The new week for domestic markets is starting with weak global cues. Even today the market has had a weak start. After opening, the Sensex was down 134 points at 82,491. Nifty was down by 50 points at around 25,420. Bank Nifty was trading 159 points down at 60,027. Nifty Midcap Select was also down 115 points at around 13,513. There was a decline of more than 1 percent in the smallcap index. India VIX had jumped 3%.
Pharma and healthcare indices on Nifty remained bullish. Indices like Auto, Realty, Consumer Durables also remained on the rise. Indices like IT, NBFC, Media, Private Bank remained in decline. Mixed signals from US markets, weakness in GIFT Nifty, sharp rise in commodities, heavy selling by FIIs and tight RBI norms – all these factors will set the initial tone. Also, corporate results and some important news may increase movement in select stocks.
On Friday, recovery from lower levels was definitely seen in the American markets, but the closing was mixed. The Dow closed up nearly 50 points after recovering 400 points amid lower-than-expected inflation data, while the Nasdaq closed 50 points lower for the fourth consecutive day. Today is a holiday in the markets of America, China and South Korea. GIFT Nifty is trading around 25,460, down about 60 points, while Dow Futures is up 50 points.
Commodity Market: Tremendous rise in gold and silver
A lot of activity has been seen in the commodity segment. On MCX, gold jumped by nearly Rs 3000 to close at Rs 1,56,000, while silver jumped by Rs 8,000 to close above Rs 2,44,000. In the global market too, gold jumped by $100 and reached near $5050, while silver rose by about 3 percent. On the other hand, crude oil remains sluggish below $68. There is pressure from all sides in base metals. US 10-year bond yields have fallen for the second consecutive day, hitting a two-and-a-half-month low of around 4% – which could weigh on global risk sentiment.
Big selling by FIIs, support from domestic funds
Foreign institutional investors (FIIs) sold Rs 7,396 crore in the cash market. Total net sales including index and stock futures stood at Rs 13,123 crore. However, domestic institutional investors (DIIs) provided some support to the market by purchasing Rs 5,554 crore.
Corporate Update: Results increase movement in select stocks
Torrent Pharma and GMR Airports reported good results in the December quarter. Fortis Healthcare, Kfin Tech and NBCC had a mixed performance. At the same time, Inox Wind’s results were weaker than expected – these stocks may see action. Apart from this, RBI has approved Bain Capital to buy 41.7% stake in Manappuram Finance. The focus will be on shares worth about Rs 4,385 crore related to this deal.
IPOs and Listings: Keep an Eye on Fractal Analytics
Fractal Analytics listed today. This issue was subscribed more than two and a half times and the issue price was fixed at Rs 900 per share. The market will keep an eye on whether the listing is at a premium or a discount.
New rules of RBI: Pressure on brokers!
RBI has implemented strict rules regarding broker funding. Now banks will be able to give loans only on 100 percent guarantee and bank funding for prop trading has been banned. These rules will come into effect from April 1. This decision may see pressure on volumes, especially in the derivatives segment, and may impact funding of smaller brokers.
