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. ~
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.
“On the technical front, the key resistance levels for Nifty50 are 18,300 followed by 18,500 and on the downside 17,600 followed by 17,300 can act as strong support. Key resistance and support levels for Bank Nifty are 38,500 and 37,500 respectively,” said Mohit Nigam, Head – PMS, Hem Securities.
On Tuesday, US markets extended their losses but yesterday morning (Thursday) we saw some recovery in Dow futures and Asian bourses also looked cheerful. Despite this, our markets started correcting after a flat start. Barring a small recovery in the first hour, we witnessed continuous selling pressure thereafter. In fact, post the mid-session the selling augmented to slide below 17700 as well. Fortunately, due to some modest tail end recovery, Nifty managed to minimize the damage to a per cent.
Sensex extended opening losses to tank more than 600 points or 1.2% while the Nifty 50 closed in on crucial support zone of 17,550.
Sensex was deep in red Friday morning falling more than 500 points as the index gave up 59,000 levels. Nifty 50 index was hovering around 17,600. Bank Nifty was down 1%.
Sensex falls in pre-open session, Nifty nears 17550 support zone.
“Huge selling by FIIs in cash and Index futures. Long unwinding continued in Nifty and Bank Nifty futures as OI was down by 6.5% and 10% in yesterday’s sell-off. Nifty PCROI is trading at 0.76 with a small rise in IVs. Nifty 18000 straddle holds significant OI. Call writing was seen across calls from 17800 to18000. Heavy call writing was seen at 38,000 in Bank Nifty,” said Rahul Sharma, Director & Head – Research, JM Financial.
“The short term trend of Nifty continues to be down and there is no clear evidence of bottom formation at the lows. A sustainable upmove in the subsequent session is likely to confirm higher bottom reversal in the market. The lower area of 17650-17600 levels is expected to be a strong support zone for the market ahead,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“Nifty finds support around 17550 while 17950 will act as resistance on the upside. Bank Nifty finds support around 37350 while 38200 will act as resistance. Asian markets opened weak with the Japanese 'Nikkei' trading lower by over 500 points in early trade giving up all gains from yesterday's big rally. South Korean and Taiwan markets also succumbed to ETF outflows as markets adjust to higher rates in the coming months with Federal Reserve meeting next month signalling the same. Chinese stocks could see outperforming as they have underperformed in the last leg of the rally.”
~ IIFL Securities
“Nifty needs to reclaim 17800 today for any change in the current trend. The next major support lies at 17511 in Nifty and 37400 for Bank Nifty,” said Rahul Sharma, Director & Head – Research, JM Financial.
Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: Petrol and diesel prices were once again left unchanged by Oil Marketing Companies (OMC) on January 21 across the country. Petrol in the National Capital of Delhi currently retails at Rs 95.41 per litre while diesel in the city is priced at Rs 86.67 per litre. In Mumbai, a litre of petrol and diesel cost Rs 109.98 and Rs 94.14, respectively. Fuel prices have been stable since the central government cut excise duty to bring down retail rates from record highs. Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international price and foreign exchange rates.
Indian equity markets on Thursday slipped one per cent, continuing the steep fall for the third consecutive session as consistent FII selling, elevated oil prices, rising inflation concerns and possibility of Fed interest rate hike weighed on investor sentiment. Benchmark indices Sensex and Nifty are likely to open lower on Friday as trends on SGX Nifty indicated a gap-down opening with a loss of 141 points or 0.79%. Ahead of today’s trading session, the Nifty futures were trading around 17,659 level on the Singaporean Exchange. “Major events like upcoming budget and various state election could lead to higher volatility in coming days. Hence, we advise trader to remain cautious and keep positions light. Investors can use dip in the market as an opportunity to accumulate quality stocks for long term portfolio,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
“With some late recovery, Nifty is back to 17750 and looks extremely oversold. Now going ahead, since we have overreacted today as compared to other bourses, any sustainable rebound there could lead to a sharp bounce back in our markets as well. In this case, we may see retesting of 17900 – 18000 levels in a day or two. Let’s see how things pan out as we are likely to kick off the monthly expiry week. Traders are advised to focus on quality names that have been corrected in the last 3-4 sessions and have reached their important supports. These are the ones who would recover faster in case our market sees some relief move,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.
“SGX Nifty is indicating that Indian markets are likely to start on a disappointing note despite the backdrop of two positive catalysts such as People's Bank of China cutting one-year and five-year prime mortgage loan rates by 10 and 5 basis points — 3.7% and 4.6% respectively, while the sudden spike in the 10-year U.S. Treasury yield easing to around 1.80%. Oil prices, which have jumped to a 7-year high on reports of heating up geopolitical tensions, could further dent the sentiment. The biggest hurdle to watch on Nifty is at the 18077 mark. Nifty’s make-or-break support is at 17567 mark, while the index will be vulnerable below 17567 mark with aggressive downside risk at 17327 and then at 17011-17051 zone, even as Nifty’s 200 day EMA is still at 16577 mark,” said Prashant Tapse, Vice President (Research) at Mehta Equities.
Mukesh Ambani’s Reliance Industries Ltd is likely to see a rise in profit and revenues on the back of improvement in refining, petrochemicals and retail performance, when it reports its fiscal third quarter earnings on Friday. Analysts expect the oil-to-telecom conglomerate to post better numbers than the previous quarter. RIL is scheduled to release its October-December quarter results for the current fiscal on Friday, 21 January 2022, after market hours.