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MARKET VIEW: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
There is no distinct trend in this whipsaw market. Daily trading for the near-term is fraught with high risk. It would be better for investors to wait for the markets to consolidate. However, long-term investors can use the volatility to buy high quality stocks available at attractive valuations. Financials, particularly leading banks, are value buys now. Most of these stocks are trading at depressed valuations because of relentless FPI selling. Paradoxically, their fundamentals are improving. Credit growth in the economy is impressive and asset quality of banks has improved substantially. Leading banks are well capitalised to profit from the rebound in the economy and pick up in credit growth. So, for investors with a medium to long-term perspective, financials provide a good buying opportunity. CEOs of Indian IT majors in their recent interviews in Davos have reiterated the strong demand and earnings visibility for the segment. So, IT stocks also are good long-term investment now even though valuations are not cheap.
STOCK IN FOCUS: AB Fashion & Retail
#StocksToWatch | Aditya Birla Fashion & Retail – 1.02 cr equity shares to be issued to GIC at Rs 288.75/sh – 6.58… https://t.co/47XCYiLDYq
— ET NOW (@ETNOWlive) 1653367048000
Pre-open indicative price: Delhivery & Venus
BSE: Rs 493 (1% up)
NSE: Rs 495.2 (2% up)
Venus Pipers & Tubes:
BSE: Rs 335 (3% up)
NSE: Rs 337.5 (4% up)
Forex Alert: Rupee opens almost flat at 77.56 against US dollar in early trade
The online food delivery platform reported widening of its consolidated net loss at Rs 359.7 crore in the fourth quarter ended March 2022, impacted by higher expenses. The company had posted a consolidated net loss of Rs 134.2 crore in the same period of the previous fiscal. Although, revenue from operations came in at Rs 1,211.8 crore, up 75.01 per cent compared to Rs 692.4 crore in the same quarter last year. Following this stock rose 12%.
Price as on 24 May, 2022 09:33 AM, Click on company names for their live prices.
Sector Watch: FMCG, IT pack bleed the most; metal sees sharp bounceback
Sensex Heatmap: Tata Steel rebounds, best gainer in opening deals
- Advance-decline ratio for the index skewed in favour of gainers
OPENING BELL: Sensex rises 100 points; Nifty50 at 16,240; Zomato, Vedanta climb 3% each; Rupa plunges 12%
Pre-open session: Sensex drops 100 points, Nifty50 below 16,100
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 53 points, or 0.33 per cent, higher at 16,228.50, signaling that Dalal Street was headed for a positive start on Tuesday.
Tech View: Nifty likely to stay in 16,000-16,400 range
Nifty50 on Monday formed a bearish candle on the daily chart with an upper wick, suggesting selling at higher levels. During the day, the index tested the 16,400 level. This is the level where the index had faced resistance in the last two weeks, said analysts who believe the index may be in for a range-bound action in coming sessions.
Oil prices ease on concerns over recession
Oil prices eased in early trade on Tuesday as concerns over a possible recession and weaker consumption outweighed an expectation of tight global supply and a pick-up in fuel demand in China after Beijing’s promises of stimulus. Brent crude futures for July slid 35 cents, or 0.3%, to $113.07 a barrel. US West Texas Intermediate (WTI) crude futures for July delivery dropped 36 cents, or 0.3%, to $109.93 a barrel. Both benchmarks declined by more than $1 earlier in the session.
Asia stocks restrained as US futures retreat
Asian shares got off to a sluggish start on Tuesday after a rally on Wall Street was soured by an early slide in US stock futures. After ending Monday firmer, Nasdaq futures lost 1.3% with traders blaming an earnings warning from Snap which saw shares in the Snapchat owner tumble 28%. S&P 500 futures also lost 0.6%, surrendering some of Monday’s 1.8% bounce. MSCI’s broadest index of Asia-Pacific shares outside Japan was left almost flat as a result, while Japan’s Nikkei dipped 0.1%.
US indices settle up to 2% higher
US stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally following Wall Street’s longest streak of weekly declines since the dotcom bust more than 20 years ago. The Dow Jones Industrial Average rose 618.34 points, or 1.98%, to 31,880.24, the S&P 500 gained 72.39 points, or 1.86%, to 3,973.75 and the Nasdaq Composite added 180.66 points, or 1.59%, to 11,535.28.
Rupee rebounds 15 paise to 77.55 against dollar
The rupee recovered from record lows and settled 15 paise higher at 77.55 against the US currency on Monday following a weak dollar in overseas markets and the RBI governor hinting at another rate hike in June to arrest rising inflation. At the interbank forex market, the domestic unit opened at 77.69 against the US dollar. It moved in a range of 77.51 to 77.69 during the session.
Sensex, Nifty on Monday
Equity indices frittered away a good start to close with modest losses on Monday, pressured by heavy selling in metal stocks after the government imposed export duties on steel-making raw materials to curb soaring prices. Sensex opened strong and gained momentum as the session progressed, but came under severe selling pressure in afternoon trade to close 37.78 points or 0.07 per cent lower at 54,288.61. On similar lines, the broader NSE Nifty slipped 51.45 points or 0.32 per cent to end at 16,214.70.