Stock Market News: “Foreign institutional investors have net-sold shares worth Rs 219.87 crore on January 23. Among companies, Maruti Suzuki, HDFC AMC and Colgate will be in focus as these companies are scheduled to announce December quarter results”
The market is expected to open in the green as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 81 points.
The BSE Sensex rallied 320 points to 60,942 at the close on Monday, while the Nifty50 climbed 91 points to 18,118 and formed a long-legged Doji pattern on the daily charts, indicating indecisiveness among buyers and sellers about the future market trend, with a higher-high-higher-low formation and taking support at the 18,000 mark.
As per the pivot charts, we have key support level for the Nifty at 18,077, followed by 18,054, and 18,016. If the index moves up, the key resistance levels to watch out for are 18,153, followed by 18,176 and 18,214
Asian Markets
Markets in the Asia-Pacific traded higher as Lunar New Year holidays were observed in most of the region.
In Australia, the S&P/ASX 200 gained 0.12 percent in early trade, following Wall Street’s tech-fuelled rally ahead of the major earnings reports. The Nikkei 225 climbed 1.17 percent and the Topix was up 0.88 percent.
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SGX Nifty
Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 81 points. The Nifty futures were trading around 18,227 levels on the Singaporean exchange.
Oil settles mixed after hitting 7-week high on strong China outlook
Oil prices settled mixed on Monday, retreating as investors cashed in on a jump to a seven-week high on optimism about a possible recovery in demand of top oil importer China as the economy recovers this year from pandemic lockdowns.
Brent crude settled 48 cents higher at $88.11 a barrel. The session high was $89.09 a barrel, the highest since December 1. US West Texas Intermediate (WTI) crude settled at $81.66 a barrel.
Japan’s factory activity extends declines for third straight month: PMI
Japan’s manufacturing activity contracted for a third straight month in January as export weakness persisted amid a worsening global outlook, a corporate survey showed on Tuesday.
The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) was at a seasonally adjusted 48.9 in January, unchanged from the final reading in the previous month. The soft factory activity clouds policymakers’ hopes that key wage talks in the months ahead will offset the squeeze to consumers from a 41-year-high inflation and help sustain the fragile post-pandemic recovery.
Maruti Suzuki Q3 preview: Lower volumes but better margins expected
Maruti Suzuki is expected to report a sequential fall in revenue on weaker volumes but may see some improvement in margins on price hikes and input-cost moderation when it reports its numbers of the December quarter on January 24.
The country’s biggest carmaker’s quarter-on-quarter (QoQ) revenue or sales and net profit will likely fall by 7.3-10.4 percent and by 14.3-19 percent but the operating margin will improve by 15-70 bps, estimates of analysts across four brokerages show.
The numbers are likely to look much better, thanks to a low base of the last year. Both revenue and net profit are expected to rise by 15.4-17.9 percent and 74.7-87 percent, and the operating margin is forecasted to go up by around 330 basis points (bps).
Results on January 24
Maruti Suzuki India, HDFC Asset Management Company, Colgate-Palmolive, CG Power and Industrial Solutions, Chalet Hotels, Gateway Distriparks, Granules India, Indoco Remedies, Indus Towers, Latent View Analytics, Macrotech Developers, Motilal Oswal Financial Services, Nazara Technologies, Pidilite Industries, PNB Housing Finance, SBI Cards and Payment Services, Sona BLW Precision Forgings, Tata Coffee, TVS Motor Company, and United Spirits will be in focus ahead of quarterly earnings on January 24.
FII and DII data
Foreign institutional investors (FII) have net-sold shares worth Rs 219.87 crore, whereas domestic institutional investors (DII) have net-bought shares worth Rs 434.96 crore on January 23, as per provisional data available on the NSE.
Japan warns of dire finances as BOJ struggles to contain yields
Japan’s finances are becoming increasingly precarious, Finance Minister Shunichi Suzuki warned on Monday, just as markets test whether the central bank can keep interest rates ultra-low, allowing the government to service its debt.
The government has been helped by near-zero bond yields, but bond investors have recently sought to break the Bank of Japan’s (BOJ) 0.5 percent cap on the 10-year bond yield, as inflation runs at 41-year highs, double the central bank’s 2 percent target.
“Japan’s public finances have increased in severity to an unprecedented degree as we have compiled supplementary budgets to respond to the coronavirus and similar issues,” Suzuki said in a policy speech starting a session of Parliament.
Stocks under F&O ban on NSE
The National Stock Exchange has retained PVR, Delta Corp, and L&T Finance Holdings under its F&O ban list for January 24. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit
With inputs from Reuters and other agencies