Indian equity benchmarks
experienced widespread buying and ended with gains of over one and half percent
on Monday, in-tandem with a rally in Asian markets along with buying in blue
chip firms Reliance Industries, Tata Motors and Power Grid Corporation. Markets
made a positive start and extended gains as the day progressed as traders took support
with Union Coal Minister Pralhad Joshi's statement that India will have surplus
domestic coal by the financial year 2025-26 that can be used to run the
imported coal-based (ICB) power plants. He asserted that the government is
aiming at boosting domestic production and reducing fossil fuel imports.
Traders took a note of private report stating that the commerce department is
working towards setting up an export advisory panel, comprising senior
industry officials, as part of India's strategy to promote the benefits of the
free-trade agreements (FTAs) that have been signed and help exporters leverage
them better. Sentiments remained up-beat in late afternoon deals, taking
support from Union minister Ajay Bhatt's statement that India is becoming self-reliant
in defence production, and for the first time, leading the top 25 countries in
defence exports. Traders also remained optimistic, as lauding the Pradhan
Mantri Jan Dhan Yojana (PMJDY), Union Minister of Commerce & Industry,
Piyush Goyal said that it has played a pivotal role in empowering the
entrepreneurs to be self-reliant and be a part of the country's growth story
and also emphasized that the PMJDY has propelled the country from being part of
a fragile five to be the fifth largest economy in the world. Traders
overlooked report that the India's foreign exchange reserves saw a dip of $2.79
billion to $616.14 billion for the week ending on January 19. Previously, forex
reserves were up by $1.6 billion, dragging the reserves to $618.94 billion, for
the week ended on January 12, 2024. Finally, the BSE Sensex rose 1240.90 points
or 1.76% to 71,941.57 and the CNX Nifty was up by 385.00 points or 1.80% to
21,737.60.
The US markets ended higher on
Monday with Nasdaq settling over 1 percent. The strength that emerged on
markets have reflected a notable pullback by treasury yields, with yields
giving back ground after moving higher last Friday. Yields fell to new lows and
stocks rallied late in the session as the Treasury Department reduced its
estimates for first quarter borrowing. The Treasury said it expects to borrow
$760 billion in the first quarter; $55 billion lower than forecast in October
due to projections of higher net fiscal flows and a higher beginning of quarter
cash balance. On the sectoral front, Software stocks showed a strong move to
the upside over the course of the session, driving the Dow Jones U.S. Software
Index up by 1.7 percent to a record closing high. Considerable strength also
emerged among gold stocks, as reflected by the 1.5 percent gain posted by the
NYSE Arca Gold Bugs Index. The strength in the sector came amid a modest increase
by the price of gold. Biotechnology, networking and semiconductor stocks also
moved notably higher as the day progressed, contributing to the surge by the
tech-heavy Nasdaq. On the other hand, airline stocks moved sharply lower on the
day, dragging the NYSE Arca Airline Index down by 2.2 percent.
Crude oil futures ended deeply in
red on Monday as concerns about the outlook for demand from China outweighed
the ongoing geopolitical tensions due to the Middle East crisis. A firmer
dollar weighed as well on oil prices. Fears of supply disruptions intensified
following a drone attack on U.S. forces in Jordan over the weekend by
Iran-backed militants, according to the U.S. President Joe Biden. Iran has
denied involvement in the drone attack that killed three U.S. troops and left
dozens injured. The drone attack raised concerns of a more direct confrontation
between the two countries, potentially resulting in regional energy supply
disruptions in the oil-rich Middle East. Benchmark crude oil futures for March
delivery fell $1.23 or 1.6% to settle at $76.88 a barrel on the New York
Mercantile Exchange. Brent crude for March delivery dropped $1.15 or 1.4% to
$82.40 per barrel on London's Intercontinental Exchange.
Indian rupee ended lower on
Monday as rising crude oil prices in international markets and dollar demand
from importers dented investor sentiments. Traders were cautious as report
stated that India's foreign exchange reserves saw a dip of $2.79 billion to
$616.14 billion for the week ending on January 19. Previously, forex reserves
were up by $1.6 billion, dragging the reserves to $618.94 billion, for the week
ended on January 12, 2024. Traders took note of former RBI governor Raghuram
Rajan's statement that India needs to focus more on education and healthcare to
become a developed economy by 2047. On the global front, dollar was steady on
Monday as investors took stock of U.S. economic data ahead of the Federal
Reserve policy meeting this week, while escalating geopolitical tensions in the
Middle East kept a lid on risk sentiment. Finally, the rupee ended at 83.16
(Provisional), weaker by 5 paise from its previous close of 83.11 on Thursday.
The currency touched a high and low of 83.16 and 83.13 respectively.
The FIIs as per Monday's data
were net buyers in both equity and debt segments. In equity segment, the gross buying
was of Rs 43302.19 crore against gross selling of Rs 38232.31 crore, while in
the debt segment, the gross purchase was of Rs 2430.79 crore with gross sales
of Rs 2059.38 crore. Besides, in the hybrid segment, the gross buying was of Rs
39.57 crore against gross selling of Rs 45.38 crore.
The US markets ended higher on
Monday as market participants looked ahead to this week's slew of megacap
earnings, economic data and the Federal Reserve's monetary policy meeting.
Asian markets are trading mixed on Tuesday as investors continue to grapple
with the fallout from Evergrande's liquidation order. Indian markets ended with
strong gains on Monday with the help of rally in shares of Reliance Industries,
L&T, HDFC Bank, Kotak Bank, and Tata Motors amid firm global cues. Today,
markets are likely to extend previous session's rally with optimistic start
tracking strong gains overnight on Wall Street. Also, oil prices fell more than
a dollar a barrel overnight as China's ailing property sector sparked demand
worries, causing traders to reassess the supply risk premium from escalating
tensions in the Middle East. Foreign fund inflows likely to aid sentiments.
Foreign institutional investors (FIIs) turned net buyers in the cash segment
after selling in the previous seven days, buying shares worth Rs 110.01 crore
on January 29, provisional data from the NSE showed. Traders will take
encouragement as the finance ministry said India is expected to become the
third-largest economy in the world with a GDP of $5 trillion in the next three
years and touch $7 trillion by 2030 on the back of continued reforms. Ten years
ago, India was the 10th largest economy in the world, with a GDP of $1.9
trillion at current market prices. Ahead of the Interim Budget, a Finance
Ministry report placed FY25 GDP growth close to 7 per cent despite new
geopolitical risks such as the Red Sea crisis that could impact global
inflation and economic output. However, there may be some cautiousness with
report that wholesale prices of tur dal have increased 5% in the last one month
despite the arrival of new crops and continuing imports from Myanmar as reduced
acreage and decreased production for a second consecutive year impact supply.
Sugar industry stocks will be in focus after sugar trade body AISTA projected
the country's sugar production to be around 31.6 million tonnes for the 2023-24
season (October-September), about four per cent lower than the previous season.
Meanwhile, shares of ITC, NTPC and Bajaj Finance will be in focus as traders
react to their latest quarterly earnings. Meanwhile, Adani Total Gas, Bajaj
Finserv, Dr.Reddy's, Larsen & Toubro, Mahindra & Mahidra Finance, NDTV,
PB Fintech, Strides Pharma, Star Health, VIP Industries and Voltas are few of
the prominent companies scheduled to announce Q3 results on Tuesday. In primary
market, BLS E Services Rs 311 crore IPO opens for subscription today. The offer
period closes on February 01. Company to issue up to 2.30 crore fresh equity
shares in the price band of Rs 129 - Rs 135 per share.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
21,737.60
|
21,523.71
|
21,857.36
|
BSE
Sensex
|
71,941.57
|
71,211.34
|
72,341.02
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ONGC
|
541.28
|
254.85
|
244.31
|
260.16
|
HDFC
Bank
|
328.23
|
1456.80
|
1447.46
|
1464.46
|
Tata
Steel
|
297.45
|
135.05
|
133.90
|
135.80
|
Coal
India
|
271.49
|
413.55
|
398.46
|
421.66
|
Power
Grid
|
261.81
|
253.50
|
247.44
|
257.29
|
- Coal India has bagged 300 MW
capacity of Gujarat Industrial Power Corporation, RE park of 600 MW capacity at
Khavda, grid connected SPV Project.
- Tata Motors has delivered
state-of-the-art Ultra EV air-conditioned electric buses to Jammu Smart City
through TML Smart City Mobility Solutions (J&K), a Tata Motors Group
company.
- Bharti Airtel has launched
fourteen new, next-gen Company owned stores in the city of Pune.
- LIC has received an approval from
RBI to acquire aggregate holding of up to 9.99% of the share capital or voting
rights in HDFC Bank.