Indian equity benchmarks ended
lower on Tuesday amid weak trends from Asian markets. After making a cautious
start, key gauges soon slipped into red as investors opted to book profits
after the recent sharp rally in the markets. Traders got anxious after
provisional data from the NSE showed foreign institutional investors (FIIs)
sold shares worth Rs 855.80 crore on January 1. Sentiments remained down-beat
with a report by Global Trade Research Initiative (GTRI) stating that India,
despite being one of the few developing countries self-sufficient in food,
still shipped in $33 billion of farm products in 2023 with more than half of it
just accounted for by vegetable oils. Besides, fears over new Covid variant
along with depreciation in Indian rupee against dollar also weighed on market
sentiments. However, markets managed to cut some of their initial losses in
late afternoon deals, as traders took some support with data released by the
Ministry of Finance showing that the gross GST collections in December 2023
were recorded at Rs 164,882 crore, 10.3% higher than Rs 149,507 crore in
December 2022. Some support also came as the government has relaxed norms
governing public expenditure exceeding Rs 500 crore during the fourth quarter
(January-March) of the current financial year. Instructions to this effect were
issued by the finance ministry through an office memorandum last week.
Meanwhile, the Ministry of Finance said a record high of 8.18 crore Income Tax
Returns (ITRs) were filed in assessment year (AY) 2023-24 as of December 31,
2023. The number of ITRs filed marks a 9 percent jump compared to the preceding
assessment year when a total of 7.51 crore ITRs were filed. Finally, the BSE
Sensex fell 379.46 points or 0.53% to 71,892.48 and the CNX Nifty was down by
76.10 points or 0.35% to 21,665.80.
The US markets ended mostly in
red on Tuesday with Nasdaq settling cut of over one and half percent, as some
traders continued to cash in on recent strength, particularly among technology
stocks. A steep drop by shares of Apple also weighed on the tech sector, with
the iPhone maker tumbling by 3.6 percent to its lowest closing level in well
over a month. The slump by Apple comes after Barclays downgraded its rating on
the company's stock to Underweight from Equal Weight. Meanwhile, some traders
remained away from their desks following the New Year's Day holiday, looking
ahead to the release of some key U.S. economic data in the coming days. On the
sectoral front, semiconductor stocks showed a substantial move to the downside
on the day, dragging the Philadelphia Semiconductor Index down by 3.7 percent. The
index continued to give back ground after reaching a record closing high last
Wednesday. Considerable weakness was also visible among airline stocks, as
reflected by the 2.5 percent plunge by the NYSE Arca Airline Index. Software
and computer hardware stocks also saw notable weakness, contributing to the
steep drop by the Nasdaq, while gold stocks also moved lower despite an uptick
by the price of the precious metal. On the other hand, healthcare,
pharmaceutical and biotechnology stocks saw notable strength, helping to limit
the downside for the broader markets.
Crude oil futures ended deeply in
red on Tuesday, giving up the sharp gains seen in early morning after an
Iranian warship entered the Red Sea - heightening tensions and fears of
potential crude-supply disruptions caused by attacks on shipping vessels by
Iran-backed Houthi rebels in Yemen. The U.S. military said on Sunday that its
forces opened fire on Houthi rebels after they attacked a Maersk-operated cargo
ship in the Red Sea, killing several rebels and destroying three boats in an
escalation of the maritime conflict linked to the war in Gaza. Benchmark crude
oil futures for February delivery fell by $1.27 or 1.8 percent to settle at
$70.38 a barrel on the New York Mercantile Exchange. Brent crude for March
delivery dropped by $1.15 or 1.5 percent to settle at $75.89 a barrel on
London's Intercontinental Exchange.
Indian rupee ended lower against
the US dollar on Tuesday, tracking a negative trend in domestic equities and
the strength of the American currency in the overseas market. Traders remained
cautious with provisional data from the NSE showing that foreign institutional
investors (FIIs) sold shares worth Rs 855.80 crore on January 1. Fears over new
Covid variant also dampened sentiments. India logged 197 new cases of the JN.1
variant on Monday, the highest from Kerala, while the total number of active
Covid-19 infections rose to 4,394 with the detection of 636 fresh cases,
according to the INSACOG (Indian SARS-CoV-2 Genomics Consortium) data. On the
global front, dollar was steady on the first trading day of the year as traders
weighed the prospect of steep interest rate cuts from the Federal Reserve in
2024 and looked to economic data this week for clues on the central bank's next
moves. Finally, the rupee ended at 83.32 (Provisional), weaker by 11 paise from
its previous close of 83.21 on Monday.
The FIIs as per Tuesday's data
were net buyers in both equity and debt segments. In equity segment, the gross
buying was of Rs 2427.10 crore against gross selling of Rs 2173.86 crore, while
in the debt segment, the gross purchase was of Rs 169.54 crore with gross sales
of Rs 83.01 crore. Besides, in the hybrid segment, the gross buying was of Rs
10.17 crore against gross selling of Rs 0.45 crore.
The US markets ended mostly lower
on Tuesday as some traders continued to cash in on recent strength,
particularly among technology stocks. Asian markets are trading in red on
Wednesday as market optimism about early and aggressive U.S. interest rate cuts
ebbed ahead of the release of Fed minutes and jobs data. Indian markets ended
lower on Tuesday as investors took home profit after solid gains in 2023, amid
rising Covid-19 cases in the country, and mixed trends in Asia. Today, domestic
indices are likely to get negative start in line with losses in global markets.
Investors will be looking ahead to the Manufacturing PMI data to be released
later in the day for more directional cues.
Some pessimism will be there amid crude oil price fluctuations as
tensions are on a rise with Iran's deployment of a warship in the Red Sea in
response to the US Navy destroying three Houthi boats. However, some respite
may come later in the day amid foreign fund inflows. Foreign institutional
investors (FIIs) bought shares worth Rs 1,602.16 crore on January 2,
provisional data from the NSE showed. Some support may come with a private
report projecting a much lower current account deficit which is likely to print
at 1 per cent for this fiscal, leaving the balance of payment surplus at $39
billion, as the country's external balances are stronger than expected on the
back of strong inflows. Traders may take note of a report by economic think
tank GTRI stating that countries ranging from large economies like Europe, and
the UK to smaller ones, including Oman and Peru, want to have a free trade
agreement with India due to the country's large and rapidly growing market.
Besides, Transactions through the unified payments interface (UPI) platform
crossed the 100 billion-mark in calendar year 2023 to close at around 118
billion, as per the data shared by the National Payments Corporation of India
(NPCI). This marks a 60 percent growth as compared to 74 billion UPI
transactions recorded in 2022. There will be some reaction in sugar sector
stocks after the National Federation of Cooperative Sugar Factories said Indian
mills produced 11.21 million metric tons of sugar between October 1 and
December 31, down 7.6% from the previous year, on lower production in key
producing states Maharashtra and Karnataka. Tea industry stocks will be in
focus as tea production in the country has dipped by 6.18 per cent to 127.12
million kilograms in November 2023. According to Tea Board data, the production
in the year-ago month was 135.49 million kgs. Meanwhile, Adani Group stocks
will be in limelight as all eyes on the Supreme Court's final verdict on the
Adani Group-Hindeburg Research case today.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
21,665.80
|
21,562.44
|
21,762.39
|
BSE
Sensex
|
71,892.48
|
71,559.87
|
72,278.98
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Coal
India
|
283.64
|
391.75
|
385.39
|
396.99
|
Tata
Steel
|
277.64
|
139.50
|
137.50
|
141.05
|
ONGC
|
211.41
|
207.50
|
203.85
|
210.95
|
ICICI
Bank
|
162.64
|
982.20
|
975.75
|
993.15
|
State
Bank of India
|
151.64
|
639.20
|
632.70
|
646.85
|
- Coal India's coal production has
increased by 8.2% to 71.9 MT in December 2023 as against 66.4 MT in December
2022.
- Power Grid Corporation of India
has been declared as successful bidder under TBCB to establish Inter-State
Transmission System for Transmission system for evacuation of power from REZ in
Rajasthan (20GW).
- Adani Ports and Special Economic
Zone has handled 35.65 MMT of cargo volumes in December 2023, resulting in a
strong 42% YoY increase.
- Bharti Airtel's wholly-owned
subsidiary -- Bharti Airtel Services has entered into an agreement for
acquisition of 49,45,239 equity shares representing 97.1% stake in another
Bharti Group company, Beetel Teletech.