Benchmarks sharply pare losses; Nifty near 17,100 level

27 Jan 2022 , 02:28 PM

The benchmark indices sharply pared losses in mid-afternoon trade. The Nifty was trading near the 17,100 mark, supported by banks stocks. However, the undertone of the market remained weak amid fears of monetary policy tightening, geo-political tensions of Russia invading Ukraine and firm crude oil prices.

At 14:30 IST, the barometer index, the S&P BSE Sensex, fell 648.58 points or 1.12% at 57,209.57. The Nifty 50 index lost 182.20 points or 1.05% at 17,095.75.

In the broader market, the S&P BSE Mid-Cap index slipped 1.41% while the S&P BSE Small-Cap index skid 0.73%.

The market breadth was negative. On the BSE, 1,372 shares rose and 1,957 shares fell. A total of 98 shares were unchanged.

The Budget session of Parliament is set to commence on 31 January 2022 and will conclude on 8 April 2022. The government will present the Budget for fiscal 2022-23 on 1 February 2022. The Economic Survey is likely to be tabled on 31 January 2022 after the presidents address.

On the political front, developments in the upcoming assembly polls in Uttar Pradesh, Uttarakhand, Goa, Punjab, and Manipur will be closely watched. Polls in all the five states will be held between 10 February 2022 and 7 March 2022 in seven phases. The counting of votes and the result will be declared on 10 March 2022.

COVID-19 Update:

India saw a marginal rise in fresh cases, reporting over 2.86 lakh (2,86,364) in the last 24 hours, ending at 9 A.M. on Thursday. With around 3.06 lakh (3,06,357) recoveries, the number of active cases has declined to 22 lakh (22,02,472). The daily positivity rate has increased slightly to 19.59%, while the weekly positivity rate is now 17.75%.

Economy:

The International Monetary Fund (IMF) has raised its forecast for growth in Indias gross domestic product (GDP) in FY23 by 50 basis points (bps) to 9%. Indias GDP growth forecast for FY24 was also raised by 50 bps to 7.1%. Explaining the upward revision in an update to its World Economic Outlook report, the IMF said it expects an improvement in Indias credit growth which would boost consumption and investment and better-than-anticipated performance of the financial sector.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.740% as compared with 6.662% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 75.22, compared with its close of 74.7850 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement fell 1.16% to Rs 48,285.

The US Dollar index (DXY), which tracks the greenbacks value against a basket of currencies, rose 0.92% to 96.83.

In the commodities market, Brent crude for March 2022 settlement fell 4 cents at $89.92 a barrel.

Buzzing Index:

The Nifty Consumer Durables index declined 2.60% to 26,770.20. The index rose 0.09% in the previous trading session.

Rajesh Exports (down 4.81%), Bata India (down 4.13%), Havells India (down 3.81%), Blue Star (down 3.71%) and Titan Company (down 3.27%) were the top losers in the Consumer Durables segment.

Global Markets:

The Dow Jones index futures were down 135 pts, indicating a weak opening in the US stocks today.

Most stocks in Europe and Asia declined on Thursday as investors digest an overnight update from the U.S. Federal Reserve that indicated the central bank plans to raise interest rates as soon as March. Meanwhile, supply concerns stemming from tension between Russia and Ukraine saw oil prices touch highs not seen since 2014.

The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation.

The committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so, Powell said in a news conference, pinning down a policy statement from the central banks Federal Open Market Committee that only said rates would rise soon.

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