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Tuesday, October 4, 2022

India Stocks Review: Down on weak global cues after listless session

Informist, Thursday, Jul 14, 2022

 

By Vaibhavi

 

NEW DELHI – After a lacklustre session, benchmark share indices ended lower today due to largely weak sentiment globally as a higher-than-expected US consumer inflation is likely to trigger supersized interest rate hikes from the Federal Reserve.

 

US retail inflation hit a four-decade high of 9.1% in June, against expectations of 8.8%. This stoked fears that the Fed may increase the quantum of its interest rate hikes in its meeting later this month to rein in runaway inflation.

 

Lingering concerns about recession and a worsening COVID-19 crisis in China had already weighed down global sentiment, and the disappointing US inflation data further dented investor appetite.

 

Moreover, key European share indices were down and US equity futures pointed to a weak opening.

 

Domestic benchmark indices seesawed between gains and losses throughout the session, as investors struggled to find a clear direction.

Should the US Fed increase the quantum of rate hike, it would lead to further outflow of foreign funds from emerging markets like India. Persistent fall of the rupee is also weighing down foreign fund inflows into the domestic market.

 

The Indian currency depreciated further against the dollar, and touched a new record low of 79.9150 a dollar for the fourth straight day today.

 

The fall of the rupee will dent the valuation of FII investments and start eating into their profits, which will prompt them to intensify their selling in the domestic market, said Vishal Wagh, head of research at Bonanza Portfolio.

 

The Nifty 50 index moved in a narrow range of 16070.85 points and 15858.20 points, before it closed 0.2% lower at 15938.65 points. The Sensex ended at 53416.15 points, down 0.2% after moving in a range of 53861.28 points and 53163.77 points intraday.

 

Given the unclear trend for the Nifty 50 in the past few sessions, it will be crucial for the index to stay above 15800-15900 points for any visible recovery, said Ajit Mishra, vice-president – operations, Religare Broking.

 

Despite opening higher, a fall in frontline banks and information technology companies through the day weighed on the Nifty 50, pulling it into the red.

 

Shares of IT companies came under intense selling pressure on concerns about slowdown in demand and pressure on margins. Mindtree was the worst hit within the sector, with its shares falling more than 4% due to profit booking and worries around growth in the second half of 2022-23 (Apr-Mar).

 

The Nifty Bank index was down 0.5%, extending losses to the third session. Lack of support from the banking space limited the rise of the Nifty 50.

 

Defensive buying within the pharmaceutical pack lifted the Nifty Pharma index 0.8% higher. Sun Pharmaceutical Industries and Dr Reddy’s Laboratories were among the top Nifty 50 gainers, as they rose around 2% each.

 

On the stock-specific front, Hindustan Zinc ended over 4% higher as its board approved an interim dividend of 21 rupees per share. Zydus Wellness rose nearly 3% as data showed Nippon India Mutual Fund had increased its stake in the company through the open market on Wednesday.

 

However, shares of small-cap companies were battered by the market weak sentiment and all the small-cap indices on the National Stock Exchange fell around 1% each. Those in the mid-cap space ended largely unchanged.

 

* Among Nifty 50 stocks, 21 rose and 29 fell

* Among Sensex stocks, 12 rose and 18 fell

* On the BSE, 1,382 stocks rose, 1,940 fell and 140 were unchanged

* Nifty IT: Down 1.6%; Nifty Bank: Down 0.5%; Nifty Pharma: Up 0.8%

BSE                                                 National Stock Exchange
Sensex: 53416.15 points, down 98.00 pts (0.2%)      Nifty 50: 15938.65, down 28.00 pts (0.2%)

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 = 79.87 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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