- The Indian market made a negative open for the week following the new Covid-19 outbreak in China, and the outcome of the Fed’s outlook later this week.
- Sensex with 30 shares opened fell 207 points to 61,456, Nifty50 with 50 shares opened fell 61 points to 18,246.
- Tata Steel, Tata Motors, Zomato and others will be in focus, while Five Star Business Finance and Archean Chemicals are expected to be listed on the stock exchange later today.
India’s benchmark Sensex and Nifty50 indexes opened in the red today as the new outbreak of Covid-19 in China and the prospects for the US Fed to be released later this week loom large. SGX Nifty, an early indicator of the performance of the Indian market, is down 47 points from the close of Nifty50 last Friday.
Sensex with 30 shares opened fell 207 points to 61,456, Nifty50 with 50 shares opened fell 61 points to 18,246.
Analysts expect a lower open for the index following weak cues from Asian markets. “The Indian market could open lower, in line with most Asian markets lower today and although the US market was slightly higher on Friday,” said Deepak Jasani, head of retail research at HDFC Securities.
In the last five days the Sensex has edged down by 0.16% but still holds above the 61,000 level. At the same time, Nifty50 lost 0.42% but held on to the 18,300 level.
Asian markets traded red on Monday as investors fretted over rising Covid-19 cases in China turning into additional restrictions. Beijing’s most populous district urged residents to stay home.
China’s Shanghai SE Composite Index fell 0.97%, Hong Kong’s Hang Seng fell 2.73% followed by Japan’s Nikkei 225 with a 0.10% drop.
Brent crude oil prices fell to their lowest level since September following the Covid-19 outbreak in China, dropping more than 1.2% to $86.57 per barrel.
What’s happening in the US market
US markets shrugged off the volatility on Friday, with the S&P 500 gaining 0.48% to close at 3965, while the Dow Jones Industrial Average gained 0.59% to close at 33,746. The tech-heavy Nasdaq Composite remained flat.
India’s foreign exchange reserves are seeing their best additions in more than a year
India added $14.72 billion to its foreign exchange reserves, marking the steepest increase in more than a year, to $544.72 billion. In the week ending November 5, India’s foreign exchange reserves stood at $529.99 billion.
It should be noted that the Reserve Bank of India has spent $110 billion in the last seven months to keep the Indian rupee from falling freely. At the end of March 2022, the USD-INR exchange rate reached 75.91, and is currently at 81.79.
Stocks to watch today
Tata Steel, SAIL, JSW Steel, Hindalco: The Indian government has lifted duties on the export of steel products and iron ore, six months after announcing them on May 21. The cut in export duties takes effect from November 19, 2022.
Tata Motors: The automaker will replace Dr. Reddy’s Laboratories on 30 Sensex shares on December 19, 2022. Adani Power and Indian Hotels will also replace Adani Total Gas and Hindustan Petroleum on the BSE 100 and Sensex Next 50 indices.
Maruti Suzuki: The automaker launched another affordable car, the Alto K10 with S-CNG technology for ₹5.94 lakh. It also plans to introduce more models in the sports utility vehicle (SUV) segment to eventually increase its market share in the aerospace.
Zomato: Zomato stock will also be in focus today after the company announced plans to lay off almost 3-4% of its workforce. This is after the company’s co-founder Mohit Gupta, intercity head Siddharth Jhewar, and head of the new initiative Rahul Ganjoo left the company in the last three weeks.
Easy Trip Planner: Operator EasyMyTrip has announced a stock split at a 1:2 ratio, and the issuance of bonus shares at a 1:1 ratio, with a record date set for November 22.
NMDC: The iron ore producer announced plans to spend ₹900 crore over the next three years to increase iron ore production from its Kumaraswamy mine in Karnataka.
Lock-in period expiration: Logistics firms Delhivery, Syrma SGS Technology, Venus Pipes & Tubes and Tarsons Products are among the companies whose promoter lockdown ended this week.
Five Star Business Finance and Archean Chemicals are expected to be listed on the stock exchange today. Meanwhile, real estate firm Keystone Realtors is likely to announce the status of its IPO allotment on Monday.
Stock under F&O ban
Balrampur Chini, Bhel, Delta Corp, Gujarat Narmada Valley Fertilizers and Chemicals, Indiabulls Housing Finance and Sun TV and Punjab National Bank are some of the stocks banned under the F&O segment today.
|Top earner||Change||Top loser||Change|
|Axis Bank||0.58%||Adani Harbour||-1.70%|
|Unilever Hindustan||0.41%||Bajaj Finance||-1.64%|
Source: NSE, Nifty50, as of 10am, November 21, 2022
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