Markets slid further lower in continuation to yesterday’s fall and lost nearly one and a half percent. Initially, the benchmark opened on a weak note and drifted gradually lower as the session progressed. Mostly sectoral indices traded in tandem with the benchmark wherein banking and metal ended as the top losers. Consequently, the Nifty ended at 14,372 levels, down by 1.5%. Selling pressure was visible on the broader front too as they ended in the range of 1-1.2%.
Markets will first react to Reliance numbers in early trade on Monday. The recent underperformance from the banking pack might derail the momentum if it continues next week as well. On the benchmark front, we feel a decisive break below 14,200 in Nifty could result in further slide else we will see range-bound sessions ahead. Amid all, there’ll be no relief from the volatility front due to the prevailing earnings season and upcoming derivatives expiry. We thus strongly advise keeping a check on naked leveraged positions and waiting for further clarity.
January 22, 2021 / 03:52 PM IST
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities
The incessant rally in BSE-30 Index paused this week with both BSE Sensex and Nifty-50 ending nearly flat. We are seeing some kind of profit booking at higher levels as the Sensex touched the psychological mark of 50,000 this week. The persisting rise in cases has intensified restrictions in parts of Europe, UK and Hong Kong which is impacting global markets.
In sectors this week only auto sector has seen gains with the BSE Auto Index going up by 2.4%. Bajaj Auto and Tata Motors are the biggest gainers in Nifty-50 this week with up move of 14% and 11%, respectively. Reliance has seen gains of 6% this week. PSU and metal stocks have been the biggest losers this week. Amongst PSUs, ONGC and Coal India are down 8.6% and 7%, respectively. Profit booking has led to correction in Tata Steel (-8.5%) and Hindalco (-5.8%). The NSE Vix Index has moved up slightly ahead of the Union Budget and is placed at 22.4 as compared to 20 in the previous two weeks.
FII flows have been decent at ~ Rs 6,900 crore in the first four days of this week while DII selling has seem some moderation with selling of Rs 2,145 in the same period. We can expect volatility to remain high next week also as there will be the monthly expiry and it will be the last week before the Union Budget. Earnings print is coming good and we are seeing more upgrades than downgrades. Nifty-50 could remain in the 14,000-15,000 range till budget and any break-out or break-down from this range could be seen post budget.
January 22, 2021 / 03:49 PM IST
Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services:
The currency market is trading in a very tight range, and there is no volatility to keep it on an edge. Next week is FOMC policy and Fed will keep the easy monetary policy, keeping dollar subdued. The optimism over growth is still high but if there are delays in vaccine rollout then the immediate impact will be some upside in spot. RBI is keeping the spot near 73 zone, if that breaks the spot will fall to 72.75, while 73.50 will continue to be the resistance.
January 22, 2021 / 03:42 PM IST
Rupee Close: Indian rupee is ended flat 72.97 per dollar, amid profit booking witnessed in the domestic equity market. It opened marginally lower at 73.03 per dollar against previous close of 72.99 and traded in the range of 72.96-73.09.
January 22, 2021 / 03:41 PM IST
Vinod Nair, Head of Research at Geojit Financial Services:
Indian indices tumbled on afternoon trade dragged by weak global markets and selling seen in metal and banking indices. Positive outlook for auto and IT stocks helped them to retain their momentum even during today’s correction. European markets fell today on weak UK retail sales numbers and increasing restrictions in the Eurozone, while Asian markets followed its European peers. The decisions taken in the upcoming Union Budget along with the policies of the new US Government are expected to define momentum in the near term.
January 22, 2021 / 03:40 PM IST
S Ranganathan, Head of Research at LKP Securities:
Markets traded weak on Friday with profit booking in metals & financials even as we saw a very strong response to the IPO of a Paint Company. The key highlight of the day, however, was the strong appetite for auto stocks which coupled with the IT biggies kept the optimism alive on a weak day as the street awaits the Earnings of RIL.
January 22, 2021 / 03:35 PM IST
Market Close: Benchmark indices witnessed profit booking on the second day in a row pulling Nifty below 14,400.
At close, the Sensex was down 746.22 points or 1.50% at 48,878.54, and the Nifty was down 218.50 points or 1.50% at 14,371.90. About 960 shares have advanced, 1961 shares declined, and 132 shares are unchanged.
Axis Bank, Asian Paints, JSW Steel, Hindalco Industries and SBI were among major losers on the Nifty, while gainers included Bajaj Auto, Hero MotoCorp, Eicher Motors, HUL and TCS.
Among sectors, Nifty Bank, metal and PSU bank indices shed 3 percent each, while energy, pharma and infra sectors fell 1 percent each. However, auto index added over 1 percent.
January 22, 2021 / 03:28 PM IST
Ashis Biswas, Head of Technical at CapitalVia Global Research:
The market witnessed a correction for the second consecutive session after reaching a record high yesterday. Market might witness the sluggish movement for the next few sessions. 14170-14200 will be an important support, if Nifty breaks below the support zone decisively, there will be correction till the levels of 13,600. The momentum indicators like RSI, MACD indicating a small correction in the markets.
January 22, 2021 / 03:26 PM IST
GPT Infra bags order:
GPT Infraprojects has bagged an order valued at Rs 64.10 crore. The order included construction of superstructure of bridges over River Pagla at Chainage and viaduct near Pherima Station and other related works between proposed stations Sukhovi & Pherima in connection with Dimapur by Office of the General Manager/Con., Northeast Frontier Railway, Maligaon, Guwahati.
January 22, 2021 / 03:21 PM IST
Indigo Paints IPO subscribed 95 times:
The public offer of Indigo Paints has been subscribed 95 times so far on January 22, the final day of bidding, receiving bids for 52.6 crore equity shares against the IPO size of 55.18 lakh shares (excluding anchor book).