Domestic equity markets kicked off the week on a negative note and extended their weakness for the second straight session on Monday. Feeble Asian markets added to the weakness of Indian equities ahead of US Inflation data, which is due on Tuesday. Q3 earnings season is at its fag end and traders will be looking for global cues in the coming days.
For the day, BSE Sensex dropped 250.86 points, or 0.41 per cent, to 60,431.84. The Nifty50 Index also declined 85.60 points, or 0.48 per cent, to 60,431.84. Broader markets underperformed the headline peers as BSE midcap and smallcap indices fell over a per cent, each. India VIX spiked more than 7 per cent to 13.68-level.
Asian stock markets were mostly lower Monday ahead of US inflation data on Tuesday that traders worry might lead to more interest rate hikes. European markets were slightly higher Monday as investors assess the economic outlook and the potential for further monetary policy tightening from the US Fed, said Deepak Jasani, Head of Retail Research, HDFC Securities.
“Nifty has formed a bearish Engulfing pattern suggesting more pain in the near term. A break of 17,721 could lead to a faster fall towards the 17,517-17,545 band. On up moves, 17,877 could be tough to breach in the near term. Q3 corporate results season could come to an end in the next two days,” he said.
On a sectoral front, only the Nifty FMCG index managed to settle in green. PSU lenders emerged as top laggards, media index tanked about 3 per cent. IT and Realty indices plunged 2 per cent, each, whereas the metal index was down over a per cent, respectively.
Among Adani Group stocks, Adani Enterprises plunged 8 per cent, whereas Ambuja Cements and Adani Ports declined more than 5 per cent each. Cash markets stocks including NDTV, Adani Total Gas, Adani Green Energy, Adani Wilmar, Adani Power and Adani Transmission hit the lower circuit of 5 per cent, each. ACC dropped 3 per cent.
Barring the Adani Group stocks, State Bank of India and Infosys were among the top laggards in the Nifty50 pack, plunging 3 per cent each. Apollo Hospitals and Tata Consultancy Services were down 2 per cent, each. Tech Mahindra, HDFC Life Insurance and Bajaj Finance were other key laggards.
On the contrary, Titan Company, NPTC and Larsen & Toubro jumped 2 per cent, each. Bajaj Auto, Eicher Motors, Sun Pharma and Power Grid were among the other key gainers for the day.
With the third quarter earnings season coming to a close this week, markets traded weak throughout the day ahead of the inflation print expected today, said S Ranganathan, Head of Research at LKP securities.
“PSU banks and IT stocks dragged indices as traders booked profits on a rather dull day of trade wherein most of the sectoral indices ended in the red. Equity ownership of retail investors now stands at a record 24.5 per cent at the end of third quarter even as they remind themselves of rising fixed income rates on dull days like today,” he said.
A total of 3,759 stocks traded for the day on BSE, of which 2,333 declined, while 1,254 settled higher. The remaining 172 stocks ended unchanged. A total of 226 stocks hit an upper circuit on BSE, whereas 246 stocks hit the lower circuit during the trading session.
In the broader markets, EKI Energy Services hit a lower circuit of 20 per cent after a disappointing performance in the December 2022 quarter. Emami Papers and City Union Bank were down 16 per cent each after quarterly earnings. Balkrishna Industries tumbled 12 per cent for the day.
On the contrary, Sun Pharma Advanced Research Company surged 17 per cent and Dishman Carbogen Amcis gained 13 per cent after a strong performance in the December 2022 quarter. Oil India, Manaksia and Apar Industries added 6-8 per cent, each.
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