High weightage financials recouped losses, rising 0.1%, and is on course to snap a two-day losing streak. Financials had dragged the index over the previous two sessions.
Indian equities had tumbled to a three-month low on Friday, dragged by a short-seller attack on Adani group companies, which triggered a selloff in banks.
The group faces a critical session today with the secondary share sale of the flagship Adani Enterprises seeing only 1% subscription on Friday.
Adani Enterprises and Adani Ports rose over 5% each and were the top Nifty gainers, while ACC and Ambuja Cements also advanced. Other companies Adani Wilmar, Adani Green, Adani Power, Adani Transmission and Adani Total sustained heavy selling.
Twenty-six of the Nifty 50 constituents advanced while 24 declined.
Foreign institutional investors sold 83.72 billion rupees ($1.03 billion) worth of shares over the last two sessions since Hindenburg’s scathing report on the financials of Adani companies.
The rise in domestic equities is also aided by macro data from the U.S., which signalled a slide in inflation and raised hopes of a moderation in the pace of the Fed’s rate hike at its policy meeting scheduled later this week.
Besides the Fed’s policy meeting, investors await rate decisions from other global central banks such as the European Central Bank and the Bank of England, later this week.
Investors will also shift focus to India’s Union budget on Feb. 1, with the government’s fiscal consolidation path and borrowing calendar for fiscal 2024 as triggers.
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Bond yields little changed in choppy trading before budget
Bond yields had dipped in opening trading with the federal government likely capping its gross market borrowing below 16 trillion rupees ($195.86 billion) for the next financial year, Reuters said in a report, citing two sources.
Though recently there has been some net outflow in terms of FPI investment, foreign investors are still preferring the FPI route for their investments as India continues to be a preferred investment destination in terms of overall growth and stability. There has been overall development in the capital market like the stock exchanges moving to T+1 settlement, SEBI introducing information databases and repositories on Municipal Bonds. Similarly, the fiscal budget 2023 is likely to provide further acceleration for the foreign investment inflows as demonstrated by the Government in its previous budgets.
– Manoj Purohit, Partner & Leader – Financial Services Tax, BDO India
Tata Power on Monday said it has partnered with Contour, a leading digital trade finance network based out of Singapore, to make its financial management process more robust, transparent and efficient. Contour’s network uses decentralised technology (blockchain) to bring together companies, banks and ecosystem partners, onto a trusted network, to help create a streamlined digital trade finance workflow, a statement said.
Price as on 30 Jan, 2023 10:41 AM, Click on company names for their live prices.
76 stocks turned multibaggers since last Budget
According to a study of BSE-listed stocks with a market capitalisation of over Rs 500 crore, 3 stocks – Rajnish Wellness, SG Finserve and NIBE – gained more than 1,000% since February 1 last year.
Genus Power Infra bags order worth Rs 2,856 crore
Price as on 30 Jan, 2023 10:25 AM, Click on company names for their live prices.
Adani Group is considering a share buyback of group firms Ambuja Cements and Adani Ports & SEZ worth up to Rs 3,000 crore, said two people directly aware of the development. Talks are at an advanced stage and formal announcements by the company boards will be made in the coming weeks, they added.
Price as on 30 Jan, 2023 10:17 AM, Click on company names for their live prices.
These IT stocks gain most in trade today
Price as on 30 Jan, 2023 10:14 AM, Click on company names for their live prices.
A morning star reversal pattern in the closing hour, with Nifty now near the 3rd lower band, raises hopes of a swing higher, initially towards 17735. But, unless we see a push above 17820, expect 17290, the 200DMA to attract prices lower, with intermediate support seen at 17450.
– Anand James – Chief Market Strategist at Geojit Financial Services
Vedanta on Friday reported a 42% year-on-year (YoY) decline in its consolidated net profit to Rs 3092 crore for the quarter ended December 31, 2022. The company had reported a net profit of Rs 5,354 crore in the same quarter of the previous financial year.
Price as on 30 Jan, 2023 09:32 AM, Click on company names for their live prices.
Non-banking lender Bajaj Finance on Friday reported a 40% year-on-year rise in consolidated net profit for the December quarter, backed by healthy growth in net interest income and lower bad loan provisions. The net profit was at Rs 2,973 crore against Rs 2,125 crore in the year-ago period. The profit before tax also rose 40% at Rs 4,012 crore against Rs 2,868 crore.
Price as on 30 Jan, 2023 09:32 AM, Click on company names for their live prices.
Sharp Rebound: Sensex recovers after gap-down start
Today the market will be completely dominated by the movements in Adani stocks. The statement from Adani Enterprises that the FPO is on schedule and that there is no change in the price band is hugely important. This can be interpreted as a reflection of the confidence of the management in the success of the FPO. It is important to understand that the stock has limited public float. So, the price crash on Friday happened mainly due to shorting Adani stocks in general and Adani Enterprises in particular. One possibility is a big short-squeeze in the stock. Huge volatility is in store in Adani stocks today. The sustained selling by FPIs in January with a massive sell figure of Rs 5978 crores last Friday is a bit intriguing. Did the FPIs get wind of the storm blowing now? It is important to note that during the last 3 days while Nifty declined by 3.2 %, Bank Nifty declined by 6.3% on concerns of the Adani crisis impacting the banks. The correction in high quality private sector banks is a buying opportunity. Investors may wait for the dust to settle.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Rupee opens down 0.14% at 81.6350 per U.S. dollar; previous close 81.5225
Adani Group stocks trade mixed; Adani Gas tanks 19%, Enterprises jumps 6%
Price as on 30 Jan, 2023 09:21 AM, Click on company names for their live prices.
Sensex Heatmap: Most of the stocks open in the red
Opening Bell: Sensex falls 500 pts, Nifty below 17,500; Adani Gas tumbles 18%, Adani Enterprises rises 8%
The market is seen opening firm in Monday trades as positive cues from the US markets on Friday are expected to boost the sentiment. While cooling inflation in key economies is a positive sign, any excessive upside is likely to be capped and volatility could be the hallmark in the near term. The ongoing Adani Enterprises FPO could fuel sharp sideways movement and hence Adani group stocks will remain in focus. During the week, interest-rate decisions from the Federal Reserve, Union Budget presentation, and the January automobile sales data would determine the mood of the markets. Technically, Nifty is likely to be in a trading range of 17000-18000.
– Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd
Pre-open session: Sensex slips over 150 points; Nifty below 17,530
Asian shares brace for rate hikes, earnings rush
Asian shares started cautiously on Monday in a week that is certain to see interest rates rise in Europe and the United States, along with U.S. jobs and wage data that may influence how much further they still have to go.
Quarterly earnings today
115 companies will detail December quarter earnings. Larsen & Toubro, Tech Mahindra, Punjab National Bank among the major ones.
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 48 points, or 0.27 per cent, higher at 17,737.50, signaling that Dalal Street was headed for a positive start on Monday.
Tech View: Nifty forms long bear candle to break key support level
Headline equity index Nifty on Friday formed a long bear candle on the daily chart, indicating a decisive downside breakout of the sideways range movement in the market at 17800 levels.
Wall Street ends higher, notches weekly gains as Fed meeting looms
Wall Street advanced on Friday, marking the end of an rocky week in which economic data and corporate earnings guidance hinted at softening demand but also economic resiliency ahead of next week’s Federal Reserve monetary policy meeting.
Oil climbs after drone attack in Iran, China’s pledge to promote consumption
Oil prices climbed in early Asia trade on Monday, supported by tensions in the Middle East following a drone attack in Iran and as Beijing pledged over the weekend to promote a consumption recovery which would support fuel demand.
Rupee rises 2 paise against US dollar
The rupee appreciated 2 paise to close at 81.59 against the US dollar on Friday amid a firm American currency against major rivals overseas.
Sensex, Nifty on Friday
Benchmark indices Sensex and Nifty plunged over 1 per cent to close at three-month lows on Friday due to selling in banking, financials, utilities and oil shares triggered by an unfavourable report on Adani group as well as FIIs taking a cautious stance ahead of the Union budget. The broader NSE Nifty fell 287.60 points or 1.61 per cent to end at a three-month low of 17,604.35, also marking its worst single-day fall since December 23, 2022.