Indian markets open lower amid unrest in China over zero-Covid: Paytm, Adani Transmission, Hero MotoCorp in focus

• Indian benchmark indices opened the week on a negative note tracking weakness in Asian markets due to unrest in China over zero-Covid policies.
• The 30-stock index Sensex opened 277 points lower at 62,016 while the Nifty50 opened 82 points lower at 18,431.
• Nine of the top 10 valued firms together added ₹79,798 crore in market valuation last week.
• Paytm, Adani Transmission, Hero MotoCorp and others will be among the stocks to watch out for on Monday.

Indian benchmark indices opened the week on a negative note tracking weakness in Asian markets due to unrest in China over zero-Covid policies. SGX Nifty, an early indicator of how the Indian market may perform, showed weakness with a decline of 0.38% on Monday morning.

The 30-stock index Sensex opened 277 points lower at 62,016 while the Nifty50 opened 82 points lower at 18,431.

On Friday, Sensex closed 21 points higher at 62,293 while the Nifty50 ended the day 29 points up at 18,513.

Nine of the top 10 valued firms together added ₹79,798 crore in market valuation last week, with IT majors TCS, Infosys emerging as the biggest winners, according to a report by Motilal Oswal.

“Indian markets could open flat to mildly higher, despite mostly lower Asian markets today and in line with flat US markets on Friday,” said Deepak Jasani, head of retail research at HDFC Securities.

“Nifty gained 1.12% over the week rising in 5 out of the past 6 weeks. Global markets remained uppish for the week on the US Fed hinting at slowing the speed of rate hikes. Nifty could continue its upmove and challenge and breach the all time high of 18604 soon while 18261-18403 band could provide support in the near term,” added Jasani.

Rupee opened 10 paise lower at 81.78 per US Dollar on Monday as against 81.68 on Friday.

Asian markets decline on protests in China over zero-Covid policies

Asian markets came under pressure due to protests erupting in several Chinese cities over zero-Covid policies. Most major Asian indices opened the week in the red – Hong Kong’s Hang Seng index was down 1.92%, while the Shanghai Composite declined 0.92%. Taiwan Weighted fell 1.21%, while South Korea’s KOSPI fell 0.92%.

Crude oil prices fell to a nearly 11-month low due to demand concerns from China in the wake of new COVID-19 related restrictions with rising cases. Brent crude oil prices were hovering around $81.65 per barrel on Monday, down from $85.2 on Friday.

FPIs continue flocking to the Indian markets

Foreign portfolio investors continued to invest in Indian equities with a net investment of ₹31,630 crore in November so far, according to data from National Securities Depositories (NSDL).

In the first fortnight of November, FPIs were net buyers in equities with investments of ₹11,452 crore – in the 10 days since then, FPIs have added over ₹20,100 crore to their portfolios, showing a rapid increase in investments.

The benchmark Nifty50 index has gained 2.78% between November 1 and November 25.

For context, FPIs were net sellers in October with a withdrawal of ₹8 crore, and in September too with a selling of ₹7,624 crore.

Stocks to watch out for on Monday

Paytm: The Reserve Bank of India has asked the company to stop onboarding any new online merchants for its payment services and reapply for a payment aggregator license.

Adani Transmission: The Adani group company has sought license to expand its power distribution business into more areas of Mumbai.

Hero MotoCorp: Announced an increase of up to ₹1,500 in ex-showroom prices of its motorcycles and scooters with effect from December 1, 2022. The exact price increase will vary across models and markets.

Dharmaj Crop Guard IPO: The Ahmedabad-based company’s IPO will be open for subscription from November 28 till November 30. The price band has been fixed at ₹216-237, while the issue size is ₹251 crore.

Stocks in F&O ban

There are no securities in F&O ban for the day.


Source: NSE, as of 10 a.m., November 28, 2022

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