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Global cues, inflation data to drive equity markets’ movements

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Mumbai, Aug 13:Risk emanating out of the growing geo-political tensions between US and North Korea, along with the ongoing domestic quarterly results season is expected to influence equity markets’ movement during the truncated week starting from August 14.

According to market observers, investors will look out for other major factors like macro-economic inflation data points, rupee’s movement and direction of the foreign funds’ flow.

“Markets would closely track the geo-political risks emanating from the US-North Korea tensions. The global risk appetite remains the key for the markets in the short term,” Devendra Nevgi, Chief Executive of Zyfin Advisors, told IANS.

“Domestic institutional investors continue to support the markets taking advantage of the recent dip. In other words, the market would be driven by global risk, support from domestic flows and earnings next week.”

Apart from global cues, investors’ risk-taking appetite is expected to be hampered by the subdued industrial output figures which were released after market hours on last Friday.

“The IIP figures were not exciting and the government’s mid-year economic survey cited new risks which can hinder economic growth,” Nevgi said.

Besides global cues, the ongoing quarterly earning results from the likes of Coal India, Future Consumer, Tata Power, Hindustan Zinc and LIC Housing Finance will player a major role in the general market dynamics.

“Currently, domestic confidence has fallen given Sebi’s action over shell companies which impacts the near-term liquidity,” said Vinod Nair, Head of Research, Geojit Financial Services.

“However, market will be more concerned on any slowdown in business growth which will lead to downgrade in earnings’ forecast for the next 1 to 2 quarters.”

Apart from quarterly results, macro-economic inflation gauges — Consumer Price Index and Wholesale Price Index (WPI) — and the country’s trade deficit data will be keenly watched by investors.

“Going ahead market will also take cues from CPI and WPI inflation data. Any escalation of geopolitical tensions will have bearing on the market,” Nair said.

On technical levels, the NSE Nifty’s underlying trend has turned bearish with further downsides expected.

“Technically, with the Nifty correcting sharply this week and breaking the recent supports in the process, the underlying short term trend has turned down,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.

“Further downsides are likely early next week once the immediate supports of 9,668 points are broken. Pullback rallies could find resistance at 9,913 points.”

Last week, key equity indices — the Sensex and the Nifty50 — dived into the negative territory for the first time after five consecutive weeks of gains on the back of negative global cues, subdued quarterly earnings and foreign fund outflows.

Consequently, the 30-scrip Sensitive Index (Sensex) of the BSE declined by over 1,100 points or 3.40 per cent to close at 31,213.59 points.

Similarly, the Nifty50 of the National Stock Exchange (NSE) closed at 9,710.80 points, down 355 points or 3.53 per cent.

IANS

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Weak global cues drag Sensex 219 points, Nifty below 10,800-mark

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SENSEX NIFTY MARKET

Mumbai, June 25: Weak global cues dragged the Sensex 219 points lower at 35,470 and Nifty below 10,800-mark on Monday.

Earlier, In the afternoon session, Decline in international markets and rising global trade tensions subdued the key Indian equity indices.

According to analysts, heavy selling pressure was witnessed in the auto, oil and gas and banking stocks.

At 12.46 p.m., the wider Nifty50 of the National Stock Exchange (NSE) traded at 10,799.80 points, down 22.05 points or 0.20 per cent from the previous close of 10,821.85 points.

Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which had opened at 35,783.75 points, traded at 35,607.21 points (12.48 p.m.) — down 82.39 points or 0.23 per cent from its previous session’s close of 35,689.60 points.

The Sensex has so far touched an intra-day high of 35,806.97 points and a low of 35,584.24. The BSE market breadth was tilted towards the bears with 1,333 declines and 1,013 advances so far.

The top gainers on the Sensex were Vedanta, Sun Pharma, Infosys, Hindustan Unilever and IndusInd bank whereas Tata Motors (DVR), Tata Motors, ICICI Bank, Coal India and Power Grid were the major losers.

On the NSE, Vedanta, Sun Pharma and Ultratech Cement were the highest gainers while Tata Motors, BPCL and Hindustan Petroleum lost the most.

IANS

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Market Review: Amid volatility equity indices rise for 5th straight week

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SENSEX NIFTY MARKET

Mumbai, June 23: Despite volatility and a broadly bearish momentum, the key Indian equity indices rose for the fifth consecutive week, although with marginal gains.

Value buying by investors, primarily in banking, healthcare and auto stocks on Friday helped the indices end higher than the previous week’s levels.

The gains in the week ended Friday, were limited by global trade war concerns due to imposition of tariffs and counter-tariffs internationally.

Index-wise, the barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 67.46 points or 0.19 per cent to close at 35,689.60 points on a weekly basis.

The wider Nifty50 of the NSE closed the week’s trade at 10,821.85 points — up 4.15 points or 0.04 per cent — from its previous close.

According to analysts, market breadth was negative in all the five trading sessions of the week.

“Markets ended the week with marginal gains after trading in a rangebound manner for a major part of the week. It was nevertheless the fifth consecutive week of gains for the Nifty50,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Shibani Kurian, Senior Vice President and Head of Equity Research at Kotak Mutual Fund told IANS: “Volatility in the market continued during the week ended June 22, 2018 amidst rhetoric of intensifying trade wars between the US and China and the possibility of imposition of further tariffs against imports from China.”

According to Equity99’s Senior Research Analyst, Rahul Sharma, stock specific actions were the flavor of the week, “wherein HDFC twins (HDFC, HDFC Bank) shimmered, gaining more than 2 per cent”.

Further, during the week all eyes were on the outcome of the Organisation of Petroleum Exporting Countries’ (OPEC) meet, said Prateek Jain, Director of Hem Securities. OPEC, was expected to decide on raising its oil production to cool down oil prices and eventually on Friday it announced an agreement to raise oil output by nearly one million barrels per day.

On the currency front, the rupee closed at 67.84 against the US dollar appreciating by 18 paise from its previous week’s close of 68.02 per greenback.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 2,088.81 crore, while the domestic institutional investors purchased stocks worth Rs 4,720.76 crore during the week.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 4,528.63 crore, or $665.71 million, in the week ended on June 22.

Sectorally, the top gainers were the Bank Nifty, pharma and energy indices, while the top losers were metal, public sector banks and IT indices, Jasani told IANS.

The top weekly Sensex gainers were ICICI Bank (up 6.57 per cent at Rs 300.85); HDFC (up 3.86 per cent at Rs 1,902.40); HDFC Bank (up 2.52 per cent at Rs 2,081.80); Tata Motors (up 1.63 per cent at Rs 308.15); and Yes Bank (up 1.41 per cent at Rs 335.20 per share).

The major losers were Coal India (down 5 per cent at Rs 265.10); Vedanta (down 4.23 per cent at Rs 228.65); ONGC (down 3.63 per cent at Rs 159.45); Wipro (down 3.34 per cent at Rs 257.95); and Infosys (down 2.66 per cent at Rs 1,246.45 per share).

IANS

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Oil prices rally after OPEC meeting

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OPEC

Vienna, June 23 (IANS) Oil prices surged as investors were closely watching the Organization of the Petroleum Exporting Countries (OPEC) meeting.

The West Texas Intermediate for August delivery on Friday rose $3.04 to settle at $68.58 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery was up $2.50 to close at $75.55 a barrel on the London ICE Futures Exchange, Xinhua news agency reported.

The OPEC on Friday announced an agreement to raise oil output which, in accord with non-OPEC producers, had been reduced last year in order to boost prices that had been in free fall mainly due to a supply glut.

Following a ministerial meeting here of the 14-nation cartel, the statement released, however, did not provide any details of the production increases to be allocated among members.

Current OPEC Chairman, the UAE Energy Minister Suhail Mohamed Al Mazrouei, told reporters after the meeting that the increase agreed upon is “a little bit less than 1 million barrels” over OPEC’s current output.

OPEC and non-OPEC producers, including Russia, had put in place 1.2 million barrels per day (bpd) cut from January 2017, which helped boost crude prices go over $80 a barrel last month.

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