Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic indices BSE Sensex and NSE Nifty closed with sharp cuts on Friday. Nifty ended at 17,412, down 1%, while Sensex settled at 59,135, lower by more than 600 points. Bank Nifty closed at 40,485.45, down 1.87%. The top losers on the NSE Nifty 50 index are Adani Enterprises, IndusInd Bank, HDFC Bank, HDFC and ICICI Bank. The fall in banking stocks came amid weak global cues as Wall Street tumbled overnight, led by a rout in banking stocks caused by the 60% crash in Silicon Valley Bank’s shares.
“Investors remain cautious in investing in equity while stock markets remain volatile in February 2023. Further, we have seen that investors are basically holding on investing a lump sum in equities and looking for markets to stabilise and then take a call on the Indian equity market.”
– Lallit Tripathi, Chairman & Managing Director, Vedant Asset
“The global market's cautious attitude towards the probability of a sharper rate hike was exacerbated by further negative signs from the US market. Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, which will have a significant impact on the upcoming Fed meeting. However, higher-than-expected jobless claims in the US that came in yesterday helped alleviate some concerns about the Fed becoming stricter.”
– Vinod Nair, Head of Research at Geojit Financial Services.
The top losers on the NSE Nifty 50 index are Adani Enterprises
Domestic indices BSE Sensex and NSE Nifty closed with sharp cuts on Friday. Nifty ended at 17,412, down 1% while Sensex settled at 59,135, lower by more than 600 points. Bank Nifty closed at 40,485.45, down 1.87%.
“Indian equities have underperformed relative to Emerging Markets this year after the sharp outperformance seen in the last year. This has brought down India Premium valuations to Emerging markets closer to Long term averages. Absolute valuations too have corrected. However, global inflation remains above the target zones of most central banks. We therefore, expect central banks to keep interest rates high for a period of time until they are comfortable with inflation dynamics.”
– Shibani Sircar Kurian, Senior EVP & Head- Equity Research, Kotak AMC
“The Nifty Index fell by 1.08% last week, while the Sensex fell by about 1.13%. While the BSE SmallCap Index increased by 0.44%, the BSE Midcap Index only lost 0.09%. Indian equity markets continued to be concerned due to the slowdown, increased interest rates, and valuation, as well as an upward trend in US inflation and a negative trend in India. The remarks of Fed Chairman Powell, who suggested that the Fed may need to raise interest rates more than initially anticipated, had an effect on the mood of the world markets.”
– Shrikant Chouhan, Head of Equity research (Retail), Kotak Securities
Thermax and Fortescue Future Industries (FFI), an Australia-based green energy
and green technology company, have signed a Memorandum of Understanding (MoU) to explore green hydrogen projects – including new manufacturing facilities – in India. Thermax shares rose 2.8% intraday, to hit a day's high of Rs 2,243.9.
“The market may stay volatile in the lead-up to US job data released today and US CPI figures released next week,” Santosh Meena said, adding, “If block deals aren't included, FIIs are still in a selling mode, but their short positions in the index futures market have once more increased to 80%. Despite being oversold, the market is not experiencing any substantial short-covering rallies in absence of any positive trigger.”
After tanking in trade on Friday, domestic indices NSE Nifty and BSE Sensex attempted to stage a recovery. Bulls sought to defend Nifty's 17,400 level, not letting it decisively breach the critical support level of 17,350. Sensex traded 250 points above the day's low of 58,885.
“Interweek support for Bank Nifty seen at 40313 mark. Please note, the biggest support for Bank Nifty is placed at 40313 mark. Only a close below 40313, there is valid confirmation of more bearishness which could lead Bank Nifty down towards its biggest intermonth support at 39600 mark. Also note Bank Nifty’s 200-DMA is placed at 39499 mark.”
– Prashanth Tapse, Research Analyst, Sr VP Research, Mehta Equities
The Bank of Japan (BOJ) maintained ultra-low interest rates and held off making changes to its controversial bond yield control policy, leaving options open ahead of a leadership transition in April.
“Nifty witnessed selling pressure at below 17,500 support level. It is trading below the 200-day moving average and has breached the critical support level of 17,430. The next important support level is now 17,350; below this level, the 17,000 field will be open in the short term. On the upper side, 17,600/17,750 are the resistance levels.”
– Parth Nyati, Founder, Tradingo
Stock investors' wealth eroded by more than Rs 2.67 lakh crore in early trade on Friday as the markets witnessed a sell-off amid weak global trends. The market capitalisation of BSE-listed companies, which is also an indicator of the wealth of investors, tumbled due to a largely negative market.
“Gold prices snapped a 5-day losing streak in the last session after a surprise weak Jobless data print dragged the Dollar index lower from 3 months high which lifted bullion prices higher. Gold price is under pressure for the past month due to a possible hawkish stance by the Fed chairman in the next Fed meeting has dented its appeal.”
– Deveya Gaglani, Research Analyst – Commodities, Axis Securities
Nifty IT tanked more than 1%, with Coforge, LTIMindtree, L&T Technology Services and Mphasis dragging the index. Coforge is the top loser, falling 2.71% to trade at Rs 4,140.
Nifty PSU Bank drags, losing more than 2% in trade on Friday. Bank of Baroda, PNB, Union Bank, Canara Bank are the top laggards, tanking up to 3.5%.
“Having stretched to the vicinity of the lower band of the 81.75-82.27 region, a pull back towards the upper band is expected today, consistent with our sideways view. But, a closeabove 82.04 could fuel upsides aiming 82.4 or even 83 again.”
– Anand James, Chief Market Strategist, Geojit Financial Services
“Our stance yesterday was to expect 17,480/50 and the turn lower evolved even before 17,842 was tested, highlighting the underlying weakness. With a good deal of this move unfolding yesterday, the play today is to hunt for reversal chances. Ability to float above 17,530 would be an early sign towards the same, but consistent trades below 17,450 could call for 17,280-17,000.”
– Anand James – Chief Market Strategist at Geojit Financial Services.
Banking stocks index Bank Nifty tanked 1.9% in trade on Friday. The index followed cues from Wall Street's banking shares, dropping sharply upon opening. HDFC Bank, SBI, Bank of Baroda and PNB are the top losers, crashing up to 2.5%.
The shares of US-based Silicon Valley Bank – a lender of choice to startups and tech firms – sank 60% on Thursday, as it launched a $1.75 billion capital raise to make up for $1.8 billion loss from a forced sale of its securities portfolio.
Tata Motors, Britannia Industries, Bharti Airtel, Bajaj Auto
Indian equity indices BSE Sensex and NSE Nifty opened with deep cuts on Friday. Nifty gave up the 17,400 level, sinking over 1.1% points. Sensex crashed by over 680 points to 59,118. Bank Nifty led the fall, declining 1.58%.
“Markets are likely to drift lower in early trades Friday and could take further plunge on the back of weak global cues. Markets are currently pricing in a 78% probability of a 50 basis points (bps) rate hike by the US Fed in its next meeting, reigniting the recession fears. The focus would also be on the US jobs report which is likely to trickle in late in the evening today. Economists are expecting the U.S. economy to have added 225,000 jobs, which would be down from January’s 517,000. However, a retreating US Dollar and the 2-year U.S. Treasury yield too slipping to 4.809% and the yield on the benchmark 10-year Treasury was seen dipping to the 3.88% level can provide some solace to markets.”
– Prashanth Tapse, Senior VP (Research), Mehta Equities
“US President Joe Biden on Thursday unveiled plans for government spending and higher taxes on the wealthy. He highlighted plans to cut U.S. deficits nearly $3 trillion over 10 years by raising taxes on those earning more than $400,000 a year. The president seeks to fund higher spending and narrowing the deficit by imposing a 25 percent minimum tax on billionaires, nearly doubling the capital gains tax from 20 percent and quadruple a 1 percent stock buyback tax.”
– Deepak Jasani, Head of Retail Research, HDFC Securities
“The markets are likely to open gap down; SGX Nifty trading down by 165 points compared to previous closing. Asian Markets are trading weak; Nikkei Index is trading down by 1.23% while Hang Seng is down by 2.27%.”
– Rohan Shah, Head Technical Analyst, Stoxbox
Treasury yields dropped on signs that the Federal Reserve's restrictive policy is beginning to work as intended. Treasury yields eased in the wake of the jobless claims data. Benchmark 10-year notes last rose in price to yield 3.9169%, from 3.976% while the 30-year bond last rose to yield 3.8712%, from 3.877%.
Stocks in Asia-Pacific followed Wall Street’s cues, traded with deep cuts. Japan’s Nikkei 225 traded lower by 1.12%, and South Korea’s Kospi lost 0.90% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded lower by 0.73% and 0.90%, respectively. Hong Kong’s Hang Seng index dropped 2.16%.
SVB Financial Group scrambled on Thursday to reassure its venture capital clients their money was safe after a capital raise led to its stock collapsing 60% and contributed to wiping out over $80 billion in value from bank shares. The lender on Wednesday launched a $1.75 billion share sale to shore up its balance sheet and navigate declining deposits from startups struggling for funds amid increased spending, according to Reuters.
Wall Street tumbled sharply on Thursday, dragged by bank stocks and jitters ahead of Friday's employment report. All three major indices slid up to 2.05%. The Dow Jones Industrial Average fell 1.66%, the S&P 500 lost 1.85% and the Nasdaq Composite dropped 2.05%.