Informist, Thursday, Aug 17, 2023
By Padmini Dhruvaraj
MUMBAI – Indian equity indices snapped a two-day gaining streak and ended today’s session in the red, dragged down by losses in shares of financial services, information technology, and fast-moving consumer goods companies. Analysts said investors were risk-averse due to concerns over an economic slowdown in China and a hawkish US Federal Reserve.
Minutes of the Fed’s July meeting showed officials believe there is a need for more rate hikes in view of significant upside risks to inflation in the US. As a result, jittery investors sold equities across the globe.
“Profit taking came to the fore amid weak global cues, as rising US bond yields and fall in the currency levels weighed on the equity market sentiment,” said Shrikant Chouhan, head of research (retail) at Kotak Securities Ltd. “Investors are also worried about further rate hikes coupled with deflation and slowing demand in China, which has been prompting investors to flee equity markets amid choppy trends,” he added.
Brijesh Ail, head of technical and derivatives at IDBI Capital Markets and Securities, said the expiry of the weekly options contracts was also a factor behind the indices trading in the red today.
Both the benchmark indices opened 0.1% lower today and fell further. Eventually, the Nifty 50 ended 0.5% lower at 19365.25 points and the 30-stock Sensex fell 0.6% to close at 65151.02 points. As many as 33 stocks in the Nifty 50 closed with losses. A decline of 1.6% in shares of Reliance Industries contributed to nearly 0.2% of the losses in the Nifty 50.
Meanwhile, the Nifty Bank index extended its decline to the sixth straight session. The index has lost 2.2% since the Reserve Bank of India, at its monetary policy outcome on Aug 7, imposed an incremental 10% cash reserve ratio. Today, the Nifty Bank recouped most of its losses to end 0.1% lower at 43891.35 points.
The Nifty IT index snapped a two-day gaining streak and fell 0.5%. Shares of LTIMindtree were the worst hit in the IT pack, closing nearly 2% lower. The Nifty FMCG also fell 0.9% today, ending a two-day winning streak, dragged down by shares of ITC, Godrej Consumer Products, and Nestle India.
Bucking the trend, all mid-cap and small-cap indices on NSE ended 0.1-0.3% higher. Om Mehra, a technical and derivatives analyst at Choice Broking, said while there’s movement in mid-cap stocks, some investors have been selling these stocks aggressively.
The Nifty Consumer Durables and the Nifty PSU Bank indices were the top gainers among sectoral indices.
Ajit Mishra, senior vice-president of technical research at Religare Broking Ltd, said, “We are in a corrective phase and seeing a gradual fall in the index but buying interest in select heavyweights is providing comfort in between. Besides, the prevailing outperformance of the broader indices is offering ample buying opportunities.”
Among specific stocks, Adani Ports and Special Economic Zone today snapped a three-day losing run and emerged as the top gainer on the Nifty 50, rising 4.3%. Shares of Bata India rose 5.3% following reports that the company is in talks with Adidas for a strategic partnership for the Indian market.
“On daily charts, the index has formed a bearish inside candle which indicates that non-directional activity is likely to continue in the near future,” said Chouhan. “We are of the view that 19320 could be the sacrosanct support zone for the market, below which the index could slip till 19250-19200, while any fresh uptrend rally is possibly only after the dismissal of 19480. Above the same, the market could move up till 19535-19585,” he added.
* Of the Nifty 50 stocks, 17 rose and 33 fell
* Of the Sensex stocks, 9 rose and 21 fell
* On the BSE, 1,839 stocks rose, 1,738 fell, and 163 were unchanged
* Nifty Energy: down 1%; Nifty FMCG: down 0.9%; Nifty Consumer Durables: up 1.8%
BSE NSE
Sensex: 65151.02, down 388.40 pts or 0.59% Nifty 50: 19365.25, down 99.75 pts or 0.51%
S&P BSE Sensitive Index Nifty 50
Lifetime High: 67619.17 (Jul 20, 2023) : Lifetime High: 19991.85 (Jul 20, 2023)
Record Close High: 67571.90 (Jul 20, 2023) : Record Close High: 19979.15 (Jul 20, 2023)
2023 1st day close: 61167.79 (Jan 2) : 2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 67571.90 (Jul 20) : 2023 Closing High: 19979.15 (Jul 20)
2023 Closing Low: 59288.35 (Feb 27) : 2023 Closing Low: 17311.80 (Oct 17)
2023 High (intraday): 66064.21 (Jul 13) : 2023 High (intraday): 19567.00 (Jul 13)
2023 Low (intraday): 58699.20 (Jan 30) : 2023 Low (intraday): 17098.55 (Jan 17)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1) : 2022 Closing High: 18812.50 (Dec 1)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1) : 2022 High (intraday): 18887.60 (Dec 1)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)-
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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