Market Reacts to Weak Global Cues, Ends Near Daily Low

At the close, the Nifty 50 was at 20,133.30 down by 0.29%

In a tumultuous trading session characterized by weak global signals, the Indian stock market confronted a challenging day. It commenced the day with a significant gap-down opening, grappling to generate positive momentum and persistently remaining ensnared in bearish territory. Ultimately, it concluded near the session’s nadir, with Indian benchmark indices echoing the prevailing uncertainty in the market.

The NSE Nifty 50 index, a pivotal barometer of market performance, initiated the day on a downbeat note, experiencing a 0.29 percent decline and closing in the red. This development left the Nifty index hovering just above the critical 20,100 mark, underscoring the cautious posture of investors.

Globally, equities witnessed a broad-based decline, driven by mounting apprehensions about economic growth. These concerns loomed large as the market entered a week replete with central bank meetings across several nations, including those overseeing the top ten most heavily traded currencies. The anticipation surrounding policy rate decisions further amplified market uncertainty.

Investor sentiment endured additional jolts amid expectations of a resurgence in demand in China and simultaneous reductions in crude oil supply. Furthermore, resurfacing anxieties regarding a potential Federal Reserve rate hike, as evidenced by elevated US bond yields, have kept markets on edge. Investors are eagerly awaiting clarifications from major central banks to gain a more lucid perspective on the path ahead.

Bank Nifty: Down by 0.54%

The Bank Nifty, reflecting the overall sentiment, initiated the day in the negative, registering a 0.54 percent decline and concluding at 45,979.85. Similarly, the BSE Sensex also grappled with downward pressure, marking a 0.36 percent decline and ending the day at a low of 67,596.84. These figures underscore the prevailing market unease and the influence of global factors on Indian stock indices.

Within the sectorial landscape, the automotive industry experienced substantial gains, surging by an impressive 0.84 percent. Notably, Mahindra & Mahindra Ltd. emerged as a standout performer in this sector, boasting a remarkable gain of 2.26 percent, while TVS Motor Company Ltd. also demonstrated a commendable increase of 1.47 percent. These positive movements underscore the resilience and potential of the automotive sector in the current market environment.

Conversely, the real estate sector faced a challenging day, emerging as the top loser with a decline of 1.37 percent. Within this sector, Godrej Properties Ltd. witnessed a notable decrease of -2.49 percent, reflecting the obstacles encountered by real estate companies. Similarly, Macrotech Developers Ltd. also observed a decline of -2.29 percent, highlighting the prevailing headwinds in the realty industry.

Foreign Institutional Investors/Foreign Portfolio Investors (FII/FPI) recorded a net selling value of -1,236.51 Rs. Cr., with a buy value of 7,520.34 Rs. Cr. and a sale value of 8,756.85 Rs. Cr.

On the other hand, Domestic Institutional Investors (DII) reported a net buying value of 552.55 Rs. Cr., with a buy value of 8,097.08 Rs. Cr. and a sale value of 7,544.53 Rs. Cr.

Bank Nifty

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

The gainers included Punjab National Bank with a 3.44% increase, Bank of Baroda with a 2.56% increase, State Bank of India with a 0.70% increase, and IndusInd Bank with a 0.34% increase. On the other hand, the biggest losers in the sector included HDFC Bank with a 1.93% decline, Federal Bank with a 1.52% decline, IDFC First Bank with a 1.32% decline, Bandhan Bank with a 1.24% decline, and Kotak Bank with a 0.90% decline. These results suggest that some banking stocks not performed better for the day.

Buzz

Rupee Faces Pressure Amidst Rising Crude Oil Prices and Strong Dollar

The Indian rupee experienced a challenging trading session, with a decline of 0.08 Rs, closing at 83.23 against the US dollar. This downward movement can be primarily attributed to the escalating crude oil prices, which have exerted significant pressure on the rupee’s exchange rate.

The sustained elevation of crude oil prices raises concerns about the nation’s import bill and the potential to exacerbate inflationary pressures. These concerns are not confined to India alone but are part of a global narrative, where higher energy costs have become a cause for economic unease.

Simultaneously, the U.S. Dollar Index has maintained its bullish trend, carrying forward from the previous month. The index has surged from 103.50$ to 105$ in September. This persistent strength in the U.S. dollar has emerged as a substantial factor contributing to the rupee’s vulnerability in the foreign exchange markets.

Looking ahead, market participants will closely monitor the Federal Reserve’s upcoming interest rate decision, scheduled for Wednesday. While expectations lean towards no immediate rate hike, the Federal Reserve’s statement and stance will hold significant sway over the dollar’s trajectory. As a result, the rupee’s trading range is anticipated to fluctuate between 83.05 and 83.45, reflecting the delicate balance of global economic forces impacting currency markets.

Buzzing

Power Grid Corporation of India Ltd. has exhibited notable market activity recently, with its share price experiencing a 3.12% increase from the previous close of Rs 194.10, reaching a last traded price of Rs 200.15. Despite this positive movement, the company witnessed a concerning quarter-over-quarter (QoQ) revenue decline of 10.35%, the lowest in the last three years. An intriguing signal emerged with a weekly Moving Average Convergence Divergence (MACD) crossover on the week ending September 15, 2023, historically leading to an average price gain of 4.25% within seven weeks.

In terms of financial performance, the company reported a total income of Rs 11,257.6 crores in the quarter ending June 30, 2023, reflecting a modest year-over-year (YoY) increase of 0.8%. However, it’s noteworthy that this increase was accompanied by a significant QoQ decline of -10.35%, raising questions about the company’s short-term prospects.

On the other hand, Hindalco Industries Ltd. experienced a -2.19% decrease in its share price from the previous close of Rs 496.55, with the last traded price at Rs 485.70. The company reported declining income on both a quarterly and yearly basis, with total income for the quarter ending June 30, 2023, amounting to Rs 53,382.0 crores. This represents a substantial decrease of -5.03% QoQ and -8.32% YoY, indicating challenges faced by Hindalco Industries in maintaining its revenue levels.

Advance Decline Ratio

Today, the advance-decline ratio was 0.61, and the market breadth was negative. The volatility index India Vix decreased by 0.61 percent to settle at 10.84 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 912
Decliners – 1499
52Wk High –  131
52Wk Low – 10
High Band Hitters – 76
Low Band Hitters – 54
200d SMA – 18457
50d SMA – 19604
20d SMA – 19646

Top Gainers and Losers Stocks

The top gainers were Power Grid (+3.12%), Titan (+2.66%), HDFC Life (+2.43%), M&M (+2.26%), and BPCL (+2.26%).

The top losers were Hindalco (-2.19%), HDFC Bank (-1.93%), Adani Ports (-1.80%), Dr. Reddy (-1.68%), and Bharti Airtel (-1.49%).

Top Gainers and Losers Sector

The top gainers sectors were Auto (+0.84%), Consumer Durables (+0.61%), FMCG (+0.58%), and Oil & Gas (+0.04%).

The top losers sectors were Realty (-1.37%), Media (-1.27%), Metal (-1.11%), IT (-0.68%), and Financial Services (-0.60%).

The Nifty Midcap 50 was down by 0.35 percent, while the Nifty Small Cap 50 was down by 0.26 percent on the day.

The Nifty Midcap 50 index currently closed at 11,595.50, while the Nifty Small Cap 50 index currently closed at 5,850.40.

SECTORS – NOTABLE ACTION
AUTO +0.84%
CONSUMER DURABLES +0.61%
FMCG +0.58%
REALTY -1.37%
MEDIA -1.27%
METAL -1.11%

Stocks Ban List

(SEBI) F&O ban list  (BALRAMCHIN open at +444.45 and close at -439.05), (CHAMBLFERT open at +290.00 and close at -281.95), (BHEL open at -128.45 and close at -126.45), (ZEEL open at +274.50 and close at -268.15), (IBULHSGFIN open at -191.95 and close at +199.35), (RECLTD open at -247.00 and close at +250.45), (IEX open at -134.95 and close at -133.00), (MANAPPURAM open at -142.40 and close at +143.65), (INDIACEM open at -247.00 and close at -244.25), and (HINDCOPPER open at -161.30 and close at -157.35) 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.

NMDC, INDUSTOWER, IRCTC, CANBK, PNB, GRANULES, RBLBANK, PEL, PFC and GNFC stocks has the possibilities of enterance in the ban list.

IEX, MANAPPURAM, INDIACEM, and HINDCOPPER stocks has the possibilities of exit from ban list.

Daily Pivots

As per the above pivots data, 20090 to 20190 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Nifty Takes the Lead as Markets Keep Climbing
Indian Indices Survive Volatility with Marginal Gains
Revitalized Bulls Take Charge of the Market, Pushing Nifty Beyond the 20,000 Milestone
Volatility Persists as Nifty Hovers Around 20,000-Mark

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