Domestic equity indices snapped the two-day winning run and settled lower on Monday amid the weaker global cues and select bluechip counters including IndusInd Bank, Asian Paints, Kotak Mahindra Bank and HUL.
European stocks opened on a weak note and extended losses following the concerns of economic recession and hawkish commentary from the US Federal Reserve. US stocks futures were also trading lower.
For the day, the BSE Sensex dropped 187.31 points, or 0.31 per cent, to close at 60,858.43. The NSE’s barometer Nifty50 settled the day at 18,107.85, down 57.50 points or 0.32 per cent. BSE midcap and smallcap indices settled also settled in red.
The uncertain global market environment coupled with a hawkish stance by the US Fed officials on interest rate hikes kept the mood gloomy throughout the trading session. Although inflation is showing signs of some moderation, concerns over a likely recession in the US and western economies is prompting investors to turn risk averse toward equities, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
“Technically, after a promising pullback rally the Nifty has formed a inside body candle formation which is indicating non directional activity. For traders, 18050 would be the immediate support zone and below the same the index could slip till 17,950-17,900. On the flip side, above 18,050 the index could retest the level of 18,200,” he said.
On a sectoral front, only Nifty IT and PSU indices settled in green. FMCG and Media index tumbled a per cent each, followed by metals, private lenders and auto stocks.
Among the Nifty50 stocks, Adani Enterprises topped the losers with a 4 per cent fall. Asian Paints tumbled 3 per cent after Q3 earnings. Tata Motos, IndusInd Bank, Adani Ports, Kotak Mahindra Bank, HUL and Titan were down 2 per cent each. On the other hand, Coal India surged 3 per cent, followed by a 2 per cent rise in UPL. ONGC, BCPL, Tata Steel, Power Grid and SBI Life added a per cent each.
Domestic indices snapped their previous gains amid negative sentiments from their global counterparts. Weak US consumer data and hawkish comments from the Fed’s policymakers on Wednesday hammered investor risk appetite. Lingering fears of recession dragged global bourses down, leaving the market volatile, said Vinod Nair, Head of Research at Geojit Financial Services.
Greenlam Industries rose 12 per cent, whereas Datamatics Global Services tumbled 11 per cent in the broader markets. Mishtann Foods, Persistent Systems and Prakash Industries rose between 7-11 per cent each. Rallis India tanked 9 per cent after Q3 earnings. Nureca, GTPL Hathway, Adani Green Energy and eMudhra declined 6-8 per cent each.
Anand Rathi, APL Apollo Tubes, Gravita India, Hindustan Zinc, Landmark Card, Roto Pumps, Swan Energy were among 39 stocks that hit 52-week high during the session on NSE. Stocks such as Balaji Amines, Delhivery, Krsnaa Diagnostics, Laurus Labs and Piramal Pharma hit their 52-week low during the day.
A total of 3,626 stocks that traded for the day on BSE, of which 1,927 settled lower, while 1,585 settled higher. Remaining 114 stocks ended unchanged. 245 stocks hit an upper circuit on BSE, whereas 127 stock hit the lower circuit during the trading session.
Persistent Systems’ shares rallied about 8 per cent during the trading session on Thursday after the company reported a strong performance in the December 2022 quarter.
Shares of Adani Green Energy slipped over 6 per cent, even as its arm Adani Renewable Energy Holding Two aims buy 50 per cent stake in Essel Saurya Urja Company of Rajasthan Ltd from Essel Infraprojects for Rs 15 crore.
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