Taking Stock: US Fed outlook spoils party for D-Street; Sensex falls 323 points
Sectorally, action was seen in healthcare and IT stocks while selling pressure was seen in realty, metal, Bankex, capital goods, and power index.... Read More
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 83,216.28 | -94.73 | -0.11% |
| Nifty 50 | 25,492.30 | -17.40 | -0.07% |
| Nifty Bank | 57,876.80 | 322.55 | +0.56% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Shriram Finance | 816.35 | 23.85 | +3.01% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Bharti Airtel | 2,001.20 | -93.70 | -4.47% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Metal | 10426.80 | 144.90 | +1.41% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Infra | 9393.60 | -95.20 | -1.00% |
We reiterate our view that a directional move in the markets seems difficult unless we see alignment between the Nifty and banking index.
Meanwhile, traders should maintain their focus on the sectors which are attracting buying interest and plan their trades accordingly.
IT and pharma are currently leading the pack and likely to continue with the upward bias. On the flip side, apart from the banking index, we may see profit-taking in select metal and auto names ahead.
Nifty opened lower on September 17, made an attempt to recover but failed. In the process, over the past two days, it made lower tops. The advance-decline ratio too turned negative at 572:1022 suggesting that the rally in small and mid-caps is over for the time being. Finally, the Nifty closed the day 88 points, or 0.76 percent, down at 11,516.10.
Asian and European stocks weakened Thursday, with traders reacting to the US Federal Reserve’s decision laying out no additional stimulus and its cautious outlook on the world’s top economy.
The BOJ stood pat on its key interest rate and its asset purchases policy. The Bank of Japan upgraded its assessment of Japan’s economy on Thursday, saying it has started to pick up after a difficult period caused by the coronavirus pandemic.
Nifty reacted to negative global cues. However, the negativity may not last long though to rise materially from here it may need fresh positive triggers.
We recovered some ground after the gap down opening this morning. We are still looking strong and seem to be heading towards the potential target of 11,800.
Nifty has good support around 11,300 and till that level is held, markets will continue to remain in bullish terrain.
Indian markets reacted in sync with global markets after the US Fed reserve failed to keep up with the expectations of the investors.
In spite of pledging to keep interest rates low, markets were disappointed with the lack of further inputs or immediate stimulus measures.
Continued border tensions with China also worried Indian markets. Markets are expected to remain uncertain and investors are advised to remain cautious.
The Sensex shed some weight today to end the day at 39k even as the IPO- Happiest Mind created a whopping 135 percent gain for its lucky investors on listing.
Today we saw IT and pharma bucking the weak trend as smart buying was seen across several counters in both the sectors. HNI accumulation was witnessed across cyclicals in todays trade.
Sensex closed the day 323 points, or 0.82 percent, lower at 38,979.85 while Nifty ended 88 points, or 0.76 percent, down at 11,516.10.
BSE Midcap and Smallcap indices closed 0.24 percent and 0.53 percent lower, respectively. Among the sectors, barring BSE Healthcare, IT and Teck, all closed in the red.
Power Ministry has given nod to monetise the company's assets held in Special Purpose Vehicles (SPVs) through InvIT (Infrastructure Investment Trust).
As per CNBC-TV18, Power Ministry has conveyed to CCEA about its nod to monetise company's assets in SPVs.
Shares of Power Grid traded 2.07percent lower at Rs 168.35 on BSE at 15:20 hours.
L&T Construction on Thursday announced that it is awarded significant contracts for its metallurgical and material handling business. Significant contracts mean order in the range Rs 1,000-2,500 crore.
This is a positive development for the company, although order size is quite small compared to its order book nearly Rs 3 lakh crore.
Considering the small size of the order, the stock has not reacted to this news. Market would be keenly watching government spends on the infrastructure sector in the environment of muted private capex.
Things are in an improving trend for the company as labourers count are increasing and the economy is on the path of recovery.
Gold prices are likely to find some support from increasing gold exports from Switzerland.
Swiss Gold exports increased 13.5 percent on a month-on-month (MoM) basis, in August to 116.5 tons, up from 102.6 tons in July, as Chinese and Indian exports recover.
Exports to China were 10 tons while supply to India jumped 35 percent to 20.2 tons.
: Gold prices traded lower with COMEX spot gold fell to USD 1,944 losing nearly 0.75 percent on Thursday. Gold October future contract at MCX were trading over half a percent down to Rs 51,436 per 10 grams for the day. Gold prices traded under pressure post US Fed comments with dollar recovery after US Fed signalled to hold interest rates till 2023 sighting slower economic recovery. The dollar index witnessed safe haven buying with sell off in equities and precious metals.
We expect gold prices to trade sideways to down with support at USD 1,910 and resistance at USD 1,970. MCX Gold October support at Rs 51,000 while resistance lies at Rs 51,900.
