Share Market News Today | Sensex, Nifty, Share Prices Highlights: Dalal Street was red on the weekly futures & options expiry session. S&P BSE Sensex fell 1,158 points or 2.14% to end at 52,930 while the NSE Nifty 50 index tanked 359 points or 2.22% to settle at 15,808. Bank Nifty fell 3.35% while India VIX was up 6.45% on the closing bell at 24.27. HCL Technologies was the only Sensex stock to have closed with gains, up 0.08%. IndusInd Bank was the worst performer, down 5.7%, followed by Tata Steel, Bajaj Finance, and Bajaj Finserv.
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Bears wreaked havoc on Dalal Street on the weekly expiry session, forcing benchmark indices lower for the fifth consecutive session. S&P BSE Sensex fell 1,158 points or 2.14% to end at 52,930 while the NSE Nifty 50 index tanked 359 points or 2.22% to settle at 15,808. HCL Technologies was the only Sensex stock to have closed with gains, up 0.08%. IndusInd Bank was the worst performer, down 5.7%, followed by Tata Steel, Bajaj Finance, and Bajaj Finserv. Bank Nifty fell 3.35% and the Nifty PSU Bank index tanked by more than 5%. India VIX was 6.45% on the closing bell at 24.27.
“Indian equity benchmarks opened in red following weak trade in Asian market peers as global sell-off triggered by aggressive US Fed tightening and China covid fears. During the afternoon session markets failed to erase losses and traded at days low as sentiments were fragile as India's crude oil import bill nearly doubled to $119 billion in the fiscal year that ended on March 31, as energy prices soared globally following the return of demand and war in Ukraine. Additional pressure came in as private report cut India's 2022-23 economic growth forecast by 70 basis points to 7 percent, citing slowing global growth due to high commodity prices, and weak local demand because of energy price hikes, inflationary pressures and a struggling labour market.”
~Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers
Sensex tanked 1158 points or 2.14% on Thursday to end at 52,930 while the NSE Nifty 50 fell 359 points or 2.22% to settle at 15,808. Bank Nifty nosedived 3.3%.
“Short-term movements in the markets could be volatile but we believe that that all Indian fundamentals in the long term are very bullish and due to this uncertainty, Indian economy will have no long-term impact. Most of the variables which we watch out for India continue to work in favour of country and we do not see any major dent in the economic recovery whether it is this year or in the next few years. Currently, we should wait and watch the situation and gradually accumulate fundamentally strong scrips which we are getting at good discounted prices.”
~Mohit Nigam, Head – PMS, Hem Securities
“The benchmark Nifty 50 is trading around its crucial levels of 15700-15800. We believe the index can bounce back from these levels and if somehow it breaks these levels, next immediate range will be 15000-15200. The immediate resistance for Nifty is 16200-16500.”
~Mohit Nigam, Head – PMS, Hem Securities
“Benchmark indices are extremely volatile today. The key triggers for today’s fall can be attributed to weak US inflation data which was released yesterday. Moreover, investor sentiments weakened after speculations that RBI may increase inflation projections for current fiscal year and can further hike interest rates in June meeting. Continuous selling from FII’s is creating additional pressure on benchmark indices.”
~Mohit Nigam, Head – PMS, Hem Securities
Wipro and TCS were the only two Sensex stocks that were trading with gains on Thursday ahead of the closing bell.
Staffing company FirstMeridian Business Services has filed draft IPO (Initial Public Offer) papers with capital markets regulator SEBI. The company is looking to raise Rs 800 crore through the issue which is a mix of fresh issue of equity shares and an Offer For Sale (OFS) by existing shareholders of the company. Shares of FirstMeridian Business Services will list on the BSE and National Stock Exchange (NSE). FirstMeridian Business Services was incorporated in 2018.
Dalal Street was blood-red on Thursday as benchmark indices along with broader markets tanked. Sensex and Nifty were in a continuous downward march since the opening bell. India VIX was above 24 levels, soaring 7%.
Bank Nifty was down 3.42% on Thursday with an hour left before the closing bell. The banking gauge was holding just above 33,500.
Life Insurance Corporation of India (LIC) IPO share allotment will be finalised on Thursday, 12 May, after the Rs 21,000-cr public offer received 2.95 times subscription. LIC shares were offered to investors through the IPO in a fixed price band of Rs 902-949 per equity share. In the grey market on Wednesday, LIC shares were seen trading at a discount of Rs 20, at Rs 929 apiece from the upper end of price band, according to people who deal in unlisted shares of companies. The stock is likely to list on BSE and NSE on 17 May 2022. Read full story
The consolidation phase shall continue for a few more months depending to a large extent on how inflation plays out globally. Thus this phase can be anytime from 3 more months to 3 more quarters from hereon. During this phase we expect the benchmark indices to be range-bound within 15-20% of the lifetime highs observed a few months back. Fresh highs will be seen at the end of this consolidation phase. Sushant Bhansali, CEO, Ambit Asset Management
The pressure of increased inflation on corporate earnings is quite visible since the last 2 quarters and is expected to continue for another 1-2 quarters. As a result, earnings are getting downgraded more than being upgraded by markets. The mix of earnings downgrade along with a reversal of the interest rate cycle is increasing volatility in the markets. We believe that we are in the consolidation phase after the big bull run in the last two years, a much-needed breather. Profit booking alongside revisions in asset allocation will drag the markets down while fresh flows will push the markets up during this phase. Sushant Bhansali, CEO, Ambit Asset Management
“Undoubtedly, the biggest negative catalyst continues to be Inflation all over global economics. The latest U.S consumer price index (CPI) data released for April rose at an annual rate of 8.3% – down from March's 8.5% pace to mark the first drop in inflation in eight months but still concerning signs. The anxiety at stock markets across globe is on backdrop Federal Reserve’s next strategy on interest rates and other monetary policy. The concern is that aggressive action to tame inflation might cause the economy to tip into recession. FII’s have remained net seller’s FY Till Date FII sold worth -64,318 Cr and on counter trade DII have bought +48,669 Cr. However significant decline in Chinese Covid cases and US Bond trading below 3% may give some sort of relief to global equities which can bring in short covering. Technically, Nifty (15842) is trying to defend and hold 15800 physiological mark with logical support near 15697 levels. Any short-covering in markets and close above 16000 mark in nifty can bounce back to 16600 levels,” said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.
Only four Sensex constituents were trading with gains on Thursday afternoon and three of these were HCL Technologies, TCS, and Wipro. While headline indices were deep in red, Nifty IT was down 0.66%.
Bank Nifty was down 2.9% on Thursday as bears continued to wreak havoc on Dalal Street. Punjab Nationla Bank was down 11% as the worst-performer, followed by IDFC First Bank, and IndusInd Bank.
BSE Sensex and Nifty 50 were trading 2 per cent down on Thursday, a day weekly F&O expiry. So far in the trade, the 30-share index tumbled over 2 per cent to 52,994.75, while NSE Nifty 50 tanked to a day’s low of 15824.40, tumbling more than two per cent. Amid bearish sentiment, Nestle India and Wipro stocks have fallen to fresh 52-week lows on S&P BSE Sensex. Nestle India shares fell to a new low of Rs 16,180, surpassing its previous low of Rs 16,245 apiece. Wipro shares hit a fresh low of Rs 462.15 apiece, crossing the previous 52-week low of Rs 462.30 apiece. While no stock hit a new 52-week high on the index. Read full story
“On the downside, 15700 will act as a support level if it will break this level then, 15500 will be the next support. While on the upside Rs 16400 will act as a resistance level above this, we can expect a run-up towards 16800 levels,” said Akhilesh Jat, Analyst at CapitalVia Global Research.
“Nifty has been trending lower for the last few weeks and making lower tops and lower bottoms in the process. And Nifty has been moving lower after the recent breakdown from 16824-17415 trading range. While we remain open to pullback rallies in the very near term, we expect the downtrend to continue. Our short term bearish view would turn bullish only if the Nifty manages to take out the highs of 17133. Therefore recommend a go slow approach on fresh longs till we see signs of sustainable strength.”
~ HDFC Securities.
Sensex is in a free-fall on Thursday, falling more than 1,000 points and giving up 53,000. Nifty 50 moved below 15,900 and could be headed towards 15,500, according to technical analysts.
At the higher end of the price band, Delhivery IPO is priced at Mcap/ Sales of 5.5 times FY22 annualized revenues. This is cheaper compared to TCI Express (6.16 times) but costlier than Blue Dart Express (3.63 times), VRL Logistics (2.05 times) and Mahindra Logistics (0.83 times). Notably, the other companies are profitable and also have higher return ratio as compared to Delhivery.
~ Sushruth Sunder, CFA, Research Lead at INDmoney
HCL Technologies was up 0.34% on Thursday morning, while TCS was up 0.31% as the only two Sensex stocks that were trading with gains.
India VIX, the volatility index, skyrocketed on Thursday, rising 8.6% to breach 24 levels.
Rupee opened today at 77.48 and was immediately sold off taking it lower to 77.59. RBI may be present slowing down the depreciation of Rupee. The US core inflation came higher making the case for rate hikes in US in next two meetings @ 50 BPS each. The range for the day is 77.30 to 77.70 with all dips on the pair to be bought. Exporters may keep a stop loss of 77.25 and hold to their dollars while importers need to keep buying all dips as all Asian currencies as well as European currencies are down against dollar. The dollar index is at 104.03 while Brent is still above $ 106 per barrel.
~ Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors
NSE Nifty 50 index has now entered oversold territory amid negative global developments and unscheduled rate hike announcement by RBI, but now a technical pullback could be on the cards, said analysts at ICICI Direct. “The past four week’s corrective phase hauled the weekly stochastic oscillator in extreme oversold territory, indicating an impending pullback,” ICICI Direct said. The brokerage firm earlier had a target of 18100 for Nifty 50. The index after hitting the same reversed lower tracking a host of negative global developments. ICICI Direct now expects the index to respect 15600 support levels and move higher in the coming months to touch 17100.
Swastika Investmart has completed the merger of its subsidiary company Swastika Commodity Pvt Ltd earlier to engage in the business of commodity and derivatives. Commenting on this development, Sunil Nyati, Managing Director, Swastika Investmart Ltd. said that “As of 31 March 2021, the gross revenue of Swastika Investmart Ltd. was Rs. 6158.54 Lakhs. This merger will contribute to the revenue of Swastika Investmart Limited (Standalone) by 15% tentatively. Both Companies’ business activities are similar in nature and complement each other, and to achieve inter-alia economies of scale and efficiency and to reduce multiplicity of costs, the merger of the Company is being undertaken.” Swastika Investmart shares were trading at Rs 192 on BSE, down 2.22% intraday.
HDFC Bank, Reliance Industries, ICICI Bank, and HDFC were down deep in red pulling the headline indices lower.
“Despite the drama staged by bulls, the bearish continuation pattern discussed yesterday remained intact which should force yet another leg down today. However, the hammer formed in daily chart suggests that the entry into the much awaited 16000-15800 band may not culminate in a panic driven long liquidation spree, with low probability attached to a breach of March low of 15671. Upside reversal marker may be kept at 16125, but the proximity of 16250 and 16400 barriers call for more consolidation before an upside break,” said Anand James – Chief Market Strategist at Geojit Financial Services.
“Overall down 500 Points from Bearish Initiation at 16,300. Our next target at 15,500,” said Rahul Sharma, Director & Head – Research, JM Financial.
“On 11th May’22, USDINR made a gap down opening at 77.20 levels from its previous closing of 77.33 levels. Thereafter it traded in a range-bound manner with a slight bearish bias towards 77.15 levels. In the upcoming session, USDINR is likely to trade in a range-bound manner between 76.80 to 77.50 levels. Global equities are trading in red which is affecting local equities as well. Continuous outflows have kept the local unit under pressure. However, RBI is suspected to have intervened in the currency markets via exchange and offshore non-deliverable forwards. This is evident from the decreasing FX reserves which are currently at $597 billion.”
~Heena Naik- Research Analyst – Currency, Angel One
“Inflation continues to be a major headwind for markets. Consumer inflation in the US in April coming at 8.3% reinforces market's concern about aggressive rate hikes by the Fed and the possibility of a US recession in 2023. With dollar index at 104 and expected to strengthen further FIIs are likely to continue selling till Indian valuation becomes attractive. Even though DII buying is more than FII selling now, that is not enough to lift sentiments in the market since the macro headwinds are strong. Market's preference for value over growth is reflected in the strength of high quality banking stocks which are even now at buyable valuations.”
~ V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Nifty range 15800-16200
BankNifty range 33500-35000
~ Sumeet Bagadia, Choice Broking
Sensex opened with losses on Thursday,, falling more than 600 points. Nifty 50 gave up 16000. Bank Nifty was down 1.3%.
Sensex was down in the red on Thursday morning's pre-open session. Nifty was below 16000.
In the previous seven trading sessions, the Nifty has fallen by 6.5 percent. Even attitudes were shaky, as foreign investors dumped $1.82 billion in Indian shares so far this month. 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 16,500 respectively. Immediate support and resistance for Bank Nifty are 34000 and 35,000 respectively.
~ Mohit Nigam, Head – PMS, Hem Securities
Petrol prices have now been left untouched for more than a month now (36 days) by oil marketing companies (OMC). Prices have been steady since April 6 after OMCs hiked prices by Rs 10 per litre through 14 price hikes across major cities that started on March 22. Petrol in the National Capital of Delhi is currently priced at Rs 105.41 per litre, after the last hike of 80 paise nearly a month ago. Diesel in the city is priced at Rs 96.67. In Mumbai, a litre of petrol and diesel cost Rs 120.51 and Rs 104.77, respectively. 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 prices and foreign exchange rates.
Nifty 50 has been trending lower for the last few weeks and making lower tops and lower bottoms in the process. And Nifty has been moving lower after the recent breakdown from 16,824-17,415 trading range. While we remain open to pullback rallies in the very near term, we expect the downtrend to continue. Our short term bearish view would turn bullish only if the Nifty manages to take out the highs of 17,133. Therefore recommend a go-slow approach on fresh longs till we see signs of sustainable strength.
BSE Sensex and Nifty 50 were staring at a weak start on Thursday, a day of weekly F&O expiry, as suggested by early trends on SGX Nifty. Nifty futures were ruling 147 points or 0.9 per cent down at 16020.50 on Singaporean Exchange. In the previous session, S&P BSE Sensex shed 276 points or 0.51% to close at 54088 while NSE Nifty 50 index fell 72.95 points to close 0.45% lower at 16,167. Read full story
“The short term trend of Nifty continues to be negative. Wednesday's sharp upside recovery could some bring hopes for bulls to make a comeback. But, the recent display of lack of strength to sustain the highs could mean a presence of strong resistance around 16250-16300 levels for another round of sell on rise opportunity. Immediate support is placed at 16K levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
SGX Nifty was trading with losses on Thursday morning ahead of the futures & options weekly expiry session.
Life Insurance Corporation of India (LIC) IPO share allotment will be finalised on Thursday, 12 May, after the Rs 21,000-cr public offer received 2.95 times subscription. LIC shares were offered to investors through the IPO in a fixed price band of Rs 902-949 per equity share. In the grey market on Wednesday, LIC shares were seen trading at a discount of Rs 20, at Rs 929 apiece from the upper end of price band, according to people who deal in unlisted shares of companies. The stock is likely to list on BSE and NSE on 17 May 2022.