Market close: Nifty 50, Sensex end lower; rising dollar, US bond yields weigh on sentiment
Nifty 50 closed with a loss of 110 points, or 0.56 per cent, at 19,528.75 while the Sensex closed the day at 65,512.10, down 316 points, or 0.48 per cent.
Equity benchmarks the Sensex and the Nifty closed in the red on Tuesday, tracking weak global cues, as the appetite of investors for riskier equities further deteriorated on the rise in the US dollar and Treasury yields.
The dollar and US bond yields have been rising of late as expectations of rate hikes have grown stronger. The US Federal Reserve is likely to keep interest rates high for a longer time to bring inflation back down to the Fed's 2 per cent target.
"US 10-year Treasury yields have soared above 4.5 per cent to their highest since late 2007 and on Monday staged their biggest one-day rise since early September, a move that punctured a rally in stocks, commodities and currencies," reported Reuters.
Investors now shift their focus to the policy outcome of the RBI MPC (Monetary Policy Committee). The RBI MPC meeting will begin on October 4 and the outcome is due on October 6.
Nifty 50 today
Nifty 50 opened at 19,622.40 against its previous close of 19,638.30 and touched its intraday high and low of 19,623.20 and 19,479.65 respectively.
Nifty 50 closed with a loss of 110 points, or 0.56 per cent, at 19,528.75 while the Sensex closed the day at 65,512.10, down 316 points, or 0.48 per cent.
The BSE Midcap index rose 0.09 per cent while the Smallcap index ended with a decent gain of 0.61 per cent.
Even though the benchmark indices ended with losses, some 262 stocks, including Larsen and Toubro, Marico, Zomato, Cholamandalam Investment and Finance Company, Coal India and Federal Bank, hit their fresh 52-week highs in intraday trade on BSE.
Meanwhile, crude oil prices traded lower after falling to a three-week low in the previous session. Brent Crude traded near the $91 per barrel mark around 3:50 pm.
The rupee fell 17 paise to close at 83.21 per dollar, Bloomberg data showed.
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Nifty 50 top gainers today
Shares of Bajaj Finance (up 2 per cent), Larsen & Toubro (up 1.67 per cent) and Titan Company (up 1.34 per cent) ended as the top gainers in the Nifty index today.
Nifty 50 top losers today
Shares of ONGC (down 3.78 per cent), Eicher Motors (down 2.68 per cent) and Maruti Suzuki India (down 2.67 per cent) ended as the top losers in the Nifty pack.
As many as 37 stocks ended in the red in the Nifty index today while the remaining 13 ended higher.
Sectoral indices today
Most sectoral indices ended with losses today. Among the losers, the Nifty Auto index fell 1.20 per cent, followed by the Nifty Oil & Gas index which fell 1.17 per cent, while the Pharma index ended 0.92 per cent lower.
Nifty Bank fell 0.42 per cent while the Private Bank index ended 0.47 per cent lower.
The Nifty PSU Bank index, on the other hand, jumped 2.38 per cent, bucking the market trend. The Nifty Media index rose 1 per cent while the Nifty Consumer Durables and Realty indices rose 0.63 per cent and 0.46 per cent, respectively.
Experts' views on markets
Shrikant Chouhan, Head of Research (Retail), Kotak Securities observed that investors preferred to shun their equity exposure ahead of the monetary policy committee meeting this week. Markets were in weak terrain through the session, as traders trimmed their holding in automobile, oil and gas and metal shares.
Chouhan said that the stronger dollar once again weighed heavily on the rupee, which indicates that foreign investors may have once again pulled the plug on Indian equities. Even the robust September GST collections failed to enthuse investors as global worries continue to dictate the trend on local markets.
Vinod Nair, Head of Research at Geojit Financial Services pointed out that consolidation continued given the rising US bond yields and dollar index, prompting FIIs to pull funds.
"The moderation in oil prices may provide respite on the downside. The auto stocks declined due to mixed bag monthly data, while a near-normal monsoon will aid positive sentiment for consumption in the near term," said Nair.
Also Read: Earnings preview: Experts expect more misses than hits in Q2; how can it impact market sentiment?
Technical views on Nifty 50
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas underscored that the Nifty is unable to sustain at higher levels. He said the key hourly moving averages placed in the zone of 19,590– 19,640 is acting as a stiff resistance and until the Nifty does not manage to close above this resistance zone, we can expect the weakness to continue.
"On the downside, it can slip to 19,440 – 19,320 where support parameters in the form of 78.6 per cent Fibonacci retracement level and 20-week moving average are placed. In terms of levels, 19,500 – 19,440 is the crucial support zone while 19,590 – 19,640 should act as an immediate hurdle zone," said Gedia.
Chouhan pointed out that on daily charts, the Nifty has formed a bearish candle and on intraday charts it is still holding lower top formation, which is largely negative.
"For the bulls now, 19,580 could be the immediate resistance zone, above which the index could move up to 19,700-19,725. On the flip side, 19,450 and 19,480 would act as a strong support zone for the traders. Below 19,450, the selling pressure is likely to accelerate and the index could slip to 19,375-19,350," said Chouhan.
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