Indices Drop Amid Cautious Investor Outlook on RBI Policy and US Inflation

At the close, the Nifty 50 was at 19,570.85 down by 0.13%

NSE Nifty 50 index exhibited a notable opening with a substantial gap up. However, market sentiment took a turn as the index experienced a decline of 0.13 percent, ultimately closing in the red zone. This marked a significant movement below the crucial support level of 19600.

The morning’s optimistic start was met with a shift in momentum, leading to the downward movement. Volatility remained a defining factor throughout the trading hours, as market participants responded to a range of factors impacting investor sentiment.

As the trading day progressed, the index struggled to maintain its initial gains, culminating in the red-closing that caught the attention of market observers.

The recent downturn in benchmark equity indices. Investor sentiment wavered on Tuesday, marked by prudence ahead of two pivotal events. The RBI’s impending monetary policy decision and the release of US inflation data later this week. Contributing to this decline were persistent foreign fund outflows, a factor necessitating attention. Additionally, a lackluster performance in Asian and European markets further impacted domestic market dynamics. As we await these crucial announcements, a watchful approach is advisable, highlighting the need for a balanced portfolio and an adaptive investment strategy.

The notable decline in Chinese exports has additionally fueled apprehensions within the worldwide market. Foreign Institutional Investors (FIIs) continue to adopt a selling stance in the domestic market. However, the active purchasing behavior exhibited by Domestic Institutional Investors (DIIs) is effectively counterbalancing potential downward pressures.

Bank Nifty: Up by 0.28%

In today’s trading session, the Indian stock market showcased a diverse performance across key indices. The Bank Nifty commenced on a positive note, displaying a robust opening in the green zone. As trading progressed, the index sustained its upward momentum, ending the session with a gain of 0.28 percent, and concluding at 44,964.45, firmly securing its position in the green territory.

Contrastingly, the BSE Sensex witnessed a more challenging day. Despite an initially hopeful start, the index faced headwinds that led to a decline of 0.16 percent. The closing figures marked a significant retreat, settling at a low of 65,846.50, thereby concluding the session in the red zone.

In the domain of sectors, the Media industry has witnessed a remarkable upswing of 0.74%. Notably, Dish TV India Ltd. experienced a substantial surge of 4.49%, closely followed by Network18 Media & Investments Ltd. with a commendable gain of 1.95%. However, the Metals sector faced a slight setback with a decline of 1.17%. Within this segment, Adani Enterprises Ltd. incurred a loss of -2.88%, while Hindalco Industries Ltd. also experienced a decline of -2.12%.

Foreign Institutional Investors (FII/FPI) recorded a net outflow of -711.34 Crore (Cr.), with Buy Value at 10,721.75 Cr. and Sale Value at 11,433.09 Cr. On the other hand, Domestic Institutional Investors (DII) exhibited positive activity, with a net inflow of 537.31 Cr. Their Buy Value stood at 8,809.11 Cr., while Sale Value was 8,271.80 Cr.

Bank Nifty

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

The gainers included Bank of Baroda with a 2.93% increase, Punjab National Bank with a 2.81% increase, Bandhan Bank with a 1.68% increase, Federal Bank with a 1.12% increase, and State Bank of India with a 1.02% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.78% decline, AU Bank with a 0.74% decline, HDFC Bank with a 0.14% decline, IDFC First Bank with a 0.11% decline, and Kotak Bank with a 0.06% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Indian Rupee Declines Amidst Dollar Demand and Market Sentiment

In a session marked by fluctuating dynamics, the Indian rupee witnessed a depreciation of 9 paise against the US dollar, closing at 82.84 (pro) on Tuesday. The rupee’s decline can be attributed to a combination of factors, primarily stemming from strong dollar demand and a subdued trend in the domestic equity market.

Analysts note that foreign fund outflows exerted additional pressure on the local unit, contributing to its downward trajectory. The day’s interbank foreign exchange activity saw the rupee open at 82.80 against the dollar, ultimately settling at 82.84 (pro) – a decline of 9 paise from the previous close.

Throughout the trading session, the Indian rupee experienced a range of movements, reaching a peak of 82.78 and touching a low of 82.85.

A comprehensive view of the factors influencing the rupee’s performance includes the positive dollar sentiment, underpinned by strong demand in a risk-averse global market. Additionally, the influence of foreign institutional investor (FII) outflows played a role in shaping the rupee’s movement.

Despite the challenging trends, the depreciation was cushioned by the presence of weak crude oil prices, which provided some support to the rupee’s downside.

On the global front, the US dollar’s gains were driven by both strong demand and hawkish communications from the Federal Reserve. Meanwhile, the global oil benchmark Brent crude registered a decline of 0.73 percent, settling at $85.63 a barrel.

Buzzing

Witness a substantial 3.96% surge in SBI Life Insurance Company Ltd. share price, marking an impressive upward shift from its previous close at Rs 1,302.55. Notably, the last traded price for SBI Life Insurance Company Ltd. stock stands at 1,354.10. Highlighting recent developments, a 20-day moving crossover manifested just yesterday, demonstrating an average price gain of 3.08% within 7 days of this signal over the past 5 years. Despite encountering a 3.96% decline in sales, the company’s unprecedented revenue contraction, observed for the first time in the last 3 years, deserves attention. It’s noteworthy that the company has remained debt-free for a continuous span of 5 years, signifying its fiscal stability.

Meanwhile, Adani Enterprises Ltd. experienced a dip of -2.88% in its share price from the preceding closing value of Rs 2,550.50. The most recent trading saw Adani Enterprises Ltd. stock priced at 2,477.05. Remarkably, the company achieved an exceptional 3-year return of 1222.19%, outperforming Nifty 100’s return of 71.18%. An annual revenue growth rate of 96.18% surpassed its 3-year CAGR of 45.79%, underlining the company’s robust financial performance. Intriguingly, in the past 18 years, merely 4.84% of trading sessions exhibited intraday gains exceeding 5%, a notable point in the company’s trading history.

Advance Decline Ratio

Today, the advance-decline ratio was 0.92, and the market breadth was negative. The volatility index India Vix increased by 2.00 percent to settle at 11.33 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1123
Decliners – 1225
52Wk High –  154
52Wk Low – 18
High Band Hitters – 64
Low Band Hitters – 48
200d SMA – 18251
50d SMA – 19181
20d SMA – 19645

Top Gainers and Losers Stocks

The top gainers were SBI Life (+3.96%), Hero MotoCorp (+3.92%), Cipla (+3.64%), Tech Mahindra (+1.81%), and Wipro (+1.30%).

The top losers were Adani Enterprises (-2.88%), Hindalco (-2.12%), M&M (-1.76%), Divi’s Laboratories (-1.63%), and JSW Steel (-1.54%).

Top Gainers and Losers Sector

The top gainers sectors were Media (+0.74%), Pharma (+0.64%), Consumer Durables (+0.52%), Financial Services (+0.32%), and IT (+0.15%).

The top losers sectors were Metal (-1.17%), Auto (-0.31%), FMCG (-0.28%), Realty (-0.18%), Oil & Gas (-0.15%).

The Nifty Midcap 50 was up by 0.14 percent, while the Nifty Small Cap 50 was up by 0.34 percent on the day.

The Nifty Midcap 50 index currently closed at 10,803.40, while the Nifty Small Cap 50 index currently closed at 5,336.75.

SECTORS – NOTABLE ACTION
MEDIA +0.74%
PHARMA +0.64%
CONSUMER DURABLES +0.52%
METAL -1.17%
AUTO -0.31%
FMCG -0.28%

Stocks Ban List

(SEBI) F&O ban list  (BALRAMCHIN open at -403.00 and close at -394.05), (INDIACEM open at -215.00 and close at -215.10), (IBULHSGFIN open at -165.00 and close at -162.50), (HINDCOPPER open at -148.25 and close at -146.75), (PEL open at +987.00 and close at +1014.25), and (GNFC open at -555.60 and close at -547.85) are not currently on the stock exchange.

The Securities and Exchange Board of India (SEBI) has banned BALRAMCHIN, INDIACEM, IBULHSGFIN, HINDCOPPER, PEL and GNFC 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.

DELTACORP, CANFINHOME, BHEL, MANAPPURAM, ABFRL, LICHSGFIN, ZEEL, PNB, RBLBANK, CHAMBLFERT, and VEDL stocks has the possibilities of enterance in the ban list.

PEL and GNFC stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 19520 to 19640 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Stocks Give Mixed Signals – Banks weak, IT & Pharma strong
Markets Rebound, Nifty Gains Over Half a Percent to Settle at 19,517
Market Falls Below 19,400 Amid Weak Global Cues and Fitch Downgrade
Sharp Sell-Off in Indian Equity Indices Post Fitch Ratings’ US Credit Downgrade

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