Indian Markets Drop 0.5% On Weak Global Cues, Rebound Attempt Fizzles
Dear Trader…
Domestic equities continued to witness pressure amid weak global cues. Nifty Future opened lower and remained in negative territory throughout the session to close with a loss of 90 (-0.47 per cent) at 19393 levels. However, action shifted to the broader market with the Nifty midcap 100 up 0.2 per cent while the Nifty smallcap 100 up 0.1 per cent. Except for PSU Banks and Consumer Durables, all sectors ended in red.
Indian equities succumbed to global volatility following the hawkish tone of the FOMC minutes meeting and worries over the risk of a downgrade in China’s sovereign credit rating by Fitch. Adding to the negative sentiment, the rupee depreciated to near a 10-month low at 83.14 and the FIIs outflow of almost of ?10k crore in August so far also led to selling at higher levels. In the near term, uncertainty will likely loom in the market following the fragile global cues that could cap the upside.
Nifty futures opened at 19425.00 points against the previous close of 19484.55 and opened at a low of 19360.00 points. Nifty Future closed with an average movement of 103.15 points and a decline of around 90.65 points and 19393.90 points...!!
On the NSE, the midcap 100 index will rise 0.25 per cent and smallcap 100 index is closing rise 0.14 per cent. Speaking of various sectoral indices, the NSE saw gains in only, Consumer Durables, PSU Bank and Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs 58453, fell from a high of Rs.58600 points to a low of Rs.58401 with a Decline of 95 points, a trend of around Rs.58586 and September Silver opened at Rs.69543, fell from a high of Rs 70418 points to a low of Rs.69376, with a rise of 617 points, a trend of around Rs.70339.
Meanwhile, Rating agency ICRA maintains its Stable outlook on the Indian hospital industry, supported by expectations of healthy revenue growth and strong margins for ICRA’s sample set, led by the rising incidence of non-communicable lifestyle diseases, growing per capita spend on healthcare and awareness levels, increasing penetration of health insurance and higher medical tourism volumes.
ICRA expects the aggregate occupancy for its hospital industry’s sample set to remain strong at 63-65 per cent in FY2024 (65.1 per cent in FY2023), backed by sustained healthy demand for healthcare services and continued market share gains for organized players. The average revenue per occupied bed (ARPOB) is expected to witness moderate growth of 5-7 per cent in FY2024 (after witnessing an expansion of 10 per cent in FY2023), given the high base of the previous year. Improving the specialty mix, better pay or mix (with a focus on cash and insurance patients), and annual price revisions by companies to offset cost inflation will support the ARPOB growth for the sample set. Overall, ICRA estimates revenue growth in FY2024 at 8-10 per cent. Improving operating leverage coupled with continued cost optimization and digitization measures are expected to support a healthy OPM of around 22-23 per cent in FY2024.
Technically, the important key resistances are placed in Nifty future are at 19393 levels, which could offer for 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 19404 – 19434 levels. Immediate support is placed at 19330 – 19272 levels.
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