Nifty, Sensex Fall; IT Stocks Gain After Easing Global Interest Rate Outlooks
The BSE Sensex fell 1,887.75 points or 0.28 per cent to settle at 65,794. The broader NSE Nifty declined 26.70 points or 0.13 per cent to end at 19,803. The indexes logged their third consecutive weekly gains, boosted by information technology (IT) stocks on easing global interest rate outlooks.
From the Sensex pack, SBI and Axis Bank were the top laggards, falling over 3 per cent each. Bajaj Finance, ICICI Bank, Bajaj Finserv and IndusInd Bank also ended with cuts. On the other hand, L&T, HUL, Power Grid and Asian Paints closed with gains.
Stocks of IT companies, which earn a significant share of their revenue from the US, climbed 5.07 per cent, their best week in 16 months.
Among individual stocks, Tata Investment Corporation ended with a 20 per cent upper circuit on account of value unlocking opportunity with Tata Technologies IPO, which opens for subscription on 22 November.
On the sectoral front, Nifty PSU Bank declined 2.4 per cent and Nifty Financial Services fell 0.9 per cent, whereas Nifty Auto, FMCG, Pharma and Healthcare closed higher. Meanwhile, Nifty Midcap100 gained 0.2 per cent and Smallcap100 rose 0.1 per cent.
FII and FPIs, on Friday, saw a net sales of Rs 477.76 crore in the cash segment. A total of Rs 12,035.41 crore was sold against a total purchase of Rs 11,557.65 crore. Domestic institutional investors saw a net purchase of Rs 565.48 crore in the cash segment. A total of Rs 7,414.52 crore was sold against a total purchase of Rs 6,849.04 crore.
Meanwhile, The RBI's action to raise risk weights for unsecured loans dampened banking stocks and caused a temporary disruption in the broader indices' resurgence. Despite this, a positive undercurrent prevails, buoyed by the conclusion of a robust earnings season.
Investors are awaiting eurozone inflation data later today, which is expected to show a softening trend. The sharp drop in oil prices and the moderation of US yield will help the market to sustain buoyancy, in the short term.
Technically, the important key resistances placed in October Nifty future are at 19,803 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 19,909 – 20,008 levels. Immediate support is placed at 19,676 – 19,606 levels
