The benchmarks swung between gains of 0.5% and losses of 0.5% in early trade before moving lower, once again dragged down by the heavyweight financials . The index fell 0.4%, continuing its drop in the wake of the short-seller report on Adani Group stocks.
While most of the Adani Group stocks resumed their slide, once again the flagship Adani Enterprises rose 1.73% on the last day of its crucial $2.5 billion follow-on share offering.
The group’s seven listed companies have lost $65 billion in market value since U.S-based Hindenburg Research flagged concerns about the groups’ debt levels and the use of tax havens, charges the conglomerate has denied.
India’s annual pre-budget economic survey is due later in the day, in which the government is likely to peg GDP growth at 6-6.8% for 2023-24, the slowest in three years, Reuters reported.
That will put added focus on the government’s fiscal consolidation path and borrowing calendar for fiscal 2024 at the Union budget on Feb. 1.
Traders will also watch the budget for any incentives to entice foreign investors, who have piled out of the market, especially since the report on Adani Group on Wednesday.
Foreign institutional investors have sold 151.65 billion rupees ($1.86 billion) worth of shares on a net basis in the past three sessions.
Later that day, the focus will shift to the U.S. Federal Reserve’s decision on future monetary policy, which is key for Indian firms, especially IT companies, that have major exposure to the United States.
Among individual stocks, Bharat Petroleum jumped over 4% and was the top Nifty 50 gainer after reporting third-quarter results.
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Digit Insurance to revamp $440 million IPO again after regulator concerns
Digit Insurance will refile papers for its $440 million initial public offering (IPO), the company told Reuters on Tuesday, after India’s market regulator raised certain compliance issues with employee stock plans in a private letter. It is the second such setback for Digit’s listing ambitions. The company, last valued at $3.5 billion by Sequoia Capital, provides general insurance services and is backed by investors such as Canadian billionaire Prem Watsa.
Economic Survey 2023
- FY23 GDP growth seen at 7%
- India growth led by private consumption, capital formation
- CAD needs to be closely monitored
Economic survey tabled in Parliament | Pegs FY24 GDP growth to 6-6.8%
Defence sector, as every year before the budget has a wishlist out of which the important one is outlay for emphasis on indigenisation, which means emphasis on local production. The GOI definitely does a lot for the sector every year, also on the R&D side where they plan to spend a substantial amount. Therefore even this year we expect them to announce a significant budget for the space and research, electronic equipment and advancement on further localization.On PLI schemes we would say that the GOI is fostering healthy competition in the defence space through launching various PLI schemes. This would surely improve the quality of defence products and services and further enhance the defence sector. Also the country needs to improve on their space research, due to which we believe that further PLI schemes will be more focused on Space research.
– Ashwin Patil, Senior Research analyst at LKP Securities
Sector Watch: Nifty PSU Bank rallies over 3%, Nifty Media 2%
These IT stocks fall the most; Tech Mahindra worst performer
Price as on 31 Jan, 2023 12:28 PM, Click on company names for their live prices.
Central banks bought the most gold since 1967 last year, WGC says
Central banks added a whopping 1,136 tonnes of gold worth some $70 billion to their stockpiles in 2022, by far the most of any year since 1967, the World Gold Council (WGC) said on Tuesday. The data underline a shift in attitudes to gold since the 1990s and 2000s, when central banks, particularly those in Western Europe that own a lot of bullion, sold hundreds of tonnes a year. Since the financial crisis of 2008-09, European banks stopped selling and a growing number of emerging economies such as Russia, Turkey and India have bought.
Sensex Today: Index recovers from day’s low, turns flat
Balaji Solutions gets SEBI nod for IPO
Kolkata-based Balaji Solutions Limited has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO). The public issue consists of a fresh issue of equity shares worth up to Rs 120 crore and an offer-for-sale (OFS) of up to 75,00,000 equity shares by Promoter and selling shareholders, which comprises up to 15,00,000 by Rajendra Seksaria, up to 60,00,000 by Rajendra Seksaria HUF. The offer also includes a reservation for a subscription by eligible employees.
Metal stocks rally up to 4% in today’s trade
Price as on 31 Jan, 2023 11:10 AM, Click on company names for their live prices.
Godrej Properties Ltd on Tuesday said it has bought an 89-acre land parcel at Khalapur in Maharashtra to develop a housing project as part of its expansion plan to grow business. In a regulatory filing, Godrej Properties informed that it has entered into an agreement for outright purchase of a land parcel in Khalapur – Raigad, Maharashtra.
Price as on 31 Jan, 2023 10:57 AM, Click on company names for their live prices.
These stocks lose most in morning session
Price as on 31 Jan, 2023 10:55 AM, Click on company names for their live prices.
Adani Enterprises climbed 2% in early trade on Tuesday, the last day for its $2.5 billion secondary share sale, with all eyes on whether the company can secure enough backing for the offering after a U.S. short-seller’s scathing attack.
Price as on 31 Jan, 2023 10:29 AM, Click on company names for their live prices.
Gautam Adani slips out of the list of 10 richest persons in the world
IIFL Finance on Monday reported a 37 per cent growth in net profit at Rs 423 crore in the three months to December on higher advances. Total income rose 30 per cent on-year to Rs 1,339.4 crore in the third qurter of the current fiscal, the company said in a statement.
Price as on 31 Jan, 2023 09:56 AM, Click on company names for their live prices.
Sensex reverses opening gains, falls 200 points
Most Adani group stocks extend fall, tank up to 10%
Price as on 31 Jan, 2023 09:22 AM, Click on company names for their live prices.
Top movers in morning trade
Price as on 31 Jan, 2023 09:21 AM, Click on company names for their live prices.
Rupee opens down 0.11% at 81.5800 per U.S. dollar; previous close 81.4950
The Budget tomorrow and the Fed decision on interest rates by evening tomorrow will have a big impact on markets. A positive, as we go into the Budget, is that instead of the usual pre-Budget rally on expectations, this time we had a market correction triggered by the Adani crisis. So, if there are no negative surprises in the Budget and the Fed commentary is not hawkish, there can be a post-Budget rally in the market. The Adani crisis which had impacted market sentiments will be pushed to the back burner if the FPO sails through via institutional investment. There has been overreaction in banking stocks with Bank Nifty correcting sharply by 6.2% in the last 3 sessions. High quality banking stocks present a good buying opportunity. Signals from the US indicate that Indian IT will do well in 2023.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Opening Bell: Sensex rises 250 pts, Nifty above 17,700; BPCL gains 3%, Adani Gas tanks 10%
Pre-open session: Sensex rises over 300 points; Nifty above 17,720
Asian stocks slip as investors eye central bank hikes
Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data.
Quarterly earnings today
Sun Pharma, Coal India, Indian Oil, Indian Hotels, ACC, Vodafone Idea are among a slew of companies that will announce earnings today.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 73 points, or 0.41 per cent, higher at 17,778, signaling that Dalal Street was headed for a positive start on Tuesday.
Tech View: Nifty forms bullish candle on buying at lower levels
Now, till it holds below 17777 zones, a bounce could be sold for the downside move towards 17500, then 17350 zones, whereas hurdles are placed at 17777 and 17850 zones, said Chandan Taparia of Motilal Oswal.
Tokyo markets open higher
Tokyo stocks opened slightly higher on Tuesday led by a weak yen after Wall Street finished lower due to investor caution ahead of key central bank announcements.The benchmark Nikkei 225 index was up 0.06 percent, or 15.78 points, at 27,449.18 in early trade, while the broader Topix index added 0.30 percent, or 5.95 points, to 1,988.35.
Tech, megacaps drag Wall Street to lower close
Major U.S. stock indexes sank on Monday, weighed down by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports.
Oil steadies after falling on rate hike worries, Russian crude flows
Oil prices steadied in early Asian trade on Tuesday after falling by more than 2% in the previous session on the threat of further interest rate hikes and continued Russian crude flows.Brent crude futures gained 28 cents to $85.18 per barrel by 0155 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 9 cents to $77.99.
Rupee gains 7 paise to close at 81.52 against US dollar as crude oil dips
The rupee rose by 7 paise to close at 81.52 against the US currency in a restricted trade on Monday, supported by a weak greenback in the overseas markets and a decline in crude oil prices.
Sensex, Nifty on Monday
The BSE Sensex index ended 170 points or 0.29% higher at 59,500, while Nifty50 rose 45 points or 0.25% to settle at 17,649.
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