Indian Shares Drop on Bajaj Finance Disappointment and Global Concerns
Dear Trader –
Led by the downfall in banking stocks over margin worries, Sensex on Wednesday plunged 550 points. Besides HDFC Bank, the downfall in Bajaj twins and RIL also contributed to the fall.Nagging concerns about elevated oil prices and US interest rates as well as the Middle East conflict weighed on sentiments.
The 30-share BSE benchmark Sensex declined 551 or 0.83% to end at 65,877. The broader NSE Nifty dropped 145.05 or 0.73% to settle at 19,666.
High-weightage financials lost 1.3%.Bajaj Finance shed as much as 2.85% and was the top Nifty50 loser. Bajaj Finserv also declined over 2%.Nifty Bank also fell 1.2%. Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank and Kotak Bank plunged 1-1.5%.
Meanwhile, Nifty Auto stocks ended higher. Tata Motors rose 1.9%, while Maruti and M&M closed 0.3% higher. The more domestically focussed smallcap and midcap fell 0.9% and 0.34%, respectively.
The market capitalisation of all listed companies on BSE declined by Rs 2.42 lakh crore to Rs 321.40 lakh crore. The market breadth was skewed in the favour of the bears. About 2,322 stocks declined, 1,386 gained, and 135 remained unchanged on the BSE.
FII and FPIs, on Wednesday saw a net sales of Rs.1831.84 crore in the cash segment.A total of Rs.11593.08 crore was sales against a total purchase of Rs.9761.24 crore. Domestic institutional investors saw a net purchase of Rs.1469.50 crore in the cash segment. A total of Rs.6697.03 crore was sales against a total purchase of Rs.8166.53 crore.
Meanwhile, Profit booking ensued in Indian markets, spurred by weak global sentiments and escalating Middle East tensions. A sudden rise in the tension has led to instability in energy prices. Brent prices rapidly rose above $92.5 by the day’s closing time, while the US bond yields was cautiously placed, awaiting the Fed chair’s speech. The initial Q2 earnings disappointments by the IT & financials sector may have prompted attention in the domestic markets.
All these factors are presumed to be a knee jerk reaction as the total outlook on domestic market is stable, underpinned by healthy Q2 result forecast and favourable fiscal position.
Technically, the important key resistances are placed in October Nifty future are at 19666 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 19808 – 19939 levels. Immediate support is placed at 19606 – 19530 levels.
Disclaimer ;- The securities quoted are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Before act Please Agree Disclaimer, Terms & Condition, Privacy Policy & Agreement on https://www.nikhilbhatt.in (Education Purpose Only)
