Indian equity benchmarks ended
lower on Tuesday, dragged down by Consumer Durables, Capital Goods and Power
stocks amid mixed moves across global markets. After a positive start, the
markets erased the gains in the initial hours itself and extended the losses as
the day progress, as traders got cautious with report stating 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. Some concern also
came amid a private report stating that foreign Portfolio Investors (FPIs) have
expressed concerns about market regulator Securities and Exchange Board of
India's (Sebi) plan to introduce instant trade settlement in the equity
markets. Selling intensified towards the fag end as investors further slashed
their positions in key stocks ahead of key events such as the interim budget
and the US Fed interest rate decision. Traders overlooked the finance
ministry's statement that 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. Traders also paid no heed
towards Union Minister of Agriculture & Farmers' Welfare and Tribal Affairs,
Arjun Munda's statement that the agriculture sector in the country is making an
important contribution to the economy and livelihood of crores of people. 54.6%
of the country's workforce is engaged in agriculture and allied sectors'
activities. The share of agriculture sector in GDP is 18.6%, while the sown
area is 139.3 million hectares, out of the total geographical area of the
country. Finally, the BSE Sensex fell 801.67 points or 1.11% to 71,139.90 and
the CNX Nifty was down by 215.50 points or 0.99% to 21,522.10.
The US markets ended mostly lower
on Tuesday as traders cashed in on some of the recent strength in the tech
sector. Uncertainty ahead of the Federal Reserve's monetary policy announcement
on Wednesday have also inspired traders to book tech-sector profits. The Fed is
widely expected to leave interest rates unchanged, but the accompanying
statement could have a significant impact on the outlook for rates. Optimism
about a March rate cut has faded recently, with many economists now suggesting
the Fed will wait until May to begin lowering rates. However, the uptick by the
Dow came amid strong gains by financial giants JPMorgan Chase (JPM) and Goldman
Sachs (GS). On the sectoral front, airline stocks saw substantial weakness on
the day, resulting in a 2.6 percent nosedive by the NYSE Arca Airline Index.
JetBlue Airways (JBLU) moved sharply lower after reporting a narrower than
expected fourth quarter loss but forecasting lower revenues and higher costs in
the first quarter. On the economic data front, Labor Department released a
report this morning showing an unexpected increase in job openings in the month
of December. The Labor Department said job openings rose to 9.03 million in
December from an upwardly revised 8.93 million in November. Street had expected
job openings to dip to 8.75 million in December from the 8.79 million
originally reported for the previous month. A separate report released by the
Conference Board showed a continued improvement in U.S. consumer confidence in
the month of January. The Conference Board said its consumer confidence index
jumped to 114.8 in January from a downwardly revised 108.0 in December.
Economists had expected the consumer confidence index to climb to 114.0 from
the 110.7 originally reported for the previous month.
Crude oil futures ended higher on
Tuesday after International Monetary Fund rose its growth forecast for the
global economic in 2024. The global economy is now projected to grow 3.1
percent this year, the same as in 2023 but an upgrade from the 2.9 percent
expansion forecast in October. Meanwhile, supply concerns also persisted as
markets waited for a U.S. response to the deadly attack on American troops in
Jordan. Private report said that Republicans in Congress are pressuring
President Joe Biden to strike back at Iran in retaliation for the drone attack
on Tower 22 in Jordan that killed and wounded U.S. service members. Benchmark
crude oil futures for March delivery rose $1.04 or 1.4% to settle at $77.82 a
barrel on the New York Mercantile Exchange. Brent crude for March delivery
gained $0.47 or 0.6% to $82.87 per barrel on London's Intercontinental
Exchange.
Indian rupee ended higher against
dollar on Tuesday despite muted trend in domestic equities. Traders took
support with finance ministry's statement that the 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. On
the global front, euro edged lower on Tuesday after data showed the euro zone
narrowly avoided a technical recession in the fourth quarter, while the U.S.
dollar edged higher, as traders awaited the Federal Reserve's monetary policy
decision this week. Gross domestic product (GDP) in the 20 countries sharing
the euro was flat in the fourth quarter against the previous three months,
mainly thanks to strong growth in Spain and Portugal and a modest increase in
Italy, while the German economy shrank in the final three months of 2023. Finally,
the rupee ended at 83.11 (Provisional), higher by 5 paise from its previous
close of 83.16 on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 22001.20 crore against gross selling of Rs 26265.60 crore,
while in the debt segment, the gross purchase was of Rs 1784.02 crore with
gross sales of Rs 1945.18 crore. Besides, in the hybrid segment, the gross
buying was of Rs 38.51 crore against gross selling of Rs 35.11 crore.
The US markets ended mostly in
red on Tuesday after strong US labour data, raised doubts on how soon the Fed
could cut rates. Asian markets are trading mostly lower on Wednesday following
overnight weakness on Wall Street. Indian markets ended lower with significant
losses on Tuesday as profit booking in financial, FMCG, pharma, and select IT
stocks weighed on the sentiment. Today, markets are likely to get cautious
start ahead of the key US Fed policy decision later tonight, and the
announcement of Interim Budget Thursday. Foreign fund outflows likely to dent
sentiments. Foreign institutional investors (FIIs) net sold shares worth Rs
1,970.52 crore on January 30, provisional data from the NSE showed. Traders
will be concerned after Asia Securities Industry & Financial Markets
Association (Asifma) has raised concerns about the Securities and Exchange
Board of India (Sebi) proposal to introduce a T+0 settlement cycle. The
industry association of top foreign portfolio investors (FPIs) has stated that
this move could give rise to several issues, including the bifurcation of the
market, liquidity fragmentation, and deterioration of market quality. There
will be some cautiousness with report that as liquidity in the banking system
continues to remain tight, a segment of the bond market is expecting open
market operations (OMO) purchases from the Reserve Bank of India (RBI) in order
to infuse durable liquidity. However, some respite may come later in the day as
the International Monetary Fund (IMF) raised India's growth projection for
2024-25 (FY25) by 20 basis points (bps) to 6.5 per cent in its World Economic
Outlook (WEO) update on Tuesday, citing buoyant domestic spending and improved
global growth prospects. For FY24, the IMF raised India's growth estimate by 40
bps to 6.7 per cent compared to its October report. Traders may take note of
report that the government is considering tweaking production linked incentive
(PLI) schemes for certain sectors including textiles, food processing, and
pharmaceuticals. MSMEs and Hospital industry stocks will be in focus as Crisil
research report that revenue of micro, small, and medium enterprises (MSMEs) in
the hospital segment is expected to grow 8-12 per cent Y-o-Y this financial
year to Rs 4.2-4.9 trillion, driven by growing demand for elective surgeries,
outpatient department care and routine treatments, as well price hikes by
healthcare providers. Investors continue to keep close eye on earnings of many
companies for more directional cues. Meanwhile, Nova Agri Tech will make its
debut today.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
21,522.10
|
21,411.59
|
21,722.84
|
BSE
Sensex
|
71,139.90
|
70,763.01
|
71,829.52
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ONGC
|
514.91
|
249.40
|
244.26
|
258.91
|
ITC
|
435.14
|
438.25
|
432.54
|
448.84
|
Tata
Steel
|
357.04
|
134.75
|
133.60
|
136.80
|
BPCL
|
221.36
|
502.70
|
491.29
|
515.99
|
NTPC
|
209.18
|
316.10
|
312.41
|
321.86
|
- NTPC has reported 7.30% rise in
its consolidated net profit at Rs 5,208.87 crore for Q3FY24 as compared to Rs
4,854.36 crore for the same quarter in the previous year.
- Bajaj Finserv's wholly owned
subsidiary -- Bajaj Finserv Health has acquired 100% stake in Vidal Healthcare
Services.
- GAIL (India) has successfully
concluded a long-term LNG purchase agreement for purchase of around 0.5 MMTPA
LNG from ADNOC Gas.
- Bajaj Finance has received
approval to make investment up to Rs 400 crore in the equity share capital of
Bajaj Financial Securities.