Sensex, Nifty fall after RBI policy outcome; ZEEL, ZMCL jump up to 18%, Dreamfolks tanks 15%
BSE Sensex shed 307.63 points, or 0.47 per cent, to settle at 65,688.18, while NSE's Nifty50 dropped 89.45 points, 0.46 per cent, to end the day at 19,543.10 for the day
- Aug 10, 2023,
- Updated Aug 10, 2023 7:06 PM IST
Domestic equity markets were back in red on Thursday after the RBI's monetary policy outcome. The central bank kept the rates unchanged but the hawkish commentary from Shaktikanta Das weighed on the market sentiments. Global benchmarks keenly await the US inflation report due today that will guide traders over the Federal Reserve’s next policy move.
For the day, the BSE's barometer Sensex shed 307.63 points, or 0.47 per cent, to settle at 65,688.18, while NSE's Nifty50 dropped 89.45 points, 0.46 per cent, to end the day at 19,543.10. Broader markets settled flat as both BSE midcap and smallcap indices closed with mild falls. Fear gained spiked more than 2 per cent to 11.40-levels.
Indian equities started the eventful weekly expiry day on a tepid note. Initially, a quick bounce was seen post the status quo decision by the MPC committee; however, certain announcements dented the market sentiments, and a sharp correction was witnessed in the financial stocks which then dragged the Index lower, said Aditya Gaggar Director of Progressive Shares.
On a sectoral front, the Nifty media index gained about 7 per cent, while the Nifty metal and oil & gas indices also managed to post some gains. Among the losers, the Nifty FMCG, Financial Services, PSU Banks, Pharma, Healthcare and private bank indices shed about a per cent each.
While RBI's status quo on interest rate didn't come as a surprise, the MPC's cautious tone and no signal of any rate cut by this year-end hurt the market sentiment. Inflation continues to be the key concern area and the RBI remaining watchful of the developments in key global economies indicates, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
"Technically, the Nifty has formed a inside body candle on daily charts which indicates the continuation of a range bound activity in the near future. A fresh uptrend is possible only after the dismissal of 19620, above which the index could move till 19,700-19,725. On the flip side, below 19,500, selling pressure is likely to accelerate and could slip till 19,400-19,375," he said.
In the Nifty50 pack, Asian Paints plunged 3 per cent for the day, while Kotak Mahindra Bank dropped 2 per cent each. Britannia Industries, ITC, Nestle India, Apollo Hospital Enterprises, Tata Consumer, SBI Life Insurance Company and Axis Bank shed over a per cent each. Bharti Airtel, ICICI Bank and HDFC Life Insurance were the other key losers.
Adani Ports and Adani Enterprises topped among the gainers and rose about 2 per cent each. IndusInd Bank also posted similar gains. Titan Company and ONGC added more than a per cent each. JSW Steel, Mahindra & Mahindra, Bharat Petroleum, Bajaj Finance and Tech Mahidnra were among the other gainers for the day.
Inflation concerns have resurfaced in the domestic market after the RBI elevated their CPI forecast by 30 basis points to 5.4%, thereby increasing the chances of a protracted rate cut trajectory, said Vinod Nair, Head of Research at Geojit Financial Services.
"Furthermore, the RBI's move to control liquidity through incremental CRR dented the sentiments of the banking sector, although the impact is projected to be limited. Against this backdrop, investors will be closely watching the US inflation print today and the domestic inflation data on Monday," he said.
A total of 3,742 shares were traded on BSE on Thursday, of which 1,912 settled with cuts. 1,686 stocks ended the session with gains while 144 shares remained unchanged. A total of 253 shares hit their upper circuit, whereas 222 shares tested the lower circuit levels for the day.
In the broader markets, Dreamfolks Services tanked more than 15 per cent as the Q1 results' disappointment contined. Sunflag Iron and Steel and JTEKT India crashed 11 per cent, each. Valiant Organics and Likhitha Infrastructure shed 10 per cent, each. Lumax Auto Technologies, Reliance Infra, RattanIndia Enterprises and Uniparts fell 8 per cent, each.
Among the gainers, Zee Entertainment Enterprises surged 18 per cent and Zee Media rallied 17 per cent after the NCLT approved the merger with Sony. SH Kelkar and Company rose more than 15 per cent, while Jubilant Pharmova and Varroc Engineering rose 11 per cent each.
Domestic equity markets were back in red on Thursday after the RBI's monetary policy outcome. The central bank kept the rates unchanged but the hawkish commentary from Shaktikanta Das weighed on the market sentiments. Global benchmarks keenly await the US inflation report due today that will guide traders over the Federal Reserve’s next policy move.
For the day, the BSE's barometer Sensex shed 307.63 points, or 0.47 per cent, to settle at 65,688.18, while NSE's Nifty50 dropped 89.45 points, 0.46 per cent, to end the day at 19,543.10. Broader markets settled flat as both BSE midcap and smallcap indices closed with mild falls. Fear gained spiked more than 2 per cent to 11.40-levels.
Indian equities started the eventful weekly expiry day on a tepid note. Initially, a quick bounce was seen post the status quo decision by the MPC committee; however, certain announcements dented the market sentiments, and a sharp correction was witnessed in the financial stocks which then dragged the Index lower, said Aditya Gaggar Director of Progressive Shares.
On a sectoral front, the Nifty media index gained about 7 per cent, while the Nifty metal and oil & gas indices also managed to post some gains. Among the losers, the Nifty FMCG, Financial Services, PSU Banks, Pharma, Healthcare and private bank indices shed about a per cent each.
While RBI's status quo on interest rate didn't come as a surprise, the MPC's cautious tone and no signal of any rate cut by this year-end hurt the market sentiment. Inflation continues to be the key concern area and the RBI remaining watchful of the developments in key global economies indicates, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
"Technically, the Nifty has formed a inside body candle on daily charts which indicates the continuation of a range bound activity in the near future. A fresh uptrend is possible only after the dismissal of 19620, above which the index could move till 19,700-19,725. On the flip side, below 19,500, selling pressure is likely to accelerate and could slip till 19,400-19,375," he said.
In the Nifty50 pack, Asian Paints plunged 3 per cent for the day, while Kotak Mahindra Bank dropped 2 per cent each. Britannia Industries, ITC, Nestle India, Apollo Hospital Enterprises, Tata Consumer, SBI Life Insurance Company and Axis Bank shed over a per cent each. Bharti Airtel, ICICI Bank and HDFC Life Insurance were the other key losers.
Adani Ports and Adani Enterprises topped among the gainers and rose about 2 per cent each. IndusInd Bank also posted similar gains. Titan Company and ONGC added more than a per cent each. JSW Steel, Mahindra & Mahindra, Bharat Petroleum, Bajaj Finance and Tech Mahidnra were among the other gainers for the day.
Inflation concerns have resurfaced in the domestic market after the RBI elevated their CPI forecast by 30 basis points to 5.4%, thereby increasing the chances of a protracted rate cut trajectory, said Vinod Nair, Head of Research at Geojit Financial Services.
"Furthermore, the RBI's move to control liquidity through incremental CRR dented the sentiments of the banking sector, although the impact is projected to be limited. Against this backdrop, investors will be closely watching the US inflation print today and the domestic inflation data on Monday," he said.
A total of 3,742 shares were traded on BSE on Thursday, of which 1,912 settled with cuts. 1,686 stocks ended the session with gains while 144 shares remained unchanged. A total of 253 shares hit their upper circuit, whereas 222 shares tested the lower circuit levels for the day.
In the broader markets, Dreamfolks Services tanked more than 15 per cent as the Q1 results' disappointment contined. Sunflag Iron and Steel and JTEKT India crashed 11 per cent, each. Valiant Organics and Likhitha Infrastructure shed 10 per cent, each. Lumax Auto Technologies, Reliance Infra, RattanIndia Enterprises and Uniparts fell 8 per cent, each.
Among the gainers, Zee Entertainment Enterprises surged 18 per cent and Zee Media rallied 17 per cent after the NCLT approved the merger with Sony. SH Kelkar and Company rose more than 15 per cent, while Jubilant Pharmova and Varroc Engineering rose 11 per cent each.