Equity Benchmarks End Lower Amid Weak Global Cues
Indian equity benchmarks extended their losses to second day but pared most of the intraday losses as strong US job report aggravated fears that the Federal Reserve will continue with its aggressive rate hike campaign to tame inflation.
Globally, shares fell on Monday after a series of explosions in the Ukrainian capital and renewed concern about the economic outlook, drove investors away from risky assets.
At Close, the Sensex was down 200.18 points or 0.34 per cent at 57,991.11 while its broader peer, the Nifty was down 73.70 points or 0.43 per cent at 17,241.
All sectorial indices ended lower except for IT. PSU Bank, Realty, FMCG, capital goods and power indices were down 1 per cent each.
On the Nifty, Axis Bank, TCS, HDFC Life, Eicher Motors and Maruti Suzuki were the top gainers. While Tata Motors, Tata Consumer Products, Hero MotoCorp, Asian Paints and ITC were top losers on Nifty.
Tata Motors fell as much as 4.6 per cent after wholesale volumes of Jaguar Land Rover business fell below expectations, prompting top brokerages to cut price targets.
“Due to lack of positive strength in global markets and persisting worries about more rate hikes by the key central banks going ahead, investors are not taking any chances and steadily trimming their holdings,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
“Caution along with weak market sentiment will prevail as all eyes will be on the US FOMC minutes to be released on Wednesday, which will give some hint about the future rate setting decision by the Fed,” Chouhan added.
Jaiprakash Associates closed 10.3 per cent higher after a media report said Adani Group was in advanced talks to buy the infrastructure company's cement business for Rs 5,000 crore.
Investors will now await retail inflation figure for September, due on Wednesday, and the FOMC minutes to gauge the Fed's outlook on future rate hikes.
"Technically, the Nifty found support near 17,050 and bounced back sharply. On daily charts, the index has formed a bullish candle and also formed a reversal formation which is broadly positive. For traders the support has shifted to 17,150 from 17,050. Above 17,150, the index could retest the level of 17,400-17,450. On the flip side, a fresh round of selling is possible only after the dismissal of 17,150. Below which, the index could slip till 17050-17000," Chouhan said.
