Sensex Today: Closing Bell: IT, bank stocks drag Sensex 317 pts lower; Nifty below 17,950; Minda Corp drops 5%, TCNS Clothing zooms 12%
05:11 PM
FTSE index rejig: ACC, Kotak Bank, 9 others added to largecap index
index as part of its semi-annual index review.
These include ACC, Kotak Mahindra Bank, Canara Bank, IDBI Bank, YES Bank, Union Bank of India, Indian Hotels, Jindal Steel & Power, Shriram Finance, Trent, and Tube Investments.
Domestic equities snapped their three-day gains to end lower on the back of weak global cues. Nifty opened lower and remained under pressure throughout the session to end with loss of 92 points (-0.5%) at 17944 levels. Even broader market ended lower on similar lines with majority of the sectors down. Higher US inflation data and lower jobless claim data led to hawkish commentaries by some of the US Fed officials which dented sentiments and led to the renewed fear of aggressive rate hikes in the subsequent meets to combat sticky inflation. On the domestic front, even the corporate earnings growth for 3QFY23 moderated led by weak demand environment and inflation led margin pressure. Slowdown in Consumption if persist, can pose a big concern. Currently markets are trading range bound and valuations are fair with Nifty trading at ~18x FY24E EPS. Thus there is room for modest upside but only if corporate earnings do not see material downgrades ahead.
– Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
04:30 PM
Gold falls Rs 285; silver tumbles Rs 620
Silver also tumbled Rs 620 to Rs 65,005 per kg.
“Spot gold prices in the Delhi markets traded at Rs 55,950 per 10 grams, down Rs 285 per 10 grams,” Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said.
04:29 PM
Rupee falls 14 paise to close at 82.84 against US dollar
During the session, the domestic unit witnessed an intra-day high of 82.73 and a low of 82.85 against the American dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.59 per cent higher at 104.47.
Global oil benchmark Brent crude futures declined 1.75 per cent to USD 83.65 per barrel.
04:23 PM
ECB’s Schnabel says markets may be underestimating inflation: Report
Investors raised their bets on how far the ECB will lift borrowing costs after her comments, which were taken to suggest Schnabel was contemplating more interest rate hikes than the market was pricing in.
“Markets are priced for perfection,” she told Bloomberg.
Lack of major triggers in the domestic market is attracting global cues to dictate the market trend. The US market is facing an unfavourable combination of higher-than-expected inflation and a stronger job market. The PPI (Producer Price Index) in the US came in at 6.0%, in contrast to the expectation of 5.4%. This suggests that interest rates have not yet peaked and will remain elevated for a long period.
– Vinod Nair, Head of Research at Geojit Financial Services
The BANK NIFTY index on the daily chart witnessed a breakdown with a rise in volumes. The index remains in a sell mode as long as it sustains below the level of 41500. The index immediate support stands at 41000 and if it fails to sustain it on a closing basis will accelerate the downside move towards 40,000 levels.
– Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
The Nifty has fallen to the upper band of the falling channel on the daily chart. The trend for the near term is likely to remain sideways to positive as long as it remains above the falling channel. A recovery towards the higher level will likely happen if the bulls manage to hold the Nifty above 17880. On the higher end, however, 18150 is likely to act as resistance.
– Rupak De, Senior Technical Analyst at LKP Securities
03:04 PM
Oil heads for weekly loss on rate hike worries, ample supply
Two Fed officials on Thursday warned additional hikes in borrowing costs are essential to lower inflation to desired levels. Heightened rate hike expectations boosted the U.S. dollar, making oil more expensive for holders of other currencies.
Brent crude futures were down $1.59, or 1.9%, to $83.55 a barrel by 0901 GMT, while West Texas Intermediate (WTI) U.S. crude fell $1.57, or 2%, to $76.92.
02:55 PM
Dollar powers to six-week peak on expectations rates will rise
Data on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, and that monthly producer prices increased by the most in seven months in January.
St Louis Fed President James Bullard said on Thursday he backed further rate increases that would take borrowing costs to around 5.25% to 5.5%.
The Fed’s target range currently stands at 4.5% to 4.75%, having risen from 0% to 0.25% in March 2022.
01:59 PM
European shares open lower as rate-hike worries resurface
The pan-European STOXX 600 index slid 0.9% by 0813 GMT, with technology shares tumbling 1.8%.
U.S. data on Thursday showed the highest rise in producer prices in seven months in January, while another report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, fuelling the prospects of the Fed raising rates for longer.
01:35 PM
MARKET CHECK | How global markets are moving
S&P 500 futures fell 0.6%
Nasdaq 100 futures fell 0.8%
Euro Stoxx 50 futures fell 0.8%
Japan’s Topix index fell 0.5%
South Korea’s Kospi index fell 1%
Hong Kong’s Hang Seng Index fell 1%
China’s Shanghai Composite Index fell 0.5%
Australia’s S&P/ASX 200 Index fell 0.9%
11:34 AM
Most Adani dollar bonds exit distressed levels on debt promises
Most Adani Group dollar bonds have climbed further out of distressed territory after the conglomerate said it will address upcoming maturities, the latest boost to investor sentiment following an initial rout sparked by a US short-seller report.
10:40 AM
Multibagger stocks: 9 FII sweethearts rally up to 533% in 1 year. Time to buy?
FIIs, who have been net sellers to the tune of Rs 45,000 crore on Dalal Street in FY23, have consistently hiked stakes in at least 9 multibagger stocks in the last three quarters. The list includes two smallcap bank stocks. An analysis of stocks with a market capitalisation of over Rs 500 crore shows that FIIs have raised their bets in these 9 multibaggers that have rallied up to 533% in the last one year.
There is a clear pattern to the trends from the mother market, US. Whenever positive news like declining inflation comes, equity markets rise on hopes of a Fed pause and a possible rate cut by end 2023. Conversely, whenever data indicates a robust U.S. economy, tight labour market and very slow disinflation, equity markets fall expecting the Fed to remain hawkish. This see-saw game is likely to continue till clarity emerges on where the economy is headed. Nifty is likely to remain in the range 17800- 18200. As of now, there are no triggers to break this range in both directions. FIIs have sold in the cash market yesterday (excluding the Rs 2300 crore Indigo deal) for Rs 730 crores indicating that they will continue to sell at higher levels. The only sensible strategy in this volatility is to buy high quality names across sectors during declines.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
07:51 AM
Asia shares skid as rate-hike fears unnerve investors
Asian equities slipped on Friday, while the dollar hovered around six-week highs as economic data and hawkish comments from Federal Reserve officials revived fears that the U.S. central bank will stick to its monetary tightening path.
07:50 AM
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 88 points, or 0.49 per cent, lower at 17,980, signaling that Dalal Street was headed for a negative start on Friday.
07:50 AM
Tech View: Nifty charts hint at consolidation ahead
Indicating the emergence of minor weakness from the highs, Nifty on Thursday formed a small negative candle on the daily charts but gave the highest closing of the last 16 sessions.
07:49 AM
Wall Street ends down sharply as data fuels rate-hike worries
Wall Street ended sharply lower on Thursday after unexpectedly strong inflation data and a drop in weekly jobless claims added to fears that the U.S. Federal Reserve will keep raising interest rates to tame high prices.
07:49 AM
Oil prices fall as U.S. rate hike worries overshadow demand outlook
Oil prices slid on Friday and were on track for weekly losses as strong U.S. economic data heightened concern that the Federal Reserve will continue tight monetary policy to tackle inflation, which could hit fuel demand even as crude stockpiles grow.
07:49 AM
Rupee gains 15 paise to close at 82.68 against US dollar
The rupee appreciated by 15 paise to close at 82.68 against the US currency on Thursday amid unabated foreign fund inflow and positive trend in domestic equities.
07:49 AM
Sensex, Nifty on Thursday
The 30-share BSE benchmark Sensex rose 44 points or 0.07% to settle at 61,319. The broader NSE Nifty surged 20 points or 0.11% to end at 18,036.
