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Benchmark indices ended lower today amid weak global cues. Sensex tanked 861 points to 57,972 and Nifty closed 246 points lower at 17,312. Of 30 Sensex stocks, 22 ended in the red. Tech Mahindra, Infosys, Wipro, HCL Tech and TCS were the top Sensex losers, falling up to 4.57 per cent. Shares of Reliance Industries closed 0.84 per cent or Rs 22 lower at Rs 2,596.80 on BSE after the Mukesh Ambani-led conglomerate held its 45th annual general meeting (AGM) today.
Market sentiment turned weak after US indices plummeted following Fed chief’s ultra-hawkish tone. Jerome Powell said the Fed will likely need to keep interest rates high enough to slow the economy “for some time” in order to beat back the high inflation sweeping the country.
The statement triggered a sell-off in the US market with Dow Jones Industrial Average sinking more than 1,000 points intraday on Friday. It ended 1,008 pts lower at 32,283.
Nasdaq too ended 497.55 points lower at 12,141. S&P 500 closed 141 points lower at 4,057.
ALSO READ: Share Market update: Sensex falls 861 pts, Nifty below 17,350; RIL stock ends flat
Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities said, “Markets witnessed a sea of red at Dalal Street as Fed choses inflation flight over growth. The Nifty plunged and ended deep in red as bears were seen in total control after Jerome Powell at his Jackson Hole appearance mentioned that interest rates may continue to rise to combat inflation. Powell also stated that failure to restore price stability would mean far greater pain. Technically speaking, the Nifty line on the sand is at the 17,161 mark. Nifty’s major support is at 17,161 mark and below the same, the next big support is at 16,911 mark. For Tuesday’s session, Nifty’s major hurdle is seen at 17,507, while buying is advised only above the 17,757 mark.”
IT, banking, metal and consumer durables shares were the top sectoral losers with their BSE indices falling 975 points, 837 points, 322 points and 282 points, respectively. BSE mid cap and small cap indices fell 201 pts and 260 points, respectively.
Market breadth was negative with 1,453 stocks ending higher against 2,048 stocks falling on BSE. 202 shares were unchanged.
Market cap of BSE-listed firms fell to Rs 274.56 lakh crore today against Rs 276.96 lakh crore in the previous session.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, “Investors had already got the wind of bearish undertone for the start of the week, after the US Fed chairman’s speech on Friday talked about further rate hikes going ahead to tame inflation. Traders are expecting more bouts of volatility in coming sessions on concerns that continuation of rate hikes in the US could pose a threat to the global economy and hurt growth prospects. Technically, the Nifty closed below the 20-day SMA (Simple Moving Average) which is broadly negative. For Nifty, 17,400 and 17450 would act as important resistance zones. And 17,250 could be the sacrosanct support zone. Below the same, the index could slip till 17,150-17,100. On the flip side, above 17,400, the index would move up to 17,450-17,500.”
ALSO READ: Reliance Industries AGM 2022: RIL shares close flat in a weak market
Previous Session
Benchmark indices managed to end in the green on Friday despite fag-end volatility trimming most of the day’s gains. Sensex climbed 59.15 points or 0.10 per cent to end at 58,833.87. During the day, the 30-stock index jumped 546.93 points or 0.93 per cent to 59,321.65. Nifty gained 36.45 points or 0.21 per cent to end at 17,558.90.
Global markets
France’s CAC 40 dropped 1.4% in early trading to 6,186.58, while Germany’s DAX lost 1.3% to 12,802.11. Britain’s FTSE 100 shed 0.7% to 7,427.31.
US shares were set to drift lower, with Dow futures down 0.7% at 32,049.00. S&P 500 futures fell 0.8% to 4,026.50. Oil prices rose.
Japan’s benchmark Nikkei 225 dipped 2.7% to end at 27,878.96. Australia’s S&P/ASX 200 fell 2% to 6,965.50. South Korea’s Kospi slipped 2.2% to 2,426.89. Hong Kong’s Hang Seng slid 0.7% to 20,023.22, while the Shanghai Composite recouped earlier losses and edged up 0.1% to 3,240.73.
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