|Nifty MidCap 50||11,066.55||-73.80||-0.66%|
|Nifty SmallCap 50||5,727.95||-17.45||-0.30%|
At the close, the Nifty 50 was at 19,122.15 down by 0.83%
Recent developments in financial markets indicate growing concerns about increasing tensions in the Middle East and the surge in US bond yields, which are affecting Indian stocks. Domestic benchmark indices have experienced their fifth consecutive session of losses, signaling rising apprehension among investors.
On the latest trading day, the NSE Nifty 50 initially opened positively but eventually closed in the red, marking a 0.83 percent decrease and falling below the significant support level of 19,150. Geopolitical tensions and the rising US bond yields have put substantial downward pressure on the Indian stock market, causing concerns among investors.
The increase in yields on 10-year US bonds, now exceeding 5 percent, has led analysts to anticipate fund outflows from emerging and riskier markets like India. The reasoning is straightforward; foreign investors may opt for US bonds, considered one of the safest global investments, offering a guaranteed 5 percent annual risk-free return in dollars. This preference for safety is driven by concerns related to geopolitical risks and currency fluctuations in emerging markets, which could erode their dollar returns.
The uncertainties arising from the Middle East situation are expected to continue impacting the markets in the short term. While positive developments such as a decline in US bond yields and reduced crude oil prices might temporarily boost market sentiment, the ongoing uncertainty in the West Asian conflict could limit the sustainability of such gains.
The uncertainties related to the Israel-Hamas conflict are likely to continue putting pressure on the markets in the short term. Although positive developments like the decline in US bond yields and decreasing crude oil prices could potentially contribute to a market rebound, the sustainability of these improvements remains uncertain due to the ongoing instability in the West Asian region.
Bank Nifty: Down by 0.74%
Throughout a day marked by market fluctuations, the Bank Nifty kicked off the trading session on a positive note by opening in the green. However, it eventually took a downturn, closing with a 0.74 percent decrease at 42,832.00. The BSE Sensex, echoing this sentiment, also experienced a decline of 0.81 percent, concluding the day in the red at 64,049.06.
Sectorial Performance: In recent market movements, the metal sector has displayed promising gains, with metal stocks witnessing a 0.15% increase. National Aluminium Company Ltd. stood out with an impressive gain of 2.12%, closely followed by Jindal Steel & Power Ltd., which recorded a gain of 1.49%.
Conversely, the media sector faced challenges, experiencing a decline of 1.66%. This decline saw D.B.Corp Ltd. taking a significant hit with a loss of -5.33%, while TV18 Broadcast Ltd. also faced losses, declining by -4.80%.
Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a net sale of Rs. 4,236.60 Crores, indicating that they sold more securities (Rs. 13,312.21 Crores) than they purchased (Rs. 9,075.61 Crores) during the specified period.
In contrast, Domestic Institutional Investors (DII) exhibited a net purchase of Rs. 3,569.36 Crores. They bought securities worth Rs. 9,638.55 Crores and sold securities worth Rs. 6,069.19 Crores, resulting in a positive net value.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included AU Bank with a 1.78% increase, IDFC First Bank with a 0.69% increase, and State Bank of India with a 0.66% increase. On the other hand, the biggest losers in the sector included ICICI Bank with a 1.35% decline, IndusInd Bank with a 1.32% decline, Federal Bank with a 1.22% decline, Bandhan Bank with a 1.15% decline, and HDFC Bank with a 0.79% decline. These results suggest that some banking stocks not performed better for the day.
Rupee Gains Ground Amidst Global Trends
In a dynamic display of currency market fluctuations, the Indian rupee showed resilience, appreciating by 5 paise to stand at 83.11 against the US dollar in early Wednesday trade. This appreciation can be attributed to a combination of factors. Firstly, the weakening of the US dollar played a pivotal role. Additionally, softening crude oil prices on the global stage further buoyed the rupee.
Foreign equity investors contributed to the rupee’s positive performance, demonstrating confidence in the Indian market. Despite subdued sentiment in the domestic equity markets, this foreign investment support helped strengthen the rupee’s position.
Examining the interbank foreign exchange market, the rupee opened the trading session at 83.08, a noteworthy 8 paise stronger, eventually reaching a low of 83.11 against the US dollar. This marks a gain of 5 paise from its previous close, reinforcing the rupee’s upward trajectory.
Comparatively, the rupee had closed 4 paise lower at 83.16 against the US dollar just two days prior. The global oil price benchmark, Brent crude, inched up marginally by 0.05% to settle at $88.11 per barrel.
Coal India Ltd. has shown promise with a 0.98% increase in its share price, moving from its previous close of Rs 306.10 to the last traded price of Rs 309.10. However, it’s important to note a recent sell signal indicating that bears may be gaining momentum, triggered by a 10-day moving average crossover on October 23, 2023. Historical data suggests an average price decline of -3.1% within 7 days of this signal over the past 5 years. On a more positive note, the company’s annual revenue growth of 27.45% outperforms its 3-year CAGR of 12.19%, potentially making it an attractive prospect for investors seeking growth opportunities.
In contrast, Adani Enterprises Ltd. experienced a -2.06% drop in share price, falling from the previous close of Rs 2,308.65 to a last traded price of Rs 2,261.00. Despite this decline, Adani Enterprises Ltd. demonstrates impressive annual revenue growth of 96.18%, surpassing its 3-year CAGR of 45.79%. The company’s financial health is reflected in its expenditure, with 2.9% of operating revenues allocated to interest expenses and 1.37% to employee costs in the year ending on March 31, 2023.
Advance Decline Ratio
Today, the advance-decline ratio was 0.40, and the market breadth was negative. The volatility index India Vix increased by 3.73 percent to settle at 11.31 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 693
Decliners – 1737
52Wk High – 23
52Wk Low – 47
High Band Hitters – 45
Low Band Hitters – 177
200d SMA – 18605
50d SMA – 19607
20d SMA – 19603
Top Gainers and Losers Stocks
The top gainers were Tata Steel (+1.08%), Coal India (+0.98%), Hindalco (+0.83%), Tata Consumer (+0.67%), and SBIN (+0.66%).
The top losers were Apollo Hospitals (-2.41%), Adani Enterprises (-2.06%), SBI Life (-2.05%), Cipla (-1.90%), and Eicher Motors (-1.74%).
Top Gainers and Losers Sector
The top gainers sector were Metal (+0.15%)
The top losers sector were Media (+1.66%), IT (+1.03%), Realty (+0.96%), Financial Services (+0.93%), and Pharma (-0.75%).
SECTORS – NOTABLE ACTION
Stocks Ban List
(SEBI) F&O ban list (RBLBANK open at -233.70 and close at -225.45) are not currently on 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.
PNB, GNFC, DELTACORP, NMDC, L&TFH, PVRINOX, SAIL, NATIONALUM, BIOCON, HINDCOPPER, BHEL, MCX, and INDIACEM stock has the possibilities of enterance in the ban list.
As per the above pivots data, 19000 to 19300 is the Nifty 50 trading range.
Read previous -Daily Insights- here
Bears Dominate Domestic Stock Market with Extended Losses
Global Market Weakness Drags Down Domestic Stock Market for Third Consecutive Day
Global Equities Decline Amid Middle East Conflict Concerns
This article is only for educational purposes and is not an investment advice.