Indian share markets witnessed volatile trading activity throughout the day today and ended marginally lower.
Benchmark indices ended a week of extreme volatility on a flat note today, following the US Federal Reserve's monetary policy meeting.
The Sensex had started gap-up and extended its rally to hit a high of 58,084-mark, up 807 points intra-day. However, a sharp sell-off in the last hour of trade dragged the index in the negative zone.
At the closing bell, the BSE Sensex stood lower by 77 points (down 0.1%).
Meanwhile, the NSE Nifty closed lower by 8 points (down 0.1%).
NTPC and UPL were among the top gainers today.
Photo by Naveed Ahmed on Unsplash
Maruti Suzuki and Tech Mahindra, on the other hand, were among the top losers today.
The SGX Nifty was trading at 17,096, down by 72 points, at the time of writing.
The BSE Mid Cap index and the BSE Small Cap index ended down by 1% and 1.1%, respectively.
Sectoral indices ended on a mixed note with stocks in the banking sector, auto sector and finance sector witnessing most of the selling pressure.
Healthcare and IT stocks, on the other hand, witnessed buying interest.
Shares of GMDC and ONGC hit their respective 52-week highs today.
Asian stock markets ended on a mixed note today.
The Hang Seng and the Shanghai Composite ended down by 1.1% and 1%, respectively. The Nikkei ended up by 2.1% in today's session.
US stock futures are trading on a negative note today with the Dow Futures trading down by 54 points.
The rupee is trading at 75.04 against the US$.
Gold prices for the latest contract on MCX are trading down by 0.3% at Rs 47,780 per 10 grams.
In news from the tele com sector, Bharti Airtel was among the top buzzing stocks today.
The board of Bharti Airtel has approved issuance of 71 m equity shares to Google on preferential basis, the telecom major announced on 28 January.
India's second largest telecom operator will partner search engine giant Google on a long-term, multi-year agreement to accelerate the growth of country's digital ecosystem.
As part of this partnership, Google intends to invest up to US$1 bn, as part of its Google for India Digitization Fund, which includes equity investment as well as a corpus for potential commercial agreements, to be identified and agreed on mutually agreeable terms over the course of the next five years.
This includes investment of US$700 m to acquire 1.28% ownership in Airtel and up to US$300 m toward potential multi-year commercial agreements, Bharti Airtel said in a regulatory filing. This deal will be subject to necessary regulatory approvals, it added.
As a part of its first commercial agreement, Airtel and Google will work together to build on Airtel's extensive offerings that covers a range of Android-enabled devices to consumers via innovative affordability programs.
Together, the companies will continue to explore further opportunities to bring down the barriers of owning a smartphone across a range of price points, in partnership with various device manufacturers.
Sunil Bharti Mittal, Chairman of Bharti Airtel said,
- Airtel and Google share the vision to grow India's digital dividend through innovative products. With our future ready network, digital platforms, last mile distribution and payments ecosystem, we look forward to working closely with Google to increase the depth and breadth of India's digital ecosystem
Bharti Airtel share price ended the day up by 1.4% on the BSE.
Moving on to news from the IT sector...
MapmyIndia Falls After Poor December Quarter Results
The share price of CE Info Systems, which operates under the brand name MapmyIndia, dropped 11.4% to hit a low of Rs 1,271.7 on the BSE after the firm reported lower-than-expected earnings for the December quarter.
CE Info Systems reported a consolidated profit of Rs 185.2 m, down 14% from a year-ago period. Revenue fell 11% to Rs 433.7 m.
The firm said its board will meet on 4 February 2022 to consider and approve majority stake investment in an internet of things (loT) and logistics SaaS tech company. The firm will also consider an interim dividend for fiscal year 2022.
The firm said sales of automotive original equipment manufacturers (OEMs) were hit due to a shortage of semiconductors, which impacted the firm. The firm said that as the supply chains recover, quarterly revenues are likely to normalise and cover-up.
Tech shares have taken a beating in the last few days as worries mount over rich valuations and the Federal Reserve's plans to increase interest rates.
Interest rate hikes in the US have an impact on the local debt and equity markets as well as emerging economies such as India, which has seen record foreign portfolio investments (FPI) over the last year. Foreign fund outflows will put pressure on domestic equities.
CE Info Systems share price ended the day down by 7% on the BSE.
Speaking of stocks, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these for stages.
(Click on image to enlarge)
This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.
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