Equities sold off after FOMC minutes, while foreign investors Those who were net sellers throughout the week kept the market sensitive. Also, Indian Rupee Domestic equities weakened due to widespread selling pressure and rise in greenback.
After touching the day’s low of 59,669.91, the Sensex closed at 59,900.37, down 452.90 points or 0.75%. The Nifty 50 closed at 17,859.45, down 132.70 points, or 0.74%, after hitting a low of 17,795.55.
In the broader market, the Midcap and Smallcap indices declined around one per cent each. In terms of sectoral indices, IT stocks declined by around 2% each on BSE and NSE. Metal and banking shares also declined by about 1 per cent each. Bank Nifty fell around 420 points.
TCS The top bear was up about 3% ahead of its third-quarter earnings on Jan. 9. IndusInd Bank, Bajaj Finserv, Tech Mahindra, Bajaj Finance, Infosys, Kotak Bank and Bharti Airtel also dragged down the performance by 1.5% to 3%.
Stocks like M&M, RIL, Nestle and ITC were top gainers but the upside was between 0.5-1%.
Ajit Mishra, VP Technical Research, Religare Broking, said, “Market extended bearish and broke nearly one per cent in view of weak global cues. After initial rally, Nifty traded under pressure for most of the session and last month Re-tested around .Low. It witnessed marginal recovery towards the end and finally closed at 17859 levels. Most sectoral indices moved in sync with the benchmarks and closed lower, with IT and Banking among top losers. Broader indices also declined and lost. In the range of about a percent each.”
Indian equity markets have started the new year on a slightly cautious note, continuing the trend seen in December 2022, in line with global markets, according to Milind Muchala, executive director, Julius Baer India.
At the interbank forex market, the rupee closed at 82.72 against the US dollar as compared to the previous day’s close of 82.55 per dollar. The local unit was under pressure after the greenback climbed to a nearly one-month high after strong US data raised hopes of a more hawkish approach by the US Fed in its monetary policy. Overall, the rupee closed the week on a broadly unchanged note against the US currency.
Meanwhile, FIIs have been net sellers throughout the week. FII has pulled out from January 2 to 5 4,910.98 crore from Indian Equity.
From January 4 to January 6, both the Indian benchmarks declined by around 2%. In this three-day decline, the Sensex has declined by about 1,394 points, while the Nifty 50 has declined by 373 points. Markets were in the green from January 2 to January 3, however, Sensex and Nifty 50 gave up their gains and entered the red zone due to cautious bets ahead of the FOMC minutes and Q3 earnings.
Going forward, Mishra said, weak global cues in the absence of any major triggers from the domestic front are largely weighing on sentiment. We may see some relief in the Nifty index after the recent fall, but the tone is likely to remain negative with many index heavyweights citing weak structure. Keeping an eye on leveraged trades, participants should align their positions accordingly.
On Nifty 50, Rupak Dey, Senior Technical Analyst, LKP Securities said, Bears continue to have upper hand as the benchmark index Nifty has been posting red candles since last three days. On the daily time frame, Nifty took support around the previous swing low. Momentum indicator RSI (14) is in a bearish crossover, suggesting weak price momentum for the near term. Going forward, 17,770 is likely to act as a support for the Nifty on downside; A decisive decline below the said level could take the index towards 17,500. On the higher side, there is resistance at 18,000, above which a recovery could come.
Market participants have shown jitters ahead of the December 2022 quarter season. TCS will start the Q3FY23 earnings season next week by announcing its financial results for the quarter on January 9. Peers such as Infosys and HCL Tech are also set to announce their third quarter numbers on January 12, followed by Wipro on January 13. The largest banker in terms of market share and the largest private banker, HDFC Bank will also announce its third quarter results on January 14. Others would go ahead and follow suit.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
Know your inner investor Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
Bear rule 1st week of 2023: Sensex below 60k, Nifty close to 17,850
Equities sold off after FOMC minutes, while foreign investors Those who were net sellers throughout the week kept the market sensitive. Also, Indian Rupee Domestic equities weakened due to widespread selling pressure and rise in greenback.
After touching the day’s low of 59,669.91, the Sensex closed at 59,900.37, down 452.90 points or 0.75%. The Nifty 50 closed at 17,859.45, down 132.70 points, or 0.74%, after hitting a low of 17,795.55.
In the broader market, the Midcap and Smallcap indices declined around one per cent each. In terms of sectoral indices, IT stocks declined by around 2% each on BSE and NSE. Metal and banking shares also declined by about 1 per cent each. Bank Nifty fell around 420 points.
TCS The top bear was up about 3% ahead of its third-quarter earnings on Jan. 9. IndusInd Bank, Bajaj Finserv, Tech Mahindra, Bajaj Finance, Infosys, Kotak Bank and Bharti Airtel also dragged down the performance by 1.5% to 3%.
Stocks like M&M, RIL, Nestle and ITC were top gainers but the upside was between 0.5-1%.
Ajit Mishra, VP Technical Research, Religare Broking, said, “Market extended bearish and broke nearly one per cent in view of weak global cues. After initial rally, Nifty traded under pressure for most of the session and last month Re-tested around .Low. It witnessed marginal recovery towards the end and finally closed at 17859 levels. Most sectoral indices moved in sync with the benchmarks and closed lower, with IT and Banking among top losers. Broader indices also declined and lost. In the range of about a percent each.”
Indian equity markets have started the new year on a slightly cautious note, continuing the trend seen in December 2022, in line with global markets, according to Milind Muchala, executive director, Julius Baer India.
At the interbank forex market, the rupee closed at 82.72 against the US dollar as compared to the previous day’s close of 82.55 per dollar. The local unit was under pressure after the greenback climbed to a nearly one-month high after strong US data raised hopes of a more hawkish approach by the US Fed in its monetary policy. Overall, the rupee closed the week on a broadly unchanged note against the US currency.
Meanwhile, FIIs have been net sellers throughout the week. FII has pulled out from January 2 to 5 4,910.98 crore from Indian Equity.
From January 4 to January 6, both the Indian benchmarks declined by around 2%. In this three-day decline, the Sensex has declined by about 1,394 points, while the Nifty 50 has declined by 373 points. Markets were in the green from January 2 to January 3, however, Sensex and Nifty 50 gave up their gains and entered the red zone due to cautious bets ahead of the FOMC minutes and Q3 earnings.
Going forward, Mishra said, weak global cues in the absence of any major triggers from the domestic front are largely weighing on sentiment. We may see some relief in the Nifty index after the recent fall, but the tone is likely to remain negative with many index heavyweights citing weak structure. Keeping an eye on leveraged trades, participants should align their positions accordingly.
On Nifty 50, Rupak Dey, Senior Technical Analyst, LKP Securities said, Bears continue to have upper hand as the benchmark index Nifty has been posting red candles since last three days. On the daily time frame, Nifty took support around the previous swing low. Momentum indicator RSI (14) is in a bearish crossover, suggesting weak price momentum for the near term. Going forward, 17,770 is likely to act as a support for the Nifty on downside; A decisive decline below the said level could take the index towards 17,500. On the higher side, there is resistance at 18,000, above which a recovery could come.
Market participants have shown jitters ahead of the December 2022 quarter season. TCS will start the Q3FY23 earnings season next week by announcing its financial results for the quarter on January 9. Peers such as Infosys and HCL Tech are also set to announce their third quarter numbers on January 12, followed by Wipro on January 13. The largest banker in terms of market share and the largest private banker, HDFC Bank will also announce its third quarter results on January 14. Others would go ahead and follow suit.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
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