Broader markets were trading mixed on Tuesday. Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity benchmarks slipped on the opening bell on Tuesday morning. S&P BSE Sensex was down in red but was holding above 49,100, while the 50-stock NSE Nifty did not give up 14,450. Ultratech Cement, Reliance Industries, and Larsen & Toubro were the top gainers on Sensex while IndusInd Bank, Kotak Mahindra Bank, and HCL Technologies were the top drags. Asian peers were trading mixed on Tuesday morning with Shanghai Composite and Hang Seng up with marginal gains while Nikkei 225, TOPIX, and KOSPI were in the red.
The central bank on Monday said that the gross non-performing asset (GNPA) ratio of banks could double to reach 13.5% by September this year in a base scenario while on the higher side it is expected to reach 14.8%. The GNPA ratio is used to assess loan losses in the banking sector. The RBI in the report said that if a severe stress situation occurs the bad loan ratio of the banking system could be the highest since March 1997, when it stood at 15.7%. RBI Governor Shaktikanta Das, in the report, said that India’s banking system faced the pandemic with relatively sound capital and liquidity buffers built assiduously in the aftermath of the global financial crisis and buttressed by regulatory and prudential measures.
Highlights
Burger King India share price extended losses, falling another 6.75 per cent to Rs 140 apiece on BSE today. The stock has tumbled over 15 per cent in two days. The quick-service restaurant’s (QSR) stock hit 10 per cent lower circuit in the previous session. Burger King stock has fallen 36 per cent from its all-time high of Rs 219.15 apiece in less than a month.
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Dalal Street has been buzzing with analysts claiming that the time has now come to own midcap stocks after years of underperformance when compared to the large-cap equities. “The midcap index has resolved out of bear phase as it logged a resolute breakout from the three years falling trend line, indicating resumption of a major up trend,” said brokerage and research firm ICICI Direct. Aided by the view that broader markets are likely to outperform the benchmarks, analysts at ICICI Direct have chalked out how they would build a midcap momentum portfolio for the medium term to extract maximum returns from this bullish outlook for the broader markets.
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With dollar Index and US yields rising and RBI warning on stock markets/asset prices it seems that we may see some risk aversion in near term. For the present, flows continue and Rupee remains in the range of 73.30/60. Sell near to 73.60 for exports and hedge towards 73.30 for imports could be today's trade: Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors
After a massive jump in Tata Motors share price on Monday, the stock continues to soar on Tuesday morning. Shares of Tata Motors gained 8% on NSE to trade at Rs 238 apiece.
The continued strengthening in dollar index has been ruling the USDINR momentum since past few sessions. However, a very sharp fall was prevented with the rise in domestic markets and steady FII inflows. According to a financial stability report by the RBI, banks gross non-performing assets may rise to 13.5% by September 2021 from last 7.5% raising concerns on the banks' financial position. Investors are being cautious ahead of India’s CPI and IIP data. Considering the global dollar strength, prospects of inflows and RBI’s activeness on the buy side, the USDINR pair is expected to move in a range of 73.10-73.50 levels in the near term. If 73.50 level is taken out, we might see a steady fall in the USDINR pair close to 73.80 levels. One can sell in tranches close to 73.50 levels if the pair doesn’t break the same after observing the price action for initial hour. One can look for covering near term import payments on intraday dips close to 73.15-25 levels those who haven’t covered earlier: Amit Pabari, managing director, CR Forex Advisors
The markets are feeling toppish at 14500. While we feel the Nifty can go up to 14600, traders should exercise caution and book profits at regular intervals. We have a good support at 14200-14250 levels. On an intraday basis if we can keep above 14500, we should be able to achieve 14600 sooner than later: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
"The markets are feeling toppish at 14500. While we feel the Nifty can go up to 14600, traders should exercise caution and book profits at regular intervals. We have good support at 14200-14250 levels. On an intraday basis, if we can keep above 14500, we should be able to achieve 14600 sooner than later," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Nifty to head towards 14530, buy on decline towards 14400 as stock-specific action to be in focus during earning season. The Bank Nifty option structure indicates that it is likely to consolidate between 32000-32500 levels.
~ ICICI Direct
What lies for Indian Rupee in 2021 is the biggest question for major importers, exporters and traders. The Covid-19 badly impacted major global economies in 2020 and to revive it major central banks pumped abundant liquidity in the system without any other thoughts. Resultant, major markets flooded with liquidity and made multi or All-Time-Highs.
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Sensex began the day's trade 100 points lower. Nifty 50 was holding above 14,450. Broader markets were trading mixed.
Sensex and Nifty ended the pre-open session in the red on Tuesday. Nifty was still above 14,450 while Sensex held 49,200.
Sensex was down 100 points while the Nifty 50 was 23 points lower in the pre-open session on Tuesday morning.
Nifty was trading in the red on Tuesday morning in the pre-open session but was still holding above 14,450. Sensex, on the other hand, was dancing between gains and losses.
Indian share market may open in negative territory on Tuesday, taking cues from the global peers. In the previous session, Nifty 50 index jumped 137.5 points or nearly one per cent to close at 14,484.75 while the BSE Sensex rallied 486.81 points or 1 per cent to close at 49,269.32. A host of factors such as October-December quarter earings, COVID-19 vaccine rollout, oil prices, rupee movement and other global developments will set the market tone today. The trends on SGX Nifty suggested a negative opening for the domestic equity market benchmarks.
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SGX Nifty trimmed gains further to now sit just 19 points lower, minutes ahead of the pre-open session on Monday.
For the January series, maximum Call Open Interest is placed at 15000 strike with 18.98 lakh contracts. This is followed by 17.32 lakh contracts at 14000 strike. Most Put OI is at 14,000 strike with 29.14 lakh contracts.
Fortis Healthcare: Rakesh Jhunjhunwala bought 50 lakh shares of Fortis Healthcare at Rs 179.40 apiece. Burger King India: Chetan Rasikal Shah bought 22.80 lakh shares at Rs 150.16 apiece and sold 12.57 lakh shares at Rs 150.15 per share.
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"The upside momentum continued in the market for the second consecutive session on Monday post upside breakout of small range of Friday at 14250 and the Nifty closed the day higher by 137 points. The short term trend of Nifty continues to be positive. There is a possibility of some more upmove or range movement for the next 3-4 sessions, before showing sharp one day of decline from the new highs. The next upside levels to be watched at 14600-14800. Immediate support is placed at 14380," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Nifty futures on Singapore Exchange were trading 32 points lower during the early hours of Tuesday but soon trimmed some losses, however still remained in the red.
With prices of pulses ruling below the minimum support price (MSP), the National Agricultural Cooperative Marketing Federation (Nafed) has decided to begin procurement from Maharashtra, Gujarat, Karnataka, Telangana and Andhra Pradesh, senior industry people said.
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Loan losses in the banking sector, as measured by the gross non-performing asset (GNPA) ratio, could nearly double to 13.5% by September 2021 in a baseline scenario, and to as high as 14.8% in a severe-stress scenario resulting from the pandemic, the Reserve Bank of India (RBI) said on Monday. The GNPA ratio stood at 7.5% in September 2020.
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