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Thursday, January 26, 2023

India Stocks Review:Indices end lower on profit-booking, Fed minutes

Informist, Thursday, Jan 5, 2023

 

By Padmini Dhruvaraj

 

MUMBAI – Indian equity indices extended their fall to the second straight session on the day of the weekly options expiry, as investors booked profits ahead of corporate earnings for the December quarter, which are set to kick-start from Jan 9, analysts said. 

 

Minutes of the US Federal Reserve’s December meeting indicated that the Fed would continue increasing interest rates in 2023 to bring inflation under control, prompting some investors to take a cautious view. Analysts said the market had expected the Fed to cut rates this year amid rising concerns of a hard landing into an already inevitable recession.

 

The minutes showed that many policymakers were aware of the need to curb inflation without slowing down the economy too much. At the same time, some were also worried that a robust jobs market and market expectations for a rate cut this year could dampen the central bank’s efforts to bring inflation below 2%. 

 

The US Department of Labor said that in November, the total available jobs in the US stood at 10.46 mln, slightly lower than October’s total of 10.51 mln. A survey had showed that there were still about 1.7 job openings for each jobseeker in November, unchanged from October. A non-farm payrolls report, due on Friday, will provide a better picture of the labour market. 

 

“Local traders are taking the opportunity to book profit as concerns of higher valuations weigh while global macroeconomic concerns remain a major worry,” said Prashanth Tapse, senior vice-president at Mehta Equities.

 

Today, benchmark indices opened higher on positive cues from global markets. However, they fell as shares of financial services and information technology companies fell prey to profit-booking. The Nifty 50 breached its crucial support level of 18000 points to hit the day’s low of 17892.60 points. Eventually, the index gained some momentum and settled 0.3% lower at 17992.15 points. The 30-stock Sensex fell 0.5% and closed at 60353.27 points. 

 

“In the last two sessions, we have seen some aggravated foreign institutional investors sell-off and today, it’s the continuation of the same,” said Raj Deepak Singh, a derivatives analyst at ICICI Securities. “Post Fed minutes, we haven’t seen such volatility in other markets, so it’s more of a profit booking ahead of the result season. Major action is among heavyweights and that too among performers from banking financial services and insurance companies,” he added.

 

Shares of most financial services companies fell today. The Nifty Bank and the Nifty Financial Services indices fell 0.8% and 1.2%, respectively. Shares of Bajaj Finance were down about 7% today after the company reported slower-than-expected growth in its assets under management in the December quarter. The slower growth, despite Oct-Dec being a strong quarter due to the festival season, weighed on the sentiment of its holding company Bajaj Finserv, which also fell over 5%.

 

A drop in shares of information technology companies also affected the benchmark indices. The Nifty IT closed 0.5% lower as high interest rates in the US will affect the growth prospects of Indian IT companies. Nifty 50 heavyweights Wipro, Tech Mahindra, and Infosys fell 0.7-1.3%.   

 

Stocks of fast-moving consumer goods companies, however, provided some support to the benchmark indices. Gains in the sector were supported by Marico’s strong update for the December quarter, cooling raw material prices, and investors flocking towards defensive sectors due to fear of a global recession. The Nifty FMCG index closed 1.6% higher.

 

Shares of tyre companies rose today due to a fall in crude and rubber prices. Shares of CEAT, MRF, Apollo Tyres, and JK Tyre & Industries rose 3.5-6.6%. 

 

On Friday, indices will take cues from global markets. However, as the Nifty 50 has closed below its psychologically important level of 18000 points, the market is likely to fall further unless there is a major domestic trigger, said a technical analyst.

 

* Among Nifty 50 stocks, 30 rose, 17 fell, and 3 were unchanged

* Among Sensex stocks, 11 rose, 16 fell, and 3 were unchanged    

* On the BSE, 1,696 stocks rose, 1,777 fell, and 153 were unchanged

* On the NSE, 656 stocks rose, 1,636 fell, and 85 were unchanged

* Nifty Financial Services: Down 1.2%; Nifty Bank: Down 0.8%; Nifty FMCG: Up 1.6% 

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)

End

 

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

 

Edited by Avishek Dutta

 

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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