Uncertainty is gripping the markets. The public budget on February 1 is adding to the uncertainty in the Indian markets and the US Fed decision coming on the same day is adding to the uncertainty in the western markets. The December quarter results are also confusing. All this led to volatility in markets from India to Brazil yesterday. Indications are that it will continue to be the same today.
The Indian market closed yesterday in a condition where it could not be said that it was a gain or a loss after the fluctuations. European markets also ended with small gains. In the US market, the Dow Jones index was up 0.31 percent, while the S&P was down 0.071 percent and the Nasdaq was down 0.27 percent. Investment experts say that the market will enter the cherry zone till the first day.
Asian markets are in different directions this morning. In Japan, the Nikkei index was slightly lower. The South Korean market jumped 1.6 percent. The Australian market is also losing.
The SGX Nifty closed yesterday at 18,134 in derivatives trade on the Singapore Exchange. But this morning the index fell to 18,090. This indicates that the Indian market will begin to decline today.
On Tuesday, the Indian market started with gains and moved higher. In the afternoon, the stabbing happened. The major indices eventually rebounded but ended with marginal gains and losses. The Sensex closed up 37.08 points (0.061%) at 60,978.75 and the Nifty closed down 0.25 points (0.0014%) at 18,118.3. The mid-cap index ended lower by 0.39 percent and the small-cap index by 0.37 percent.
PSU Banks, Pharmaceuticals, Realty, Healthcare and Metals sectors were heavy losers. Automobiles and IT were the biggest gainers.
Foreign investors sold shares worth Rs 760.51 crore yesterday. Swadeshi Funduka bought shares worth Rs 1144.75 crore.
Analysts say the market ended in a bearish trend. They estimate that the market will not be able to cross the barrier of 18,200 for a few more days. Nifty sees support at 18,085 and 18,010. On the upside, resistances are likely at 18,180 and 18,255.
Crude oil prices fell slightly. After hitting a seven-week high, it fell 2.5 percent in late afternoon trade yesterday. This is due to high stocks of crude oil and products. Brent crude ended at $86.42 yesterday. Dropped to $86.13 this morning.
Industrial metals moved in and out of the small sector. Copper rose 0.35 percent and aluminum gained 0.6 percent. Nickel and tin rose while lead and zinc fell.
Gold is on record and can climb further
Gold is on the rise again. The price that went up to 1944 dollars yesterday is at 1938-1940 dollars this morning. Yesterday, when the results of the US manufacturing PMI came out, the price fell to 1917 dollars, but then went back up. The market believes that the price will rise further. The conclusion of the gold bulls is that if the barrier of 1950 dollars is overcome, it will reach 2300 dollars within months.
Swarnam Pavan set a new record yesterday in Kerala. The power price reached Rs 42,160. 42,000 was crossed on August 7, 2020. It was in a situation where availability was low due to the covid lock down. At that time gold was 2077 dollars per ounce. 74 dollar rate and Rs. Now the price of gold is less than 140 dollars while the dollar rate is above 81.6 rupees. It is for this reason that the record prices in Kerala have come even when the international prices have fallen.
Rupee weakened further yesterday. The dollar rose 33 paise to close at Rs 81.72. Uncertainty about US interest rates and the dollar index
making it impossible to predict the course. For this reason, foreign investment is also unpredictable. It is concluded that the dollar rate will continue to fluctuate. The dollar index closed at 101.92 yesterday. this morning
The index did not change significantly.
India in T+1 mode
On Friday, the Indian market will be in T+1 settlement mode. Blue-chip and large-cap stocks are the first to do this. These account for 80 percent of the market’s trading volume.
The Indian market has overtaken the American market and is changing to the mode of settling today’s trade tomorrow. The global method is T + 2. US and Canada are trying to implement T+1. Many middlemen in the market had earlier objected to this method saying it would cause problems. But when these were implemented in a phased manner, the apprehensions went away.
Maruti’s sales soared
Maruti Suzuki’s December quarter results beat expectations. Sales increased by 25 percent to Rs 27,849 crore by selling 4.66 lakh vehicles. Operating profit margin increased to 9.8 percent. Net profit increased by 130 percent to Rs 2351.3 crore. The company’s vehicle bookings increased to 3.63 lakh. 1.19 lakh for Grand Vitara and Brezza models. These SUVs have higher profit margins. New figures show that Maruti is making progress in the SUV market, which initially lagged behind.
Clues in Colgate Sales
Colgate Palmolive’s turnover increased marginally. Net profit fell by four percent. Colgate has been hit hard by the challenges faced by FMCG companies. Hindustan Uni Lever posted an even higher 16 percent growth in turnover last week, but that was due to price hikes. The average increase in prices by the company is 11 percent. It is the result of the company’s market dominance. But it leads to shifting users to smaller packs.