Sensex Today: Indian equities and commodities fell on Thursday as global growth concerns weighed on investor sentiment. Besides, a weaker-than-expected domestic Q1FY23 GDP (gross domestic product) data, along with marginal downtick in Manufacturing PMI for August, worried market participants. At Close, the Sensex was down 770.48 points or 1.29 per cent at 58,766.59, and the Nifty was down 216.50 points or 1.22 per cent at 17,542.80
Reliance Industries tanked 3 per cent today, contributing nearly 30 per cent of the losses on the Sensex. Other losers included TCS, Sun Pharma, Tech M, HUL, Infosys, NTPC, HDFC, Bajaj Finance, Tata Steel, Power Grid, and ICICI Bank. All these shares shedded over 1.5 per cent each.
The broader markets, however, remained relatively resilient. The S&P BSE MidCap and SmallCap indices settled 0.5 per cent higher each. Given this, the overall advance-decline ratio remained in the favour of buyers as 1,961 stocks advanced on the BSE as against 1,469 stocks that fell on the bourses.
Among sectors, the Nifty Realty index added 1 per cent, followed by the Nifty PSU Bank index (up 0.7 per cent). On the downside, the Nifty IT index declined 1.9 per cent, followed by the Nifty Pharma index (down 1.12 per cent).
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said: “A highlight of the recent market trend is India’s outperformance among large markets. While the US, Europe and most large emerging markets have turned weak, the Indian market has shown surprising resilience. Since the Fed chief Powell’s ultra-hawkish message last Friday the S&P 500 is down 5.8 per cent while the Nifty is up 0.9 per cent. A major factor driving this outperformance is the return of FIIs into the Indian market. It is important to appreciate the fact that the FIIs investment of Rs 4165 cr on Tuesday in the cash market is the largest buy figure in 2022. This is providing momentum to the market. However, investors have to exercise caution since valuations are high and the global growth environment is not favorable for a sustained bull market. Even while remaining invested, some profit booking may be a good idea.”
Among individual stocks, shares of Ashok Leyland hit 52-week high of Rs 159 per share after the automaker bagged mega order for 1,400 school buses in UAE.
Besides, shares of Biocon hit 52-week low at Rs 297 per share after the pharma major received 11 observations from the US health regulator.
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking Ltd., said: “On the technical front, Nifty formed a strong bullish candle on the daily time frame and crossed above all crucial short term and long-term averages indicating of a bullish overtone which is likely to prompt another round of rally in the near term. On the oscillator front too, the 14-period RSI has gained a bullish momentum sustaining above the trend deciding level of 60. Though one need to avoid trading aggressively amid global nervousness. Considering the present situation, a bare minimum correction of 38.6 per cent of the entire rally from 15,183 to 17,992 comes around 16900 followed by 50 per cent correction at 16600. On the upside present setup indicates that Nifty can move towards 17,992 followed by 18,114 in the coming days with immediate support stands at 17,350 and Index need to sustain above the said level with some authority for the bulls to strengthen their stance.”
Global Cues
Asian stocks slid and the dollar spiked on Thursday as investors greeted September by selling everything that was not nailed down after a month battered by concerns about aggressive rate hikes from global policymakers.
Tokyo stocks opened lower Thursday extending US losses, with fears growing among investors that there will be no respite from Federal Reserve rate hikes aimed at tamping down inflation. The benchmark Nikkei 225 index was down 1.04 percent, or 291.67 points, at 27,799.86 in early trade, while the broader Topix index slipped 0.80 percent, or 15.76 points, to 1,947.40.
US stocks ended the month with their fourth straight daily decline on Wednesday, cementing the weakest August performance in seven years as worries about aggressive interest rate hikes from the Federal Reserve persist.
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