Share Market News Today | Sensex, Nifty, Share Prices Highlights: Weak global cues continue to pull domestic markets lower for the fourth day straight. S&P BSE Sensex tanked 427 points or 0.72% to close at 59,037, staging a recovery from intraday lows of 58,620. NSE Nifty 50 ended at 17,617, falling 0.79%. Bank Nifty along with broader markets closed in the red. while India VIX soared 6.18% to settle at 18.89 levels. Bajaj Auto was the top Sensex gainer, up 3.7%, followed by Hindustan Unilever, Maruti Suzuki India, and HDFC. Bajaj Finserv closed 5.27% lower, accompanied by Tech Mahindra, Tata Steel, and Bharti Airtel. Reliance Industries closed flat with marginal losses ahead of its quarterly earnings.
Sensex, Nifty and broader markets fell for the fourth consecutive trading session on Friday as Foreign Institutional Investors continued to pull money away. S&P S&P BSE Sensex staged a recovery in the dying hour of trade but closed 427 points or 0.72% lower at 59,037. NSE Nifty 50 ended at 17,617, falling 0.79%. Bajaj Auto was the top Sensex gainer, up 3.7%, followed by Hindustan Unilever, Maruti Suzuki India, and HDFC. Bajaj Finserv closed 5.27% lower, accompanied by Tech Mahindra, Tata Steel, and Bharti Airtel. Bank Nifty along with broader markets closed in the red. while India VIX soared 6.18% to settle at 18.89 levels.
The losses in the Indian markets are mirroring the dip in the US equity markets, which have fallen for five consecutive sessions till Thursday. The surge in global bond yields in anticipation of interest rate hike by the US Federal Reserve has also weighed on investors' sentiments making them risk-verse. The pessimistic sentiment has led to investors reshuffling their portfolios towards less-risky assets. Persistent FII selling is also dragging markets lower, said analysts.
Sensex tanked 427 points or 0.72% to close the day at 59,037 while NSE Nifty 50 index fell 0.79% or 139 points and settled at 17,617. Bank Nifty dropped 0.73%.
Bajaj Auto was up 3.8% as the top index gainer, followed by Hindustan Unilever, Maruti Suzuki, Nestle India, and HDFC -- all up more than 1% each.
Reliance Industries was trading flat with a negative bias ahead of the quarterly earnings of the company. RIL was down 0.04% at Rs 2,477 per share.
Nifty FMCG index was up 0.43% in the green on Friday afternoon while all other sectoral indices were deep in red.
Sensex regained 59000 on Friday as headline indices again attempted to trim losses. The index was still close to 400 points in red.
India VIX regained 19 levels on Friday just ahead of the closing bell. The index soared 6.6% as Dalal Street benchmark indices tanked.
"This is definitely a time when investors need to be cautious while initiating fresh positions but at the same time this dip is giving investors ample opportunity to accumulate good quality stocks with strong fundamentals and growth visibility. We believe the Union Budget 2022 would be growth focused via Capex and incentivising productivity & growth through various schemes, which will ultimately bring positive momentum in the market. So investors should hold their long term bets and invest in Indian equity markets with buy on dip approach for medium to long term," said Mohit Nigam, Head - PMS, Hem Securities.
Markets will remain under pressure in the near term mainly because of rising inflation in the US and a possibility of interest rate hike by Fed. However, wage growth rate, demand is going up in the US, while unemployment rate is going down which is a positive. Going forward, the inflation, which rose globally due to supply chain issues, will cool off as Omicron cases go down. Overall, near-term prospect in US is positive which will be reflected in India as well, said Amarjeet Maurya, AVP Research Analyst, Angel One.
Benchmark indices were trading lower amid volatility with Nifty hovering around 17500 level. "Some of the factors that led to correction in markets are sharp rise in US bond yields which lead investors to shift their funds to less risky assets, FII selling in previous few sessions, rise in COVID cases and restrictions imposed by state government, and absence of positive surprises from Q3 earnings till now," said Mohit Nigam, Head - PMS, Hem Securities .
Zomato shares were down more than 9% on Friday amid a bearish market breadth. The stock was trading at Rs 75.6 per share.
Nifty can find support around 17400, according to ICICI Direct which coincides with 100 days EMA placed at 17382. "Hence, an extended breather from here on should not be construed as negative," the brokerage firm said.
Hindustan Unilever was the top Sensex stock, up more than 2% on Friday, followed by Maruti Suzuki India, HDFC, and HDFC Bank.
India VIX, the volatility index, was up more than 5% on Friday, trimming gains after having opened more than 10% higher,
Polycab India’s Q3 net profit was up at Rs 316.1 crore versus Rs 263.6 crore and revenue was up 22.8 percent at Rs 3,372 crore versus Rs 2,746.3 crore, YoY. EBITDA was up 3.3 percent at Rs 361.6 crore versus Rs 350 crore and margin was down at 10.7 percent versus 12.7 percent, YoY. Polycab India shares were trading at Rs 2,553, down Rs 128, or 4.79% percent on the BSE.
Persistent Systems share price soared 6% to Rs 4,500 on Friday after the company showed improved performance for the quarter ended December 2021. The company posted a 45.87 per cent jump in its net profit at Rs 176.39 crore for the quarter ended last December as against Rs 120.92 crore a year back. The Q3FY21 consolidated revenue was up 38.71 per cent at Rs 1,491.71 crore against Rs 1,075.39 crore, YoY. Persistent Systems board also approved the payment of an interim dividend of Rs 20 per equity share of Rs 10 each for the financial year 2021-22.
IDBI Bank has reported 52.8 percent jump in its Q3 net profit at Rs 578.2 crore versus Rs 378.4 crore, YoY. Net interest income (NII) of the lender rose 31.1% to Rs 2,832.5 crore versus Rs 1,817.4 crore, YoY. The gross NPA stood at Rs 34,405 crore versus Rs 34,408 crore and net NPA was at Rs 2,289 crore versus Rs 2,132 crore, QoQ. IDBI Bank was quoting at Rs 50.10, down Rs 0.45, or 0.89 per cent on the BSE.
Nifty 50 index was nearing 17,700 on Friday afternoon as headline indices recouped some of their opening losses. Sensex was above 59,200.
Asian Paints’ topline delivery (25.6% YoY) exceeded expectations. The decorative business clocked 18/27% volume/value growth, underpinned by (1) strong pick-up in tier-1/2 cities and expansion in projects business and (2) continuing momentum in waterproofing. Despite the revenue beat, EBITDA was a miss as the price hike-led margin recoup fell short of expectations. Note that price hikes have yet to catch up with the steep RM inflation, but the same should take place by Q4. We maintain our FY23/24 EPS estimates and our SELL rating on APNT with a DCF-based TP of INR 2,700/sh, implying 56x FY24 P/E. ~
~HDFC Securities
Adani Group’s FMCG arm Adani Wilmar is all set to enter Dalal Street with its IPO (Initial Public Offering), which opens on January 27. The company which makes edible oil ‘Fortune’ is looking to raise Rs 3,600 crore through the issue after having trimmed the size of IPO from Rs 4,500 crore. Shares of the company are being offered in a fixed price band of Rs 218-230 per share. The IPO comprises a fresh issue of equity shares and there will not be any offer for sale. Adani Wilmar’s IPO will be the second issue of 2022 with AGS Transact Technologies, which ends today, being the first.
Motilal Oswal Asset Management Company has announced the launch of its Momentum FACTOR based ETF and Index Fund - Motilal Oswal Nifty200 Momentum 30 ETF and Motilal Oswal Nifty200 Momentum 30 Index Fund. These are open-ended schemes replicating or tracking the performance of Nifty200 Momentum 30 Index. The momentum factor refers to the tendency of winning stocks to continue performing well in the near term. Globally factor investing and particularly Momentum Factor has caught investor attention over last decade.
Apollo Hospitals is the most likely stock to be added to the NSE Nifty 50 index in the upcoming semi-annual index review, replacing PSU heavyweight Indian Oil Corp, said Edelweiss Alternative Research. Nifty indices are rebalanced semi-annually, with the upcoming index review expected to be announced in the middle of February. Apollo Hospitals shares are currently part of the junior index Nifty Next 50. Earlier, analysts at Edelweiss had picked Apollo Hospitals and InfoEdge, while predicting either one of them to become a part of Nifty 50 in the next review.
"Historically, within major rallies to the tune of measuring 30% up move, the intermediate corrections have been arrested within 38.2% retracement of respective rally. Looking at 22 months history, we don’t expect Nifty to retrace more than 38% of past one month rally (16400-18350). Thereby, in current scenario we expect 17600-17400 zone would act as key support that coincides with 100 days EMA placed at 17382. Hence, extended breather from here on should not be construed as negative. Instead, dips should be capitalised on as an incremental buying opportunity to ride the next leg of up move."
~ ICICI Direct
"The texture of global stock markets is changing. Starting from April 2020 till October 2021 Wall Street has been a one-way street. Dalal Street too followed almost the same trend. Now there are indications that this trend is changing. US markets are down for the fifth consecutive day with tech-heavy Nasdaq leading the fall. The tremors of this fall are being felt in the tech sector in India too with IT underperforming hugely. FIIs who had become buyers in early January have again turned sellers with a massive sell figure of Rs 4680 cr yesterday. This is a major headwind for the market in the short run. As expected, 2022 has begun with heightened volatility and this is likely to continue. Since valuations continue to be high and FIIs are likely to sell more on rallies, retail investors should not rush in to buy aggressively. Calibrated buying in quality IT and financials can be considered on declines," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The Nifty could immediately trade in a 1.7% range either side from 17800 with a bias on the downside, weekly options data show. The range for the market based on the combined value of the 17800 call and put expiring is 18100-17500. The bias, going by the open interest put call ratio of 0.86, is on the downside,indicating traders have sold more call options than puts on the Nifty, expecting the market to decline further and gobbling up the premiums received by selling calls to the option buyers. For the coming session, the trading spot band is between 17620 and 1800,which means further upsides are likely once the immediate resistances of 18000 are taken out and weakness could emerge if the supports of 17620 are broken.
~ Raushan Kumar, Derivative Analyst, IIFL Securities
Gold crossed its resistance of $1840 and Rs 48000 in MCX as investors are flocking to safe-haven metals amid inflation and geopolitical tensions. US labour market is also losing momentum as US weekly jobless claims jumped to 55K. The momentum is expected to continue till the start of the next week after which focus will shift to US FOMC meet. Gold already had a breakout yesterday after geopolitical tension between Russia and Ukraine started with Russia amassing its troops near the Ukraine border. That prompted gold to jump $30 on COMEX and after a long time had closed above its 2021 resistance of $1840.
"We are within touching distance of the 17600 mark that has been on discussion for that last fortnight. While the morning star pattern formed by hourly candles towards yesterday’s close, gives hopes of a bounce-back aiming 17950 and beyond, the inability to float above 17680 could cause some turbulence and thwart the potential for an outright rise. However, if the subsequent turbulence does not force Nifty below 17580, upside prospects could brighten with time. Else, we may have to wait till at least 16900 before risk appetite improves," said Anand James - Chief Market Strategist at Geojit Financial Services.
"Intraday pullback towards 17775-17802 should be used to create short position for target of 17686," said ICICI Direct.
India VIX, the volatility gauge of domestic markets, was up 10% to hit an intraday high of 19.61 levels.
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