Foreign Fund Outflows and Sluggish Asian Markets Drive Tuesday’s Equity Decline

At the close, the Nifty 50 was at 19,528.75 down by 0.56%

In the midst of today’s dynamic financial landscape, the NSE Nifty 50 index stands as a central point of interest for investors, having recently navigated a challenging trading session. The market’s bearish tone was evident from the gap-down opening, with losses deepening as the day unfolded. India’s foremost equity benchmark, the Nifty 50, commenced the day on a weak note, concluding with a 0.56 percent decline, breaching the crucial support level at 19,550 points.

This market landscape bore the significant influence of global factors, as the shadow of weak international markets loomed over Indian equities, further fueled by widespread selling that instilled caution among investors.

With the impending Monetary Policy Committee meeting, investors are approaching the situation cautiously, trimming their equity exposure. This cautious stance reflects concerns about policy decisions that could potentially reshape the financial arena, especially in pivotal sectors like automobiles, oil & gas, and metals.

The persistent strength of the dollar continues to exert pressure on the Indian rupee, prompting foreign investors to reevaluate their investments in Indian equities, potentially impacting the broader financial markets.

Amidst the consolidation of the Indian market amidst rising US bond yields and a robust dollar, there are glimmers of hope. Moderating oil prices provide some relief, and increased infrastructure activity driven by enhanced core sector output is bolstering overall market sentiment.

Despite the automotive sector’s decline due to mixed monthly data, the promise of a near-normal monsoon inspires optimism, fostering hope for increased consumption and its positive ramifications on the market in the immediate future.

Bank Nifty: Down by 0.42%

The financial markets commenced with an air of caution, as the Bank Nifty led the way with an opening in the negative territory and eventually closing down by 0.42 percent, settling at 44,399.05. In tandem with this trend, the BSE Sensex also mirrored a decline of 0.48 percent, concluding at a low of 65,512.10.

In the sectoral landscape, the media sector stood out as a standout performer, posting a significant gain of 1.00 percent. Noteworthy contributors in this sector included Network18 Media & Investments Ltd., showcasing an impressive surge of 8.07 percent, and D.B.Corp Ltd., which achieved a commendable gain of 6.23 percent.

In contrast, the auto sector faced challenges and emerged as the top loser, experiencing a decline of 1.20 percent. Eicher Motors Ltd. encountered setbacks with a noteworthy loss of -2.68 percent, while Maruti Suzuki India Ltd. also recorded a substantial decline of -2.67 percent.

Foreign Institutional Investors (FII/FPI) reported a net selling value of Rs. 2,034.14 crore, with purchases amounting to Rs. 9,714.68 crore and sales at Rs. 11,748.82 crore. Meanwhile, Domestic Institutional Investors (DII) witnessed a net buying value of Rs. 1,361.02 crore, with purchases totaling Rs. 9,223.41 crore and sales at Rs. 7,862.39 crore.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Punjab National Bank with a 3.49% increase, Federal Bank with a 2.24% increase, Bank of Baroda with a 1.92% increase, Bandhan Bank with a 0.81% increase, and State Bank of India with a 0.76% increase. On the other hand, the biggest losers in the sector included IDFC First Bank with a 1.31% decline, ICICI Bank with a 1.27% decline, HDFC Bank with a 1.20% decline, AU Bank with a 1.17% decline, and Kotak Bank with a 0.33% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Weakens Amidst Dollar Strength and Interest Rate Concerns

The Indian rupee faced headwinds on Tuesday, succumbing to the robust performance of the US dollar and surging Treasury yields, intensifying worries about prolonged higher interest rates in the United States.

Closing at 83.2050 against the US dollar, the rupee displayed a slight dip compared to its previous session close of 83.04, reflecting the mounting pressure from the greenback’s strength.

Earlier in the day, the dollar index reached 107.21, a level unseen since November 2022, although it later retraced some gains to stabilize around 107.05. This fluctuation in the dollar index underscored the uncertainty in the currency markets.

The rupee commenced the day at 83.21 and was initially poised for a weaker start, following cues from non-deliverable forwards. However, this trajectory was averted, thanks to potential US dollar sales by the Reserve Bank of India, mitigating further depreciation of the rupee.

Buzzing

Bajaj Finance Ltd. witnessed a positive upswing in its share price, rising by 2.00% from the previous close of Rs 7,810.75 to a last traded price of Rs 7,967.10. Notably, the company’s annual revenue growth of 30.86% has outperformed its 3-year CAGR of 16.03%. It’s worth mentioning that the company allocated 30.34% of its operating revenues towards interest expenses and 12.22% towards employee costs for the fiscal year ending March 31, 2023.

In contrast, Oil and Natural Gas Corporation Ltd. (ONGC) experienced a decline in its share price, dropping by -3.78% from its prior close at Rs 191.85 to a last traded price of Rs 184.60. Interestingly, a weekly stochastic crossover emerged in the week ending September 29, 2023, with an average price gain of 7.67% within 7 weeks of this signal over the past decade. ONGC’s annual revenue growth of 28.41% also surpassed its 3-year CAGR of 16.24%. The company’s allocation of 1.25% of operating revenues towards interest expenses and 2.36% towards employee costs for the fiscal year ending March 31, 2023, is noteworthy.

Advance Decline Ratio

Today, the advance-decline ratio was 0.84, and the market breadth was negative. The volatility index India Vix inceased by 3.16 percent to settle at 11.82 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1114
Decliners – 1327
52Wk High –  123
52Wk Low – 14
High Band Hitters – 95
Low Band Hitters – 48
200d SMA – 18503
50d SMA – 19617
20d SMA – 19791

Top Gainers and Losers Stocks

The top gainers were Bajaj Finance (+2.00%), Larsen & Toubro (+1.67%), Titan (+1.34%), Bajaj Finserv (+1.33%), and Adani Ports  (+0.79%).

The top losers were ONGC (-3.78%), Eicher Motors (-2.68%), Maruti (-2.67%), Hindalco (-2.50%), and Dr. Reddy (-2.31%).

Top Gainers and Losers Sector

The top gainers sector were Media (+1.00%), Consumer Durables (+0.63%), Realty (+0.46%).

The top losers were Auto (-1.20%), Oil & Gas (-1.17%), Pharma (-0.92%), Metal (-0.60%), and FMCG (-0.55%).

SECTORS – NOTABLE ACTION
MEDIA +1.00%
CONSUMER DURABLES +0.63%
REALTY +0.46%
AUTO -1.20%
OIL & GAS -1.17%
PHARMA -0.92%

Stocks Ban List

Today, SEBI’s F&O segment has not placed any stocks on the ban list.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

MANAPPURAM, MCX, and IBULHSGFIN stock has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19450 to 19620 is the Nifty 50 trading range.

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This article is only for educational purposes and is not an investment advice.