Javeri Fiscal Services Ltd. Daily Newsletter
NSE Intra-day chart (03 February 2022)
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Market Commentary 04 February 2022
Benchmarks likely to open in green following Asian peers


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)



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Axis Bank






  • 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.
News Analysis