Extending
gains to a second straight session, Indian equity benchmarks closed at a near
two-month high on Monday, amid across-the-board buying, with Capital Goods and
Realty stocks in high demand. The markets started off the week on a strong
note, as traders took encouragement with the National Statistical Office (NSO)
in its first advance estimate indicated that the Indian economy remains on
track to regain its position as the world's fastest-growing major economy and
put the GDP expansion at a tempered 9.2 per cent this fiscal. Traders also
remain energized with SBI Ecowrap report stating that India's real GDP is
expected to grow at around 9.5 per cent in 2021-22 on a year-on-year (YoY). As
per the report, going forward, even if the rising Covid infections could impact
mobility, yet economic activity is not expected to get affected much. Adding
more optimism, foreign investors have turned net buyers in the first week of
January by infusing Rs 3,202 crore in Indian equities, as correction in markets
provided them good buying opportunity. Benchmarks extended gains and were
trading near the day's high in late afternoon deals, as sentiments' were upbeat
after a quarterly employment survey by the labour ministry released that total
employment generated by nine select sectors stood at 3.10 crore in the
July-September 2021 quarter, which is 2 lakh more than that of the April-June
period. Traders also took solace with private report stated that the month of
December 2021 witnessed signs of revival in hiring activity in multiple sectors
beyond IT, such as retail, hospitality and education. Additional support came
as the country began administering the precautionary dose or the booster shot
of coronavirus vaccine to health and frontline workers and immuno-compromised
senior citizens. Finally, the BSE Sensex rose 650.98 points or 1.09% to
60,395.63 and the CNX Nifty was up by 190.60 points or 1.07% to 18,003.30.
The US markets settled mostly
lower on Monday on lingering concerns about the economic impact of the Omicron
variant of the coronavirus and the likelihood the Federal Reserve will raise
interest rates in the near future. Meanwhile, Treasury yields have moved
sharply higher in recent sessions, with the yield on the benchmark ten-year
note reaching its highest levels since January of 2020. The jump in yields
comes amid a more hawkish tone from the Fed, as the minutes of the central bank's
latest meeting indicated it plans to accelerate monetary policy normalization. Further,
traders also looked ahead to key inflation data as well as a Senate hearing on
Fed Chair Jerome Powell's renomination. On the sectorl front, airline stocks
continued to see significant weakness on the day, resulting in a 1.7 percent
drop by the NYSE Arca Airline Index. Considerable weakness also remained
visible among steel stocks, as reflected by the 1.2 percent decline by the NYSE
Arca Steel Index. Retail and telecom stocks also ended the day notably lower,
while gold stocks showed a strong move to the upside amid a modest increase by
the price of the precious metal.
Crude oil futures ended lower on
Monday, extending their previous session's losses, on concerns about the
outlook for energy demand due to the rapid surge in the Omicron variant of the
coronavirus across the globe. Further, a firm dollar amid rising prospects for
a series of interest rate hikes weighed as well on crude oil prices. However,
downside remained capped as supply disruptions in Kazakhstan and Libya offset
worries about rising coronavirus cases. Benchmark crude oil futures for
February delivery fell $0.67 or 0.9 percent to settle at $78.23 a barrel on the
New York Mercantile Exchange. Brent crude for March delivery dropped $0.88 or
1.1 percent to settle at $80.87 a barrel on London's Intercontinental Exchange.
Indian rupee ended higher against
dollar on Monday, owing to dollar sale by exporters and banks. This is the
second consecutive session when the rupee traded higher against dollar. Also,
strong gains in domestic equity markets supported rupee. Sentiments were upbeat
after three months of selling spree, foreign investors have turned net buyers
in the first week of January by infusing Rs 3,202 crore in Indian equities, as
correction in markets provided them good buying opportunity. Traders took
encouragement with NSO in its first advance estimate indicated that the Indian
economy remains on track to regain its position as the world's fastest-growing
major economy and put the GDP expansion at a tempered 9.2 per cent this fiscal.
On the global front, sterling on Monday hit its highest level against the euro
since February 2020 amid rate rise expectations and easing fears about the
adverse impact of the Omicron variant on the economy. Finally, the rupee ended
74.05, stronger by 29 paise from its previous close of 74.34 on Friday.
The FIIs as per Monday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 8170.46 crore against gross selling of Rs 7677.52 crore, while
in the debt segment, the gross purchase was of Rs 242.87 crore with gross sales
of Rs 234.15 crore. Besides, in the hybrid segment, the gross buying was of Rs
12.21 crore against gross selling of Rs 2.92 crore.
The US markets ended mostly lower
on Monday as traders are awaiting the testimony of Jerome Powell for tapering
cues to curb inflation. Asian markets are trading mixed on Tuesday amid
concerns about a tightening US monetary policy to address accelerating
inflation. Indian markets extended gains to a second straight day on Monday to
close at their strongest levels recorded since November 15 amid broad-based
gains. Today, the markets are likely to start session in negative note amid
weak global cues. Traders will be concerned with a private report stating that
sluggish growth momentum in the December quarter and emerging risk from the
third Covid-19 wave may shave 80 basis points (bps) off India's real gross
domestic product (GDP) growth to 9 per cent for FY22. Also, the Indian Banks'
Association (IBA) said the resurgence in the Covid cases caused by the Omicron
variant may create some disruptions to the growth momentum. There will be some
cautiousness as data from the Reserve Bank of India (RBI) showed outward
foreign direct investment by Indian companies fell by over 8 per cent to $2.05
billion in December 2021 in the current fiscal. Rising coronavirus cases may
impact the markets. the Union Health Ministry data showed that India saw a single-day
rise of 1,79,723 coronavirus infections taking the total tally to 3,57,07,727,
including 4,033 cases of the Omicron variant reported across 27 states and
union territories so far. However, some support may come later in the day as a
quarterly employment survey released by the Union labour ministry showed that
total employment in nine sectors rose to 3.10 crore during the July-September
period of 2021, an increase of 2 lakh compared to June quarter last year.
Meanwhile, the Centre has procured 532.86 lakh tonnes of paddy so far in the
ongoing 2021-22 marketing year season, with maximum quantities being purchased
from Punjab. There will be some buzz in the energy stocks with ICRA's report
that the country's renewable energy capacity addition is estimated to touch 16
GW in the next financial year in view of the strong pipeline of 55 GW clean
energy projects. Telecom stocks will be in focus as a Trai report released
showed that telecom service providers' gross revenue declined by 1.36 per cent
on a year-on-year basis to Rs 67,300 crore in the July-September 2021 quarter.
There will be some reaction in insurance industry stocks as data from Irdai
showed the gross direct premium underwritten by non-life insurance companies
grew by 7.3 per cent to Rs 18,953.09 crore in December 2021. The non-life
insurance companies had underwritten gross premium valuing at Rs 17,662.32
crore in December 2020.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,003.30
|
17,915.81
|
18,054.11
|
BSE
Sensex
|
60,395.63
|
60,112.76
|
60,552.94
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
251.93
|
503.60
|
494.96
|
508.56
|
Oil & Natural Gas Corporation
|
164.18
|
159.10
|
157.20
|
160.20
|
ITC
|
158.41
|
223.30
|
219.90
|
225.70
|
State Bank of India
|
158.32
|
504.75
|
496.51
|
508.96
|
Coal India
|
146.55
|
160.65
|
158.14
|
162.09
|
Tata Steel has increased stake in Medica TS Hospital (MTSHPL) (a joint venture company) from 26% to 51% on January 7, 2022.
L&T's construction arm -- L&T construction has secured an order from the esteemed NHSRCL, to design and construct the Mumbai Ahmedabad High Speed Rail Project.
Reliance Industries' wholly owned subsidiary -- RIIHL has entered into an agreement to acquire the entire issued share capital of Columbus Centre Corporation.
Tech Mahindra has partnered with Pyze, a leader in Low-Code Process and Business Value analytics, to provide cutting-edge enterprise modernization solutions.