Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended 1 per cent lower on Thursday, a day of monthly F&O expiry. BSE Sensex ended 582 points or 1 per cent down at 57277, while NSE Nifty 50 index ended at 17110, up 168 points or 1 per cent. HCL Technologies was the top Sensex loser, down 4%, followed by Tech Mahindra, Dr Reddy’s Laboratories, Wipro, Tata Consultancy Services (TCS), Titan Company, Infosys among others. On the contrary, Axis Bank was top Sensex gainer, up 3 per cent. It was followed by State Bank of India (SBI), Maruti Suzuki, Kotak Mahindra Bank, IndusInd Bank, ITC, among others. On the sectoral front, Nifty PSU Bank gained the most, rising 5.07 per cent, while Nifty IT index was the top loser, down 3.6 per cent. Bank Nifty ended at 37,982, up 0.7 per cent.
BSE Sensex ended 582 points or 1 per cent down at 57277, while NSE Nifty 50 index ended at 17110, up 168 points or 1 per cent
The fall in the Indian markets is in line with global markets. The Federal Reserve has indicated that they will begin hiking interest rates in the near future and that there will be multiple rate hikes this year. Along with that the Fed has also stated that they will end the asset purchase program in March and will also look to reduce the size of the Fed Balance Sheet from sometime later this year. The combination of these measures is what has spooked markets globally as it would mean moving from a scenario of easy and excess liquidity to a scenario of liquidity tightening. As stated earlier, we expect 2022 to be a much more challenging year from a returns perspective as compared to 2021. We suggest investors stick to their asset allocation and invest in high quality companies and also pay close attention to valuations. Sameer Kaul – MD & CEO, TrustPlutus Wealth
Aviation stocks IndiGo, and SpiceJet were trading lower on Thursday, amid rising crude oil prices. IndiGo (InterGlobe Aviation) share price tanked 6.5 per cent to Rs 1,838.75 apiece on BSE, while SpiceJet stock hit a fresh 52-week low of Rs 57.70 apiece, falling over 5 per cent. “The aviation sector is under pressure because of subdued travel demand as a result of additional government-imposed lockdowns to combat new strains of the pandemic, as well as rising gasoline prices and negative currency rates, are all significant dangers and problems for the sector. Global political tensions have added to worries about an already tight energy market,” Gaurav Garg, Head of Research at CapitalVia Global Research, told Financial Express Online.
We believe real estate, infrastructure, textile, healthcare, fertilisers, and automobiles may benefit the most from the Budget. Social spending in food subsidy and income transfers may increase. There may simultaneously be a need to reduce supply bottlenecks to contain inflation by providing incentives for greater domestic production, without resorting to import tariff barriers. Jay Shankar, Head of Economics Research, InCred Equities
The Finance Minister will be presenting the Union Budget 2022-23 on the 1st of Feb’22 which will be keenly watched by the markets. We expect that the Union Budget will focus on targeted spending while maintaining fiscal discipline. We expect the Government fiscal deficit for FY23 will be well below the budget estimate of 6.8% for FY2022 due to better than expected tax collections. We expect that the Government will continue its focus on providing support to the rural economy and manufacturing sector through increased spending and PLI schemes. We also expect the Government will increase allocation to the Infrastructure and housing sector given their high multiplier effect on the economy. We do not expect any major announcement in the Union Budget and believe that the Government will continue with its reform process even outside of the Budget. Jyoti Roy, DVP- Equity Strategist, Angel One
Amidst rising volatility in Indian equity markets, long-term investor should not worry. They should keep on accumulating quality stocks which are now available at good 10-15% correction. Investors/Traders who are looking for swing opportunities should avoid the market as of now, as high degree of volatility is expected, at least till budget session.
~Gaurav Garg, Head of Research, CapitalVia Global Research
Nifty may face a support near 16500 -16200 levels till then the downtrend will continue. The market is jittery on account of possible fiscal tightening by central banks which was holding the economic activities so far. Fed has already signalled rate hike before March this year and other central banks are also pondering to take similar steps to curb the rising inflation. The drainage of liquidity has already started as FIIs are pulling money out of the markets. The ongoing political tension between Russia and Ukraine is also keeping pressure on the investors' nerve. All these factors are draining the investors confidence and hence this sell of has triggered.
~Ravi Singh, Vice President & Head of Research, Share India
Markets have opened very negative today amidst rising concerns on global inflation along with US Fed has indication that the interest rates are likely to rise. Overall, the plan to do so by Fed, is slightly faster than expected amidst rising COVID cases because of new variant. Higher Crude prices is another factor which is concerning the Indian equities. Also, majority of the companies have declared Quarterly results for Q4 and we have seen lower margins due to higher raw material prices. At the same time, FIIs have been selling relentlessly which has dragged the market. In January month alone, till date more than 26000 crore worth of selling has been witnessed and January is going to be 4th consecutive month of FII selling.
~Gaurav Garg, Head of Research, CapitalVia Global Research
In the run-up to the Union Budget 2022, BSE Sensex and Nifty 50 have been trading volatile. In the week so far, BSE Sensex has lost over 4 per cent to day’s low of 56,628.36, while NSE Nifty 50 index plunged 3.7 per cent to trade at 16,921. On the Union Budget 2022 day, 1st February, the 30-share index Sensex may reclaim 60,000, Nifty 18,000, and Bank Nifty may clinch 38,500 levels, said Sanjiv Bhasin, Director, IIFL Securities, in an interview with Surbhi Jain of Financial Express Online. Ahead of Budget, Bhasin is bullish on stocks of Axis Bank, HCL Tech, Eicher Motors, among others. Bhasin also sees a post Budget rally in the Indian stock markets, where headline indices may test new all-time highs.
The upcoming budget is particularly crucial for all leading brands, as it will set the course of recovery for the retail and footwear industry. To start with, revision in the GST structure to eliminate complication is important and this demands immediate attention. Currently, GST is levied at 18% on footwear sale price above INR 1000, and 12% on footwear sale price less than INR 1000, which creates a lot of confusion. A uniform rate of 12% on all footwear would result in reduction in overall prices and has huge potential of triggering consumer demand. Another welcome move would be reducing the import dependency on footwear raw materials & accompanying custom duties and support the manufacturers to setup production locally for footwear raw materials, components, co-polymers, moulds and machinery at competitive prices under the ‘Make in India’ initiative to build the capabilities and drive India’s Exports ambitions also. This would generate employment and lead to reduction in overall prices, which in turn would provide a much needed boost to overall consumer sentiment. Gunjan Shah, MD & CEO, Bata India
After a long haul, an Adani group company is going to debut in capital markets by bringing an IPO. Adani Wilmar is one amongst the few large FMCG food companies. Their flagship brand “Fortune” is the largest selling edible oil brand in India. The offer is priced at a post-issue PE of 41x based on FY21 figures. The revenues and EBITDA are growing at a CAGR(2015-2020) of 11.28% and 20.65% respectively. The concern of low PAT margins is addressed by focusing on value-added products and diversifying revenue streams. The distribution network of Adani Wilmar is the largest in edible oil segment. The strong parentage should ensure good subscription to the offer. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares
Bears continued to dominate the Dalal Street on Thursday as Sensex plunged over 1200 points and Nifty fell below 17,000. All the sectoral indices were trading in the red with realty, pharma, and IT indices down 2-3 per cent. BSE midcap and smallcap indices fell 1-2 per cent. BSE Sensex was down 1,186 points or 2.05% down at 56,671 while Nifty50 was down 16,930 points or 2.01% at 16,930. Bank Nifty fell nearly 600 points or 1.58% to 37,111 intraday. Over 120 stocks hit 52-week high on the Bombay Stock Exchange (BSE), while 19 scrips touched fresh lows.
Indian equity markets fell more than 2% on Thursday, mainly on hawkish US Fed outlook. While Sensex plunged over 1,200 points to touch intraday low of 56,439, NSE Nifty 50 gave up 17,000 and hit 16,866 intraday. Federal Reserve chairman Powell on Wednesday signalled a rise in interest rates in March and predicted the possibility of an aggressive policy tightening. This led to a jump in the 10-year US bond yields of the US and the dollar index, which is negative for emerging markets including India. Geopolitical tensions between Russia and Ukraine pushed up crude oil prices. Apart from this, the market on Thursday is also facing a monthly expiration date for January Futures and Options (F&O) contracts, which added to the volatility.
Adani Wilmar IPO received bids for 3.02 crore equity shares against IPO size of 12.25 crore equity shares, subscribing 24 per cent so far on the first day of bidding.
On Thursday, Asian markets were mostly in the red as investors digested Fed Chair Jerome Powell's remarks. Our research suggests that the levels of 16800 may act as important levels in the market. If the market sustain above the levels of 16800, we can expect the market to trade in the range of 16800-17300. Gaurav Garg, Head of Research, CapitalVia Global Research
The possibility of a rate hike in the U.S. in every meeting hereon has spooked the market. For the rupee, this would probably signal the start of hefty foreign fund outflows from equities. Heena Naik- Research Analyst – Currency, Angel One
Axis Bank, Bharti Airtel were the top gainers in the Sensex pack, while Titan, HCL Technologies and Wipro were the laggards.
Imagine Marketing, which owns the Boat brand of earphones and smartwatches, filed DRHP with market regulator SEBI on Thursday for an initial public offer (IPO) of up to Rs 2,000 crore. According to the Draft Red Herring Prospectus, the IPO would consist of a fresh issue of shares worth up to Rs 900 crore, an offer for sale of shares worth up to Rs 1,100 crore. South Lake Investment will sell shares worth up to Rs 800 crore in Imagine Marketing's IPO.
“Nifty is trying to find its feet near a strong support zone of 16850-16600 after a brutal fall. The market was looking much oversold as PCR was slipped below the 0.7 mark and FIIs' long exposure in the index future dipped below 45% therefore a bounceback is due. Technically, 16800 is long-term trendline support and a previous demand zone while 200-DMA is placed around 16600 level therefore we can expect a pullback rally from here. On the upside, the 17500-17600 area will be the first resistance zone while above 17800, we will get confidence that the market has reversed and is ready to go higher”.
~Parth Nyati, Founder, Tradingo
“Globally markets are very volatile amid hawkish US Fed and rising geopolitical tension and Indian markets are also facing the same pressure due to heavy FIIs' selling. If we look at the Indian markets then there are lots of positive triggers that may help our market to outperform but we just need some calmness in global markets. The market is not going in the budget with any euphoria so there is a good chance of a post-budget rally and if we look at the last three years' trend then the Market corrects ahead of budget then it witnesses post-budget rally.”
~Parth Nyati, Founder, Tradingo
The initial public offering of Adani Wilmar, a joint venture between the Adani Group and Singapore-based Wilmar group, received bids for 47.74 lakh equity shares on Thursday against IPO size of 12.25 crore equity shares, subscribing 4 per cent on the first day of bidding. The portion set aside for retail investors was subscribed 9 per cent, while the portion allocated for non-institutional investors was subscribed 2 per cent.
Navratna Defence PSU Bharat Electronics Ltd (BEL) entered into a contract with Hyperion Global Group, LLC, an infrastructure telecommunication distribution company based in the USA, to develop, manufacture and supply Internet of Things (IoT) devices for the US market. According to the contract, BEL will manufacture and supply IoT devices worth USD 73 million to Hyperion during the first year of commencement of supply with a provision to negotiate and supply upgrades of the products, worth $365 million, in the next five years, the company said in a regulatory filing. BEL stock was trading at Rs 201.75, down Rs 2.50, or 1.22 per cent. It touched an intraday high of Rs 203 and an intraday low of Rs 198.10.
Maruti Suzuki India share price gained over 1.5 per cent to hit a fresh 52-week high on Thursday as brokerages kept favourable ratings on the stock after the company’s fiscal third quarter earnings beat street expectations. Maruti Suzuki stock was trading up Rs 126 or 1.47%, at Rs 8727.40. Benchmark BSE Sensex fell more than 1000 points, while NSE Nifty 50 dived more than 250 points to trade below 17000 levels in the morning trade.
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India fell over 1 per cent on Thursday, after the global rates remained steady near a one-week low. On Multi Commodity Exchange, Gold February futures were ruling at Rs 48,254 per 10 gram, down Rs 597 or 1.22 per cent. In the previous session, gold futures ended at Rs 48,851. Silver March futures were trading at Rs 63,300 per kg, down Rs 771 or 1.20 per cent on MCX. Globally, yellow metal was flat, holding near a one-week low hit in the previous session, after the Federal Reserve decided on March rate hikes that pushed up U.S. Treasury yields and the dollar, while uncertainty over Ukraine capped bullion’s losses.
The Indian equities are likely to follow suit with their Asian peers. The FIIs have gone haywire to sell riskier assets, especially those who were overvalued. They have net sold almost Rs. 16,000 crore Indian equities till date in 2022 and we are still left with 3 trading sessions before Budget. Surely, one can say that the local currency would have a Double or probably Triple Whammy effect. Apart from the stronger US dollar and FII’s selling, Crude oil prices are also creating a headwind. The rising geopolitical tension between Russia-Ukraine and between UAE & Yemen could further disrupt demand-supply formulas and take the energy prices higher. This will further lead to again a widening trade deficit for net oil-importing countries. In a nutshell, the volatility in USDINR has returned with a bang. Overall, we are expecting a short-term range in USDINR to be from 74.30 to 75.70 with a bullish bias. Amit Pabari, managing director, CR Forex Advisors
Barring Nifty Media, Nifty PSU Bank indices, all the sectoral indices were trading in the deep sea of red. Bank Nifty fell nearly one per cent to 37346
” The rupee is expected to depreciate today due to higher crude oil prices and concerns over rising geopolitical tensions between the US and Russia. Further, expectations of better-than-expected GDP data from the US and hawkish statement from the US Federal Reserve Chair Powell may continue to put pressure on the rupee. US$INR (February) is expected to rise towards 75.35.”
Axis Bank, Maruti Suzuki, and IndusInd Bank were the only BSE Sensex gainers
HDFC Bank, Titan Company, Dr Reddy's Laboratories, HCL Tech, Tech Mahindra, Wipro, Housing Development Finance Corporation, Infosys were among top index losers
BSE Sensex tumbled 1000 points to 56810, while Nifty 50 index gave up 17,000 after FOMC's statement indicated the start of a rate hike in March
BSE Sensex tumbled 540 points or 0.9 per cent to 57,317, while Nifty 50 index gave up 17,100 in the pre-opening session on Thursday
The markets closed above 16950 on Tuesday, which is a crucial medium-term support for the Nifty. If we need to bounce or make a V shape recovery, this is the place from where that can happen. The next resistance is at 17400-17500. If we break 16950 on a closing basis, the markets can fall further to 16500-16550. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
U.S. stocks retreated Wednesday, erasing strong gains, after the Federal Reserve signaled an interest rate hike could be coming soon, while supply concerns stemming from tension between Russia and Ukraine saw oil prices touch highs not seen since 2014. Wall Street ended the day in mixed territory after spending most of the day up roughly 2%. Stocks shed those gains following an afternoon policy update from the Fed and press conference by Fed Chairman Jerome Powell, which suggested the Fed would push forward with interest rate hikes.
Adani Wilmar IPO will open on Thursday (27 January), and will close on Monday (31 January). The edible oil major has fixed a price band of Rs 218-230 per share for the public issue. The Rs 3,600 cr public offering comprises fresh issue of new equity shares only. The promoter’s holding in the company will stand reduced to 87.95% after the issue. Several brokerage firms have assigned a ‘SUBSCRIBE’ rating to the issue.
Bharat Heavy Electricals, Punjab National Bank, RBL Bank, Canara Bank, Indus Towers, Accelya Solutions India, AIA Engineering, Arvind, Aurionpro Solutions, Birlasoft, CG Power and Industrial Solutions, Chalet Hotels, Coforge, Colgate-Palmolive, Dalmia Bharat, Exxaro Tiles, Fino Payments Bank, GHCL, Gujarat Mineral Development Corporation, Home First Finance Company, HSIL, Laurus Labs, LIC Housing Finance, Mahindra Logistics, CE Info Systems, Motilal Oswal Financial Services, Nippon Life India Asset Management, PSP Projects, Route Mobile, Transport Corporation of India, Vaibhav Global, Wabco India, and Wockhardt were scheduled to announce their Q3 results today.
The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation. “The committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so,” Powell said in a news conference, pinning down a policy statement from the central bank’s Federal Open Market Committee that only said rates would rise “soon.”