Active Stocks
Tue Apr 16 2024 15:59:30
  1. Tata Steel share price
  2. 160.05 -0.53%
  1. Infosys share price
  2. 1,414.75 -3.65%
  1. NTPC share price
  2. 359.40 -0.54%
  1. State Bank Of India share price
  2. 751.90 -0.65%
  1. HDFC Bank share price
  2. 1,509.40 0.97%
Business News/ Markets / Market Close: Sensex cracks over 800 points, Nifty 50 ends below 19,300; Top 10 updates to know
BackBack

Market Close: Sensex cracks over 800 points, Nifty 50 ends below 19,300; Top 10 updates to know

Domestic equities end in red on geopolitical concerns, mixed earnings, and rising US 10-year yield. Nifty 50 lost 260.90 points to settle at 19,281.75. The Sensex falls 825.74 points to close at 64,571.88.

Nifty 50 lost 260.90 points to settle at 19,281.75. The Sensex falls 825.74 points to close at 64,571.88. (MINT_PRINT)Premium
Nifty 50 lost 260.90 points to settle at 19,281.75. The Sensex falls 825.74 points to close at 64,571.88. (MINT_PRINT)

Stock Market Today: Domestic equity benchmark indices ended in deep red on Monday, extending losses for the fourth-straight session, in response to heightened geopolitical tensions, mixed quarterly earnings and spike in US treasury yields. Sensex and Nifty 50 declined over 1% each, while broader markets underperformed the frontline indices.

The US 10-year bond yields touched 5% for the first time since 2007. Nifty 50 lost 260.90 points to settle at 19,281.75. The Sensex falls 825.74 points to close at 64,571.88.

Sensex closed at its lowest level in four months after breaching through 65,000. The Nifty 50 and the midcap index close at their lowest points in almost two months. The Nifty midcap 100 closed 2.88% lower, and the Nifty smallcap index lost 3.80%.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

According to analysts, the Nifty Midcap index breached its crucial 50 DEMA support today for the fist time since the month of April 2023. The small cap index too corrected sharply which indicates of some price wise corrective phase in the broader markets in the short term. 

Also Read: Nifty Smallcap index drops over 2% to 2-week low; NBCC, IRB lead the sell-off today

Rise in Treasury Yields

With the US economy booming and investors anticipating sustained high interest rates, the benchmark 10-year Treasury yield surged above 5% on Monday, reaching its highest level since 2007.

Global stocks fell to seven-month lows at the beginning of a week filled with mega-cap earnings and important data, but the combination of those higher rates and the possibility of a bigger conflict in the Middle East soured sentiment.

Strong US dollar

"Despite outbreak of the Israel-Palestime conflict, US dollar index has remained above 106 for the last one week. This is despite US Fed's dovish stance on interest rate hike. This could also be a reason equity markets in Indian feeling the sell off heat," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Q2 results 2023 below expectations

According to Gorakshkar, market has not looking happy from the kind of results leading Indian companies have declared so far.

"We saw good resutls of ICICI Bank and Kotak Mahindra Bank last week, that is yet to get converted into the stock buying interest. Some big companies like DMart have delivered weak quarterly numbers. So, Indian companies have reported Q2 numbers which seems below expectations of the markets," said Avinash Gorakshkar.

Also Read: Why Indian stock market is falling today — explained with 5 reasons

China Stocks slump

Due to investor selling of tech sector stocks and other stocks, China's blue-chip share index ended at its lowest point in four and a half years on Monday. This was due to global market fears compounding long-standing concerns about the country's economic health.

At the close, the CSI300 Index dropped 1% to its lowest point since February 2019. After breaching the psychologically significant 3,000-point mark last week, the Shanghai Composite Index fell 1.5% to a level that is almost a year below its peak.

Israel-Hamas war

"Israel Hamas war has fuelled uncertainty among investors as Middle East tension is yet to get any solution despite more than a fortnight of its outbreak. This geopolitical uncertainty has put equity under pressure and hence Indian stock market is under pressure for last four days," said Arun kejriwal, Founder at Kejriwal Research and Investment Services.

Nifty Smallcap and Midcap index at nearly two-month low

Nifty Smallcap and Midcap index were at more than one and half month low. Nifty Midcap index closed 2.88%, and was 6.8% down from the highs. On the other side, Nifty Smallcap index recorded its fresh high levels on October 18, and in the three trading sessions its lost over 5%. 

Analysts recommend short term traders to have a cautious approach there as stock specific correction could be sharper.

Also Read: BSE MidCap falls 1.80% to 7-week low, smallcap index hits 4-week low; here's why

Nifty 50 at October months low

"Our markets corrected sharply in the first trading session of the week as the negative global cues continued to weigh negatively. The Nifty broke its important supports one after another as the broader markets witnessed significant selling pressure and the index ended the day below 19300 with a loss of over 250 points.

Nifty broke its important swing low support of 19330 and ended well below it. However, the data was already bearish since sometime as the recent pullback move did not see any significant short covering or long formations. Nifty broke its important swing low support of 19330 and ended well below it. However, the data was already bearish since sometime as the recent pullback move did not see any significant short covering or long formations," said Ruchit Jain, Lead Research Analyst at 5paisa.

Top Nifty 50 Gainers and Losers

Jut 2 stocks settled in the green in the Nifty 50 index while the rest 48 ended in red.

Shares of Mahindra & Mahindra Ltd (up 0.18%), and Bajaj Finance Ltd (up 0.07%) ended as top gainers. On the other side, LTIMindtree Ltd (down 3.92%), Adani Enterprises (down 3.71%), Hindalco Industries Ltd (down 3.07%), JSW Steel Ltd (down 3.03%), and Adani Ports and Special Economic Zone Ltd (down 2.85%) were among the laggards.

Sectoral indices today

All sectoral indices ended with losses, Nifty Bank was down by 1.31%, Nifty IT was fell by 1.97%% followed by Nifty Metal, which slumped by 3.26%. Nifty Media fell 4.98%.

Market Cap today

The overall market capitalisation of the BSE-listed firms dropped to nearly 316 lakh crore from 324 lakh crore in the previous session, making investors poorer by about 7.5 lakh crore in a day.

Experts' views on markets

"Amidst volatility, Nifty received fresh drubbing and most importantly, ended on an ugly note. Fear of more escalation in Israel Hamas conflicts and 16 year high US Yield putting pressure on Indian markets and witnessed profit booking attempt.

Nifty Mid-Cap and Small-Cap indices too tumbled 1.65% and 3.79% respectively. Both, Nifty and Bank Nifty marked their 4th straight day of losing streak.

It was sea of red at Dalal Street which was primarily clouded by lingering concerns about corporate India’s earnings which as of date was uninspiring and most importantly, they could come under heavy pressure from inflation, an economic downturn, and soaring interest rates.

The cynic FIIs at the moment are obsessed with the negativity surrounding Dalal Street on backdrop of inflation and recession concerns.Amongst sectoral indices, maximum pain was seen at Nifty Media (-5%), PSU Bank (-3.9%) and Metal index (-3.3%)," said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

According to Tapse, if today’s drubbing at Dalal Street is any indication then Nifty is likely to witness another uninspiring session in Wednesday’s trade.

He added and highlighted that confirmation of strength only above Nifty’s biggest hurdles at 19,887 mark. Nifty’s biggest support is placed at 19,501 mark. Nifty’s 200 DMA at 18,594 mark.

Technical Views

"The bears have maintained a strong grip on the index, resulting in significant selling pressure. This pressure led to a breakdown of the key support level at 19500.With the support at 19500 breached, the next significant support level was at 19200. If the index fails to sustain above this level, it may experience further declines toward the 19000-18800 range.The overall sentiment for the index remains bearish. As long as the index stays below the 19600 mark, the view remains bearish, and any upward movements are viewed as selling opportunities," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 23 Oct 2023, 03:30 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App