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Tuesday, January 31, 2023

India Stocks Review: Flat on lack of triggers, caution before US CPI

Informist, Wednesday, Jan 11, 2023

 

By Padmini Dhruvaraj

 

MUMBAI – Indian equity indices ended almost unchanged from Tuesday’s close as investors refrained from placing any aggressive bets in the absence of major triggers, ahead of the US consumer inflation print, due to be released on Thursday. 

 

Benchmark indices opened higher today, as global equity markets bounced back due to optimism that the US consumer price inflation print would soften further. This kindled hope that the Federal Reserve would slow its pace of interest rate hikes, even as a few central bank officials reiterated this week that their fight against inflation was not over yet.

 

Indian equities, which have been swaying with their global peers, made an exception today and turned choppy soon after opening. They, however, recovered for a brief period as investor sentiment was boosted, possibly as the World Bank retained its growth estimate for India for this financial year at 6.9%, even as it slashed its forecasts for most countries and regions on Tuesday.

 

The Nifty 50 index showed resistance around the level of 18000, and traded in a narrow band later. 

 

“Participants are having a tough time dealing with prevailing volatility amid the corrective phase, and we do not expect any relief soon, citing the upcoming events & ongoing earnings season,” said Ajit Mishra, vice-president of technical research at Religare Broking. 

 

Most sectoral indices traded in line with the benchmark indices and closed marginally lower. However, a rebound in banking and metal majors limited the losses.

 

The Nifty 50 index closed 0.1% lower at 17895.70 points and the 30-stock Sensex ended flat at 60105.50 points. 

 

Stocks are also facing selling pressure from foreign institutional investors, who have made a move from Indian equities since China announced the reopening of its economy in late December. Chinese equities were one of the worst performers in 2022, making their valuations much cheaper than the Indian market. Now, with China’s economy inching towards normalcy, investors see it as an opportunity to make a profit by buying stocks at lower valuations, said analysts.

  

“The market is already seeing relentless FII selling in the current month, where overseas investors have already sold shares to the tune of 101.26 bln rupees,” said Prashanth Tapse, senior vice-president of research at Mehta Equities. 

 

After performing one of the best among its peers in 2022, the Nifty 50 is already almost 5% lower than its last year’s highs. Analysts also attributed the fall to caution ahead of the Budget and the ongoing December quarter earnings season.

 

Selling across stocks of fast-moving consumer goods, telecommunication, and oil companies weighed on the benchmark indices. The Nifty FMCG index fell 1.1%, extending its fall to the second straight day. Losses in the index were led by a 2-4% fall in Marico, Hindustan Uniliver, and Varun Beverages.

 

The Auto Expo 2023 failed to make an impact on automobile stocks today. Analysts said this was possibly because the expo primarily focuses on electric vehicles, which don’t have a high market share. The Nifty Auto index closed 0.5% lower. 

 

A bounceback in shares of financial services and information technology companies limited the losses in the benchmark indices. Banking stocks surged due to prospects of stellar earnins for the Oct-Dec quarter. The Nifty Bank closed 0.56% higher, and the Nifty PSU Bank closed 0.7% higher.

 

Among stocks, Bharti Airtel fell about 3.5% as foreign broking firm JPMorgan reportedly downgraded the stock to ‘underweight’ from ‘overweight’. The target price was also reduced to 710 rupees from 860 rupees. Shares of Hindalco Industries rose over 3% today and hit a nine-month-high of 493.45 rupees as the reopening of China’s borders and rising aluminium prices aided sentiment for the stock. 

 

Analysts said indices are likely to be subdued in the near term until a breakout on either side. They will also take cues from the US CPI data for December, which is expected to be softer than estimated.

 

“For bulls, 18000 would be the important breakout level to watch out for,” said Shrikant Chouhan, head of equity research at Kotak Securities. On the flip side, trading below 17800 points might trigger further weakness up to 17700-17675 points, he added.

 

* Among Nifty 50 stocks, 17 rose, 31 fell, and 2 unchanged

* Among Sensex stocks, 14 rose, 15 fell. and 1 unchanged    

* On the BSE, 1,866 stocks rose, 1,627 fell, and 148 were unchanged

* On the NSE, 1,128 stocks rose, 1,127 fell, and 451 were unchanged

* Nifty FMCG: Down 1.13%; Nifty Energy: Down 0.83%; Nifty Metal: Down 0.75% 

BSE                                              National Stock Exchange
Sensex: 60105.50, down 9.98 pts (0.02%)         Nifty 50: 17895.70, down 18.45 pts (0.10%)

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

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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.

 

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Source: Cogencis

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