Dear
Trader…
The benchmark BSE Sensex gained 224 points or 0.29% to close
at 76,724, while the broader Nifty Future index closed at 23,265, down by 5.85
points or 0.03%.
The market capitalization of all listed companies on the BSE
decreased by Rs 21,304 crore to Rs 424.40 lakh crore.
Indian benchmark indices ended a second consecutive day in
green on Wednesday, as declines in pharma and auto stocks were offset by gains
in heavyweight financials and Reliance Industries, even as concerns over
slowing earnings growth kept a lid on the overall gains for blue-chip stocks.
Sector
Watch – Financial stocks provided a much-needed
boost to the benchmarks, with the Nifty Bank and Nifty PSU Bank indices edging
up, gaining 0.1% and 0.2%, respectively.
The Nifty Auto index, however, dropped 0.5%, as Mahindra
& Mahindra shares fell nearly 3%, making it one of the top losers on the Nifty
50.
Reliance, the second-largest stock on the
indices, rose 1.1%, ending a four-session losing streak and lifting the energy
index by 0.8%.
Among individual stocks, HDFC AMC surged 4.6% after reporting
a 31% YoY increase in its consolidated net profit to Rs 641 crore for the
December quarter.
Global
Markets – Global stocks edged higher on
Wednesday in cautious trading ahead of U.S. consumer price data, which could
impact the monetary policy outlook. Meanwhile, Asian markets showed a mixed
performance, reflecting Wall Street’s mostly positive close amid anticipation
of inflation data that could shape the pace of future Federal Reserve rate
cuts.
Tokyo’s Nikkei 225 edged up 0.1%, and Hong Kong’s Hang Seng
gained 0.2% following reports that President-elect Donald Trump’s economic team
is considering phased tariff increases. In contrast, the Shanghai Composite
slipped 0.4%. South Korea’s Kospi ended nearly flat at 2,496.81 as authorities
detained impeached President Yoon Suk Yeol over last month’s failed martial law
declaration.
Investors are now focused on key U.S. consumer price data,
expected after Indian market hours, which could shape the Federal Reserve’s
rate cut outlook and influence foreign flows into emerging markets like India.
Crude
Impact – Oil prices edged higher on
Wednesday trimming losses from the previous day, as the focus turned back to
potential supply disruptions from sanctions on Russian tankers, though gains
were capped as the market awaited more clarity on their impact.Brent crude futures
edged up 51 cents, or 0.6%, to $80.43 a barrel by 0735 GMT, after dropping 1.4%
in the previous session.
FII/DII
Tracker – The Foreign institutional
investors (FIIs) offloaded equities worth Rs 8,132.26 crore on January 14,
while domestic institutional investors bought equities worth Rs 7,901.06 crore
on the same day.
Foreign Institutional Investors (FIIs) have offloaded Indian
shares worth $3.2 billion in January so far, driven by concerns over the
likelihood of fewer U.S. rate cuts in 2025, which diminishes the appeal of
emerging markets like India for investment.
Meanwhile,
The domestic market continues to be volatile on
account of elevated U.S. bond yields, strengthening dollar, and increasing FIIs
outflows.
Global markets are cautious ahead of the US December CPI
inflation data, which is anticipated to be in the elevated range in the
short-term, limiting FED’s ability to cut rates. Also, a rise in oil prices
& dollar appreciation is likely to affect domestic inflation in the near
future.
Technically, the
important key resistances are placed in Nifty future are at 23265 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 23303 – 23404 levels. Immediate support is placed at 23088 –
23008 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
