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India Stocks Review: Nifty 50 slips below 16000 on fall in banks, RIL

Informist, Wednesday, Jul 13, 2022

 

By Vaibhavi

 

NEW DELHI – The benchmark indices ended lower today, weighed down by fall in frontline stocks, including index-heavyweight Reliance Industries. The Nifty 50 index fell below 16000 points because of selling in select financial and information technology companies.

 

The indices had opened higher, taking cues from the largely positive Asian markets and following a sharp fall in crude oil prices. However, caution ahead of US consumer inflation data for June pulled the indices down later in the day.

 

US consumer price index for June, due later today, is expected to have hit a peak of 8.8% in June. A higher inflation print will push the US Federal Reserve to aggressively hike interest rates to rein in soaring prices.

 

The worsening inflation scenario in the US is already factored in by the market, said Yatin Singh, head of investment banking at Emkay Financial Global Services. 

 

Therefore, what will be more incremental to watch is its impact on the outflows of foreign institutional investors from the domestic market, Singh said.

 

After having sold $6.3 bln of Indian equities in June, the highest this year, the quantum of FII outflows has slowed in July. So far, FIIs have dumped $424.6 mln of domestic shares this month as of Monday.

 

Today, the Nifty 50 tested a high of 16140 points before selling pressure pulled it to a low of 15950.15 points. The index eventually ended 0.6% down at 15966.65 points. The Sensex too rose to a high of 54211.22 points and then fell to a low of 53455.26 points. The index closed at 53514.15 points, down 0.7% from the previous close.

 

Having fallen below 16000 points, it will be crucial to see if the Nifty 50 holds above 15900 points, said Ruchit Jain, lead research, 5paisa.com. A breach of that level will trigger a downward spiral for the index, Jain added.

 

The weakness in equities also weighed on the Indian rupee, which touched a fresh low of 79.68 against the US dollar. 

 

The Indian currency has been depreciating continuously against the US dollar, and today touched a new record low for the third straight day.

 

Reliance Industries fell nearly 2%, which further put pressure on the Nifty 50.

 

Investors booked profit in some large-cap banks, which pushed the Nifty Bank index below 35000 points. HDFC Bank, ICICI Bank and IndusInd Bank slipped 1-3%, which saw the Nifty Bank end 0.9% lower at 34827.80 points.

 

As HCL Technologies followed the footsteps of industry peer Tata Consultancy Services and reported erosion in operating margin for Apr-Jun, investors rushed to exit from most large-cap information technology stocks.

 

HCL Technologies, Tata Consultancy Services, Wipro and Tech Mahindra fell 0.6-1.5%.

 

Brent crude oil prices slipped over 8% in two days to below the $100-per-barrel mark on concerns about demand amid COVID-19 curbs in China, build-up in US inventory, and rising fears of a global economic slowdown.

 

The fall in crude prices eased concerns about profitability of consumer goods and paint companies. As a result, most large-cap consumer goods companies gained 1-2% and Asian Paints and Berger Paints rose 1.7% and 1.1%, respectively.

 

The broader market fared better than its large-cap peers and all small- and mid-cap indices on the National Stock Exchange ended in the green.

 

* Among Nifty 50 stocks, 27 rose and 23 fell

* Among Sensex stocks, 16 rose and 14 fell

* On the BSE, 1,677 stocks rose, 1,642 fell and 144 were unchanged

* Nifty IT: Down 0.4%; Nifty Bank: Down 0.9%; Nifty FMCG: Up 0.9%

BSE                                                 National Stock Exchange
Sensex: 53514.15 points, down 372.46 pts (0.7%)      Nifty 50: 15966.65, down 91.65 pts (0.6%)

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 62245.43 (Oct 19)                 : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18)             : Record Close High: 18477.05 (Oct 18)

2022 1st day close: 59183.22 (Jan 3)             : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17)             : 2022 Closing High: 18308.10 (Jan 17) 
2022 Closing Low: 51360.42 (Jun 17)              : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17)          : 2022 High (intraday): 18321.55 (Jan 17)

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)

 

End

 

US$1 = 79.63 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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Source: Cogencis

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