Daily Market Update- Equity 30 Jan 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 30 Jan 2023

Steep sell-off in Adani group stocks led Nifty index to settle 287 points lower at 17604 levels.

Overview and Outlook

Global Market Update

  • US equity markets settled on flat to positive note, up in range 0.08 to 0.95%
  • European equity markets too settled on flat note
  • Asian equity markets are trading mix
  • SGX Nifty is little changed, up 20 points


News highlights from across the globe

  • Asian markets advance on Monday, as mainland China markets reopen and investors bet that the Federal Reserve will slow the pace of rate hikes later this week.
  • The U.S. stocks pushed higher on Friday as Wall Street brushed off disappointing outlooks from some of the world’s largest technology companies to see the Nasdaq 100 rally 1%.
  • The yield on 10-year Treasuries advanced three basis points to 3.52%.


Important news updates from the domestic front

  • Hinduja Global Solutions: The board approved the proposal to buy back 60 lakh shares (24.59%) at Rs 1,700 apiece to raise Rs 1,020 crore.
  • Dixon Technologies (India): The company signed a term sheet with Mega Alliance Holdings for a 51:49 joint venture to design and manufacture mobile communication equipment and related Solutions in India.
  • Adani Enterprises: The Rs 20,000-crore FPO was subscribed 1% on the first day, with 2% subscription in the retail portion and 1% in the HNI basket. Employees picked up 4% of FPO shares reserved for them. The company has also issued a 413-page rebuttal to Hindenburg’s report.
  • NMDC: Department of Investment and Public Asset Management announced that it has received multiple expressions of interest for privatisation of the NMDC Steel plant, and now the transaction can move to the second phase.
  • Borosil Renewables: The company started trial production from the second rolling line of SG-3 solar glass furnace.
  • Tube Investments of India: The company’s subsidiary Tl Clean Mobility will acquire the remaining 30.04% stake in Cellestial E-Mobility, currently held by the founders, for Rs 50.90 crore.


Nifty Outlook

Steep sell-off in Adani group stocks after a report by Hindenburg Research accused the former for stock manipulation and accounting fraud scheme led Nifty index to settle 287 points lower at 17604 levels.

Broader markets too witnessed the heat, Mid & Small cap index were down 1.6% each, leading to extremely weak market breadth.

Majority of sector gauges tracked at NSE settled in red, Oil & Gas, Metal, Bankex lost maximum, down in range 3 to 5.5% while Auto index was at the top of the tally as it gained over 1%.

We expect volatility of continue ahead as well, Adani group stocks will gain stem on Monday along side with banking stocks. In adding to this, Finance Minister will table Union Budget on 1st February.


Derivatives Overview & Outlook

On Friday, both Nifty & Banknifty futures added around 13% & 29% of open interest respectively as short buildup.

All F&O sectors settled lower. Amongst them, Banking, Auto, Capital Goods and Metal stocks witnessed maximum addition of short positions.

On options front, call writing was seen at multiple strikes and maximum positions are at 17000 PE and 19000 CE closely followed by 18500 CE.


FII & DII Trading Activity

Last week, FIIs sold stocks worth Rs 6124 Cr in the cash segment, bought stocks futures worth Rs 1645 Cr and sold index futures worth Rs 5355 Cr. DIIs were net buyers in the cash segment to the tune of Rs 7210 Cr during the week.


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