SGX Nifty was up with marginal gains on Friday morning.
(Image: REUTERS)Share Market News Today | Sensex, Nifty, Share Prices LIVE: Domestic equity markets continued to range-bound movement and closed with losses yet again on Thursday. S&P BSE Sensex ended the expiry trading session at 52,318 points, down 164 while the NSE Nifty 50 is now at 15,680. Broader markets have mirrored the fall except smallcap indices. On Friday morning, SGX Nifty was up in the green, signaling positive momentum ahead of the opening bell. Global cues mixed as some Asian markets failed to mirror Wall Street’s gains during the early hours of trade. Nikkei 225, TOPIX, and KOSPI were up in the green while KOSDAQ, Hang Seng, and Shanghai Composite were down in red.
Banks could see an increase in loan losses by as much as 232 basis points on-year to 9.8% by the end of this financial year, said the Reserve Bank of India (RBI). However, the central bank has said that lenders are well capitalised to manage any stress emerging. As an aftermath of the pandemic led lockdown and business disruption, the gross non-performing asset (NPA) ratio could rise to 10.36% by March next year if the stress is moderate and 11.22% if it is severe, RBI said on Thursday. To tide over the crisis, most banks have maintained adequacy ratios above the mandated 9%.
Highlights
"Nifty is still at the support of a rising trendline and the pattern of higher highs and higher lows remains intact. Nifty has dipped below the rising 20 days moving average. Four days in a row of red candles means that Nifty is getting oversold on a very stochastic oscillator. Support for Nifty is now at 15600-15625. What we need is a bullish candle stock pattern which would at least give a short-term rally. What we need is to move above 15750 to propel Nifty towards 15900-15950," said Manish Shah, Founder, Niftytriggers.
"US markets ended higher with all major indices in the green. Europe closed firm. Asian markets again trading mixed. SGX Nifty trading flattish. Sluggish down-move continued with no major change in Nifty futures OI while Bank Nifty futures saw an unwinding of positions. 15,700 straddle and 34,500 straddle witnessed major addition indicating a likelihood of big move in either direction," said Rahul Sharma, Head Technical Research, JM Financial.
SGX Nifty hints at a flat start to Friday’s trading session. Benchmark indices have ended in the negative territory for the last few trading sessions. So far this week, Sensex and Nifty have slipped nearly 1% each while the volatility index, India VIX, has dropped 5%. “Nifty continued to show choppy movement with negative bias and still there is no evidence of any upside bounce emerging from the lows,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. As major triggers seem to be missing, stock-specific action has been advised by analysts.
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"The equity market may continue to consolidate in the near term given the worry over the potential risk from Covid third wave and the commodity price-led inflation and in absence of any fresh trigger. Investors would take cues from US jobs data and US PMI data due later today. Nifty valuations at the current juncture is not inexpensive and demand consistent earnings delivery ahead. Any disappointment on the earnings front could weaken the overall positive sentiments. However, we expect the earnings momentum is to accelerate given the pickup in the pace of vaccination and the further opening of the economy. Good monsoon further supports bullish biasedness," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
SGX Nifty was up in the green on Friday morning, hinting at a flat to a positive start for domestic markets.
The Reserve Bank of India (RBI) estimates loan losses at banks could rise 232 basis points y-o-y to 9.8% by March 2022 in a baseline stress scenario, even as banks are well-capitalised to manage the stress. With the pandemic having hurt businesses across sectors, the gross non-performing asset (NPA) ratio could rise to 10.36% by March 2022 if the stress is moderate and 11.22% if it is severe, the central bank said on Thursday.
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