Closing Bell: Nifty below 22,000, Sensex falls 906 points; all sectors in the red

Indian equity market ended on a weak note with Nifty below 22,000 amid selling across the sectors. The Sensex was down 906.07 points or 1.23 percent at 72,761.89, and the Nifty was down 338.00 points or 1.51 percent at 21,997.70.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices/ for all the global market action.

Rupak De, Senior Technical Analyst, LKP Securities

The Nifty has experienced a breakdown from a rising channel on the daily chart, signaling the conclusion of the previous uptrend and the potential beginning of a downtrend. Additionally, the index has descended below the recent consolidation phase on the daily timeframe, further emphasizing the increasing weakness.

The Relative Strength Index (RSI) with a period of 14 is showing a bearish crossover and has dropped below the 50 mark.

In the short term, the index may continue to be susceptible to selling pressure with resistance anticipated around 22,250. On the downside, support levels are positioned at 21,800 and 21,700.

Vinod Nair, Head of Research, Geojit Financial Services

In contrast to the global uptrend, unfavourable risk-reward balance of mid and small-cap stocks, fuelled by prolonged premium valuations, has aggravated the downfall. Meanwhile, FMCG and contrarian plays like gold are offering some refuge. Other than the premium valuation no fundamental issue is noticed to drawback the long-term growth image of domestic midcaps.

Globally, the persistent US inflation rate has cast doubt on the Fed's ability to implement imminent rate cuts. While domestic inflation appears to be showing signs of easing. However, the easing trend in global commodity prices may prompt central banks to consider rate cuts in the latter half of 2024, which could be positive for equity.

Gaurav Dua, SVP, Head – Capital Market strategy, Sharekhan by BNP Paribas

Nifty finished the day close to 22,000 level which is around 2.3% below its all time high of 22,526. However, there seems to be a sense of distress and despodency among retail investors today. The dichotomy underlines the risk arising from the inclination to chase momentum and speculative stocks by many investors rather than invest sensibly in a well balanced portfolio. The tilt towards broader markets is also reflected in the recent mutual fund data showing inflows into small/microcap funds despite the 60-65% rally in CNX Smallcap index over the last one year.

At sharekhan, we strongly believe that a balanced portfolio with right mix of largecap, midcap and smallcap give comparable returns over the market cycle (bull & bear phase) with lower risk and more stability.

Accordingly, we have designed and manage the in-house PMS strategy. In terms of outlook, we believe that the Nifty could consolidate in a range whereas the volatility could rule in broader market which could wipe out the speculative forth and is healthy for a sustained rally going ahead.

Ajit Mishra, SVP - Technical Research, Religare Broking

Markets plunged lower and lost ~1.5%, after spending nearly a week in a narrow range. After the initial uptick, Nifty drifted gradually in the initial hours however the pace of decline intensified as the day progressed. Eventually, it settled closer to the day’s low at 21,997.70 levels. The selling pressure was widespread wherein metal, realty and energy lost over 5% each. The broader indices extended their prevailing bias and lost in the range of 4%-5%.

It is a double whammy for participants as Nifty has slipped below its immediate support of short-term moving average i.e. 20 DEMA and also breached the trendline support while midcap and smallcap space are already under tremendous pressure. We suggest maintaining negative bias in the index now and utilizing rebound to create short positions. At the same time, traders shouldn’t add to their loss-making positions and prefer index majors over others.

Deven Mehata, Research Analyst at Choice Broking

The Sensex and Nifty, key equity benchmarks, lost their earlier gains and fell over 1.5 percent on March 13 and closed below 22000 levels. Bank Nifty also traded negative for the day on its weekly expiry and closed below 47000 levels. The overall sentiment of the market is negative as we have seen sharp decline in the mid cap and small Cap index.

The market has traded negative with the Sensex losing 1.23 percent and closed at 72761.89 and Nifty was negative by 1.51 percent intraday and closed at 21997.70 levels, also Bank Nifty closed negative, down by 0.64 percent and settled at 46981.30.

All the sectors except NIFTY FMCG ended on the lower side. In Nifty stocks, ITC, ICICI Bank and Kotak Mahindra Bank were the top gainers while Power Grid, Coal India and Adani Ports were the prime laggards.

INDIA VIX was positive by 5.79 percent intraday and settled at 14.43.

Index has a support around 21850-21800 zone. Coming to the OI Data, on the call side, the highest OI observed at 22000 strike prices while on the put side, the highest OI is at 21800 strike price. On the other hand, Bank Nifty has support at 46500-46300 while resistance is placed at 47500 and 47700 levels.

Prashanth Tapse, Senior VP (Research), Mehta Equities

Markets erased early gains and slipped into the negative zone with frenzied selling towards the end dragging benchmark Nifty below the 22k mark. There have been concerns over the rising valuations of mid & small-rung stocks for a while, and with the regulator too highlighting these concerns, traders preferred to trim their exposure which resulted in a massive correction across the board. With inflation too not showing signs of moderation and growth decelerating, investors would rather wait before taking any major longish bets.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities

The bears maintained full control as the Bank Nifty index faced rejection at the 47500 mark, establishing it as a strong resistance zone. The index continues in a "sell on rise" mode until this resistance is overcome on a closing basis. Moreover, breaching its 20DMA suggests a follow-up selling pressure that could drive the index lower toward the 46000/45500 mark.

Rupak De, Senior Technical Analyst at LKP Securities

Recently, the Small and Midcap stocks faced a bumpy ride due to SEBI's vigorous crackdown on over-speculation, prioritizing the safeguarding of market participants' interests. Both indices slipped below their recent consolidation levels, sparking increased bearishness among market participants. Moreover, they've dipped below crucial short-term moving averages, further dimming the overall sentiment. While buying on substantial dips may offer opportunities, it's essential to be highly selective and focus on specific stocks within the broader market landscape.

Rahul Sharma Head Technical and Derivatives Research, JM Financial Services

Its seems like largecaps have joined the correction in smallcaps and midcaps which have been under severe selling pressure in the last few days. Nifty has a derivatives support at 22,000 so any sustenance below the same should be taken as an indication of caution for longs. The only silver lining today has been in select private banks and FMCG stocks which have held their ground amidst a market-wide selloff.

Rupee Close:

Indian rupee ended lower at 82.86 per dollar versus previous close of 82.77.

Market Close: Indian equity market ended on a weak note with Nifty below 22,000 amid selling across the sectors.

At close, the Sensex was down 906.07 points or 1.23 percent at 72,761.89, and the Nifty was down 338.00 points or 1.51 percent at 21,997.70. About 290 shares advanced, 3202 shares declined, and 38 shares unchanged.

Biggest losers on the Nifty included Adani Enterprises, Coal India, Adani Ports, Power Grid Corporation and NTPC, while gainers were ITC, UltraTech Cement, HCL Technologies, Kotak Mahindra Bank and ICICI Bank.

All other sectoral indices ended in the red, with Realty, Media, PSU Bank, Telecom, Power, Oil & Gas, Metals down 4-6 percent.

BSE Midcap and Smallcap indices down 4-5 percent.

Stock Market LIVE Updates | Dynamatic Technologies announced a new partnership with Deutsche Aircraft, the German OEM based in Münich, Germany.

Stock Market LIVE Updates | Hindustan Organic Chemicals sold 26.80 acres of land parcels for aggregate amount of Rs.37.53 crores to BPCL.

Sensex Today | Oil rises on signs of strong demand and rate cut hopes

Oil rose on Wednesday, supported by signs of strong global demand including from top consumer the United States while hopes that the Federal Reserve might start cutting rates soon also buoyed sentiment despite somewhat sticky U.S. inflation.

In an indication of healthy demand, U.S. crude oil and fuel inventories fell last week, according to market sources citing American Petroleum Institute figures ahead of Wednesday's official U.S. inventory report.

Brent futures for May rose 83 cents, or 1%, to $82.75 a barrel by 0922 GMT. U.S. West Texas Intermediate crude for April gained 59 cents, or 0.8%, to $78.15.

Stock Market LIVE Updates | Shriram Properties launches new residential project in Bangalore with potential revenue at Rs 350 crore

Stock Market LIVE Updates | CLSA View On Jubilant Foodworks

-Sell call, target Rs 439 per share
-Impressive sales growth
-Overall profitability has been impacted by debt
-Profitability in Turkey and Bangladesh in line with expectations
-Highlighted upside for Domino’s in Turkey
-Currency risk prevails as cash flows in Turkish Lira and debt in Euros

Sensex Today | BSE Telecom index fell 5 percent dragged by Railtel Corporation of India, MTNL, ITI

Sensex Today | Market at 3 PM

The Sensex was down 937.94 points or 1.27 percent at 72,730.02, and the Nifty was down 348.90 points or 1.56 percent at 21,986.80. About 306 shares advanced, 3086 shares declined, and 40 shares unchanged.

Stock Market LIVE Updates | Nomura View On NBFCs

-Reiterate cautious view
-Shriram Finance & Five-Star are our top picks
-Growth at risk; FY25 to be a reset year
-Cost of funds to remain elevated in FY25
-A Repo rate cut in H1FY25, would be positive for CoF/NIMs of NBFCs in H2FY25
-Cut growth/NIM estimates across coverage

Sensex Today | BSE Powe index shed 6 percent dragged by Adani Green Energy, NHPC, Adani Energy

Sensex Today | Mohammed Imran – Research Analyst, Sharekhan by BNP Paribas

Crude oil prices edged higher on Wednesday amid report of a larger draws of crude inventories last week in US. The API forecast gasoline inventory to have declined by another 3.8mb while distillate fell 1.2mb. OPEC stuck to its forecast of a strong oil demand growth globally of 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025 and raised its economic growth forecast for this year, while EIA has reported global oil demand at 102.93mbpd, global oil supply at 101.82mbpd in February 2024, while global crude oil balance to remain in deficit of 0.3mbpd in 2024 and Q2-CY2024 would see deficit of 0.9mbpd due to OPEC+ extension of voluntary cuts, market outlook is giving better picture for crude demand in the second half of the year.

Outlook: The extension of OPEC+ voluntary cuts to see oil market in deficit of 0.3mbpd, which could see WTI prices trading in range of $78-$82, however demand side remain soft and short term could see prices falling back to support of $75/b. We expect prices to trade sideways and larger draw from EIA could see WTI testing resistance of $79.50/b.

Sensex Today | BSE Bank index down 0.5 percent dragged by Bank of Baroda, IDFC First Bank, IndusInd Bank

Stock Market LIVE Updates | Morgan Stanley View On Avenue Supermart

-Overweight call, target Rs 4,471 per share
-DMart Ready is not a quick delivery platform
-On pricing strategy and SKU availability DMart outpaces its peers
-DMart maintains its 'value focused' positioning
-SKU availability - DMart Ready leading versus peers and improving sequentially as well
-Comparable to grocery e-commerce players, company’s delivery not competing with quick commerce

Sensex Today | Prashanth Tapse, Senior VP (Research), Mehta Equities

Despite 100% OFS, Gopal received a healthy subscription demand from all sets of investors mainly on the back of its presence in the Indian fast-moving consumer goods sector and a prominent player with a diverse range of products including Namkeen and western snacks.

While considering subdued secondary market scenario and continued selling pressure seen in Mid & Small caps spaces, Gopal may be the victim and listing can be on a flat to muted note. The soft listing seems to be justified as the offer was 100% offer for sale and no funds would be coming into the company for growth.

We believe this listing gives an opportunity to investors to accumulate the growth story for the long term. Hence, considering all the parameters we recommend allotted investors to “HOLD” and while those investors who missed and wish to add can accumulate GOPAL at any dip post listing for Long term perspective only.

Sensex Today | BSE PSU Index shed 6.5 percent

Stock Market LIVE Updates | CLSA View On ITC

-Upgrade to buy, target Rs 468 per share
-Correction offers an attractive multiple in a volatile market
-Cigarette volumes to be muted but premiumisation is underway
-FMCG gradually becoming a key driver, agri to stabilise with value-added products
-Quick commerce to accelerate portfolio premiumisation

Stock Market LIVE Updates | Nilesh Shah, Kotak Asset Management Company

This correction is an unwinding of excesses

Stress tests are not the cause of the market correction

Market is sitting on a lot of liquidity

SME stocks have low liquidity & governance standards are unpredictable

Believe a lot more correction could happen in microcaps & SME stocks

Stock Market LIVE Updates | Nifty Midcap 100 extends losses, sheds more than 2,000 points 

Stock Market LIVE Updates | All sectoral indices float in the red amid market selloff; Realty, Media, Energy, Metal indices slump 5%

Stock Market LIVE Updates | Nifty 50 slips below 22,500 amid selling in heavyweight names

Stock Market LIVE Updates | Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas

Indian Rupee depreciated by 0.12% on Wednesday on a broad sell-off in domestic markets and selling pressure by foreign investors. A positive US Dollar and disappointing macroeconomic data from India also weighed on the Rupee. India’s CPI rose 5.09% y-o-y in February 2024 vs 5.1% in January 2024 but higher than the forecast of 5.01%. India’s IIP increased by 3.8% y-o-y in January 2024, at a slower pace vs 4.2% in December 2023. US Dollar gained on hotter-than-expected inflation in the US. US CPI rose 3.2% y-o-y in February 2024 vs 3.1% in January 2024 and forecast of 3.1%. Core CPI rose 3.8% y-o-y in February 2024 vs 3.8% in January 2024 and forecast of 3.7%.

We expect Rupee to trade with a negative bias on concerns over weakness in the domestic markets and extended selling by FIIs. Elevated crude oil prices may also weigh on Rupee. However, positive global markets may support Rupee. USDINR spot price is expected to trade in a range of Rs 82.70 to Rs 83.10.

Sensex Today | UK economy grows 0.2% in January after December contraction

Britain's economy rebounded into slender growth in January after sliding into recession late last year, monthly official data showed Wednesday.

Gross domestic product grew 0.2 percent following a slight 0.1-percent decline in December, the Office for National Statistics said in a statement. First-quarter expansion would signal the end of a technical recession.

Sensex Today | Gold subdued as US inflation surprise casts doubt on June rate cut

Gold prices steadied on Wednesday, after posting their biggest drop in a month in the previous session, as sticky U.S. inflation raised concerns that the Federal Reserve might delay going for an interest rate cut beyond June.

Spot gold edged 0.1% up to $2,158.70 per ounce, as of 0759 GMT. U.S. gold futures fell 0.1% to $2,164.80.

Sensex Today | Market at 2 PM

The Sensex was down 708.78 points or 0.96 percent at 72,959.18, and the Nifty was down 275.40 points or 1.23 percent at 22,060.30. About 298 shares advanced, 3076 shares declined, and 36 shares unchanged.

Stock Market LIVE Updates | Heritage Foods inaugurates UHT Plant at Shamirpet, Hyderabad

Heritage Foods announced the inauguration of the new Ultra High Temperature (UHT) Milk plant with latest SIG packaging technologies, at Sampanbole Village, Shamirpet Mandal, Medchal Dist., Telangana.

Stock Market LIVE Updates | BSE imposes fine on NTC Industries

NTC Industries informed that BSE imposed a SOP fine on the Company under Regulation 27(2), 31 and 34 of the Listing Regulations for certain non-compliance pursuant to the scrutiny of records in connection with grant of In-Principle Approval for Preferential Issue of equity shares.

The Company is in the process for making prompt and timely payment of above imposed fines.

Sensex Today | BSE Information Technology index down 1 percent dragged by Cressanda Solution, Quick Heal Technologies, KSolves India

Stock Market LIVE Updates | White Oak India Equity Fund IV sold 1,25,248 equity shares in Onward Technologies at an average price of Rs 463.81 per share.

Stock Market LIVE Updates | Jefferies View On BSE

-Buy call, target Rs 3,000 per share
-NSE announced a 1 percent cut to transaction charges on cash & derivatives products
-See the 1 percent cut as part of a periodic exercise by NSE, & smaller quantum this time
-Expect company's product pricing & plans for monetisation of new products to be unaffected
-Continue to expect >2.5x jump in earnings over FY24-26

Sensex Today | Nifty Media index shed 4.5 percent dragged by Dish TV, Jagran Prakashan, DB Corp

Stock Market LIVE Updates | Morgan Stanley View On ITC

-Overweight call, target Rs 491 per share
-BAT launches block trade to sell 3.5 percent; supply overhang clears
-Expect ITC's stock outperformance to resume after stake sale
-Remain bullish on ITC, based on expectation of a moderate cigarette tax environment
-Remain bullish on continued scale-up of non-cigarette businesses & reasonable valuations

Stock Market LIVE Updates | Kotak Mahindra Bank sells 2.03% shares in KFin Technologies

Kotak Mahindra Bank sold 34.7 lakh equity shares (equivalent to 2.03% of total paid-up equity) in KFin Technologies at an average price of Rs 600.28 per share. Kotak Bank held 9.8% stake in KFin as of December 2023.