Category: Share market

Swayed by global markets, Indian equities opened lower and witnessed a choppy session on Friday, to close the day with a cut of 121 points for Nifty while Sensex fell by 365 points.

India's growth rate is expected to be the highest in the near future, which will make it one of the biggest development opportunities, Finance Secretary T.V. Somanathan was quoted as saying at an event, according to reports.

Nifty overcame early volatility to end higher for the third session on Wednesday. At close, Nifty was up 0.25 per cent or 47.6 points at 19,444, while the Sensex rose 213 points to settle at 65,433.30.

At close, Nifty was up 0.01 per cent or 2.9 points at 19396.5. Volumes on the NSE continued to be on the lower side. Broad market indices gained 0.9-0.95 per cent outperforming the Nifty even as the advance decline ratio remained firm at 1.79:1.

A sharp spike in US bond yields is impacting capital flows to emerging markets like India, says V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Investor sentiment remains subdued due to the high volatility of the global currency market, leading to a high depreciation of EM currencies, which affects the performance of equities, says Vinod Nair, Head of Research at Geojit Financial services.

Benchmark indices ended in the red on Friday on the back of profit taking seen in IT stocks as well as PSU stocks, said S. Ranganathan, Head of Research at LKP Securities.

Further weakness in the market will make valuations reasonable. Long-term investors can utilise market corrections to buy high quality stocks in growth sectors like capital goods, banking, automobiles and construction, he said.

The market would trade cautiously ahead of India’s inflation data to be released on Monday, which is expected to rise in July on account of high vegetable prices. On account of the Independence Day holiday on Tuesday, the market might remain lackluster, he added.

The indication from the Reserve Bank of India (RBI) is that a rate cut can be expected only in Q1 of FY 25 and this will be a headwind for the market, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

ZEEL’s 1Q results exceeded expectations with Revenue/EBITDA coming 6 per cent/29 per cent above abobe estimate, JM Financial Institutional Securities said in a report.

The MPC also decided to make the scheduled banks maintain an incremental cash reserve ratio (I-CRR) of 10 per cent on the increase in their net demand and time liabilities (NDTL) between May 19 and July 28.

According to Pranav Haldea, Managing Director, Prime Database Group, this was on account of profit booking by LIC, mutual funds as also retail and HNI investors with markets reaching all-time highs. Net inflows from DIIs stood at just Rs 3,368 crore during the quarter.

The macro challenge in the decade ahead will be to achieve sustained high, stable and inclusive growth, which has thus far been elusive, S&P Global said in a report titled India's Moment.

Rupee weakness continued further below 82.75 down by another 18 paisa as dollar index rising above 102.50 kept added pressure on rupee fall as risky assets showed sell off, says Jateen Trivedi, VP Research Analyst at LKP Securities.

Morgan Stanley has upgraded India to overweight. India rises from number 6 to number 1 in our process, with relative valuations less extreme than in October, while MS macro, strategist and bottom-up analyst scores reflect MS' Blue Paper thesis on India's Decade.

For the first time in India’s history, a majority of the promoters and executive directors of Nifty50 companies are neither foreign educated nor educated at the elite IITs & IIMs, says a research by Marcellus Investment Managers.

It appears that the momentum of buying has slowed down and FPIs have turned sellers during the last two trading days, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The Dow, up 7 per cent for the year, was flat on Thursday after rallying in recent weeks as cooler-than-expected inflation data has investors more optimistic that a soft landing, or no recession, could be in the cards for the economy, CNN reported.

Globally market participants will be closely watching US Federal Reserve chief Jerome Powell’s comments about the disinflation process in the US and the likely trend in interest rate, says V.K, Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In the last two days, FPIs have sold stocks worth Rs 2,081 crore indicating buying exhaustion, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

For investors, the market is buys on dips with a strict stop loss of 19500, and if the Nifty closes below the indicated level, we can expect more profit booking, says Deven Mehata, Equity Research Analyst, Choice Broking.

FPI flows into India continue unabated in July, too. India is the largest recipient of FPI flows YTD among emerging markets, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The substantial cut in the guidance is majorly attributed to lower-than-expected volume and discretionary spends, delays in decision-making and push-outs in anticipated mega deals, the report said.

Barring the US, India is the most expensive market in the world now, Vijayakumar added. At high valuations, some negative triggers can lead to sharp correction. But in the near-term the party may continue.