Global Sell-Off Causes Turmoil in Equity Markets

At the close, the Nifty 50 was at 17,412.90 down by 1.00%

NSE Nifty 50 index opened at 17,443.80, reached a mid-session high of 17,451.50, but closed down at 17,412.90, indicating a decline of 1.00 percent compared to the previous day’s closing. As the index closed in the red, it means that the overall market sentiment was negative, and the index finished below the psychological level of 17,500.

Indian shares experienced a decline of around 1 percent on Friday. The banking and financial sectors mirrored the slump in lenders globally, which contributed to the downward trend. Additionally, the IT sector saw a decline due to concerns about high interest rates, with worries persisting ahead of the release of key U.S. jobs data later in the day. This suggests that the overall market sentiment was cautious, as investors awaited the release of important economic data that could impact global markets.

Bank Nifty: Down by 1.87%

Bank Nifty index opened in the red and experienced a decline of 1.87 percent, closing at 40,485.45 in the red. The BSE Sensex also opened lower and fell by 1.12 percent, closing at a low of 59,135.13, indicating a negative sentiment across the stock market. It is worth noting that both the Bank Nifty and the BSE Sensex also closed in the red, which suggests that the market sentiment was negative throughout the day.

Sectoral performance of the Indian stock market. It seems that the Nifty Bank index declined nearly 2 percent, indicating a significant sell-off in banking stocks. The PSU Bank index also experienced a decline of 2 percent, further indicating a negative sentiment in the banking and financial sectors. Additionally, infra, information technology, and metal indices were down 0.5 percent each, which suggests a mixed performance across other sectors.

Bank Nifty

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

The gainers included AU Bank with a 0.18% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 2.61% decline, Bank of Baroda with a 2.19% decline, IndusInd Bank with a 2.03% decline, State Bank of India with a 2.01% decline and Axis Bank with a 1.94% decline. These results suggest that some banking stocks not performed better for the day.

Buzzing

Sell-off in the banking and financial sectors in India was triggered by a slump in U.S. bank stocks. Silicon Valley Bank’s decision to raise fresh capital after losing $1.8 billion by selling a package of chiefly U.S. bonds to meet depositor demands for cash likely contributed to the negative sentiment. This event may have led investors to reassess the risks associated with the banking sector, which could have caused a sell-off in bank stocks both in the U.S. and globally, including in India.

Likelihood of the Federal Reserve raising interest rates has increased due to recent data that suggests the labor market in the United States remains tight. Additionally, Fed Chair Jerome Powell’s recent remarks have set the stage for higher and faster rate hikes. The prospect of rising interest rates is likely to impact markets globally, including in India, as investors reposition their portfolios in anticipation of higher borrowing costs. The impact of rising rates on the Indian economy and markets will depend on several factors, including the extent to which Indian companies rely on foreign borrowing, the strength of the Indian rupee, and the overall health of the Indian economy.

Advance Decline Ratio

Today, the advance-decline ratio was 0.53, and the market breadth was negative. The volatility index India Vix increased by 5.40 percent to settle at 13.41 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 768
Decliners – 1461
52Wk High –  34
52Wk Low – 70
High Band Hitters – 64
Low Band Hitters – 57
200d SMA – 17427
50d SMA – 17825
20d SMA – 17664

Top Gainers and Losers Stocks

The top gainers were Tata Motors (+1.06%), NTPC (+0.84%), Maruti (+0.68%), Britannia (+0.43%), and Power Grid (+0.38%).

The top losers were Adani Enterprises (-3.02%), HDFC Bank (-2.61%), Apollo Hospitals (-2.33%), HDFC (-2.07%), and IndusInd Bank (-2.03%).

Top Gainers and Losers Sector

The top gainers sectors were Consumer Durables (+0.27%) and FMCG (+0.16%).

The top losers were Financial Services (-1.80%), Realty (-1.03%), Media (-1.01%), Metal (-0.83%) and IT (-0.66%),.

The Nifty Midcap 50 was down by 0.72 percent, while the Nifty Small Cap 50 was down by 0.90 percent on the day.

The Nifty Midcap 50 index currently closed at 8,627.95, while the Nifty Small Cap 50 index currently closed at 4,205.95.

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +0.27%
FMCG +0.16%
FINANCIAL SERVICES -1.80%
REALTY -1.03%
MEDIA -1.01%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at 550.95 and close at 545.00) and (BALRAMCHIN open at 393.00 and close at 399.35) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned GNFC and BALRAMCHIN from trading in the futures and options (F&O) segment of the stock exchange.

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.

IBULHSGFIN and ADANIENT has a possibilites of entery in a ban list.

BALRAMCHIN is currently under scrutiny and has the potential to be removed from the banned list. The ban has caused significant setbacks for Balramchin, but with the possibility of an exit from ban list.

Daily Pivots

As per the above pivots data, 17330 to 17480 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Relief Rally Ends as Nifty 50 Succumbs to Selling Pressure
Nifty Crosses 17,700 Mark on the Occasion of Happy Holi
Strong End to the Week for Nifty 50 Equities with Impressive Recovery

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