Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic indices end their first trading week of CY23 in the red. On Friday, Nifty tumbled 132.70 points or 0.75% at 17,859.45 while Sensex settled at 59,900, down 450 points. The bulls did attempt a recovery in the last hour of trade, with Nifty rising almost 70 points from its intraday lows while Sensex regained about 260 points. As the benchmark indices fell, banking sector index Bank Nifty followed suit, down 419 points or 1% at 42,188. The broader markets closed in the red as well, with Nifty Midcap 100 and Nifty Smallcap 100 closing 0.76% and 0.81% lower respectively. Sectorally, all indices were losers, however Nifty IT ended down 2%, Nifty Private Bank closed 1.12% lower and Nifty Media shed 1.45%. JSW Steel, TCS, IndusInd Bank were the top laggards on the Nifty 50 index.
With Nifty 50 trading above its long-term average PE multiple, valuations in India have turned undoubtedly challenging, according to Christopher Wood, global head of equity strategy at Jefferies. “If Asia looks better in aggregate on comparative valuations, there is one market where valuations are undoubtedly challenging. That is GREED & fear’s long-term favourite, India. The Nifty index now trades at 18.8x 12-month forward earnings, compared with a historic 10-year average of 17.2x,” Wood said in his weekly note.
“The Bank Nifty index witnessed strong selling pressure at a higher level throughout the week and the index formed a lower low formation on the daily chart. The index immediate hurdle on the upside is visible at 42,500 and the next support is at 42,000 which if breached will drag the index towards the 41,500 level which will be the last hope for the bulls.”
– Kunal Shah, Senior Technical Analyst, LKP Securities
Domestic indices end their first trading week of CY23 in the red. On Friday, Nifty tumbled 132.70 points or 0.75% at 17,859.45 while Sensex settled at 59,900, down 450 points. The bulls did attempt a recovery in the last hour of trade, with Nifty rising almost 70 points from its intraday lows while Sensex regained about 260 points.
Indices Nifty and Sensex pared losses to rise from intraday lows. Sensex recouped 265 points from day's low to trade at 59,934, down by 425 points or 0.7%, while Nifty regained 73 points to trade at 17,868, down over 100 points from Thursday's close.
After falling to an intraday low of 17,795, Nifty recovered over 50 points to trade at 17,849.
European markets were cautious ahead of key inflation data for the Euro zone, which is expected to show a further slowdown in consumer price increases. In afternoon trade, Contracts for the Euro Stoxx 50 and S&P 500 gained. In Asia-Pacific region, shares in Japan, South Korea and Australia gained, while stocks in China and Hong Kong traded volatile. Overnight in the US, Wall Street's main indexes lost more than 1%, with Nasdaq leading the declines. The Dow Jones Industrial Average fell 1.02%, S&P 500 lost 1.16%, the Nasdaq Composite dropped 1.47%.
The hike in crude oil prices are an additional factor that are causing the markets to take a beating on Friday, since the share markets and crude oil share an inversely proportional relationship. “Oil prices rose around 1% on Friday, extending gains from the previous trading session after data showed lower fuel inventories following a winter storm that hit the United States at the year end,” according to Reuters.
As Nifty and Sensex extend their losses, the safe haven commodity Gold gained in trade. The yellow metal rose 0.12% or 65 rupees to Rs 55,355 per ten grams.
The stronger dollar has contributed to extending the market fall today. “The US dollar rallied by 0.84% yesterday after U.S. ADP non-farm employment data showed more than expected number of jobs were added in the economy. Strong labour market data supported prospects that Fed may keep rates higher for some time.” – ICICI Securities
“The major drag on the market now is the sustained selling by FIIs. FIIs sold for the 10th consecutive day yesterday taking the cumulative selling to Rs 11,400 crore. The underperformers of last year like China and Europe are doing well. Clearly, FII money is chasing lower valuations by selling in overvalued markets like India. This trend will open opportunities for investors. FIIs will sell stocks in which they are sitting on profits, like the banking segment. And this segment continues to be strong. Last year, too, selling by FIIs in banks turned out to be opportunities for domestic investors. Globally, the phenomenon of good economic news becoming bad news for markets might continue in the near term.”
– Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
As the benchmark indices crash and the broader markets fall, banking sector index Bank Nifty follows suit, down 580 points or 1.36% at 42,027. Although the index's day's low was under the 42,000 mark, it trimmed some losses to regain the level. The worst performing constituents of the index are IndusInd Bank (down 2.54%), Kotak Bank (down 2.19%), ICICI Bank (down 1.72%) and Federal Bank (down 1.68%).
As markets tumble, the constituents dragging the Sensex-30 index are ICICI Bank (down 1.9%), TCS (down 2.9%) and Infosys (1.35%). The top losers on the index are TCS, IndusInd Bank and Kotak Bank.
Domestic indices continue their downward fall. Nifty gave up the 17,800 level intraday and continues to trade with sharp cuts while Sensex sheds almost 600 points to trade at 59,761.
“On account of challenging macro-economic environment and muted category growths in the quarter, Dabur's India business is expected to report low to mid-single digit revenue growth. Healthcare portfolio returned to positive growth trajectory, still navigating high bases of the pandemic. F&B business continues to trend at robust levels,” said the company in a regulatory filing. The company's share has dropped 3.63% following the intimation.
The markets continue to face pressure and Sensex shed 370 points to trade under the 60,000 level at 59,980.
After closing under the psychological 18,000 mark on Thursday's session, Nifty 50 continues to decline, breaching the 17,900 level. The index lost 0.6% or 110 points to trade at 17,887.
As Nifty continues its slide, its broader indices are also in the red. The smallcap indices trade with the sharpest cuts, with Nifty Smallcap down 0.5%, Nifty Smallcap 50 and Nifty Smallcap 250 shed 0.46% and 0.45% respectively. The top losers in the Nifty Smallcap 100 index are MMTC, PVR, Apollo Tyre and Polyplex.
The U.S. Department of Commerce ruled that Pokarna’s subsidiary Pokarna Engineered Stone Ltd. did not make sales of subject merchandise at less than normal value and therefore, did not violate anti-dumping regulations. The company's share price has gained 4.57% in trade today, at Rs 441.6.
Bajaj Finserv and Bajaj Finance continue their slide, extending losses for the third day. Bajaj Finserv was down 2.3% while Bajaj Finance lost 1.5% intraday.
After shifting between gains and losses in the early morning trade, Nifty and Sensex have come under significant selling pressure, extending losses for the second session. Nifty fell 0.4% to 17,920, nearing the 17,900 mark while Sensex hovers around the 60,100 level, down 250 points.
IDBI share price jumped 3.5% after the Securities and Exchange Board of India (SEBI) gave its nod for reclassification of the government's shareholding in IDBI Bank as “public” following its stake sale. IDBI Bank, in an exchange filing, attached a letter received from the market regulator that grants permission for reclassification on the condition that the government's voting rights would have to be capped at 15 percent. “The voting rights of GoI shall not exceed 15% of the total voting rights of the bank,” SEBI stated.
Rail Vikas Nigam received an order worth Rs 166 crore from Gujarat Metro Rail Corporation for design, supply, installation, testing and commissioning of ballast-less track from Sarthana to Dream City under first phase of Surat Metro Rail Project. The company's share is up 1.6% at Rs 73.2.
“We continue to see 17900 – 17750 as a sacrosanct support zone and the moment we see positivity from the global peers, we are good to move higher. On the higher side, 18060 followed by 18140 should be seen as intraday hurdles. A move beyond this would bring back good traction in most of the recent beaten counters.”
– Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Sawarnbhumi Vanijya Pvt Ltd sold 1,57,021 shares of Apollo Micro Systems Ltd (APOLLO) at Rs 332.96 per share on Thursday.
Navodya Enterprises sold 2,86,069 shares of Mangalam Cement Ltd (MANGLMCEM) at Rs 295.60 per share.
Jaysukhbhai Thathagar sold 2,12,000 shares of Uma Converter Ltd (UMA) at Rs 33.63 per share.
The Indian rupee opened flat on Friday at 82.55 per dollar, up just 1 paise from the previous close. The local unit is likely to depreciate amid a strong dollar and risk aversion in US markets.
“That the falls failed to find much acceleration after a breach of our turnaround point of 17,960 encourages us to look for recovery runs today. However, as maintained yesterday, 18,150 will need to be overcome before strength returns. Else, expect weakness to persist, aiming 17,670-500.”
– Anand James, Chief Market Strategist, Geojit Financial Services
“Nifty weekly contract has highest open interest at ,for Calls and 18,000 for Puts while monthly contracts have highest open interest at 18,000 for Calls and 17,700 for Puts. Highest new OI addition was seen at 18,000 for Calls and 17300 for Puts in weekly and at 18,000 for Calls and 17,700 for Puts in monthly contracts. FIIs increased their future index long position holdings by 9.40%, increased future index shorts by -12.18% and in index options by -37.61% in Call longs, -31.33% in Call short, -53.88% in Put longs and -38.41% in Put shorts.”
– Anand James, Chief Market Strategist, Geojit Financial Services
Sebi has reclassified the government's holding in IDBI Bank as 'public' following GoI's disinvestment. The government's voting rights cannot exceed 15%, it cannot control the Bank's affairs or exercise any special control. The share price of the bank surged 3.4% to Rs 56.60.
NSE Nifty and BSE Sensex witnessed a flat start after closing in the red yesterday. Nifty dropped 5 points to trade at 17,987, while Sensex was 0.04% down at 60,328. Bank Nifty had a flat start too, down 25 points at 42,584.
“Caution is likely to prevail in early trades as overnight fall in the US markets and subsequent choppy trend in Asian equities could dampen local market sentiment. While worries over falling demand continue to weigh, FIIs too have been deserting local markets over the past week, selling to the tune of Rs 10,676 crores in the last 9 sessions. The only positive catalyst this morning is the sluggish WTI Oil price at $74 a barrel. Technically, for Nifty the immediate aggressive downside risk is seen at 17771 mark and then aggressive targets at 17461 mark. The index will gain strength only if it closes above its high of 18267 mark.”
– Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities
Domestic indices NSE Nifty and BSE Sensex gained mildly during pre-open. Nifty added 8 points to reclaim the 18,000 level while Sensex ended 35 points higher at 60,388.
“A reasonable negative candle was formed on the daily chart with long lower shadow. Technically this pattern indicates downside continuation pattern amidst volatility. The upside recovery of Thursday signal that buying is expected to emerge from near the lower support of around 17750-17800 levels. Negative chart pattern like lower tops and bottoms continued on the daily chart and the Nifty is expected to revisit the recent swing lows of 17775 levels in the short term. Any upside bounce from here could encounter resistance around 18100 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
The National Stock Exchange has added Indiabulls Housing Finance to its F&O ban list for 6 January. According to the NSE, the stocks under the ban are prohibited in the F&O sector because they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for any F&O contracts in those stocks.
Oil prices rebounded on Thursday amid dollar weakness and as investors emerged to buy dips after two sessions of steep losses, though economic concerns capped recovery. Brent crude futures had climbed 75 cents, or 1.0%, to $78.59 a barrel by 0400 GMT, while US West Texas Intermediate crude futures rose 77 cents, or 1.1%, to $73.61 a barrel.
Foreign institutional investors (FII) sold shares worth Rs 1,449.45 crore, while domestic institutional investors (DII) offloaded shares worth Rs 194.09 crore on 5 January, according to the provisional data available on the NSE.
Overnight in the US, stocks fell and the Dow Jones Industrial Average fell 1.02%, the S&P 500 shed 1.16%, and the Nasdaq Composite slipped 1.47%. All three Wall Street averages are on track to notch five weeks of losses.
Markets in the Asia-Pacific traded mostly higher as the US Fed signaled further rate hikes ahead. Japan’s Nikkei 225 rose 0.4% and the Topix inched up 0.2%. South Korea’s Kospi gained 0.75%, and Hong Kong’s Hang Seng index rose 0.6%. In mainland China, the Shanghai Composite was marginally up, while the Shenzhen Component fell 0.1%.