Monday saw Indian stocks retreating from record highs as selling pressure in financial sectors weighed down the benchmark indices. Investors were anticipating the upcoming corporate earnings season and the Budget announcement later this month for market direction. In currency news, the rupee ended slightly weaker against the US dollar. Stock recommendations were also given for Harsha Engineers and Chennai Petroleum Corp.
Indian Stocks Retreat from Record Highs as Selling Pressure in Financials Weighs Down
Indian stock markets witnessed a correction on Monday, retreating from their recent record highs. The benchmark BSE SENSEX index closed 0.76% lower at 60,682.81 points, while the NIFTY 50 index fell 0.69% to end at 18,074.05 points.
The decline was primarily driven by selling pressure in financial stocks, with heavyweight banks such as HDFC Bank and ICICI Bank losing ground. Other sectors that contributed to the downturn included metals, power, and real estate.
Anticipation of Earnings Season and Budget
Investors were cautious ahead of the upcoming corporate earnings season, which is set to begin later this month. The earnings reports will provide insights into the financial performance of listed companies and can influence their stock prices.
Additionally, the Union Budget for the financial year 2023-24 is scheduled to be presented on February 1. Investors are eagerly awaiting the Budget announcement for potential policy changes and economic measures that could impact market sentiment.
Currency Update
The Indian rupee ended the day slightly weaker against the US dollar, with a depreciation of 0.09% to close at 82.77 per dollar.
Stock Recommendations
In a separate development, brokerage firms issued stock recommendations for Harsha Engineers and Chennai Petroleum Corp.:
Top 5 FAQs
1. What caused the decline in Indian stocks on Monday? A: Selling pressure in financial stocks, anticipation of earnings season, and the upcoming Budget announcement.
2. Which sectors were most affected by the downturn? A: Financial, metals, power, and real estate sectors.
3. What is the expected impact of the earnings season on stock prices? A: Earnings reports will provide insights into company performance and can influence stock prices.
4. When is the Union Budget for 2023-24 scheduled to be presented? A: February 1, 2023.
5. Which companies did brokerage firms recommend for investment? A: Harsha Engineers and Chennai Petroleum Corp.
Nithin Kamath, the co-founder and CEO of Zerodha, commends India's market watchdog SEBI for taking decisive action against US-based trading major Jane Street for manipulating the Bank Nifty index. Kamath praises SEBI for maintaining a strong and transparent regulatory environment, while cautioning about potential implications on the market due to a significant presence of proprietary trading firms like Jane Street. The firm has been accused of making extraordinary profits through complex strategies and ignoring warning alerts from Indian exchanges.
Kashmiri apple farmers are facing a difficult situation as record heat and dry spells threaten their annual harvest. The region, known for its rich apple production, is experiencing a worrying trend as the changing climate jeopardizes the livelihoods of these farmers. With extreme weather conditions becoming more frequent, farmers are left to worry about the future of their crops and the impact on their business. Join our WhatsApp channel to stay updated on the latest news and videos from Kashmir's apple farms.
Railway Recruitment Board (RRB) has finally released the highly anticipated RRB Group D result scorecard on December 27, 2022. Candidates can now check their results by visiting the official website of RRB at rrbcdg.gov.in. Keep yourself updated with the latest developments by clicking on the provided link.
Under the 'Pratibhashali Vidyarthi Protsahan Yojana', the Madhya Pradesh government has distributed a total of Rs 235.58 crore to 94,234 meritorious students who scored 75 per cent or more marks in their Class 12 board exams. This initiative aims to support the students' education and equip them with necessary tools like laptops to help them excel in their academic pursuits. Since its launch in 2009-10, the scheme has benefitted over 4.3 lakh students with a total disbursement of over Rs 1,080 crore.
The Securities and Exchange Board of India (SEBI) has taken action against US-based Jane Street Group for allegedly manipulating the Indian stock market. SEBI claims that the group carried out large-scale, aggressive trades on expiry days, particularly targeting Bank Nifty and Nifty 50 index constituents. This strategy involved buying stocks in the morning and selling them in the afternoon, resulting in a net options profit of Rs 673 crore on just January 17, 2024.
SEBI has ordered the impounding of Rs 4,840 crore in unlawful gains and the freezing of all debit transactions linked to Jane Street entities, including JSI Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd. This comes after a 105-page interim order by SEBI accused Jane Street and its affiliates of using high-frequency algorithmic trading strategies to artificially influence index levels and make profits from derivatives. Although not directly named, Nuvama Wealth Management's association with Jane Street has raised concerns among investors. As a result, Nuvama's stock plunged by Rs 838.00 in a single session, with the broader market also feeling the effects as the Nifty Capital Markets index fell by 2%.
IT giant Infosys has started an internal campaign to encourage employees to prioritize their health and disconnect after work hours. In a sharp contrast to co-founder Narayana Murthy's previous statement advocating for a 70-hour workweek, the move signals a shift in the company's stance on work-life balance. HR is now tracking work hours and sending health-focused reminder emails to prevent burnout and long-term health issues in the Indian IT sector. The campaign's success and impact on employee well-being will be closely monitored by the 323,000+ employees worldwide.
As Australian beef exports continue to reach new heights, official data shows a significant increase in volume for the first half of the year and a record-breaking 1.44 million tonnes shipped in the 2024-2025 financial year. This growth is attributed to a combination of factors, including declining US beef production, trade access issues, tariffs, and strong international demand. Despite the impact of drought on production in some parts of the country, Australia is well-positioned to take advantage of the current market dynamics.
SEBI has taken stringent action against US-based trading firm Jane Street, barring them from Indian markets due to accusations of manipulating equity derivatives through high-frequency trading. In just one day, Jane Street earned Rs 734.93 crore in profits through manipulative trades, leading to a sharp decline in BSE Ltd. stock prices. Technical analysis reflects a negative trend for BSE with a potential downward movement towards the 50 EMA at Rs 2,550.
A group of female passengers have approached the Karnataka High Court, requesting that bike taxi services, including those offered by Ola, Uber, and Rapido, be allowed to operate in Bengaluru again. The group argues that the ban on bike taxis, imposed by the state government citing safety concerns, has negatively impacted women commuters, who rely on these services for affordable and convenient travel. The court hearing has been postponed, with the final decision expected to shape the future of bike taxis in Karnataka.