Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic stock markets started Wednesday’s trade with gains but bears pulled headline indices lower by the closing bell. S&P BSE Sensex ended 303 points or 0.56% lower at 53,749 while Nifty 50 fell 99 points or 0.62% to settle at 16,025. Bank Nifty outperformed, gaining 0.14% to end at 34,339. India VIX fell 1.4% but is still above 25 levels. NTPC zoomed 3.8% as the top Sensex gainer, followed by Bharti Airtel, HDFC, and Kotak Mahindra Bank. Asian Paints tanked 8%, accompanied by TCS, and Tech Mahindra.
Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Live Updates
Indian share markets have scaled-down and have corrected 13-14% from all-time highs, making equities valuations much cheaper but not yet attractive enough. Benchmark valuations have fallen from the ‘bubble territory’ of 1-year forward PE of 25x to now at around 18x 1-year forward PE. However, the unrelenting selling by Foreign Institutional Investors (FII) and multiple headwinds are still keeping analysts on their toes. “Valuations have fallen from highs but the premium to other markets is still high,” Deepak Jasani, Head of Retail Research, HDFC Securities told FinancialExpress.com.
Sensex and Nifty danced between gains and losses on Wednesday before closing in the red for the third day running. S&P BSE Sensex ended 303 points or 0.56% lower at 53,749 while Nifty 50 fell 99 points or 0.62% to settle at 16,025. NTPC zoomed 3.8% as the top Sensex gainer, followed by Bharti Airtel, HDFC, and Kotak Mahindra Bank. Asian Paints tanked 8%, accompanied by TCS, and Tech Mahindra. Bank Nifty outperformed the headline indices, gaining 0.14% to end at 34,339. India VIX, the volatility gauge, fell 1.4% but is still above 25 levels.
Sensex closed 303 points or 0.56% lower at 53,749 while NSE Nifty 50 fell 99 points or 0.62% at 16,025. Nifty has support at 16,000. Bank Nifty closed 0.14% higher.
Bank Nifty was still trading with gains while Sensex and Nifty were down in the red. Bank Nifty was up 0.16% just ahead of the closing bell.
The reason behind the sell-off in sugar stocks is of government restricting the export. However, from a technical perspective, these stocks had runup too hard and saw an equally fierce corrective move because of this. Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services
Though the export quota of 10mn tonnes for this season will not make any meaningful impact on the export figures expected and the closing stock for this season, the move (first after many years) by the Government to put export restrictions signifies Government's intent to do anything possible to curb inflation, which will be an overhang on the stocks. The earnings might not fall to a great extent but we expect multiples of sugar companies to compress due to this. Another risk for Sugar companies is a possible increase in SAP for sugarcane for the next season, especially since input costs for farmers have also gone up. We believe it's better to sell sugar stocks currently. Nishit Master, Portfolio Manager, Axis Securities
India VIX, the volatility index, was down 0.67% on Wednesday. However, the index is still above 25 levels.
Asian Paints was down 5% on Wednesday afternoon, accompanied by Tech Mahindra, Wipro, and TCS.
With the recovery in loan growth, steady deposit growth and improvement in asset quality, the previous financial year has proven to be a watershed year for public sector banks (PSB), according to analysts at Bank of America Securities (BofA). With healthy asset quality and strong provision coverage ratios, analysts believe valuation of PSBs could witness re-rating on continued improvements in growth-RoE profile. On the other hand, the brokerage firm believes the improvement in state-owned lenders could result in the end of easy market share gains for private banks.
Going ahead, we believe healthy retracement of last leg of up move would help index to form a higher base in the vicinity of 15800-16000 and gradually surpass the immediate hurdle of 16400 levels and pave the way towards 16800 in coming weeks. However, bouts of volatility would play a pivotal role amid ongoing global uncertainty that would make move towards 16800 in a nonlinear manner.
~ ICICI Direct
The Rs 412.79-crore eMudhra IPO, which got 2.72 times subscription, is likely to finalise the share allotment basis on Friday, 27 May 2022. The eauity shares are expected to list on BSE and NSE on 1 June 2022. The initiation of refunds or unblocking of funds from ASBA account will take place on 30 May, and the equity shares will get credited to allottees demat account on 31 May 2022. Read full story
“Though pullback has stretched beyond our downside marker of 16170, the upside trajectory towards 16500-700 does not look broken. As maintained yesterday, we continue to favour a consolidation and will wait for a slippage past 16025 to consider the prospects of an outright collapse. Until then, we will retain upside hopes, with 16100 and 16266 as the two turnaround points today,” said Anand James – Chief Market Strategist at Geojit Financial Services.
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading in red on Wednesday, after the yellow metal in global markets slipped off a two-week peak on the firm dollar. On Multi Commodity Exchange, gold June futures were trading Rs 67 or 0.13 per cent down at Rs 51,090 per 10 gram. Silver July futures were ruling at Rs 61,946 per kg, down Rs 30. Globally, yellow metal prices edged lower, slipping from a two-week high hit in the previous session, as the dollar reclaimed some ground, but uncertainty over the trajectory of inflation supported safe-haven bullion’s outlook, according to Reuters. Read full story
“Global equity markets have been turbulent as investors analyse the future for monetary policy, inflation, and the impact of China's tough capital controls. Investor sentiment is unstable, with foreign institutional investors pulling out of Indian shares due to a global collapse, rising inflation, and impending central bank tightening. In these situations, investors should exercise caution and take advantage of any declines in fundamentally sound companies. Immediate support and resistance for Nifty are 16,000 and 16,400 respectively. Immediate support and resistance for Bank Nifty are 34000 and 35,000 respectively,” said Mohit Nigam, Head – PMS, Hem Securities
“We expect index to trade with a positive bias while sustaining above Tuesday’s low of 16035. Hence, use intraday dip towards 16074-16108 for creating long position for the target of 16194,” said ICICI Direct.
Adam Smith famously said – “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest.” What was left unsaid was that the baker makes money because society at large is willing to pay for bread. In capitalistic economies, while profit maximization is the goal, it is not divorced from the demands of society. In fact, it is intricately entwined with them. And what society wants today is undergoing a massive shift. A shift towards sustainability and social responsibility. Businesses that fail to deliver on these demands face serious risks.
IndusInd Bank was the top gainer on Sensex up nearly 2%, followed by NTPC, Kotak Mahindra Bank, HDFC, and ICICI Bank.
Sensex rose more than 280 points on Wednesday morning, pushing the index above 54,300. Nifty 50 index was above 16,200. Bank Nifty was up nearly 1%.
Sensex and Nifty soared higher during the pre-open session ahead of Wednesday's opening bell.
“Despite a sharp fall in the overnight US markets, Asian indices are exhibiting a mixed trend in today's early trades indicating that local markets are likely to remain fragile and volatile on backdrop of growth and inflation bets that continue to dominate investors’ sentiment negatively. All eyes will be on the FOMC minutes later on Wednesday which would give clarity on the Fed's rate-hike path in the near term. Also, selling by the FII camp continues to be the biggest negative catalyst for Dalal Street. FIIs have sold shares worth Rs. 48,000 crores in the month of May and most importantly, have pulled out to the tune of Rs. 215,000 crores from the Indian markets in the first 5 months of 2022,” said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.
Sensex was up with marginal gains during the pre-open session while NSE Nifty 50 was below 16,100.
The benchmark indices witnessed profit booking at higher levels, the NSE Nifty 50 ended 90 points lower while the BSE Sensex was down by 236 points. Among sectors, most of the major sectoral indices witnessed profit booking at higher levels, but Media and IT indices lost the most. Media index down by 2.70 percent and the Nifty IT index corrected over 1.80 percent. Technically, from yesterday’s highest level, the Nifty/ BSE Sensex corrected over 250/1000 points. On daily charts, the index has formed a bearish candle which indicates further weakness in the near future. Read full story
1 Buy Reliance Industries in the range 2613.00-2617.00
2 Buy Kotak Mahindra Bank in the range of 1875.00- 1879.00
All recommendations of May Future
~ ICICI Direct
Asia stocks opened mostly in positive territory on Wednesday even as global growth concerns and weak U.S. economic data weighed on Wall Street overnight. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.35%, Australian shares were up 0.33%, and Seoul and Taiwan both ticked upwards 0.61% and 0.2%.
“Many stocks are also correcting and failing to hold on to their recent gains. This is a sign of weakness and caution is therefore warranted. Traders should wait for strength to emerge before going aggressively long. While we remain open to further pullback rallies in the very near term, we must remember that the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15735 is broken,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
The Indian rupee is expected to depreciate on Wednesday amid weak global market sentiments, consistent FII outflows and elevated crude oil prices. Market sentiments were hurt on concerns over slowing economic growth and surging inflation across globe. Additionally, traders will remain vigilant ahead of FOMC meeting minutes and major central banks policymakers statements, according to ICICI Direct. “US$INR (May) is expected to trade in a range of 77.45-77.7,” it said in a note. In the previous session, the rupee slipped against the US dollar, weighed down by a negative trend in domestic equities and unabated foreign fund outflows.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The prices of petrol and diesel were kept unchanged by the OMCs on May 25, Wednesday after prices were cut on Saturday. Finance Minister Nirmala Sitharaman had announced a cut in excise duty on petrol by 8 per litre, and 6 rupees per litre on diesel on Saturday. Petrol price in Delhi today stands at Rs 96.72 a litre as against Rs 105.41 a litre last week, while diesel will cost Rs 89.62 a litre as opposed to Rs 96.67. In Mumbai, one litre of petrol costs Rs 111.35 while diesel is retailing at Rs 97.28 per litre.
BSE Sensex and Nifty 50 were staring at a positive start on Wednesday, a day before monthly F&O expiry, as suggested by trends on SGX Nifty in early trade. Nifty futures were ruling 68 points or 0.4 per cent higher at 16,182 on Singaporean Exchange. In the previous session, S&P BSE Sensex slipped 236 points or 0.43% to settle at 54,052 while NSE Nifty 50 index was down 89 points or 0.55% at 16,125. “While we remain open to further pullback rallies in the very near term, we must remember that the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15735 is broken,” Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities, said.
Indian equity markets are likely to open gap up ahead of monthly F&O expiry amid mixed global cues. Nifty futures were trading 37.50 points, or 0.23%, higher at 16,136.50 on the Singapore Exchange, signaling that benchmark indices BSE Sensex and NSE Nifty are headed for a positive start on Wednesday. “Market would react to the minutes from the last U.S. Federal Reserve meeting which would be released on Wednesday, and could give insights into their future course of action. We expect volatility to continue this week given uncertain environment as well as monthly F&O expiry on Thursday,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Equity Markets remained volatile on expected lines. Even India VIX surged by 9.6% to 25.6 levels indicating continuing discomfort among investors. Nifty is now facing strong hurdle around the 16,400 mark. Any bounce around this level is met with stiff resistance along with selling pressure. Market would react to the minutes from the last U.S. Federal Reserve meeting which would be released on Wednesday, and could give insights into their future course of action. We expect volatility to continue this week given uncertain environment as well as monthly F&O expiry on Thursday.
~ Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
SGX Nifty was up more than 50 points ahead of Wednesday's trade.