After a day of hiatus, benchmark indices were back in the red on Thursday as the US Federal Reserve spooked markets by announcing a timeline to raise interest rates. But some buying in the afternoon gave hope to bulls. The 30-share pack Sensex declined 581.21 points or 1 per cent to close at 57,276.94. The index recovered 838 points from the day’s low. Its broader peer NSE Nifty declined 167.80 points or 0.97 per cent to 17,110.15. Value stocks made a comeback with the PSU Bank index rallying over 5 per cent. The market was well supported by auto stocks to stage a smart recovery. At the same time, IT and pharma stocks witnessed profit-taking, Textile stocks were sought after in the broader market.
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The company that owns the WeTransfer file service is cancelling its initial public offering (IPO), Europe’s first prominent tech flotation of the year, it said on Thursday, citing volatile market conditions. WeRock, best known for the WeTransfer file transfer service, had planned a Jan. 28 flotation on Amsterdam’s Euronext that would have valued the company at between 629 million and 716 million euros ($714 million-813 million).
Nifty50 on Thursday respected its immediate support and attractive buying at low to eventually form a Hammer-like candle on the daily chart. A Hammer has bullish connotation, provided the market witnesses a follow through buying in the next session, said Mazhar Mohammad of Chartviewindia.
Gold plunges Rs 563; silver declines Rs 1,186
Gold in the national capital on Thursday plunged Rs 563 to Rs 48,215 per 10 grams amid weak international precious metal prices, according to HDFC Securities. In the previous trade, the precious settled at Rs 48,778 per 10 gram. Silver also tumbled Rs 1,186 to Rs 62,792 per kg from Rs 63,978 per kg in the previous trade.
What to expect from Friday’s trade?
— Ajit Mishra, VP – Research, Religare Broking
Today the Indian market was affected due to the weak performance of the global market, after yesterday’s holiday, and monthly expiry. The hawkish commentary of Fed was mostly in-line with expectations, while the global market is looking at the developments of Ukraine. Any moderation in geo-political situation will lead to bottom fishing. However, the domestic trend will be muted in the short-term considering budget & state elections outcome. Systematic investment method should be a better strategy in this situation.
– Vinod Nair, Head Of Research at Geojit Financial Services
Tech View by LKP Sec
— Rupak De, Senior Technical Analyst at LKP Securities
As the FED left key interest rates near zero, its hawkish commentary quickly washed away gains in Global Markets leading to a gap down opening in Indices back home. As FPI continued to book profits from Indian Equities, value stocks made a comeback with the PSU Bank Index rallying over 5% in Afternoon Trade today well supported by Auto stocks to stage a smart recovery. As IT & Pharma stocks witnessed profit taking, Textile stocks were sought after in the broader market on the back of earnings.
– S Ranganathan, Head of Research at LKP Securities
Sector Watch: PSU Bank index surges 5%; IT index tumbles
Sensex Heatmap: 21 of 30 Sensex stocks close lower
Nifty gyrates over 300 points, settles at 17,110
CLOSING BELL: Sensex stages 838-point recovery yet closes down 581 points; Nifty holds 17,100; Zomato tanks 10%, HCL Tech 4%
Simple Energy signs pact with Siemens to drive digital transformation in EV space
Price as on 27 Jan, 2022 03:15 PM, Click on company names for their live prices.
ICICIDirect’s top picks for Union Budget
Wockhardt reports consolidated net profit of Rs 1.77 cr in Q3
Income from continuing operations rose to Rs 853.89 crore in the third quarter as against Rs 764.02 crore in the October-December period of the previous fiscal, Wockhardt said in a regulatory filing.
Volatility gauge India VIX eases by 2.43% to 20.84
Gold, silver spot prices
Hawkish Fed, bruising global sell-off topple European shares
European shares fell nearly 1% on Thursday after U.S. Federal Reserve chairman Jerome Powell signalled a March interest rate hike and sustained policy tightening to control surging inflation. The pan-European STOXX 600 dropped 0.8% with nearly all regional markets and sectors in the red. Following the Federal Open Market Committee meeting, Powell said the U.S. central bank is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month.
The US Food and Drug Administration (USFDA) has issued a warning letter to Aurobindo Pharma for violating current good manufacturing practice norms at its Telangana-based plant.
Price as on 27 Jan, 2022 02:15 PM, Click on company names for their live prices.
State-owned Canara Bank on Thursday reported over two-fold jump in its net profit on a standalone basis to Rs 1,502 crore for the December 2021 quarter on the back of lower provisioning. The bank had posted a net profit of Rs 696 crore in the year-ago quarter. Sequentially, the net profit was higher by 13 per cent from Rs 1,333 crore in the quarter ended September 2021.
Mild recovery for benchmark indices
Sun Pharmaceutical Industries on Thursday said its subsidiary has launched Cequa, a new treatment for dry eye disease, in Canada.
Price as on 27 Jan, 2022 01:25 PM, Click on company names for their live prices.
Select banking counters show resilience amid broader market fall
Price as on 27 Jan, 2022 01:20 PM, Click on company names for their live prices.
Airtel Africa inducted into FTSE 100 from Jan 31: Informist
US MARKET CHECK
- Futures on the S&P 500 fell 1.1% as
- Futures on the Nasdaq 100 fell 1.4%
- Futures on the Dow Jones Industrial Average fell 0.9%
Larsen and Toubro Infotech (LTI) on Thursday said it has partnered with IIT Madras for collaborative research in the field of 5G.
Price as on 27 Jan, 2022 12:52 PM, Click on company names for their live prices.
BUZZING STOCK: Zomato shares hit 10% lower circuit
Australia shares fall into correction territory after Fed signals hikes
Australian shares fell into correction territory on Thursday, driven by tech and gold stocks after the U.S. Federal Reserve signalled interest rate hikes as early as March, with investors now looking to next week’s Reserve Bank of Australia meeting. The benchmark S&P/ASX 200 index closed lower for a fourth straight day, down 1.8% at 6,838.3 – its lowest since April last year. The index is now more than 10% below its August 2021 high and is on track for its worst month since March 2020.
CANARA BANK Q3 EARNINGS
- PAT at Rs 1502 cr vs Rs 696 cr YoY
- Gross NPA at 7.8% vs 8.42% QoQ
- Net NPA at 2.86% vs 3.21% QoQ
- Provisions at Rs 2,244 cr vs Rs 3,360 cr QoQ; Rs 4,210 YoY
Sensex down over 1,350 points
Nomura forecasts 50 bp Fed hike in March
Analysts at Nomura, Japan’s biggest brokerage and investment bank, said they expect the U.S. Federal Reserve to hike its benchmark rate by 50 basis points (bps) in March. Fed Chair Jerome Powell did not rule out such a move when asked about it after Wednesday’s Fed meeting. “He repeatedly appeared to differentiate the upcoming hiking cycle from the last time the Fed normalised its policy rate at a roughly quarterly pace,” Nomura’s analysts said in a note.
These stocks defy market mood, rise up to 20%
Price as on 27 Jan, 2022 12:12 PM, Click on company names for their live prices.
Amid the Fed tapering talks, domestic yields have been steadily rising in a narrow band, and the yields are expected to continue northwards in Q4 as the benchmark G-secs rates could move in the range of 6.4-6.8, which is pre-pandemic level, even though the signalling repo rate may be capped at 4 per cent at the next policy meeting, SBI chief economist Soumya Kanti Ghosh said in a report.
Q3 EARNINGS: RANE BRAKE LINING
- Revenue at Rs 137.1 crore vs Rs 133.6 crore YoY
- PAT at Rs 6.9 crore vs Rs 12.9 crore YoY
- EBITDA at Rs 13.6 crore vs Rs 24.9 crore YoY
What really upset the market was not the policy statement but the press conference of Powell, where it was no longer a case of a hike every two meetings, but rather a hike every meeting. We already have four hikes for this year and four more for 2023 and that is not the terminal rate. The terminal rate could be much higher and the Fed can move much faster.
– Jahangir Aziz, Head- Emerging Market Economics, JPMorgan
IPO UPDATE: Adani Wilmar subscribed 18% so far on Day 1
IT major Wipro on Thursday said it has appointed Badrinath Srinivasan as Managing Director for Southeast Asia.
Price as on 27 Jan, 2022 10:58 AM, Click on company names for their live prices.
The initial public offering (IPO) of Adani Wilmar Ltd (AWL) opened for subscription on Thursday, January 27. The company will offload its shares in the price range of Rs 218-230 apiece. The Rs 3,600 crore IPO comprises fresh issue of new equity shares of face value of Re 1 each. Majority of the brokerages are positive on the issue and have suggested investors to bid for the IPO citing its reasonable valuations, growth plans for the future, robust product line, sound balance sheet and strong parentage.
Rupee falls 41 paise to 75.19 against US dollar in early trade
The rupee declined 41 paise to 75.19 against the US dollar in opening trade on Thursday, tracking the strength of the American currency after hawkish US Fed policy stance. Forex traders said muted domestic equities, sustained foreign fund outflows and firm crude oil prices also weighed on the local unit. At the interbank foreign exchange, the rupee opened weak at 75.18 against the US dollar, then fell further to 75.19, registering a decline of 41 paise from the last close.
Boat-owner Imagine Marketing files for IPO of up to Rs 2000 crore: DRHP
- IPO to consist fresh issue of shares worth up to Rs 900 crore, offer for sale of shares worth up to Rs 1100 crore
- South Lake Investment to sell shares worth up to Rs 800 crore in Imagine Marketing’s IPO
- Axis Capital, Bofa Securities, Credit Suisse Securities, ICICI Securities are book running lead managers
- Imagine Marketing to use IPO proceeds to repay/prepay debt
- Imagine Marketing owns the Boat brand of earphones and smartwatches (Source: Reuters)
India’s benchmark 10-year bond yield hit a 25-month high on Thursday and the rupee dropped to its lowest level in a month after the U.S. Federal Reserve signalled it is ready to start tightening monetary policy to rein in inflation soon. India’s benchmark 10-year bond yield rose to 6.71%, up 5 basis points from its previous close and its highest level since Dec. 19, 2019.
Glenmark Pharmaceuticals Ltd on Thursday said its US subsidiary has received final approval from the country’s health regulator for its generic Bisoprolol Fumarate and Hydrochlorothiazide tablets used to treat high blood pressure.
Price as on 27 Jan, 2022 10:12 AM, Click on company names for their live prices.
Top losers in the tourism & hospitality space
Price as on 27 Jan, 2022 09:57 AM, Click on company names for their live prices.
While discussing the prospects for a turn higher from 16820 on Tuesday, we had lined up 17250-390 region to keep a lid on upsides. Having made an intraday high of 17309, Nifty is thus primed to swing lower. Favoured view lines up a potential consolidation in the 17000-17115 region, followed by a few attempts to swing higher after early volatility, but a slippage beyond 16820, will confirm the 15900 trajectory.
– Anand James – Chief Market Strategist at Geojit Financial Services
The cryptocurrency market eroded its gains on Thursday to trade lower following rate hike signals by the Fed at its next meeting. The central bank would steadily remove support for the economy in order to fight high inflation. Barring the US dollar-pegged stable coins, all other eight out of the top-10 digital tokens were trading lower during the trade on Thursday. Bitcoin and Ethereum shed more than 2 per cent each, whereas Terra dropped 7 per cent.
BLOCK DEAL: 65.5 lakh shares traded in a block
Price as on 27 Jan, 2022 09:23 AM, Click on company names for their live prices.
Most active stocks on NSE in opening deals
Price as on 27 Jan, 2022 09:23 AM, Click on company names for their live prices.
Sector Watch: All sectors in the red
Top Sensex drags in opening trade
OPENING BELL: Sensex sinks 1,000 points, Nifty50 below 17K; TechM, HDFC Bank tank 3% each
Pre-open session: Sensex tumbles 500 points, Nifty50 below 17,100
Alert: SGX Nifty tumbles 320 points, slips below 16,950
Update: Asian shares slump as Powell warns on inflation
Asian shares fell to their lowest in more than 14 months, short-term US yields rose to 23-month highs and the dollar strengthened on Thursday after the Federal Reserve’s chairman signaled plans to steadily tighten policy. Hong Kong’s Hang Seng index and Australian shares fell 2% and Chinese blue-chips were 0.2% lower.In Tokyo, the Nikkei fell 1.9%, touching its lowest point since December 2020.
Dollar climbs as Fed flags hikes
The dollar hit multi-week highs against other major currencies on Thursday, bolstered after Federal Reserve chair Jerome Powell primed investors for US rate hikes beginning in March. Overnight the Fed left its policy rate unchanged but Powell foreshadowed a sustained battle to tame inflation. The yen inched a fraction lower to 114.74 per dollar on Thursday. The euro was sold to a six-week low of $1.2301 and the Australian dollar fell about 0.4% to a seven-week trough of $0.7076.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 271.50 points, or 1.57 per cent, lower at 16,992.50, signaling that Dalal Street was headed for a negative start on Thursday.
Tech View: Nifty50 sees buying at lows
Nifty50 on Tuesday tested the sub-16,850 level before staging a strong rebound. In the process, the index formed a bullish candle on the daily chart with a long lower wick, suggesting the emergence of buying at low. The sentiment has turned marginally positive but the index needs to defend the 16,800 level to avoid resumption of selling, analysts said.
Hong Kong stocks open with losses
Hong Kong shares fell more than one percent in the opening minutes of trade Thursday, tracking losses across Asia and Wall Street after Federal Reserve chief Jerome Powell all but confirmed the bank will lift interest rates in March. The Hang Seng Index fell 1.39 percent, or 337.89 points, to 23,952.01. The Shanghai Composite Index was barely moved, inching up 0.43 points to 3,456.10.
Japan stocks open higher after mixed US close
Tokyo stocks opened higher in cautious trade on Thursday following a mixed close on Wall Street after Fed Chair Jerome Powell signalled an interest rate hike is likely in March. The benchmark Nikkei 225 index was up 0.39 percent or 105.37 points at 27,116.70 in early trade, while the broader Topix index gained 0.51 percent or 9.68 points to 1,901.53.
US stocks fall, yields rise after Fed signals rate hike ‘soon’
An early rally on Wall Street gave way to a broad slide for stocks and a surge in bond yields Wednesday after the Federal Reserve signaled it plans to begin raising interest rates “soon” to fight a spike in inflation that the central bank says is probably getting worse. S&P500 fell 0.1% after having been up 2.2% earlier in the day. Dow Jones Industrial Average fell 0.4% after swinging more than 900 points from its high for the day. Nasdaq ended little changed, shedding most of a 3.4% gain.
Rupee slides to 1-month low against dollar
The rupee on Tuesday depreciated by 18 paise to close at a nearly one-month low of 74.78 against the US dollar due to month-end dollar demand from oil importers, forex outflows and a stronger dollar in overseas markets. Investors’ weak appetite for riskier assets also weighed on the rupee. Moreover, market participants are now eyeing the US Fed’s meeting outcome for further cues.
Sensex, Nifty to resume trade after holiday
India’s currency, debt and equity markets were closed on Wednesday on account of Republic Day holiday. Markets will resume trading on Thursday. The NSE Nifty 50 index had closed 0.75 per cent higher at 17,277.95 on Tuesday, while the S&P BSE Sensex was up 0.64 per centat 57,858.15 for the day.