Wednesday for the second time in its past three meetings, a sign that it’s moderating its fight against inflation as price pressures have eased. But Fed officials also signalled that they expect to raise rates once more this year.

“Even though the ‘hawkish pause’ from the Fed was on expected lines, the U.S. markets reacted negatively since the indication from the Fed is that rates will remain ‘higher for longer’.

“For Nifty the biggest drag will be more FII selling in response to the rising dollar and U.S. bond yields,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Global oil benchmark Brent crude declined 0.71% to $92.87 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,110.69 crore on Wednesday, according to exchange data.

“A rough start to the trading session is on the cards as overnight weakness in the U.S. markets has triggered a slump in other Asian counterparts after the U.S. Federal Reserve hinted at one more rate hike by the end of this year even as it kept rates unchanged in its FOMC (Federal Open Market Committee) meeting yesterday.

“Another negative catalyst has been the frenzied selling by foreign institutional investors as they sold shares worth ₹3,110.69 crore in the domestic equity markets on Wednesday, which could further dampen the sentiment,” Prashanth Tapse, Senior VP (Research), Mehta Equities Limited, said in his pre-opening market comment.

The BSE benchmark had tumbled 796 points or 1.18% to settle at 66,800.84 on Wednesday. The NSE Nifty declined 231.90 points or 1.15% to end below the 20,000 mark at 19,901.40.

The bull statue at the Bombay Stock Exchange (BSE) building, in Mumbai, on July 13, 2023. Equity benchmark indices extended their rally for the seventh day running on September 11 as investors continued to remain optimistic about the domestic markets.
| Photo Credit: PTI

Equity benchmark indices extended their rally for the seventh day running on September 11 as investors continued to remain optimistic about the domestic markets.

Buying in index majors Reliance Industries and Tata Consultancy Services also added to the winning momentum in equities.

The 30-share BSE Sensex climbed 293.7 points to 66,892.61 in early trade. The Nifty advanced 95 points to 19,914.95.

Among the Sensex firms, HCL Technologies, Maruti, State Bank of India, Tata Consultancy Services, Tata Motors, Wipro, Nestle, Reliance Industries, Larsen & Toubro and UltraTech Cement were the major gainers.

IndusInd Bank and Bharti Airtel were the laggards.

In Asian markets, Shanghai quoted with gains while Seoul, Tokyo and Hong Kong traded lower.

The U.S. markets ended in the positive territory on September 8.

Global oil benchmark Brent crude declined 0.18% to $90.49 a barrel.

The BSE benchmark had jumped 333.35 points or 0.50% to finish at 66,598.91 on September 8. The broader Nifty advanced 92.90 points or 0.47% to settle at 19,819.95.

“The G-20 Delhi declaration and India’s diplomatic triumph can trigger a continuation of the positive market mood and momentum,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In the present favourable market mood, Nifty is likely to make another attempt at a record high trying to conquer the psychological mark of 20,000, Mr. Vijayakumar said adding that however, investors have to be cautious since fundamentals do not support a sustained rise above 20,000.

“The market is ignoring worries arising out of crude at $90 a barrel,” he added.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹224.22 crore on September 8, according to exchange data.

Benchmark equity indices began the trade on a muted note on August 17 and fell further in line with weak trend in global markets.
| Photo Credit: PTI

Benchmark equity indices began the trade on a muted note on August 17 and fell further in line with weak trend in global markets.

The 30-share BSE Sensex declined 115.41 points to 65,424.01. The NSE Nifty slipped 41.35 points to 19,423.65.

From the Sensex pack, ITC, ICICI Bank, Power Grid, UltraTech Cement, Nestle, Larsen & Toubro, Tech Mahindra and Tata Motors were the major laggards.

Titan, Tata Steel, Axis Bank, Maruti, State Bank of India and NTPC were among the gainers.

In Asian markets, Seoul, Tokyo and Hong Kong were trading lower while Shanghai quoted in the green.

The U.S. markets ended in the negative territory on August 16.

“Global cues for markets continue to be weak. There are two negatives weighing on global stock markets now: One, the U.S. Fed minutes indicate that one more rate hike may be needed in this rate-hiking cycle to tame inflation.

“Two, Chinese macro data indicate that the economy is slowing more than feared earlier, and this will impact global economic growth. In this scenario, the Indian market is unlikely to break out to newer highs on a sustained basis and decouple from the rest of the world. However, a sharp correction appears unlikely,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Global oil benchmark Brent crude climbed 0.12% to $83.55 a barrel.

Foreign Institutional Investors (FIIs) turned buyers on August 16 as they bought equities worth ₹722.76 crore, according to exchange data.

The BSE benchmark had climbed 137.50 points or 0.21% to settle at 65,539.42 on August 16. The Nifty gained 30.45 points or 0.16% to end at 19,465.