Nifty, Sensex flat post Trump inauguration; Metal stocks shine

Benchmark indices opened under pressure but later pared losses to gain as investors stay optimistically cautious post Trump inauguration. Back home corporate earnings also affected the sentiment.

 

At 12:53 pm, the S&P BSE Sensex was trading at 27,033 down 1 point, while the broader Nifty50 was ruling at 8,355, up 6 points.

 

In the broader market, the BSE Midcap and BSE Smallcap indices registered an uptick of 0.5%, and 0.7%, respectively.

 

"Last week’s slippages have brought prices lower by over 100 from the recent peaks, signaling oversold situation. However such signs do not look strong enough to force a V shaped recovery yet, suggesting that “sell on pull back” could be the favoured strategy early in the day, aiming 8330/8300 or 8260, said Geogit BNP Paibas in a note.

 

On Friday, foreign portfolio investors (FPIs) sold shares worth a net Rs 26.34 crore, while Domestic institutional investors (DIIs) also sold shares worth a net Rs 125.48 crore, provisional data available with BSE showed.

Sectors and Stocks

GAIL, ONGC, Tata Steel and Lupin were the top gainers while ICICI Bank, Axia Bank and Bharti Airtel were the biggest laggards.

Tata Motors gained around 2% after reports that the company is launching 20 projects to cut costs and improve efficiency. 

Metal and Oil & Gas sectoral indices gained close to 2% each led by gains in JSW Steel, Hindalco, NMDC, SAIL and JSPL.

Amara Raja Batteries fell as much as 5% at intra-day in an otherwise positive market after the company posted a 17.90% fall in net profit at Rs 112.32 crore for the quarter ended December 31, due to higher expenses. 

Trump era kicks off 

 

Trump outlined his 100 day agenda in a video saying his agenda was based on the principle of 'putting America first'. He said, "as for day one, I hope to restore our laws and bring our jobs back".

 

He said that he would issue a notification of intent to withdraw from the trans-Pacific Partnership. Calling it a potential disaster for America, he said, they would instead negotiate fair bilateral trade deals to bring jobs back to America. 

 

On immigration, Trump said he will direct the labour department to investigate misuse of federal worker visas that undercut American workers.  

 

BSE IPO opens today 

 

BSE will hit the market with its much-awaited Rs 1,243 crore initial public offering (IPO) today. The IPO is priced at Rs 805-806 per share and will close on January 25. 

 

The IPO of 15,427,197 shares of face value of Rs 2 each will constitute up to 28.26 per cent of the fully-diluted post offer issued share capital of BSE.

 

Bids for the issue can be made for a minimum of 18 shares and in multiples of 18 thereafter. Meanwhile, BSE on Friday raised Rs 373 crore by allotting shares to anchor investors.

 

BSE shares will be listed on NSE as Sebi rules do not allow self-listing for an exchange.

 

Global Markets

 

The dollar slipped and Asian shares were on the defensive on Monday as worries about President Donald Trump's protectionist policies outweighed optimism that he will follow through on promises of tax cuts and other stimulus.

 

Japan's Nikkei dropped 1.3% while shares in South Korea and Australia dropped 0.3%, though dollar-denominated MSCI's broadest index of Asia-Pacific shares outside Japan was flat.

 

US stock futures dipped 0.2%, erasing gains made on Friday.

 

In his inaugural address, Trump pledged to end what he called an "American carnage" of rusted factories and vowed to put "America first".