Engineering & Capital Goods News

correction likely over falling rupee and profit-booking, say analysts

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On Friday, Nifty ended down 1.1% at 17,758.45 – Photo: Shutterstock

The NSE Nifty 50 (India 50) could display weakness on Monday over near-term concerns of falling rupee, analysts told Capital.com.

“Markets may witness consolidation after five weeks of the successive rise and it would be healthy,” said Ajit Mishra, vice president (Research) at Religare Broking said.

Larsen & Toubro share price and Reliance Industries share price could see action on Monday which in turn could influence the National Stock Exchange index.

“We hardly saw any major decline in the index in the recent phases of consolidation, however, a lot would depend on the performance of US indices next week where we still see room for further upside.

We believe the 17,300-17,600 zone would provide a cushion in Nifty next week while a rebound towards the 17,850-18,100 zone may attract profit booking,” Mishra added.

With the markets gradually recovering, more companies are firming up their Initial Public Offering (IPO) plans. The primary focus for the coming weeks will be on how central banks would tame inflation amid continued fear of a global recession.

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RBI deposit and loan data due

Meanwhile, the Reserve Bank of India is set to release the deposit and loan value growth data, and central banks of China and South Korea will decide on interest rates,” Mitul Shah, head of research at Reliance Securities, said.

“The earnings season has ended with strong revenue growth while pressure continued on the margins due to commodity inflation. We expect foreign institutional investors to remain net buyers as valuations are comparatively reasonable,” Shah added.

Hot stocks

Larsen and Toubro

Engineering and construction conglomerate major Larsen and Toubro (L&T) plans to invest up to $2.5 billion in building its green energy portfolio.

The investment would depend on how the market evolves, while the firm has been evaluating prospects in green energy areas including green hydrogen, battery storage and offshore wind among others, according to a report.

Reliance Industries

Five of the top-10 valued firms together lost INR307.37bn ($3.83bn) in market valuation last week, with Reliance Industries (RIL) taking the biggest hit.

The valuation of RIL fell by INR128.83bn to INR17,681.44bn during the holiday-shortened week, according to a local report. While RIL, Tata Consultancy Services, ICICI Bank, State Bank of India and Bajaj Finance were the laggards from the top-10 pack, HDFC Bank, Infosys, Hindustan Unilever, HDFC and Life Insurance Corporation of India (LIC) were the gainers.

Nifty on Friday

On Friday, Nifty ended down 1.1% at 17,758.45, snapping an eight-day rally. Among sectors, power and capital goods indices rose the most, while realty, oil & gas, metals and bank indices fell the most.

“Volumes on the NSE were the highest since April 29, 2022, suggesting aggressive selling after a sustained rise. Asian stock markets were trading mixed on Friday, following the broadly positive cues from global markets overnight, while European markets were modestly higher,” Deepak Jasani, head of retail research at HDFC Securities said.

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