Tag: Stocks

Mixed global cues likely to keep market in the green; Oil India, L&T to declare quarterly results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The market is likely to open in the green, carrying on the market trend of Friday, due to mixed global cues, rupee and oil recovery.

The US market ended mixed with Dow Jones and S&P500 ending in the red while the Nasdaq ended with a 13-basis point advantage.

The SGX Nifty is trading at levels around 10,630 as against the Nifty May Future’s Friday close of 10,602, indicating a green opening for the market.

The Asian markets are trading higher, except for the Shanghai index which is trading in the red. Japan’s Nikkei is trading slightly above its flat, but with a positive bias and Korea’s Kospi is trading higher with a 67-basis point advantage. The Shanghai index (SSE composite index), however, is trading in the red as trade war concerns with US and US-North Korea talks are failing to materialise.

The index, however, is slowly recovering after China posted its industrial growth. Profits earned by Chinese industrial firms in April rose at their fastest pace in six months, data from the National Bureau of Statistics (NBS) showed on Sunday, as factories benefited from higher prices and strong demand.

The rupee recovered sharply on Friday, by 56 paise, clocking its biggest single-session rally, surging by a whopping 56 paise to close at 67.78 against the US dollar amid a rise in local equities and cooling global crude oil prices.

The oil prices are cooling down since Thursday. The prices fell on Monday, extending a steep decline in the previous session, as the market eyed an increase in output from the world’s three top crude producers, Russia, the United States and Saudi Arabia.

However, the fuel prices rose for the 15th consecutive day on Monday, which can keep the investors from being extremely bullish in trade.

On the earnings front, L&T, Oil India, Aurobindo Pharma, NTPC, NMDC, Bank of India, among others, will declare their quarterly results.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Market Outlook: Macro-data, rupee to fuel equity market’s trajectory

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fluctuations in the global crude oil prices, along with the rupee’s movement against the US dollar and the upcoming macro-economic data points are expected to chart the course of the key Indian equity indices during the coming week.

According to market observers, other factors such as the ongoing quarterly results season and the direction of foreign fund flows will also impact investor sentiments.

“The fall in crude oil prices… should help to soothe the market and the INR sentiment,” Devendra Nevgi, founder and principal partner, Delta Global Partners, told IANS.

“The global situation on North Korea and the US-China trade spat would also be closely watched.”

Lately, high crude oil prices and geopolitical developments have pushed the domestic fuel prices higher and weakened the Indian rupee.

However, a reversal in the rupee’s trajectory was seen late last week as it strengthened by 23 paise to close at 67.78 against the US dollar. Even domestic fuel prices are expected to fall after the Brent crude cost eased to around $ 76 from $ 78 per barrel last Friday.

Additionally, the direction of foreign fund flows will play a key role to determine the market movement. Last week’s provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 3,227.06 crore.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 2,988.86 crore, or $438.81 million, in the week ended May 25.

“Any negative emerging markets’ sentiment will adversely influence the Indian markets too. The domestic institutional investors have become the new anchors of the Indian markets given its matching net purchases to the net FPI sales,” Nevgi said.

Besides, crucial data points on the country’s ‘Fiscal Deficit’, ‘Index of Eight Core Industries’ and the first quarter GDP growth rate will be keenly watched by the market participants.

“Decelerating macro trends like increase in bond yield, rising inflation, rupee depreciation and gap in current account deficit might impact market performance over the medium term,” said Vinod Nair, head of research at Geojit Financial Services.

“This will lower the premium valuation of India…”

Apart from the macro-data points, companies like L&T, NHPC, NMDC, NTPC, BHEL, BPCL, Coal India, Indian Overseas Bank and Mahindra & Mahindra are expected to announce their fourth quarter earning results in the coming week.

“Given the weakening macro scenario and likely inflationary pressure in coming months due to crude oil prices, direction of market is completely dependent upon the earnings trajectory of companies,” said SMC Investments and Advisors’ chairman and managing director D.K. Aggarwal.

“Going forward, unfavourable developments on the macroeconomic front may dent the confidence of the market participants.”

On technical-charts, any further upsides in NSE Nifty50 which has rallied for two consecutive sessions till last Friday are seen after the immediate resistance level of 10,628 points is crossed.

“Technically, with the Nifty rallying for the second consecutive session on Friday, traders will need to watch if the recent gains can sustain early next week,” said Deepak Jasani, head of retail research for HDFC Securities.

“Further upsides are likely once the immediate resistance of 10,628 points is taken out. Crucial supports to watch for resumption of weakness is at 10,417 points.”

Last week, both the key Indian equity indices, S&P, BSE Sensex and NSE Nifty50, made marginal gains on the back of attractive valuations, as well as a fall in global crude oil prices and appreciation in the Indian rupee.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Market ends week with gains as midcaps outperform

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian market continued gains for the second day. The Sensex added another 262 points to yesterday’s 318-point gain to close at 34,925. The 50-stock index, Nifty, advanced 91 points to 10,605, the best closing figure in the last six sessions.

A correction was seen in the Midcap Index after a few days of underperformance. The leading Index closed with a gain of 360 points at 18,787.

The banking index too shared the cheer seen in overall equity market, with the Nifty Bank Index closing 257 points higher at 26,274.

HDFC Bank was the biggest contributor to the Index gains, well supported by Kotak Mahindra Bank and the IT major Infosys.

On the losing side, ITC, ICICI Bank and TCS were the major names. The gaining momentum continued in the forex market as well.

Rupee recovered 54 paise from the intra-day low of 68.28/$ at the one point of the trade. This could also be seen on the back of fall seen in crude, with NYMEX slipping below $70/bbl for the 1st time in more than 2 weeks.

From the midcap space, Cadila Health and Page Ind saw major gains after reporting strong earnings for the January-March quarter. Page Ind reported profit of Rs 94.2 crore against the poll Rs 79 crore. And, margin came in 350 bps higher at 24.1%. Cadila Health saw profit coming in at Rs 590.8 crore against the poll of Rs 530.3 crore.

And, margin came in at 26.8% against the estimate of 24.3%. But, there’s no end to disappoint ment from PSU companies. IDBI Bank’s loss increased to Rs Rs 5,663 crore against Rs 3,200 crore in the corresponding quarter. And, PFC saw a sharp fall in asset quality, with gross NPA doubling to Rs 26,703 crore from Rs 14,977 crore.

In the futures space, Nifty 10,600 Put option added 19.6 lakh shares with premium slipping 61% while Nifty 10,500 Call premium surged 119% and 10,700 call gained 285%. Nifty May Futures premium stand at 3 points against Thursday’s level of 3.95 points.

On the global front, Asian markets closed slightly lower. South Korea’s Kospi slipped 0.21% to 2,461, with gains in tech heavyweights failing to give the overall index a boost as steelmakers and financials took a hit. Over in Australia, the S&P/ASX 200 shed 0.1% to end at 6,033, with the energy and materials sub-indexes contributing to losses.

On the mainland, the Shanghai composite edged down by 0.4% to finish at 3,142 and the Shenzhen composite declined 0.93% to 1,810. Japan’s Nikkei 225 erased early losses to close higher by 0.1% at 22,451.

Airline stocks were buoyed after the fall in oil prices overnight while the Topix oil and mining sectors slid 0.87% & 2.82% respectively. Despite those slight gains, the Nikkei still finished the week down by more than 2%. Other markets were also lower for the week, with the Shanghai composite declining around 1.2%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Shalimar Paints stock gains 8% as the company looks for investment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shalimar Paints’ stock jumped 8% on Friday after CNBC-TV18 broke the news about the company looking for investors to infuse funds.

Shalimar Paints, India’s oldest paints company, which is looking for an investor, has already initiated the process for the same, said sources.

The company has launched a deal and has appointed EY(formally known as  Ernst & Young) for the process. The promoters are looking for a strategic or financial investor to infuse funds in the company. The firm is keen on foreign strategic investors, the sources suggested.

Cement companies, private equity firms are said to be interested in the deal, a source confirmed and the company has set a deadline of May 30 for receiving proposals from suitors.

“Shalimar Paints is open to offering up to 20% stake to infuse funds in the company,” said a source. However, strategic investors may demand higher stake and even control of the company.

Shalimar Paints spokesperson said, “Shalimar Paints is not on the block.  There is also no part stake sale of the company. But yes, looking for strategic investor to come in. Current Management will continue, and it’s not going to change.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Market remains upbeat, Sensex gains more than 100 points; Hindalco gains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The market, while approaching the second half of the trading hours, was trading near its day’s high with the BSE Sensex at 34,821 points and the NSE Nifty at 10,562 points. Midcap Index was outperforming in the trade.

The IT stocks continued to trade in the green for the second consecutive day. The stocks, however, have lost their top five index gainers spot.

Tata Consultancy Services’ market cap had crossed Rs 7 lakh crore in the early trade.

Vedanta remained to be under pressure amid the anti-Sterlite protests in Tamil Nadu while the oil marketing companies were trading off its lows as the oil prices ease for the second day.

Hindalco, Tata Steel and Idea Cellular continued to be the top index gainers.

The market opened in the green amid rupee and crude recovery with the BSE Sensex opening at 34,744 points and the NSE Nifty at 10,528 points, holding on to its 10,500-mark.

The rupee opened higher at 68.28 against the US dollar and is currently trading at 68.25 while the crude prices eased to $79.25 per barrel earlier in the morning.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow