The benchmark Sensex and Nifty indices are likely to open higher on January 23 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 164 points.
On January 20, the Indian equity benchmarks erased some of the previous session's gains as they ended lower in a volatile season held on a Saturday, with selling seen in FMCG, information technology (IT) and realty names.
At close, the Sensex was down 260 points, or 0.36 percent, at 71,425 and the Nifty was down 37 points, or 0.17 percent at 21,586.
The pivot point calculator indicates that the Nifty is likely to take immediate support at 21,543, followed by 21,501, and 21,433 levels, while on the higher side, it may see an immediate resistance at 21,588 followed by 21,722 and 21,790 levels.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
Trends in the GIFT Nifty indicate a positive start for the broader index in India, with a gain of 139 points or 0.64 percent. The Nifty futures were trading around the 21,728.50 level.
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US Markets
The S&P 500 posted a second straight record high close on Monday as tech stocks added to recent gains and investors awaited upcoming corporate reports for clues on this year's profit outlook.
Friday's finish confirmed that the S&P 500 has been in a bull market since it closed at its low on Oct. 12, 2022, according to one commonly used measure.
The Dow Jones Industrial Average rose 138.01 points, or 0.36 percent, to 38,001.81, the S&P 500 gained 10.62 points, or 0.22 percent, to 4,850.43 and the Nasdaq Composite added 49.32 points, or 0.32 percent, to 15,360.29.
Asian Markets
Asian markets were trading higher in the early trade with Nikkei and Kospi up 0.5 percent each.
Sony confirms terminating $10 billion India merger with Zee
Sony Group Corp. said it has officially notified Zee Entertainment Enterprises Ltd. of plans to call off the merger between its India unit and the media network, ending a two-year acquisition saga and leaving Zee vulnerable to competition as rivals bulk up.
The Japanese entertainment giant said Monday that it has sent a termination letter to Zee as the conditions necessary for the merger were not met.
The move follows a stalemate between the companies over whether Zee’s Chief Executive Officer Punit Goenka would lead the merged entity amid an investigation into his conduct by India’s capital markets regulator. The standoff now appears to have scuttled the deal, which would have created a $10 billion media giant with the financial muscle to take on global powerhouses Netflix Inc. and Amazon.com Inc.
ICICI Bank Q3 net profit jumps 24% to Rs 10,272 crore, asset quality improves
Private sector lender ICICI Bank on January 20 reported a net profit of Rs 10,271.54 crore for the third quarter of the current financial year, clocking a 23.5 percent rise from Rs 8,312 crore in the year-ago period.
The net profit was in line with the market estimates of Rs 9,946 crore.
The bank's gross non-performing asset (NPA) stood at 2.30 percent, down from 3.07 percent in the same quarter of the previous year. Net NPA stood at 0.44 percent, improving from 0.55 percent in Q3FY23.
Bank's Net interest income (NII) increased by 34.6 percent year-on-year to Rs 16,465 crore in Q3-2023 from Rs 12,236 crore in Q3-2022. The net interest margin was 4.65 percent in Q3-2023 compared to 3.96 percent in Q3-2022 and 4.31 percent in the quarter ended September 30, 2022.
Airtel board approves Bharti Hexacom IPO, govt to sell 20% stake via OFS
The board of Bharti Airtel has approved the initial public offering of its subsidiary Bharti Hexacom, a regulatory filing stated on January 20.
Bharti Airtel, one of the three telecom majors of India, owns 70 percent stake in Bharti Hexacom, whereas, the remaining 30 percent is owned by the Government of India.
The IPO will comprise of an offer-for-sale (OFS) of 10 crore equity shares, of face value of Rs 5 each. This constitutes "20 percent of the company's paid-up share capital", as per the exchange filing.
Medi Assist Healthcare to debut today
Medi Assist Healthcare stock may list at a 5-12 percent premium over the IPO price on January 23, according to analysts. The offer received a strong response from investors and now the stock is expected to open somewhere between Rs 440-470 against the issue price of Rs 418 owing to the marquee names in the list of anchor investors list, dominance in the TPA (third-party administrator) market, and decent financial performance.
Dollar
The US dollar was little changed to modestly higher against a basket of currencies on Monday ahead of central bank policy decisions in Japan and the euro zone that may determine the currency's direction this year.
Japan's yen moved away from Friday's 148.80 per US dollar, its weakest in a month, and rose to as high as 147.61, as the BOJ started its two-day policy meeting. The dollar was last down 0.1 percent against the Japanese currency at 148.06 yen.
Oil Prices
Oil prices rose about 2 percent on Monday on concerns over global energy supplies following a Ukrainian drone strike on Russia's Novatek fuel terminal and as extreme cold weather continued to hamper US crude production.
Brent March crude futures settled at $80.06 a barrel, up $1.50, or 1.9 percent.
FII and DII data
Foreign institutional investors (FIIs) continued to be net sellers for four days in a row, selling shares worth Rs 545.58 crore, while domestic institutional investors (DIIs) offloaded Rs 719.31 crore worth of stocks on January 20, provisional data from the NSE showed.
Stock under F&O ban on NSE
A total of 11 stocks are in the F&O ban list for January 23. The NSE has added IRCTC to the said list while retaining Aditya Birla Fashion & Retail, Balrampur Chini Mills, Delta Corp, Indian Energy Exchange, National Aluminium Company, Oracle Financial Services Software, Polycab India, RBL Bank, SAIL and Zee Entertainment Enterprises to the said list. Hindustan Copper was removed from the said list.
With inputs from Reuters and other agencies
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