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  • Stock markets end 5-day losing streak; BSE Sensex jumps 602 points, Nifty50 above 24,300- Top reasons – Times of India

    Stock markets end 5-day losing streak; BSE Sensex jumps 602 points, Nifty50 above 24,300- Top reasons – Times of India


    Stock market today: Indian stock markets ended a five-day losing streak on Monday as upbeat quarterly results from ICICI Bank and other lenders powered gains in banking stocks, despite ongoing foreign selling and lackluster corporate earnings.
    The BSE Sensex climbed 0.76 per cent or 602.75 points to close at 80,005.04, while the Nifty50 rose 0.65 per cent or 158.35 points to settle at 24,339.15.
    Key factors for major gains
    1. Strong banking sector performance
    Among the 30 Sensex stocks, ICICI Bank led the gains, climbing 3 per cent following its report of a 14.5 per cent increase in standalone profit to Rs 11,746 crore for the second quarter ending September 2024.
    While other major gainers included JSW Steel, Mahindra & Mahindra, Adani Ports, Tata Steel, Sun Pharma, Hindustan Unilever, Tata Motors, and State Bank of India.
    On the downside, Axis Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, and Maruti were among the lossers.
    All sectoral indices on the Nifty were trading in positive territory, with the Nifty PSU bank index leading the pack, up 3.8 per cent.
    The Nifty witnessed a correction of approximately 8.3 per cent from its recent peak, while the mid and small cap indices experienced corrections of 9-10 per cent, respectively.
    The Indian rupee remained stable at 84.0775 against the US dollar, as expectations that the central bank would maintain its stance on the currency offset pressure from a strong dollar.
    2. Positive earnings reports fuel market optimism
    The Indian stock market experienced a positive shift in sentiment, largely attributed to the sharp correction in global crude prices on international markets, according to traders.
    Head of Research, Geojit Financial Services, Vinod Nair said: “The market exhibited a rebound after continuous selloff last week. Positive results from banks and a slump in oil prices in expectation of an ease in retaliations in the Middle East aided investor sentiment.”
    “Stability in the broad-based rally requires more evidence from earnings, which are currently in the doldrums of weak demand and margin pressure. We expect companies with a less leveraged balance sheet and growth prospects to outperform when the market stabilizes,” Nair added.
    The market opened on a positive note, with the Sensex crossing the 80,000 mark and Nifty50 moving above 24,400.
    During the intra-day trading session at 12.22 pm, the Sensex had surged to 80,433.23, up 1,030 points or 1.30 per cent, while Nifty50 reached 24,465.05, up 284.25 points or 1.18 per cent.
    According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 3,036.75 crore on Friday, while Domestic Institutional Investors (DIIs) purchased shares amounting to Rs 4,159.29 crore.
    3. Global market stability supports rebound
    Earlier in the day, the US stock index futures experienced a significant surge potentially recovering some of the losses from the previous week’s turbulent trading session. Investors are gearing up for crucial corporate earnings reports and the final stage leading up to the presidential election on November 5.
    “The imminent US presidential elections and the uncertainty associated with that will continue to weigh on markets,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
    Dow E-minis surged 203 points or 0.48per cent, while US S&P 500 E-minis climbed 35 points or 0.60per cent, and Nasdaq 100 E-minis advanced 160.5 points or 0.78per cent.
    In Asia, the markets in Seoul, Tokyo, Shanghai, and Hong Kong closed higher. Meanwhile, European markets were trading in positive territory.
    The global oil benchmark, Brent crude, saw a significant decline of 5.84 percent, settling at $71.54 per barrel.
    In premarket trading, major tech giants showed strong gains ahead of their upcoming earnings reports later this week.
    Alphabet’s stock price increased by 1.6per cent, Meta Platforms rose 1.3per cent, Microsoft was up 1per cent, Apple gained 0.7per cent, and Amazon.com added 0.9per cent.
    Nvidia, a prominent player in the AI-chip market, experienced a 1.3per cent increase in its stock price.
    The yield on the benchmark 10-year US Treasury note reached a three-month high of 4.292per cent on Monday.





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  • Bears Growl On D-Street! Sensex Crashes Over 1,600 Pts; Key Factors Investors Should Know – News18

    Bears Growl On D-Street! Sensex Crashes Over 1,600 Pts; Key Factors Investors Should Know – News18


    The Indian stock market indices, Sensex and Nifty 50, witnessed deep cuts in the opening trade on Wednesday dragged by index heavyweight HDFC Bank after it posted lower-than-expected quarterly results.

    The benchmark Sensex tanked more than 1,100 points at open, while the Nifty began trading 395 points lower below 21,650.

    The BSE Sensex was trading 811 points or 1.11% lower at 72,317. Nifty50 was trading at 21,809, down 223 points or 1.01% at around 9.24 am.

    All the sectoral indices traded in the red with banking stocks bleeding the most weighed down by HDFC Bank Q3 results.

    Broader markets, Nifty Midcap 100 and Nifty Smallcap 100 indices were also trading sharply lower.

    Key Factors Behind Today’s Market Crash

    HDFC Bank Shares Drag

    HDFC Bank alone contributed 167 points to Nifty’s 250-point fall, which is the biggest reason for the fall in the market.

    Shares of HDFC Bank crashed over 7% to the day’s low of Rs 1,560 on Wednesday after its December quarter results where India’s largest lender reported higher provisions on the year-on-year basis. Despite a 34% uptick in its net profit, investors appeared unimpressed by the outlook on loan growth and margins by top brokerages.

    Top brokerages like CLSA and Morgan Stanley red flagged loan growth and lower liquidity coverage ratio (LCR) on the HDFC Bank.

    Profit booking on valuation concerns

    After a sharp rally in the markets with Nifty 50 scaling above 22,100 in the previous session, investors likely opted to take some profit out of the table, analysts said. Meanwhile, concerns over stretched valuations in the midcap and smallcap space also triggered selling.

    “Domestically, even though the economy is doing well and corporate earnings are good, all these positives are in the price and the valuations are elevated warranting a correction. The mid and small cap space is highly overvalued and is sustaining at high levels only by the high liquidity in the system. Some profit booking and moving the money to fixed income can be considered now,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

    Weak global market cues

    Weak global market cues also dragged domestic indices lower. Asian markets traded in the red, while US stock market indices ended lower overnight as bond yields rose.

    US Treasury yields rose on Tuesday after central bankers in Europe and the United States pushed back against market expectations of imminent interest rate cuts. The yield on the benchmark US 10-year Treasury note increased by over 11 bps to 4.064%, weighing on risky assets.

    “Market is likely to turn slightly weak in the near-term, getting impacted by some negative global and domestic cues. The global negativity will come from the rising bond yields in the US responding to concerns that the sharp rate cuts expected from the Fed this year may not materialise. Now indications are that the Fed is unlikely to cut in March and the total cuts in 2024 may not be five or six that the market had partly discounted. This will be a drag on global equity markets,” Vijayakumar added.

    Dollar at one-month high

    When the dollar index rises, crude oil and other commodities become more expensive. It increases our import costs and widens our current account deficit.

    The dollar index hovered at a one-month high against a basket of currencies on Wednesday as remarks by Federal Reserve Governor Christopher Waller dampened expectations for a March rate cut.

    Waller said that while the US is “within striking distance” of the Fed’s 2% inflation goal, the central bank should not rush towards cuts in its benchmark interest rate until it is clear lower inflation will be sustained.

    10-year Treasury yield rises above 4%

    The 10-year Treasury yield, which tracks expectations of long-term borrowing costs and rises as the price of the debt security falls, climbed to 4.052%.

    “The global negativity will come from the rising bond yields in the US (the 10-year yield is at 4.04 %) responding to concerns that the sharp rate cuts expected from the Fed this year may not materialise. Now indications are that the Fed is unlikely to cut in March and the total cuts in 2024 may not be five or six that the market had par ..



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  • Nifty Bank Crosses 44,000-Mark, Nears Its All-Time High; Check Support, Resistance

    Nifty Bank Crosses 44,000-Mark, Nears Its All-Time High; Check Support, Resistance


    At the time of filing this report, the index was trading at 44,501

    At the time of filing this report, the index was trading at 44,501.50. Prior to this, Nifty Bank recorded a lifetime high at 44151.80 level on Dec 14, 2022

    Stock Market Today: Nifty Bank – NSE index comprised of the most liquid and large capitalised Indian banking stocks– on account of strong Q4 results by Bank Nifty majors like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, AU Bank, Federal Bank, etc., Indian bulls finally managed to hit 44,000 levels for the first time since December 2022.

    On reasons for rally in Bank Nifty today, Ravi Singhal, CEO at GCL Broking said, “After strong fourth quarter results of major contributors in Nifty Bank index, there is buzz in the markets that slowdown in economy is a bluff and demand and growth theme is still intact with the national economy.

    At the time of filing this report, the index was trading at 44,501.50. Prior to this, Nifty Bank recorded a lifetime high at 44151.80 level on December 14, 2022, and earlier this year, the index had touched its all-time low of 38613.15 on March 16, 2023.

    After Nifty Bank index breaching its 44,000 hurdle, speculations are rife about whether it would be able to climb a new peak surpassing its current life-time high of 44,151.80 levels.

    Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “Banknifty index has been demonstrating strong leadership and is expected to reach a new all-time high. However, it is important to acknowledge the possibility of profit booking at this level.”

    Bank Nifty could touch all-time highs

    “Bank Nifty bulls continued to hold their long positions and the intraday dip was utilized to maintain strength. The immediate resistance for the index is at 44,000 and the downside support is at 43,500. Karnataka polls will be crucial for the markets which will decide the direction in the next week. The index surpasses the level of 44,000 and will touch its all-time high level,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

    Bank Nifty key resistance at 43,500

    “For NSE Nifty Bank, 43,500 would be the sacrosanct level to watch out, above which it could rally till 44,000-44,300. On the other hand, a quick short term correction is possible if it trades below 43500 and below the same it could slip till 43,000-42,800,” said Amol Athawale, Technical Analyst (DVP), Kotak Securities.

    Buy or sell stocks at Bank Nifty today

    On stocks to buy today, Ravi Singhal of GCL Broking said, “One can buy Kotak Mahindra Bank shares and AU Small Finance Bank shares after the profit booking trigger.”

    Unveiling pivot levels in regard to these bank stocks to buy today, Sumeet Bagadia, Executive Director at Choice Broking said, “Buy and hold AU Small Finance Bank shares for near term target of Rs 780 maintaining stop loss at Rs 750. Likewise, one can buy and hold Kotak Mahindra Bank shares for short term target of Rs 2050 and Rs 2100 maintaining stop loss at Rs 1930 apiece levels.”

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    Aparna Deb

    Aparna Deb is a Subeditor and writes for the business vertical of News18.com. Among other things, financial market, economy and policies interest her …Read More



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  • Nifty PSU Bank Index Rises 4% Today as Adani Sells Stake in Group Companies; Details

    Nifty PSU Bank Index Rises 4% Today as Adani Sells Stake in Group Companies; Details


    The Nifty PSU Bank index jumped 3.56 per cent to Rs 3,900.70 on Friday morning amid a sharp rebound in Adani group stocks. PSU banks like State Bank of India (SBI), Bank of Baroda, Punjab & Sind Bank, Union Bank of India, UCO Bank, Bank of India, Bank of Maharashtra and Indian Overseas Bank were up in the range of 4 per cent to 7 per cent.

    On March 2, the promoters of the Adani group sold shares worth Rs 15,446 crore in four of its listed entities to GQG Partners, a US-based global equity-investment boutique firm.

    Adani Enterprises sold shares worth Rs 5,460 crore, Adani Ports & SEZ Rs 5,282 crore, Adani Green Energy Rs 2,806 crore and electricity distributor Adani Transmission sold shares worth Rs 1,898 crore.

    The proceeds will be used to retire debt and for other purposes. The high debt level is a key concern for traders and investors and was also flagged by American short-seller Hindenburg Research, which in a report accused the group of share manipulation and other wrongdoings, triggering a rout in the shares of the group companies.

    Shares of banks suffered on concerns over exposure to the Adani Group. Some banks even had to call for additional pledging as the stock value plunged.

    Parth Nyati, Founder at Tradingo, said: “After a protracted period of downturn, the market is currently experiencing a significant rebound led by BankNifty. The market’s mood has altered as a result of the global market’s recovery and relief over the Adani case, which is fueling a significant short-covering move. The India VIX was close to a multi-month low, therefore, despite the market’s extremely oversold condition, there was no panic. There are indications that the market has established a base and is prepared to rise, but US bond yield signals will be crucial.”

    What should investors do?

    Nyati said: “Technically, a 20-DMA of 17700 will be a key hurdle for the Nifty; above this, we can expect any meaningful strength in the market.”

    “Both the PSU banking sector and all PSU stocks are something we consider to be strong. PSU banks will continue to do well since they are fundamentally in a much healthier stage and the prognosis is still positive. In terms of the Nifty PSE index, it is poised for a multiyear breakout, and if it occurs, we can anticipate a significant outperformance in the PSU sector over the course of the next few months,” he added.

    Most banks (specifically PSBs) have seen a decent correction as a result of the exposure-concerns around the Adani Group; analysts at Emkay Global Financial Services expect the probability of default to remain considerably low, for now.

    Add to that banks are witnessing strong earnings momentum on the back of better growth/ margins and receding loan loss provision (LLP) which, coupled with the strong provisions/ capital buffer, provide additional comfort. Thus, we believe that the recent correction in some fundamentally-strong bank stocks provides a good re-entry point. Within PSBs, we prefer BOB, SBI, and Indian Bank, given their ability to deliver healthy return ratios, capital buffer and reasonable valuations, the brokerage firm said in its February report.

    Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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    Aparna Deb

    Aparna Deb is a Subeditor and writes for the business vertical of News18.com. Among other things, financial market, economy and policies interest her …Read More



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