Indian equity benchmarks on Thursday extended their fall for the second straight session, taking cues from the Asian stocks after the US Federal Reserve raised interest rates and forecast more hikes going further. However, the domestic indices recovered from their day's low-levels as losses in banking and financial shares were countered by gains in consumer and automobile stocks.
Asian shares hit a two-year low as the prospect of US interest rates rising further and faster than expected spooked investors.
The Fed increased rates by 75 basis points (bps) on Wednesday – the third such rise in a row – and signalled that it would continue to raise borrowing costs to fight inflation. Interest rates may hit 4.4 per cent this year - higher than markets had priced in before the Fed meeting.
The US dollar rose and Wall Street fell overnight. The Indian rupee fell to a record low of 80.86 in intraday session as the dollar index climbed to new multi-year highs post the Fed policy decision.
Back home, the Reserve Bank of India (RBI) is due to meet next week to decide on its path for monetary policy.
Here are the share market highlights:
"Nifty remained volatile during the day as the market participants adjusted positions according to the FOMC outcome. On the daily chart, Nifty formed a small-bodied candle with wicks on both sides, suggesting indecisiveness. However, weakness may persist as long as it remains below 17,700. On the lower end, support is visible at 17,500," said Rupak De, Senior Technical Analyst at LKP Securities.
"Fed turned more hawkish than anticipated increasing its rate forecast to 4.4 per cent by the end of 2022. The indication is that 125 bps more rate hikes can be expected in the next two policy meetings scheduled this year. Following this, the US dollar index rose above 111, depreciating INR to beyond 80. Indian stock market was able to sustain its resilience with limited cuts but if the rupee continues its weakness, domestic market would turn less attractive for foreign investors in the short-term, effecting performance," said Vinod Nair, Head of Research at Geojit Financial Services.
"The Bank Nifty index witnessed selling pressure at higher levels and remains in a sell-on-rise mode as long as it stays below the level of 42,000. The index immediate downside support stands at 40,500 and a breach below this will open gates for further downside toward the 39,000 level. The index is trading in a tight range between 40,000-42,000 and a break on either side will give a directional move to the index," said Kunal Shah, Senior Technical Analyst at LKP Securities.
PowerGrid, HDFC twins, Axis Bank, Bajaj Finserv, ICICI Bank, UltraTech Cement, Kotak Mahindra Bank, Reliance Industries, Tech Mahindra, Tata Steel, Wipro, IndusInd Bank, Infosys, L&T, SBI, HCL Tech and Nestle India were among the losers. On the flipside, Titan, HUL, Asian Paints, Maruti, ITC, Dr Reddy's, Sun Pharma, Bharti Airtel, Bajaj Finance, M&M, TCS and NTPC were among the gainers.
Shares of Fortis Healthcare settled 14.75 per cent lower at Rs 265.30 today.
The overall market breadth stood positive as 1,820 shares advanced while 1,620 declined on BSE. The market capitalization (m-cap) of BSE listed companies stood at Rs 281.68 lakh crore.
On the stock-specific front, PowerGrid was the top Nifty loser as the stock cracked 3.04 per cent to close at Rs 220.05. HDFC twins (HDFC and HDFC Bank), Axis Bank and ONGC were also among the laggards. In contrast, Titan, Hindustan Unilever, Asian Paints, Maruti and Eicher Motors were among the top gainers.
Eight out of the 15 sector gauges -- compiled by the National Stock Exchange -- settled in the red. Sub-indexes Nifty Bank, Nifty Financial Services and Nifty Oil & Gas underperformed the NSE platform by falling as much as 1.39 per cent, 1.38 per cent and 0.23 per cent, respectively. However, Nifty FMCG, Nifty Consumer Durables and Nifty Auto climbed 1.30 per cent, 0.67 per cent and 0.74 per cent, each.
Mid- and small-cap shares finished on a higher note as Nifty Midcap 100 rose 0.34 per cent and small-cap climbed 0.60 per cent.
Sensex plunges 337 points or 0.57 per cent to close at 59,120, Nifty moves 89 points or 0.50 per cent lower to settle at 17,630; Fortis Healthcare crashes 15%
Sensex falls 358 points or 0.60 per cent to trade at 59,098, Nifty moves 94 points or 0.53 per cent down to trade at 17,624; weak global cues, F&O expiry pull indices lower in fag-end trade
Shares of FMCG giant ITC surged 2.23 per cent in intraday deals on Thursday to hit a 52-week high of Rs 348.65 against its previous close of Rs 341.05.
Sensex falls 174 points or 0.29 per cent to trade at 59,283, Nifty moves 45 points or 0.25 per cent to trade at 17,673
Seven out of the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Sub-indexes Nifty Bank and Nifty Financial Services were underperforming the NSE platform by falling as much as 0.78 per cent and 0.81 per cent, respectively. In contrast, Nifty FMCG, Nifty Consumer Durables and Nifty Auto climbed 1.47 per cent, 0.83 per cent and 0.89 per cent, each.
Sensex slips 8 points or 0.01 per cent to trade at 59,449, Nifty moves 3 point or 0.02 per cent to trade at 17,715
Sensex falls 151 points or 0.25 per cent to trade at 59,305, Nifty moves 40 points or 0.23 per cent to trade at 17,678; Fortis Healthcare down over 14%
Shares of KPIT Technologies rose as much as 6 per cent amid a weak market today after the company announced the acquisition of Munich-based Technica Engineering to accelerate the transformation towards software-defined vehicle. KPIT Technologies stock gained 5.88 per cent to Rs 634 against the previous close of Rs 598.80 on BSE. (Read more)
Sub-index Nifty Bank fell as much as 1.85 per cent to trade at 40,443.05 in afternoon deals.
Shares of Fortis Healthcare crashed as much as 18.72 per cent to trade at Rs 252.95 in intraday deals. The stock hit a day's low of Rs 250.40, down 19.54 per cent from its previous close of Rs 311.20. (Read more)
Sensex tanks 527 points or 0.89 per cent to trade at 58,929, Nifty moves 163 points or 0.92 per cent to trade at 17,555
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