BackMarket Closing: Indices settle lower on weak global cues; Nifty 50 dips to 19,400-mark dragged by IT, FMCG
Market Closing Bell: In a volatile trade, the 30-share BSE Sensex declined 143.41 points or 0.22 per cent to settle at 64,832.20. The broader Nifty 50 dipped 48.20 points or 0.25 per cent to 19,395.30.
PremiumDomestic equity benchmarks Nifty 50 and Sensex settled lower on Thursday, November 9, over weak global cues as the rally in financial and IT stocks cooled down since the US Federal Reserve's rate pause decision.
Investors awaited comments from Federal Reserve Chair Jerome Powell to get cues on interest rate trajectory. Powell will speak at a panel discussion of the International Monetary Fund conference in Washington on Thursday.
Analysts observed that markets remained range bound for the third day in a row. After the flat start, Nifty remained in a narrow range till the end of the session. Factors such as in-line September quarter earnings, healthy macroeconomic outlook and buying by retail as well as domestic institutional investors (DIIs) are supporting the domestic market.
In a volatile trade, the 30-share BSE Sensex declined 143.41 points or 0.22 per cent to settle at 64,832.20. During the day, it fell 206.85 points or 0.31 per cent to 64,768.76. The broader Nifty 50 dipped 48.20 points or 0.25 per cent to 19,395.30. In the broader market, the BSE smallcap gauge declined 0.27 per cent while the midcap index gained 0.06 per cent.
The Nifty has gained roughly 2 per cent since November 1, when the Fed held rates steady, with its stance on monetary policy less hawkish than expected. The small- and mid-cap indexes have jumped 37 per cent and 29 per cent, respectively, in 2023, outperforming the Nifty's 7 per cent gain.
The rupee stayed range-bound and settled 1 paisa higher at 83.29 against the US dollar on Thursday amid a negative trend in domestic equities and sustained foreign fund outflows. At the interbank foreign exchange, the rupee opened at 83.25 and finally settled at 83.29 against the greenback, registering a gain of 1 paisa from its previous close.
Nifty 50 gainers today
It was among the top Nifty gainers along with Apollo Hospitals, which closed 3.65 per cent higher after posting a higher quarterly profit. Mahindra & Mahindra (M&M), Power Grid, IndusInd Bank, Tata Motors, Larsen & Toubro (L&T) and Maruti Suzuki India were also among the gainers.
Nifty 50 losers today
Tech Mahindra, Hindustan Unilever and Tata Consumer Products were among the top Nifty losers. Hindustan Unilever fell the most by 1.58 per cent in the session. Tech Mahindra declined 1.33 per cent, Infosys by 1.22 per cent, and Reliance Industries by 1.11 per cent. Bajaj Finance, Tata Consultancy Services (TCS), Titan and UltraTech Cement also closed lower.
Sectoral Indices Today
A mixed trend continued on the sectoral front wherein realty and auto posted decent gains while FMCG and oil & gas ended in the red. Among the indices, FMCG fell by 0.88 per cent, oil & gas declined 0.75 per cent, IT (0.74 per cent), teck (0.72 per cent), services (0.66 per cent) and consumer durables (0.62 per cent).
Since the Fed pause, the IT and financials had also gained about 2 per cent. They fell 0.65 per cent and 0.10 per cent, respectively, on the day. Consumer Discretionary, healthcare, utilities, auto and realty were among the gainers.
The gainers also included real estate stocks, which jumped 1.23 per cent to a record high. The auto index gained 0.83 per cent, led by a 4.35 per cent rise in M&M ahead of its results on Friday.
Experts' views on markets
Commenting on today's market performance, Vinod Nair, Head of Research at Geojit Financial Services said, "Reflecting the mixed global sentiments, the Indian market is mired to a range bound trend with the Nifty index not able to breach above the key level of 19,500.''
‘’Cues from the Fed Chair's speech have reduced the likelihood of a rate hike in the near term, leading to an ease in US treasury yields and calming the market. FIIs selling has moderated but inflows continue to be muted on concerns of an elevated interest rate and a global slowdown. Mid- and small caps are back in favour after the recent fall, led by retail activities & good corporate results,'' he added.
Nifty after the upmove last week, is in consolidation mode. It has been unable to cross the 19450-19500 levels for last four trading sessions. ''Overall we expect the ongoing recovery to continue and any dips can be used as buying opportunity,'' said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
Technical views on Nifty 50
''The recent pause is the index is largely in sync with the global markets, especially the US, and needs a decisive break from the 19,200-19,500 zone for the next move. Meanwhile, stay focused on identifying the sectors and themes that are performing well and utilize intermediate dips to add quality stocks,'' said Ajit Mishra, SVP - Technical Research, Religare Broking Ltd.
Rupak De, Senior Technical analyst at LKP Securities said, ''The Nifty has slipped a bit lower as it found resistance at the critical moving average on the daily timeframe, suggesting a weakening bullish sentiment.''
''The index slipped back below 21EMA after a brief stay above the critical near-term moving average, which indicates a failed bullish reversal. The sentiment now favors a bearish bet as long as the Nifty remains below 19,500. All rallies till 19,500 are likely to be sold into. On the lower end, support is placed at 19,300, below which a serious correction may happen in the market,'' added De.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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