Informist, Thursday, Jan 12, 2023
By Padmini Dhruvaraj
MUMBAI – Indian equity indices fell for the third consecutive session today, ahead of domestic and US consumer inflation data for December, which will be scrutinised to determine the rate-hike trajectory in 2023. Benchmark indices were also set back by intense selling pressure by foreign institutional investors and rising crude oil prices.
Global markets have largely ignored comments by various central bank officials that the Federal Reserve will maintain its aggressive stance in 2023, and are optimistic that the Fed will cut rates. The US CPI print for December is expected to be softer than estimated earlier.
Meanwhile, India’s CPI inflation number for December is seen at 5.9%, little changed from 5.88% in November, according to a poll by Informist. A reading below 6% for the second consecutive time will put less pressure on the Reserve Bank of India to take any aggressive policy tightening stance.
Domestic indices have been largely detached from their global peers this week. Benchmark domestic indices opened a tad higher today and soon slipped into losses on the day of weekly contracts expiry. “The market is in an oversold zone. There are no positive triggers, no support from FIIs,” said Osho Krishan, a senior technical and derivative research analyst at Angel One.
Both the benchmark indices fell to their lowest levels in two months, but trimmed most of their losses in the last two hours of trade. The Nifty 50 closed 0.2% lower at 17858.20 points and the 30-stock Sensex ended the day 0.3% lower at 59958.03 points. “The frontline index on the intraday basis made a couple of attempts to breach 17,800 – 17,780 levels but was not successful as prices were continuously finding support near that zone,” said Rohan Patil, a technical analyst at SAMCO Securities.
Sentiment in the market was further weighed down as crude oil prices rose on the back of strong prospects for demand from China, the second-largest oil consumer in the world. As a result, shares of Indian oil and gas companies that import crude fell due to fear that higher input costs would hurt profits.
Shares of heavyweight Reliance Industries fell over 2% and the Nifty Oil & Gas index was the worst hit among the sectoral indices with 1% losses.
Indian stocks are also facing selling pressure from foreign institutional investors, who seem to have shifted some of their allocations from Indian equities after China announced the reopening of its economy in late December. As of Wednesday, FIIs had sold for 14 straight sessions in the Indian cash market.
Chinese equities were one of the worst performers in 2022, making their valuations much cheaper than the Indian market. Now, with China’s economy inching towards normalcy, investors see it as an opportunity to make a profit by buying stocks at lower valuations, said analysts.
Investors were also on edge ahead of the quarterly earnings of information technology companies HCL Technologies and Infosys. Shares of HCL Technologies gained nearly 2% as traders bet on a better revenue performance from the company in Oct-Dec compared to its peers. Shares of Infosys closed 0.6% higher.
Among individual stocks, Sah Polymers made a stellar debut on bourses today as the stock listed at a premium of nearly 31% to its issue price of 65 rupees on the National Stock Exchange. Strong buying interest in the stock also helped it extend the gains and close 37% higher at 89.25 rupees.
On Friday, benchmark indices will take cues from the US market. “Presently, Nifty 50 is stuck in a no-trading zone and a break on either side of the range from 18,150 – 17,750 levels will decide the next trading setup,” said Patil.
* Among Nifty 50 stocks, 22 rose, 24 fell, and 4 were unchanged
* Among Sensex stocks, 15 rose, and 15 fell
* On the BSE, 1,514 stocks rose, 1,992 fell, and 146 were unchanged
* On the NSE, 1,149 stocks rose, 1,082 fell, and 104 were unchanged
* Nifty Oil & Gas: Down 1.02%; Nifty Energy: Down 0.68%; Nifty Media: Down 0.8%
BSE National Stock Exchange
Sensex: 59958.03, down 147.47 pts (0.25%) Nifty 50: 17858.20, down 37.50 pts (0.21%)
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 Closing Low: 59900.37 (Jan 6) : 2023 Closing Low: 17859.45 (Jan 6)
2023 High (intraday): 61222.79 (Jan 2) : 2023 High (intraday): 18215.15 (Jan 2)
2023 Low (intraday): 59669.91 (Jan 6) : 2023 Low (intraday): 17795.55 (Jan 6)
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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