Where's Nifty headed after worst weekly performance in 8 weeks?

Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let's start with the headlines first.

- Unfazed by SC order, Devas shareholders to continue seizing Indian assets abroad
- Future Retail’s independent directors to turn down Amazon’s request for expedited due diligence
- Good Glamm Group buys majority stake in Organic Harvest in all-cash deal


Now lemme give you a quick glance on the state of the markets.

Asian stocks opened lower on Monday with investors disheartened by another big sell-off on Wall Street and eyeing this week's US central bank meeting. MSCI's index of Asia-Pacific shares outside Japan was down by 0.65 per cent.

Elsewhere, the yield on 10-year Treasuries rose about two basis points to 1.77%. The dollar traded steady on Monday ahead of the US Federal Reserve's January policy meeting later this week, while the bitcoin lay bruised near a six-month low hit over the weekend, hurt by a sell-off in technology stocks. Oil prices jumped on Monday as geopolitical tensions in Eastern Europe and the Middle East heightened concerns about an already tight supply outlook, while OPEC and its allies continued to struggle to raise their output.

That said, here’s what is making news.


Shares of the top four steel companies have recovered up 10-15% from their November lows and JSW Steel has been an outperformer in the past few months. It remains in an advantageous position, as it is the only company to see incremental capacities for its expansion investments made 4-5 years ago. JSW Steel's current capacity of 26 MTPA is expected to touch 36 MTPA by the end of FY24.


Earnings so far in the third quarter reflect a sustained growth momentum in corporate India's performance, with both revenue and net profit continuing to expand in double digits in comparison with the year-ago period. ETIG analysed a common sample of 254 companies that have already announced their earnings. The analysis showed that revenue climbed 28.4% for the companies under review, while net profit grew 17%.


If foreign portfolio investors (FPI) that have sold shares worth more than ₹9,400 crore so far this month continue their selling spree this week, the biggest casualty would be the stocks that have high overseas ownership, and those recently listed. To be sure, among the 132 stocks with more than 20% FPI holding, 61 have declined between 5% and 20% last week.


LASTLY,


Technical analysts expect the Nifty to fall further in the week before the FY23 Union Budget on February 1. Analysts said the Nifty could fall to 17,300 if it breaks the support of 17,500. Last week, the indices fell 3.5% — logging their worst weekly performance in eight weeks — amid concerns over inflation and the US Federal Reserve’s policy tightening. Analysts are bullish on sugar, fertilisers, defence and real estate stocks in the near term.



NOW Before I go, here is a look at some of the stocks buzzing this morning...

The independent directors of Future Retail Ltd (FRL) have decided not to accept Amazon’s request to allow private equity fund Samara Capital to conduct an expedited due diligence of the cashstrapped retailer.

Reliance Industries (RIL) bought back an estimated Rs 4,000 crore worth of local bonds from existing investors on two consecutive days last week.

Housing Development Finance Corp’s (HDFC) wholly owned subsidiary HDFC Capital plans to invest around $2 billion in affordable housing, having secured the first close for a fund that’s one of the world’s largest in residential property.

The Securities and Exchange Board of India (Sebi) is probing into the trades of ICICI Bank’s former independent director Rama Bijapurkar to see if she violated insider trading rules.

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