Stock Market Today: Sensex, Nifty Close Near Four-Month Low, FPIs Turn Net Sellers
Sensex closed down 523 points, or 0.81%, at 64,049.06, while Nifty was 160 points or 0.83% lower at 19,122.15.
KEY HIGHLIGHTS
FPIs Turn Net Sellers After Two Days
Overseas investors turn net sellers of Indian equities on Wednesday
Foreign portfolio investors off loaded stocks worth Rs 4,236.60 crore, according to provisional data from the National Stock Exchange.
Domestic institutional investors turned out to be net buyers and mopped up equities worth 3,569.36 crore, the NSE data showed.
Foreign institutions have been net buyers of Rs 110584 crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.
The S&P BSE Sensex closed down 523 points, or 0.81%, at 64,049.06, while the NSE Nifty 50 was 160 points or 0.83% lower at 19,122.15.
Yield On The 10-Year Bond Ends Lower
The yield on the 10-year bond closed 4 bps lower at 7.34% on Wednesday.
Source: Bloomberg
Rupee Ends Flat Against The U.S. Dollar
The local currency closed flat at 83.19 against the U.S dollar on Wednesday.
Source: Bloomberg
Sensex, Nifty Drop For The Fifth Day As Infosys, ICICI Bank, HDFC Bank Drag: Market Wrap
India's benchmark stock indices declined for the fifth day on Wednesday following a Dusshera holiday as the uncertainties associated with the Israel-Hamas conflict continue to weigh on markets.
Metal sector advanced, whereas media, I.T. realty and healthcare shares were under pressure. Intraday, Nifty hit 19,074.15, the lowest level since June 30, whereas Sensex fell to 63,912.16, lowest since June 28. Both indices ended the trading day at the lowest level since June 28.
"To make a comeback, Nifty and Nifty Bank must cross 19,350 and 43,430, respectively, to hold a reversal for tomorrow's session," said Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox.
The S&P BSE Sensex closed down 523 points, or 0.81%, at 64,049.06, while the NSE Nifty 50 was 160 points or 0.83% lower at 19,122.15.
NSE Nifty 50 Index has fallen 3.48% in the last five session, whereas S&P BSE Sensex corrected 3.58% in the same period. Sensex closed over 700 points from day's high, whereas Nifty 50 slipped over 200 points. On the other hand, Nifty Bank corrected over 500 points from day's high.
"Investors may opt for a cautious approach to the market till some clarity emerges on the geopolitical situation," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Broader markets mirrored the larger peers as Nifty Midcap 150 and Nifty Smallcap 250 ended over 0.5% lower. "Since the valuations in mid and small cap space is higher than that of large caps, this weakness is likely to persist. Safety is now in large caps particularly in banking majors which are fairly valued," said Vijayakumar added.
U.S. equity-index futures dropped after Microsoft Corp. and Google’s parent Alphabet Inc. delivered a mixed picture of big tech earnings. Contracts on the Nasdaq 100 sank 0.6% and those on the S&P 500 were down 0.4%. Alphabet fell more than 7% in premarket trading.
The Treasury 10-year yield rose four basis points and a gauge of the dollar was steady. "Given the positive bond-equity correlation, a spike in U.S. bonds might well feed through into equity markets in the short term," said Steve Brice, Group Chief Investment Officer at Standard Chartered Wealth Management.
There is a strong connection between the U.S. stock market and other global markets, and that is a positive factor, Brice said. So a short-term positive rally in U.S. equities would also feed domestic stocks, he said.
On Wednesday, the shares in Asia pushed higher after the government stepped up support for China’s economy and stock trading. The Hang Seng Tech Index gained 2.2%.
Infosys Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Larsen & Toubro Ltd., and Bharti Airtel Ltd. were negatively adding to the change in the Nifty 50 Index.
Whereas, State Bank of India, Tata Steel Ltd., Coal India Ltd., Hindalco Industries Ltd. and Maruti Suzuki India Ltd. were positively contributing to the change.
The broader market indices mirrored larger peers; the S&P BSE MidCap Index was down 0.52%, whereas S&P BSE SmallCap Index was 0.77% lower.
Nineteen the 20 sectors compiled by BSE declined, while S&P BSE Metal advanced. S&P BSE Metal, S&P BSE Telecommunication and S&P BSE Utilities fell the most.
The market breadth was skewed in the favour of the sellers. About 1,235 stocks rose, 2,453 declined, while 107 remained unchanged on the BSE.
As market selloff intensifies, analysts see an upside if Nifty crosses 19,500 level in Thursday's session. "Technically, the next major support zone lies near 18,850 levels and 18,600 zone of the significant 200 period DMA where one can expect for some consolidation. So as of now, it’s a wait and watch scenario and for the overall bias to improve, would need a decisive move past the 19,500 zone to establish some conviction and anticipate for further rise." said Vaishali Parekh, Vice President- Technical Research, Prabhudas Lilladher Pvt.
Aditya Birla Fashion And Retail Has 1.03% Equity Change Hands
97.3 lakh shares changed hands in a large trade
1.03% equity changed hands at Rs 212.50 apiece
Buyers and sellers not known immediately
Source: Bloomberg
