Indian equity benchmarks witnessed selling pressure
throughout the session and ended with losses of over a percent on Wednesday as
market participants booked profit ahead of upcoming Union Budget 2023-24 to be
announced on February 1, 2023. Local bourses made negative start and extended
selloff as the day progressed. Sentiments were dampened as exchange data showed
Foreign Institutional Investors (FIIs) were net sellers in the capital market
on Tuesday as they sold shares worth Rs 760.51 crore. Some anxiety spread among
the investors with private report stating that Venture capital (VC) investments
in Indian startups plunged over 38 per cent in 2022 as economic uncertainty and
market volatility affected fundraising and investment activities. Bourses
continued to reel under pressure in late afternoon deals, due to heavy selling
in Utilities, Power and Banking shares amid mixed global trends. Traders
remained concerned as ICRA Ratings said after remaining stable for many weeks,
the cost of borrowing for states inched up by 5 basis points to 7.64 per cent
at Tuesday's auction when 15 of them raised Rs 25,700 crore from the market.
Traders took note of a private report stating that the Centre is likely to cut
its 2023-24 (FY24) fiscal deficit in the range of 5.8-5.9 per cent of the GDP
from 6.4 per cent in FY23. However, the deficit is expected to remain much
larger than the 4-4.5 per cent of the GDP that was usual for decades.
Furthermore, a weak economic growth outlook that stoked recession fears pulled
down global markets. Finally, the BSE Sensex fell 773.69 points or 1.27% to
60,205.06 and the CNX Nifty was down by 226.35 points or 1.25% to 17,891.95.
The US markets ended higher on Thursday following the
release of some upbeat U.S. economic data, including a Commerce Department
report showing U.S. economic activity surged by more than expected in the
fourth quarter of 2022. The report said real gross domestic product shot up by
2.9 percent in the fourth quarter after spiking by 3.2 percent in the third
quarter. Street had expected GDP to jump by 2.6 percent. The stronger than
expected GDP growth reflected increases in private inventory investment,
consumer spending, government spending, and non-residential fixed investment.
Meanwhile, the positive contributions were partly offset by decreases in
residential fixed investment and exports. The Labor Department also released a
report showing initial jobless claims unexpectedly dipped to a nine-month low
in the week ended January 21st. The report said initial jobless claims edged
down to 186,000, a decrease of 6,000 from the previous week's revised level of
192,000. The dip surprised participants, who had expected jobless claims to
rise to 205,000 from the 190,000 originally reported for the previous week.
With the unexpected decrease, jobless claims fell to their lowest level since
hitting 181,000 in the week ended April 23, 2022. On the sectoral front, Steel
stocks moved sharply higher over the course of the session, driving the NYSE
Arca Steel Index up by 3.2 percent to its best closing level in over eleven years.
Substantial strength was also visible among oil stocks, as reflected by the 3.1
percent surge by the NYSE Arca Oil Index. With the increase, the index reached
a record closing high.
Crude oil futures ended higher on Thursday on
expectations that global demand will strengthen as top oil importer China
reopens its economy and on positive U.S. economic data. The Commerce Department
report showed stronger than expected U.S. economic growth in the fourth quarter
of 2022. The report said real gross domestic product shot up by 2.9 percent in
the fourth quarter after spiking by 3.2 percent in the third quarter. Street
had expected GDP to jump by 2.6 percent. China has been easing stringent COVID-19
restrictions this month, with Beijing reopening borders for the first time in
three years. Benchmark crude oil futures for March delivery rose $0.86 or 1.1
percent at $81.01 a barrel on the New York Mercantile Exchange. Brent crude for
March delivery gained $1.35 or 1.6 percent at $87.47 (Provisional) a barrel on
London's Intercontinental Exchange.
Indian rupee appreciated against dollar on Wednesday
despite subdued domestic market sentiments. Investors awaited cues from the
Union Budget due to be unveiled next week and some key economic data to be
released in the coming days. Besides, investors were expecting a balanced
Budget with a focus on job creation, increased spending on infrastructure,
reigning in the deficit, and bringing the economy back on track. On the global
front, dollar ticked up on Wednesday in subdued trading as investors looked towards
the Federal Reserve's policy decision next week, while the euro slipped from
near a nine-month high. Finally, the rupee ended at 81.61 (Provisional),
stronger by 2 paise from its previous close of 81.63 on Tuesday.
The FIIs as per Wednesday's data were net sellers in
equity segment, while net buyers in debt segment. In equity segment, the gross
buying was of Rs 6448.56 crore against gross selling of Rs 6562.84 crore, while
in the debt segment, the gross purchase was of Rs 1094.33 crore against gross
selling of Rs 0.14 crore. Besides, in the hybrid segment, the gross buying was
of Rs 4.00 crore against gross selling of Rs 4.25 crore.
The US markets ended higher on Thursday as traders combed
through the latest batch of corporate earnings and fourth-quarter gross
domestic product that came in above expectations. Asian markets were trading
higher on Friday as Wall Street's major indexes gained after the US economy
grew more than expected. Domestic equity indices ended lower on Wednesday as
traders were indulging in booking profits. Markets were closed on Thursday,
January 26, for Republic Day. Today, markets are likely to make positive start
on frim global cues. Traders may get support as Hamid Rashid. Head, Global
Economic Monitoring at United Nations, has said India is a bright spot in the
world economy currently and is on a strong footing, projected to grow at 6.7
per cent next year, a very high growth rate relative to other G20 member
countries. This is a sustainable growth rate for India. India also has a
significant number of people living in poverty. So this would be a great boost.
If India can sustain this growth rate in the near term, that would be good for
the Sustainable Development Goals, good for poverty reduction globally. Support
may also come in as the President of India said most sectors of the economy
have shaken off the pandemic effect and the nation has been among the fastest-growing
major economies. Traders may take note of RBI Executive Director Ajay Kumar
Choudhary's statement that digital currency will further bolster the digital
economy, make payment system more efficient, reduce cost involved in physical
cash management and also contribute to further financial inclusion. Adani Group's Rs 20,000-crore FPO will open
for subscription today, and will run till January 31.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,891.95
|
17,791.86
|
18,046.31
|
BSE Sensex
|
60,205.06
|
59,891.21
|
60,709.06
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
465.22
|
121.00
|
119.99
|
122.14
|
State Bank of
India
|
256.86
|
568.50
|
558.65
|
587.10
|
Tata Motors
|
229.75
|
418.60
|
415.11
|
424.66
|
Adani Ports &
Special Economic Zone
|
170.85
|
714.55
|
694.74
|
745.64
|
ICICI Bank
|
149.18
|
856.50
|
844.06
|
872.86
|
Titan Company has launched its latest smartwatch, Titan Talk S.
IOC has lined up investments of over Rs 2,200 crore in Tamil Nadu in the next two years towards taking up major grassroots and expansion projects in the state.
Sun Pharmaceutical Industries has launched SEZABY (phenobarbital sodium) in the U.S. for the treatment of neonatal seizures.
Cipla has reported rise of 6.73% in its consolidated net profit at Rs 807.83 crore for Q3FY23 as compared to Rs 756.88 crore for the same quarter in the previous year.