Informist, Friday, Jan 13, 2023

By Padmini Dhruvaraj and Maitri Seth

MUMBAI – Equity indices snapped a three-day losing streak and closed in the green today on account of a weaker dollar and improved appetite for equities across the globe.

However, Indian markets had a low-key start, as investors remained skittish in the first few hours of trade, but bargain buying in shares of information technology and metals led to a bounce-back in the later half, with the Nifty 50 ending the day up around 0.6%.

"Reports of cooling inflation and rise in November growth failed to enthuse investors, as higher valuations remain a major concern," said Amol Athawale, deputy vice-president of technical research at Kotak Securities. 

Both the benchmark indices opened flat and slipped into the red. However, the Nifty 50's key support levels of 17800 points helped the indices bounce back, said analysts.

Eventually, the Nifty 50 closed at 17956.60 points, up 0.6%, while the 30-stock Sensex ended 0.5% higher at 60261.18 points. This brings the total gains for the indices for the week to a little more than 0.5%. 

The overall gains in today's trade were lower because of continued selling by foreign institutional investors in the cash segment, said market participants.

FIIs have been net sellers for 15 straight sessions in the cash market. However, Vinit Bolinjkar, head of research, Ventura Securities, said: "Investments by FII and DIIs (domestic institutional investors) are tending toward 1:1. The ratio now is probably is 0.9 and 1. Despite FII selling brutally in the last few sessions, the market is only about 5% off their last highs as the DIIs are supporting the market." 

The metals pack was the major gainer today, as the rupee appreciated against the dollar, said analysts. Appreciation of the rupee is beneficial for import-driven sectors like metals. The Nifty Metal index surged 1.3% today with Hindustan Zinc, MOIL, and Tata Steel rising 1.3-2%. 

Apart from metals, a recovery in IT stocks also aided the uptrend in the market. Better-than-expected earnings from Infosys and HCL Technologies lifted shares of these companies nearly 2% and 1% higher, respectively. Overnight gains on Wall Street peers also supported buying in the sector.

"IT results so far came in better than estimates, thus alleviating concerns with regards to growth slowdown on account of macro headwinds," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

Nearly all sectors rose during the session, with only defensive sectors such as pharmaceutical and fast-moving consumer goods closing flat.

The broader market was mixed today as all small-cap indices ended marginally higher while those in the mid-cap space closed largely flat. 

The greenback fell today as investors have been favouring risky assets in the last few sessions despite the US Federal Reserve's reiterations that it will not reduce or hold interest rates in 2023. "The market is not buying Fed's comments to continue rising interest rates in 2023 as data is saying otherwise," said Bolinjkar. 

The US CPI fell to 6.5% in December, down by 60 basis points from November and for the first time in about two-and-a-half years. "According to me at the best, there will be one 25 bps rate hike this year," added Bolinjkar. 

Among specific stocks, L&T Technology Services ended over 5% lower and was the worst-hit among Nifty 500 stocks after Morgan Staley downgraded it to "underweight". The downgrading was attributed to the company's recent agreement to acquire its parent company's Smart World and Communication business. 

Analysts see better days for the indices in the next week owing to optimism ahead of Budget. They also added that stock-specific movements will stir the overall markets due to the ongoing earnings season.

"Overall, the global sentiments are turning positive due to decelerating inflation pressures, which along with better than expected domestic economic data and stable IT results could give support to the markets and help to move higher," said Khemka.

* Among Nifty 50 stocks, 36 rose, 13 fell, and 1 unchanged

* Among Sensex stocks, 19 rose, 10 fell, and 1 unchanged   

* On the BSE, 1,993 stocks rose, 1,487 fell, and 154 were unchanged

* On the NSE, 1,299 stocks rose, 926 fell, and 473 were unchanged

* Nifty PSU Bank: Up 1.35%; Nifty Metal: Up 1.27%; Nifty Consumer Durable: Down 1.03% 

BSE                                           NSE
Sensex: 60261.18, up 303.15 pts 0.51%         Nifty 50: 17956.60, up 98.40 pts 0.55%

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022)           :  Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022)       :  Record Close High: 18812.50 (Dec 1, 2022)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 61167.79 (Jan 2)             :  2023 Closing High: 18197.45 (Jan 2)

2023 Closing Low: 59900.37 (Jan 6)              :  2023 Closing Low: 17859.45 (Jan 6)

2023 High (intraday): 61222.79 (Jan 2)          :  2023 High (intraday): 18215.15 (Jan 2)

2023 Low (intraday): 59669.91 (Jan 6)           :  2023 Low (intraday): 17795.55 (Jan 6)

2022 1st day close: 59183.22 (Jan 3)            :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1)             :  2022 Closing High: 18812.50 (Dec 1) 
2022 Closing Low: 51360.42 (Jun 17)             :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1)          :  2022 High (intraday): 18887.60 (Dec 1)

2022 Low (intraday): 50921.22 (Jun 17)          :  2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)            :  2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)             :  2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)         :  2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)          :  2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)            :  2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)             :  2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)         :  2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)          :  2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)         :  2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)          :  2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))         :  2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)           :  2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         :  2017 High(intraday): 10515.10 (Dec 26)

End

US$1 = 81.33 rupees

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.

Informist, Friday, Jan 13, 2023

By Padmini Dhruvaraj and Maitri Seth

MUMBAI – Equity indices snapped a three-day losing streak and closed in the green today on account of a weaker dollar and improved appetite for equities across the globe.

However, Indian markets had a low-key start, as investors remained skittish in the first few hours of trade, but bargain buying in shares of information technology and metals led to a bounce-back in the later half, with the Nifty 50 ending the day up around 0.6%.

"Reports of cooling inflation and rise in November growth failed to enthuse investors, as higher valuations remain a major concern," said Amol Athawale, deputy vice-president of technical research at Kotak Securities. 

Both the benchmark indices opened flat and slipped into the red. However, the Nifty 50's key support levels of 17800 points helped the indices bounce back, said analysts.

Eventually, the Nifty 50 closed at 17956.60 points, up 0.6%, while the 30-stock Sensex ended 0.5% higher at 60261.18 points. This brings the total gains for the indices for the week to a little more than 0.5%. 

The overall gains in today's trade were lower because of continued selling by foreign institutional investors in the cash segment, said market participants.

FIIs have been net sellers for 15 straight sessions in the cash market. However, Vinit Bolinjkar, head of research, Ventura Securities, said: "Investments by FII and DIIs (domestic institutional investors) are tending toward 1:1. The ratio now is probably is 0.9 and 1. Despite FII selling brutally in the last few sessions, the market is only about 5% off their last highs as the DIIs are supporting the market." 

The metals pack was the major gainer today, as the rupee appreciated against the dollar, said analysts. Appreciation of the rupee is beneficial for import-driven sectors like metals. The Nifty Metal index surged 1.3% today with Hindustan Zinc, MOIL, and Tata Steel rising 1.3-2%. 

Apart from metals, a recovery in IT stocks also aided the uptrend in the market. Better-than-expected earnings from Infosys and HCL Technologies lifted shares of these companies nearly 2% and 1% higher, respectively. Overnight gains on Wall Street peers also supported buying in the sector.

"IT results so far came in better than estimates, thus alleviating concerns with regards to growth slowdown on account of macro headwinds," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

Nearly all sectors rose during the session, with only defensive sectors such as pharmaceutical and fast-moving consumer goods closing flat.

The broader market was mixed today as all small-cap indices ended marginally higher while those in the mid-cap space closed largely flat. 

The greenback fell today as investors have been favouring risky assets in the last few sessions despite the US Federal Reserve's reiterations that it will not reduce or hold interest rates in 2023. "The market is not buying Fed's comments to continue rising interest rates in 2023 as data is saying otherwise," said Bolinjkar. 

The US CPI fell to 6.5% in December, down by 60 basis points from November and for the first time in about two-and-a-half years. "According to me at the best, there will be one 25 bps rate hike this year," added Bolinjkar. 

Among specific stocks, L&T Technology Services ended over 5% lower and was the worst-hit among Nifty 500 stocks after Morgan Staley downgraded it to "underweight". The downgrading was attributed to the company's recent agreement to acquire its parent company's Smart World and Communication business. 

Analysts see better days for the indices in the next week owing to optimism ahead of Budget. They also added that stock-specific movements will stir the overall markets due to the ongoing earnings season.

"Overall, the global sentiments are turning positive due to decelerating inflation pressures, which along with better than expected domestic economic data and stable IT results could give support to the markets and help to move higher," said Khemka.

* Among Nifty 50 stocks, 36 rose, 13 fell, and 1 unchanged

* Among Sensex stocks, 19 rose, 10 fell, and 1 unchanged   

* On the BSE, 1,993 stocks rose, 1,487 fell, and 154 were unchanged

* On the NSE, 1,299 stocks rose, 926 fell, and 473 were unchanged

* Nifty PSU Bank: Up 1.35%; Nifty Metal: Up 1.27%; Nifty Consumer Durable: Down 1.03% 

BSE                                           NSE
Sensex: 60261.18, up 303.15 pts 0.51%         Nifty 50: 17956.60, up 98.40 pts 0.55%

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022)           :  Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022)       :  Record Close High: 18812.50 (Dec 1, 2022)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 61167.79 (Jan 2)             :  2023 Closing High: 18197.45 (Jan 2)

2023 Closing Low: 59900.37 (Jan 6)              :  2023 Closing Low: 17859.45 (Jan 6)

2023 High (intraday): 61222.79 (Jan 2)          :  2023 High (intraday): 18215.15 (Jan 2)

2023 Low (intraday): 59669.91 (Jan 6)           :  2023 Low (intraday): 17795.55 (Jan 6)

2022 1st day close: 59183.22 (Jan 3)            :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1)             :  2022 Closing High: 18812.50 (Dec 1) 
2022 Closing Low: 51360.42 (Jun 17)             :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1)          :  2022 High (intraday): 18887.60 (Dec 1)

2022 Low (intraday): 50921.22 (Jun 17)          :  2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)            :  2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)             :  2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)         :  2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)          :  2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)            :  2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)             :  2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)         :  2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)          :  2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)         :  2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)          :  2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))         :  2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)           :  2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         :  2017 High(intraday): 10515.10 (Dec 26)

End

US$1 = 81.33 rupees

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.