Indian equity
benchmarks took a U-turn after three consecutive days of gains to end in the
red on Thursday, amid profit-booking. Weak global cues also dampened the mood
on Dalal Street. Indices opened on a tepid note and traded lower throughout the
day, as domestic rating agency CRISIL has estimated FY23 real GDP growth at 7.8
per cent as compared with the 8.5 per cent projected in the Economic Survey.
The agency said global growth is expected to slow this year as major economies
see a withdrawal of monetary and fiscal stimulus. It will have a direct bearing
on India's growth prospects as exports have been a key demand driver of
domestic growth during the pandemic. Sentiments remained pessimistic as India's
service sector activity fell in the month of January, as growth was curbed by
the escalation of the pandemic. Moreover, job shedding continued and business
confidence took a hit. As per the survey report, the seasonally adjusted Nikkei
Services Business Activity Index eased to 51.5 in January from 55.5 in
December. Further, the Nikkei India Composite PMI Output Index -- which
measures both manufacturing and services -- also fell to 53.0 in January from
56.4 in December. The key benchmarks extended losses and languished near the
lows of the day in late afternoon session. Selling further crept in as foreign
institutional investors stood as net sellers in the capital market as they
offloaded shares worth Rs 183.60 crore on Wednesday. Traders failed to take
support with data by Centre for Monitoring Indian Economy (CMIE) showing that
India's unemployment rate witnessed a sharp decline to 6.57 per cent in
January, the lowest since March 2021, as the country gradually recovers with
easing of restrictions following a decline in Omicron cases. Market
participants also overlooked Niti Aayog Vice-Chairman Rajiv Kumar asserted that
the Union Budget lays the foundation for the country's long-term growth in the
next 25 years. Kumar said the government is taking all possible measures to
ignite private investments, which will be the best bet to pull the economy out
of the shadows of the coronavirus pandemic. Meanwhile, The data released by the
government has indicated that India has received foreign direct investment
(FDI) inflow of $54.10 billion in April-November period of the current
financial year (FY22). FDI equity inflows during April-November of FY22 was
$39.26 billion. It was $43.85 billion during April-November 2020. Finally, the
BSE Sensex fell 770.31 points or 1.29% to 58,788.02 and the CNX Nifty was down
by 219.80 points or 1.24% to 17,560.20.
The US markets ended deeply in
red on Thursday as disappointing earnings news and weak revenue guidance from
Facebook parent Meta triggered widespread selling. A steep drop by Meta (FB)
weighed on the tech sector, with the Facebook parent plunging nearly 27
percent, and hitting its lowest intraday level in well over a year. Meta reeled
under pressure after the social media giant reported weaker than expected
fourth quarter earnings and provided disappointing revenue guidance for the
current quarter. Several other social media stocks, including Snap and Twitter,
tumbled as well. Not so encouraging earnings updates from several other
companies, including Honeywell (down more than 7 percent) and Spotify (down
nearly 17 percent), also weighed on sentiment. On the economic data, the Labor
Department released a report showing a modest decrease by first-time claims for
US unemployment benefits in the week ended January 29th. The report showed
initial jobless claims dipped to 238,000, a decrease of 23,000 from the
previous week's revised level of 261,000. Street had expected jobless claims to
edge down to 245,000 from the 260,000 originally reported for the previous
week. Meanwhile, the Institute for Supply Management released a separate report
showing a continued slowdown in the pace of growth in US service sector
activity in the month of January. The ISM said its services PMI dipped to 59.9
in January after slumping to 62.3 in December, although a reading above 50
still indicates growth. Street had expected the index to drop to 59.5.
Crude oil futures ended sharply
higher on Thursday as concerns about possible supply disruptions outweighed
OPEC+'s decision to increase crude output in March. Possibility of disruptions
in crude supplies due to cold weather that is expected to hit the Central and
the Northeast parts of the United States contributed as well to the uptick in
oil prices. Geopolitical concerns in Eastern Europe and the Middle East have
raised concerns about supplies. An explosion that rocked an oil production
vessel owned by Nigeria's Shebah Exploration & Production Company is
unlikely to any significantly impact output, as Nigeria has already been
struggling to meet its production quota due to lack of investment. Benchmark
crude oil futures for March delivery surged $2.01 or 2.3 percent to settle at
$90.27 a barrel on the New York Mercantile Exchange. Brent crude for April
delivery rose $1.53 or 1.7 percent to settle at $91 a barrel on London's Intercontinental
Exchange.
Indian rupee ended lower against
dollar, on account of sustained dollar demand from importers and banks.
Sentiments were down-beat as survey by IHS Markit showed India's dominant
services sector growth slowed to six-month low in January as restrictions due
to Omicron wave of Covid-19 cases and surging prices weighed on demand. The IHS
Markit Services Purchasing Managers' Index (PMI) slumped to 51.5 in January
from 55.5 in December. Traders were also worried as domestic rating agency CRISIL
estimated FY23 real GDP growth at 7.8 per cent as compared with the 8.5 per
cent projected in the Economic Survey. On the global front, sterling edged
lower versus the dollar and was flat versus the euro as investors' awaited Bank
of England and European Central bank meetings, while a slump in tech stocks
soured appetite for riskier currencies. Finally, the rupee ended at 74.88
(Provisional), weaker by 5 paise from its previous close of 74.83 on Wednesday.
The FIIs as per Thursday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 6232.37 crore against gross selling of Rs
5629.61 crore, while in the debt segment, the gross purchase was of Rs 299.80
crore with gross sales of Rs 379.05 crore. Besides, in the hybrid segment, the
gross buying was of Rs 25.30 crore against gross selling of Rs 31.20 crore.
The US markets ended lower on
Thursday snapped a four-session winning streak after Facebook-owner Meta
Platforms' dour forecast sent its stock plummeting and halted a nascent
recovery built on upbeat earnings from other big tech. Asian markets are
trading mostly in green on Friday despite a slump on Wall Street overnight
after a dire forecast by Facebook. The China market remained shut for the Lunar
New Year holidays. Indian markets snapped a three-day winning streak to end
sharply lower on Thursday amid mixed global cues and selling in information
technology and realty names. Today, markets are likely to open in green
following Asian peers. Traders will be taking encouragement as CBDT Chairman J
B Mohapatra said direct tax collections are expected to breach the revised
target of Rs 12.50 lakh crore and set an all-time high and 'historic' record by
the end of this financial year in March. Some support will come as economic
think-tank NCAER said the business confidence has remained buoyant in the third
quarter of the current financial year, though the pace of rise was moderated by
a spurt in the number of COVID-19 cases in December 2021. Business sentiments
recovered in the October-December quarter of 2021-22 as compared to those
prevailing in the July-September quarter. Traders may take note of a private
report that the Monetary Policy Committee (MPC) may go for a hike of up to 0.25
per cent in the reverse repo rate at which the RBI absorbs excess liquidity and
leave the repo rate at which it lends, to narrow the policy rate corridor.
Meanwhile, a parliamentary panel has asked the government to explore new and
innovative tools to deal with the issue of financial constrains in the
renewable energy sector, including setting up of green banks and introduction
of renewable finance obligation for financial institutions, among others. Sugar
industry stocks will be in focus as industry body ISMA said the country's sugar
production is estimated to have increased by 5.64 percent to 18.70 million
tonnes during the October-January period of the ongoing marketing year,
2021-22, from over the year-ago period. There will be some reaction in tyre
industry stocks as the All India Tyres Federation sought removal of
anti-dumping duty on tyres and urged the government to lift import restrictions
imposed after the Competition Commission of India's (CCI) order on domestic
tyre manufacturers for indulging in price rigging and cartelisation. Investors
awaited more of quarterly results from India Inc for cues. Besides,
Manyavar-owner Vedant Fashions IPO will open for subscription today. The issue
will remain open for bidding till Tuesday, February 08. It is looking to raise
Rs 3,149 crore from the primary market.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,560.20
|
17,453.85
|
17,723.85
|
BSE
Sensex
|
58,788.02
|
58,442.01
|
59,345.94
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
278.45
|
233.50
|
231.80
|
235.20
|
State Bank of India
|
227.17
|
540.00
|
536.54
|
544.09
|
Tata Motors
|
152.49
|
503.80
|
499.66
|
511.11
|
Oil & Natural Gas Corporation
|
125.29
|
166.20
|
164.39
|
169.64
|
Axis Bank
|
108.02
|
794.30
|
787.60
|
806.45
|
TCS is planning to expand its operations in New Jersey by hiring nearly 1,000 additional employees by the end of 2023 to meet the growing needs of customers to digitally transform their businesses.
Dr. Reddy's Laboratories has entered into a definitive agreement to acquire Nimbus Health GmbH.
GAIL (India) has reported 2-fold jump in its consolidated net profit at Rs 3,800.09 crore for Q3FY22 as compared to Rs 1897.04 crore for Q3FY21.
Coal India's production registered an increase of 6.7 per cent to 64.5 million tonnes in January.