Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic indices crashed over 2% intraday on Friday as the market remained nervous ahead of the Budget. The Hindenburg’s report dragged Adani stocks lower. Banking stocks were among the worst hit. The BSE Sensex crashed 874.16 pts or 1.45% settling at 59,330.90 and the Nifty 50 tanked 287.60 pts or 1.61% to 17,604.35.
Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Highlights Friday, January 27
“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.” – Vinod Nair, Head of Research at Geojit Financial Services.
“The Nifty started the week on a positive note however witnessed steep selling pressure in the second half of the week. As a result, it broke down from the consolidation range, which it was witnessing for the last month. It broke the support zone of 17800-17760, which will now act as resistance as per the principle of role reversal. On the downside, the Nifty has halted near the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17550. Today’s low of 17493 will be a key support. If that is breached then the decline can continue till 17300.” – Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
“The index has fallen below recent consolidation on the daily chart, leading to a big sell-off from foreign institutions. However, the 50-week exponential moving average, located at 17400, is likely to provide immediate support. A further correction may be seen if the index falls below 17400. On the other hand, resistance is visible at 17850. As long as the Nifty remains below 17850, traders may favour a sell on rise strategy.” – Rupak De, Senior Technical Analyst at LKP Securities.
“Bank Nifty had fallen below the critical support level of 41,800, leading to a quick drop towards 40,000. Besides, the index has sustained below the crucial moving average of 50 EMA. The RSI is in a bearish crossover and falling. Over the short term, the index may remain under selling pressure. On the lower end, support is visible at 40,000; whereas on the higher end, resistance is visible at 40800.” – Kunal Shah, Senior Technical Analyst at LKP Securities.
“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. It was mayhem on Dalal Street for the second day running, with today’s fall being sharper than the one seen on Thursday. Adani shares were in the line of the fire following the Hindenburg report accusing the group of serious irregularities. Eight listed companies of the Adani conglomerate – controlled by Gautam Adani lost more than 3 Lakh Cr market capitalization on Friday. Dalal Street returned to trade after the Republic Day market holiday amid largely positive moves across other global markets after data showing slowing GDP growth in the US took away some of the concerns about a recession and rekindled hopes of less aggressive hikes in interest rates. Nifty breached its 200 DEMA support of 17,750 in the intraday session. Nifty has closed below the crucial support of 17,761, which happened to be the multiple bottom support in the last 6 weeks. Now from here, previous support of 17,761 is expected to interchange its role as a short-term resistance. Above 17,761, resistance for Nifty is seen at 18,000. Below 17,493, Nifty could extend its fall towards the next support of 17,350. ” – Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.
“Indian markets witnessed a fresh bout of selling today on the back of market participants evaluating the impact of the recently released report by US short-seller Hindenburg Research on Adani Group. The corporate houses with heavy leverage and/or expensive valuations were hit the most during this sell-off. We expect markets to stabilize over the next few trading days as we expect bargain hunters to emerge and start picking good quality stocks with a history of free cash flow generation and which are available at reasonable valuations. Some part of India’s underperformance vis-à-vis global markets off late can be explained by the huge outperformance by India last year, and thus markets attempting to revert back to the mean. However, we believe that India remains the fastest growing major economy globally and should continue to attract foreign capital in the medium to long term, which should bode well for Indian markets.” – Nishit Master, Portfolio Manager, Axis Securities.
The top gainers of the BSE Sensex were Tata Motors (up 6.22%), ITC (up 1.69%), Mahindra & Mahindra (up 0.60%), UltraTech Cement (up 0.41%) and Bajaj Finserv (up 0.39%) while SBIN (down 4.67%), ICICI Bank (down 4.29%), IndusInd Bank (down 3.88%), Axis Bank (down 1.96%) and Kotak Bank (down 1.86%) were the losers.
The BSE Sensex crashed 874.16 pts or 1.45% settling at 59,330.90 and the Nifty 50 tanked 287.60 pts or 1.61% to 17,604.35.
Banking stocks were among the worst hit on Friday as Sensex and Nifty tumbled 2% each. The Bank Nifty, PSU Bank and Private Bank indices were the top losing sectoral indices on the NSE. Bank Nifty fell 1296 pts or 3.11% to 40,351.65 with Bank of Baroda, Punjab National Bank, and State Bank of India shares dropping the most.
The 30-share BSE Sensex tanked 1.85% or over 1100 points, touching an intraday low of 59,088.37 and NSE Nifty 50 fell 2% or 360 pts to the day’s low of Rs 17,531.20.
Bank Nifty crashed 1376 pts or 3.30% to 40,271.40 dragging Nifty 50 lower. All the constituents were trading in red with Bank of Baroda (down 7.39%), PNB (down 6.24%), SBIN (down 5.21%), IDFC First Bank (down 4.39%0 and ICICI Bank (down 4.34%) leading losses.
Bank Nifty, PSU Bank and Private Bank are the top losing sectoral indices. Bank Nifty fell 3.28%, PSU Bank 6.18% and Nifty Private Bank 2.96%.
The stocks of Adani Group tanked up to 20% on Friday. Adani Enterprises shares fell more than 6% to Rs 3,183.85, Adani Ports fell 10% to Rs 641.65, Adani Power hit a 5% lower circuit, trading at Rs 248.05, Adani Transmission shares plunged 18% to Rs 2,055.80 apiece, Adani Green Energy tumbled 19.86% to 1,487.00, Adani Total Gas down 20% to Rs 2,934.55 and Adani Wilmar shares tanked 5% to Rs 517.30.
“As shared in our previous update, a close below 17,905 on Wednesday has triggered further weakness. If we don’t see a recovery by eod today & Nifty manage to close below 17,750 spot we could very well be heading for a further slide down to 17,200/17,000 mark. The bulls need to defend the lower range on a closing basis (today daily + weekly close) for any respite from the Bears.” – Rahul Sharma, JM Fin
ITC gained nearly 3% to hit over two-month high in a weak market. Brokerages expect strong growth for ITC's FMCG business led by price hikes, strong traction in discretionary categories (due to high mobility) & strong growth in education & stationary business.
Tata Motors shares rose over 8% to Rs 448.00 after the company reported a consolidated profit for the quarter ended December 2022 at Rs 2,958 crore against a loss of Rs 1,516 crore in the same period last year on better topline as well as operating performance.
Bank Nifty crashed 1000 pts or 2.3% to 40,681.35 amid negative sentiment in the domestic market. The top laggards of the index were ICICI Bank, PNB, HDFC Bank, Bank of Baroda and Bandhan Bank.
Asian markets were trading mixed on Friday. Japan’s Nikkei was trading 7.99 pts or 0.03% higher at 27,370.74, South Korea’s KOSPI climbed 17.91 pts or 71% to 2,486.56 while Hong Kong’s Hang Seng dropped 11.51 pts or 0.05% to 22,555.27.
The sectoral indices were trading broadly lower. Bank Nifty fell 1.83%, Nifty PSU Bank fell 1.70%, Nifty Oil & Gas fell 3.88%, Nifty Metal down 0.53% and Nifty Realty down 0.36% while Nifty Auto and Pharma rose 1.64% and 0.28% respectively.
Adani group share tumbled up to 18% on Friday in the aftermath of the 103-page report released by US-based forensic financial research firm Hindenburg Research, which alleged accounting fraud, stock manipulation and improper use of offshore tax havens by the group. Continuing the sell-off seen on Wednesday, Adani Enterprises shares fell more than 3% to Rs 3,282 on Monday, Adani Ports fell 4%, Adani Power hit 5% lower circuit. Adani Transmission shares plunged 15% on BSE to Rs 2,120 apiece, Adani Green Energy tumbled 11%, Adani Total Gas was down 18%, Adani Wilmar shares also tanked 5%.
Nifty Auto rose 1.89% led by Tata Motors and Bajaj Auto. Most of the constituents were trading in the red.
The volatility index India VIX was trading 11.75% higher at 16.38 on Friday.
Tata Motors, Bajaj Auto, Dr Reddy, Cipla and Mahindra & Mahindra were the top gainers while Adani Ports, Adani Enterprises, ICICI Bank, State Bank of India (SBIN) and Axis Bank were the top losers.
Bank Nifty crashed 798.35 pts or 1.92% to 40,849.30. The top laggards of the index were HDFC Bank, ICICI Bank, Axis Bank, SBIN and Kotak Bank.
The NSE Nifty 50 fell 133.45 pts or 0.75% to 17,758.50 and BSE Sensex tanked 292.76 pts or 0.49% to 59,912.30.
U.S. equity closed in the green territory on Thursday, with the S&P 500 ending at the highest level since early December, as the fourth-quarter gross domestic product (GDP) came in slightly stronger than expected, boosting investor confidence. The S&P 500 rose 44.21 points or 1.1% to end at 4,060.43. Dow Jones Industrial Average DJIA gained 205.57 points or 0.6% to finish at 33,949.41. Nasdaq Composite COMP advanced 199.06 points or 1.8% ending at 11,512.41.
Stocks in the Asia-Pacific traded higher on Friday as Wall Street’s major indexes gained after the US economy grew more than expected. Japan’s Nikkei 225 rose 0.11% in its first hour of trade and the Topix gained 0.18%. In Australia, the S&P/ASX 200 traded 0.23% higher. South Korea’s Kospi was flat while the Kosdaq rose 0.18%.
The United Nations (UN) has cut its GDP growth forecast for India for calendar year 2023 to 5.8%, citing the effect of tighter monetary policy and weak global demand. “Growth in India is expected to remain strong at 5.8%, albeit slightly lower than the estimated 6.4% in 2022, as higher interest rates and a global slowdown weigh on investment and exports,” the UN’s World Economic Situation and Prospects 2023 report, published on 25 January, said.
“The Bank Nifty witnessed selling pressure throughout the session. On the daily chart, an upward consolidation was followed by a sharp correction, suggesting a rise in bearish bets in the space. Furthermore, the index has dropped below the 50-day exponential moving average, confirming the downward trend. On the lower end, immediate support is visible at 41,500/40,800. On the higher end, resistance is visible at 42,000.” – Kunal Shah, Senior Technical Analyst at LKP Securities.
“Nifty fell sharply on Jan 25 after short seller Hindenburg raised concerns over the Adani group’s debt position. Volumes on NSE were higher than the recent average but lower than the usual volumes on the monthly F&O expiry day. Smallcap index fell less than the Nifty though the advance-decline ratio fell to 0.34:1. Asian equities scaled their highest levels in seven months on Wednesday after some regional markets reopened after holidays, betting on a Chinese economic recovery this year. European equities were subdued on Wednesday, as investors mulled over fresh corporate earnings. Nifty seems to have given a fresh breakdown. 17761-17774 band is the immediate support for Nifty below which the downtrend could accelerate. On up moves, 18145 could prove to be a resistance.” – Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.