Big selling by FIIs continues. When will Nifty get stability?

Good Morning everyone, As expected in the pre-market report yesterday, the Nifty went on a joy ride from the start as it rolled down with big selling by FIIs and then a sudden power from the banks drove up the Nifty to close higher.

Nifty has seen, strong buying at the 16800 range every time and this continues, which shows the confidence of the DIIs and the retailers on the Nifty. However, the market can be cautious till the budget. Till then I stay more a spectator to the market than a trader or investor.

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Look at the V-shaped recovery yesterday.

Global Markets:

An early market rally gave way to a slide for stocks on Wall Street Thursday as markets still processed Fed’s announcements. S&P 500 fell 0.5 percent, Dow Jones declined marginally, and the tech-heavy Nasdaq fell over 1.4 percent.

Asia was trading mixed this morning after a volatile session on Wall Street. MSCI's broadest index of Asia-Pacific shares ex-Japan was flat. Shares in Japan advanced over 1.8 percent. Chinese blue chips were down 0.4 percent. Hong Kong’s HSI was down over 0.6 percent. South Korea’s Kospi was up 1.2 percent. Elsewhere in Australia, stocks jumped over 0.5 percent.

Oil prices fell Thursday after Brent crude hit a seven-year high above $90 a barrel, as the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy. On Friday, prices rose 0.4 percent again with the Brent crude at $89.67 and the US oil at $87.00.

Indian Market:

Indian shares are set to track mixed global cues, a day after indices tumbled sharply. The SGX Nifty Futures, an early indicator of Nifty50's performance, indicated a green start as it rose to 17,138, up 35 points or 0.2 percent.

The INR slipped 31 paise to close at 75.09, a one-month-low, due to hawkish Federal Reserve and strong overseas currency. Meanwhile, the dollar index rose 0.3 percent to 96.79 Thursday.

The Centre on Thursday handed over the management control of the national carrier Air India to a subsidiary of Tata Sons. With this Air India's strategic disinvestment was complete.

Finance minister Nirmala Sitharaman is likely to announce measures with an aim to reduce poverty, increase employment opportunities, allocate more funds towards housing for all, and restore the livelihoods of those who were hit the most during the pandemic.

Results today

Larsen & Toubro, Dr Reddy’s Labs, Kotak Mahindra Bank, Britannia Industries, Vedanta, 3i Infotech, Aptus Value Housing Finance, Arvind SmartSpaces, Asahi India Glass, Atul, AU Small Finance Bank, Bajaj Healthcare, Bharat Electronics, Blue Dart Express, CARE Ratings, Central Bank of India, Chambal Fertilisers, Chemplast Sanmar, Crompton Greaves Consumer Electricals, Deepak Fertilisers, Dixon Technologies, Equitas Small Finance Bank, Happiest Minds Technologies, Karnataka Bank, Marico, Max Financial Services, Info Edge, Oberoi Realty, Suzlon Energy, Tata Coffee, United Breweries, UTI Asset Management Company, and Zenotech Laboratories.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 6,266.75 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 2,881.32 crore in the Indian equity market on January 27.

Stock Specific News:

RBL Bank | The bank reported a higher profit at Rs 156.1 crore in Q3FY22 against Rs 147.1 crore in Q3FY21, net interest income rose to Rs 1,010.4 crore from Rs 908.2 crore YoY.

Tata Motors |The company's officials will meet analysts and investors on January 31, to discuss financial results.

Britannia Industries Ltd | The company is set to declare its third-quarter results during the day today for the quarter ended December 2021. Experts expect that the higher costs of agri-commodities and packaging materials, coupled with lower in-home consumption, will hurt the earnings in this quarter too.

Punjab National Bank | The bank reported a profit of Rs 1,126.8 crore for Q3FY22 against Rs 506 crore in Q3FY21. The net interest income fell to Rs 7,803.2 crore from Rs 8,345.8 crore YoY.

Chalet Hotels | The company's officials will meet analysts and investors on January 28 to discuss financial results.

Route Mobile | The company posted a higher profit at Rs 48.2 crore in Q3FY22 against Rs 37.6 crore in Q3FY21, revenue surged to Rs 562.7 crore from Rs 384.8 crore YoY.

LIC Housing Finance | The company on Thursday reported a 6 percent increase in profit after tax at Rs 767.33 crore for the quarter ended December 2021, aided by higher collections and drop in provisions. It had reported a profit after tax of Rs 727.04 crore in the same period of the previous fiscal.

Canara Bank | The bank on Thursday reported a net profit of Rs 1,502 crore for the quarter ended December, beating Street estimates. The lender's net profit more than doubled on a year-on-year basis. It had posted a net profit of Rs 696.1 crore for the corresponding period a year ago.

BHEL | The state-owned engineering firm on Thursday posted a consolidated net profit of Rs 27.02 crore for December quarter 2021-22, mainly on the back of higher revenues.