Indian Equity Indices End Red Despite Global Market Gains On US Fed Rate Hike
Dear Trader…
The 30-share BSE benchmark Sensex declined 440 points or 0.66 per cent to settle at 66,267. The broader NSE Nifty dropped 0.39 per cent to end below the 19,800 level. In the Sensex pack, M&M was the top laggard, falling over 6 per cent, as the company disclosed plans to expand its footprint in the banking sector by picking a stake in private sector lender RBL Bank. Tech Mahindra, Nestle, Bajaj Finance, Axis Bank, JSW Steel, Kotak Bank and ITC also ended in the red. On the flip side, Sun Pharma, Bharti Airtel, Tata Motors, L&T, Infosys, TCS, NTPC, and Tata Steel closed higher.
On the sectoral front, Nifty Auto declined 1.21 per cent, and Nifty Bank fell 0.83 per cent. Financial, FMCG, IT, and metal sectors also closed lower. In the broader market, Nifty Midcap100 gained 0.27 per cent, while Smallcap100 ended flat.
The market breadth was skewed in the favour of the bears. About 1,793 stocks declined, 1,770 gained, and 140 remained unchanged on the BSE. The market capitalisation of all listed companies on BSE declined by Rs 33,357 crore to Rs 303.6 lakh crore.
FII and FPIs, on Thursday, saw a net sold of Rs. 3979.44 crore in the cash segment. A total of Rs. 15,619.87 crore was sold against a total purchase of Rs. 11,640.43 crore. Domestic institutional investors saw a net purchase of Rs. 2528.15 crore in the cash segment. A total of Rs. 6753.62 crore was sold against a total purchase of Rs. 9281.77 crore.
Meanwhile, The FOMC's decision aligned with market expectations as they implemented a 25bps hike and expressed a data-centric approach for future rate actions. Positive global sentiment prevailed due to the reduced prospects of a US recession. Despite this, the domestic market witnessed sharp corrections led by banks and autos, while pharma stocks performed on a positive start to their earnings season.
Technically, the important key resistances placed in July Nifty future are at 19811 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 19880 - 19939 levels. Immediate support is placed at 19737 - 19676 levels.
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