India Stocks Review:End lower mirroring volatility in global markets

Informist, Wednesday, Apr 27, 2022

By Vivek Kumar

MUMBAI -Benchmark indices continued to mirror the volatility seen in global equity markets today, as investors’ risk appetite has been hit due to various concerns from global issues to domestic corporate earnings.

Further, ahead of the expiry of April derivatives contracts on Thursday, rollover action today was likely prominent, and that might have added to the volatility.

The Nifty 50 fell 0.9% to close at 17038.40 points, and the Sensex closed 0.9% lower at 56819.39 points. The benchmark indices have moved around 1% for each of the three sessions this week with no clear trend.

Market participants believe this is likely to continue going ahead as well, amid concerns regarding the US Federal Reserve’s aggressive rate hike plans, surge in COVID-19 cases in China and the ongoing war between Russia and Ukraine.

The benchmark indices in the US ended 2-4% lower on Tuesday, while markets in Asia and Europe were mixed today. The concerns of earnings growth slowing down, especially for technology companies in US, added to the worries for equities there.

Back home, indices have largely been trading in a range since hitting lifetime highs in October, pointed out Miraj Vora, a technical and derivatives analyst at IDBI Capital Markets.

India VIX has stayed elevated for most part of these six months, and till the time it does not retrace back below 15 levels, such volatility will continue, Vora added.

Today, fear gauge India VIX ended 7.4% higher at 20.60 as a fall in Nifty 50 likely turned put buyers active ahead of the monthly derivatives expiry on Thursday.

Banks and financial services companies were among the worst hit sectors in the market today. Shares of Bajaj Finance slumped over 7%, and its holding company Bajaj Finserv also followed with a 4% fall as the former’s net interest margin declined in Jan-Mar, which prompted brokerage firms to cut their earnings estimates.

The Nifty Bank index ended 1% lower at 36028.85 points, with Axis Bank, State Bank of India, Bandhan Bank, ICICI Bank and AU Small Finance Bank falling 1-4%.

The rollovers in Nifty Bank have been in line with average rollovers so far, but this does not depict a positive picture because most positions have been on the short side, Vora said.

Among other stocks, Hindustan Unilever fell 0.2%, and those of Bajaj Auto rose 0.4% ahead of their Jan-Mar earnings due to be released today.

The positive momentum in the shares of two-wheeler companies continued today with Hero MotoCorp and TVS Motor Co rising nearly 4% and 1%, respectively, in a weak market. Two-wheeler companies have been in focus this week amid hopes that sales volumes might have bottomed out and they may see some improvement in demand going forward.

Heavyweight Reliance Industries also rose nearly 2% today to hit its lifetime high of 2,828 rupees, becoming the first Indian company to hit 19 trln rupees market capitalisation amid strong earnings prospects. The stock however came off highs and ended with just 0.1% gains at 2,778.35 rupees.

Among other stocks, KPIT Technologies, Mahindra Logistics, Schaeffler India, KPR Mill and Aditya Birla Capital rose today following their strong earnings, while Tata Coffee and UTI Asset Management Co fell.

* Among Nifty 50 stocks, 10 rose and 40 fell

* Among Sensex stocks, 6 rose and 24 fell

* On the NSE, 584 stocks rose, 1,473 fell and 66 were unchanged

* On the BSE, 1,159 stocks rose, 2,208 fell and 118 were unchanged

* Nifty Auto: Down 0.6%; Nifty IT: Down 0.8%; Nifty Media: Up 0.1%

BSE National Stock Exchange
Sensex: 56819.39 points, down 537.22 pts (0.9%) Nifty 50: 17038.40 points, down 162.40 pts (0.9%)

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: 52842.75 (Mar 7)      : 2022 Closing Low: 15863.15 (Mar 7)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)

2022 Low (intraday): 52260.82 (Mar 8) : 2022 Low (intraday): 15671.45 (Mar 8)
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

Edited by Pranav S. Joshi

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Source: Cogencis