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Saturday, January 28, 2023

India Stocks Review: Indices end 1% lower ahead of US Fed minutes

Informist, Wednesday, Jan 4, 2023


By Padmini Dhruvaraj


MUMBAI – Indian equity indices snapped a two-day gaining streak and fell sharply breaching major support levels ahead of the minutes of the US Federal Reserve’s December meeting, which is due early Thursday. The absence of any major domestic triggers and low trade volumes too paved the way for the market’s fall, analysts said. 


The minutes of the Fed are eagerly awaited as it is expected to throw some light on why the US central bank has maintained a hawkish stance for 2023 despite signs of easing inflation. 


After a flat start, the benchmark indices inched lower throughout the day, dragged by shares of financial services, metals, information technology, and energy companies. Both the Nifty 50 and the Sensex fell 1% each and closed at 18042.95 points and 60657.45 points, respectively. India VIX, the “fear-gauge,” surged over 9% today and settled 6% higher as a sharp decline in the Nifty 50 pushed traders to intensify buying across put options at lower levels. 


“Trade volumes are normally lower during the last and first week of the year,” said Asutosh Mishra, head of research at Ashika Stock Broking. “However today’s can be attributed as caution ahead of Fed minutes, and the fall in a few US marquee stocks on Tuesday too dented the sentiments,” he added. Wall Street indices ended their first trading session of the year lower on Tuesday, as Tesla’s stock fell about 12% and Apple fell about 4%. 


In the domestic equities, metal stocks entered into a bout of selling. Mishra said that the Nifty Metal fell over 2% today because, “despite China removing its COVID related restriction, its Purchasing Managers’ Index still did not indicate anything positive for its future growth.” Shares of JSW Steel and Hindalco Industries fell about 4% each and were the worst performers in the Nifty 50 index. 


According to reports, a fall in aluminium prices too created a sell-off in stocks of aluminium companies. The prices fell because China’s aluminium inventory has increased in the past three weeks, resulting in a fall in the metal’s prices. Secondly, surging COVID-19 cases in China have made traders cautious of falling demand for aluminium in the future. 


The Nifty IT index too fell about 1% today led by losses in heavyweights HCL Technologies, Infosys, and Wipro, which fell 0.5-2.0%. Margins of Indian information technology services companies will remain susceptible to macroeconomic headwinds in the US and Europe over the medium term, credit rating agency ICRA Ltd said. 


The fall in indices was further rendered by a slump in financial services stocks. The Nifty Bank and the Nifty PSU Bank fell 1% and 2%, respectively, on profit-booking. However, the fall is only based on the market’s overall trend, analysts said. 


Analysts are also worried that the inflow of funds in the Indian market might reduce a bit due to reopening of the Chinese economy. “With much of global investors’ focus being drawn to the ongoing reopening of the Chinese economy, India is expected to see relatively muted flows in the coming month,” said Hariharan.


However, the investment situation will not be “either India or China” said Mishra. “So last year, foreign institutional investors were net sellers in both India and China. Now inflow will be there in both countries. Even if the weightage will be a little different, the direction will be the same,” he added.  


Among specific stocks, Coal India fell 3% as the company’s deal to hike non-executive staff wages are likely to lift its annual wage bill by 19-20%. Shares of Orient Cement closed 5% higher, extending its upswing to the second session following a report by Informist that Adani Group was in talks to buy promoters’ stake in the company.


Analysts also expect the outcome of the minutes of the US Fed to dictate the direction of global equities on Thursday. 


* Among Nifty 50 stocks, 7 rose, and 43 fell

* Among Sensex stocks, 3 rose, and 27 fell    

* On the BSE, 1,221 stocks rose, 2,276 fell, and 130 were unchanged

* On the NSE, 680 stocks rose, 1,583 fell, and 419 were unchanged

* Nifty Metal: Down 2.1%; Nifty Realty: Down 2.05%; 

BSE                                              National Stock Exchange
Sensex: 60651.45, down 636.75 pts (1.04%)           Nifty 50: 18042.95, down 189.60 pts (1.04%)

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022)           :  Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022)       :  Record Close High: 18812.50 (Dec 1, 2022)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 61167.79 (Jan 2)             :  2023 Closing High: 18197.45 (Jan 2)
2023 High (intraday): 61222.79 (Jan 2)          :  2023 High (intraday): 18215.15 (Jan 2)

2023 Low (intraday): 60764.63 (Jan 2)           :  2023 Low (intraday): 18086.50 (Jan 2)

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 Maheswaran Parameswaran


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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