The Friday Trading turned out to be exactly opposite to what everyone thought on Thursday closing. The Heavy Sell-off in US Markets because of rising bond yields weighed heavily on the entire Global Market on Friday.
The Indian Share Markets too witnessed a sharp selloff and ended deep in the red.
The opening was a gap down as expected and then the market trended downwards towards the low of the day.
It was the day when the Bank Nifty came under severe pressure and lost almost 5% with all major banks and Financials being down anywhere between 4 and 8 percent.
Axis Bank, Rbl Bank, Icici Bank, Indusind Bank Hdfc Bank, Bank of Baroda, Canara Bank, Shriram Transport Finance, HDFC Ltd all were down anywhere between 3 to 8% on Friday.
ONGC and Mahindra & Mahindra we amongst the Top Losers on Friday.
The I.T stocks like Infosys, TCS have been underperforming, and they too were weak throughout the day with 2-3% losses at the closing.
Some of the PSU's and Metal Stocks were the only saving grace with Positive gains on Friday BEML, BHEL, BPCL, Sail, NALCO all gained anywhere between 3% to 10 percent on Friday.
Reliance was the other prominent stock to give up the gains of Thursday with a - 3 % loss to add to the negative sentiments.
Finally, the benchmark indices ended lower on February 26 with the Sensex was down 1939 points at 49,099 and the Nifty was down 568 points at 14,529, and Bank nifty down 1745 at 34803 points.
The Foreign institutional investors Sold on Friday Rs 8295 Crores on whereas Domestic institutional investors Bought Rs1499 Crores.
FII’s Selling in such a large quantity can be a reason for concern for the markets in the near term. The Fii’s resuming to buy in a big way will be the key to the market's upwards movement in the near term.
The U.S. Markets closed on Friday with mixed cues as Dow Jones closed in negative at 30932 (-469), S&P at 3811 (18) whereas NASDAQ closed in Positive territory at 13192(+72).
For the coming week, most analysts believe that Indian markets will be volatile with the global markets cues important in deciding the near-term direction of the markets.
One of the relieving factors on Fridays US Markets is that the bond yields seem to be coming down and the Tech Stocks did rebound to close in the Green.
Weak Global Cues & Rising Bond Yields in the U.S.: A jump in bond yields both in the US and India has unsettled investors.
US Treasury yields touched their highest levels since the outbreak of coronavirus pandemic on expectations of a strong economic expansion and related inflation.
Not only in the US, but bond yields are also rising in many other top economies, including Japan.
Rising Covid-19 Cases: Covid-19 cases have started spiking in some regions of India, spooking investors who believed the crisis was all but over.
Rising Geopolitical Tensions: Rising geopolitical tension also weighed on the market sentiment globally.
As reported by Reuters, US President Joe Biden on Thursday directed US military airstrikes in eastern Syria against facilities belonging to what the Pentagon said were Iran-backed militia, in a calibrated response to recent rocket attacks against US targets in Iraq.
GDP Data: Stock markets were also cautious ahead of the GDP data that is to be released today in India.
Finally, one another reason can be that of Profit Booking: Apart from the above, losses were also seen as the share market succumbed to profit-booking.
Most experts expect the indices to continue volatile with the Global Cues acting as a critical factor in the markets near term direction.
The U.S Bond yields coming down on Friday from the highs can come as a major trigger for the global markets if this trend continues in the coming days.
The Global Markets trading in the positive territory will definitely help nifty scale upwards in the coming days and reach the new highs in March Series expiry.
The Government pushing aggressively on the disinvestment path will keep the Psu banks in the radar of most traders and investors.
Bank of Baroda, Pnb, and canara bank did call on Friday and they can be expected to follow the path of other Psu banks to reach higher levels.
The private banks like HDFC Bank, Indusind Bank, Axis Bank, ICICI Bank, Kotak Bank, Federal Bank will continue to bounce back from the selling on Friday’s session.
NBFC’S - Bajaj Twins, Shriram Transport Finance too will look go up in the coming days after a losing some momentum on Friday.
Infosys, Tech Mahindra, TCS, Wipro have been trending lower for a long time now. The I.T. Majors are expected to make an up move any time and has been testing the patience of most traders and investors. These stocks can be accumulated at lower levels for substantial gains in the near term.
Pharma stocks like Divi’s Lab, Sun Pharma, Cadila and Cement stocks like ACC, and Grasim are Likely to show strength as the broader market looks to regain lost ground of the last week.
Also Bharat Forge, Bharti Airtel, Maruti, Adani Enterprise, Adani Port, is expected to be keenly watched by the traders.
The general Sentiments in the market seemed to have turned uncertain with both bears and bulls equally sensing an opportunity to gain from the uncertain.
The stocks to keep an eye on in the Indian equity markets will be the Banking Sector, NBFC Sector, Pharma Stocks, FMCG Stocks, and Cement sector Stocks.
# 5 Banking Stocks: South Indian Bank ,Bank of Baroda, Axis Bank, Indusind Bank, ICICI Bank.
#5 NBFC Stocks: PEL, Bajaj Finance, HDFC LTD, Mahindra and Mahindra financial, Shriram Transport.
# 5 Pharma Stocks: Sun Pharma, Lupin, Dr Reddy’s, Divi’s Lab, Biocon.
#5 Information Technology Stocks: TCS, Infosys, Co-Forge, Tech Mahindra, L&T Technology.
#10 Other Main Stocks to watch out for on this Monday Morning in the Indian Equity Markets:
News:
Tata Motors, Ashok Leyland, Reliance, Adani Port, Max Financial (life insurance), Bharti Airtel, HDFC Standard Life, Tata Elixsi, Adani Power, Torrent Power.
Indian Oil Corporation: The company will invest Rs 32,946 crore to expand Panipat refinery capacity to 25 million tonne per year from 15 million tonne per year earlier.
BL Kashyap and Sons: Acacia II Partners LP & Others reduced stake in the company to 2.47% from 4.91% earlier.
Affle (India): The company at its board meeting approved the fundraising of upto Rs 1,080 crore.
Equitas Holdings: Investor CDC Group PLC reduced stake in the company to 5.23% from 7.84% via open market sale.
Tata Chemicals: The company appointed Nandakumar S Tirumalai as the Chief Financial Officer after John Mulhall was elevated to Managing Director & CEO of subsidiary Tata Chemicals North America, Inc.
Acrysil: The company commence commercial production of additional 1 lakh units after completion of capacity expansion of Quartz kitchen sinks at Bhavnagar plant in Gujarat from 5 lakh units to 6 lakh units per annum.
#Stocks to Watch for Trading from LakshmiShree in-house Technical Expert Ansul Jain-
Adani Enterprises, Apollo Hospitals, Bandhan Bank, SAIL, Tata Chemicals.
(Watch YouTube Video Analysis here – https://youtu.be/bjw3ztuY0RY)
After a day of Weak closing on Friday, the Trading view is that the Indian equity Markets will be trying to find direction on Monday with both Bears and Bulls sensing an opportunity to make the most of the uncertain global markets.
Most Analysts expect the markets to reach new highs in this March expiry.
Best wishes for a Profitable Monday in the Indian equity markets!
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