After an hour of buying during Muhurat Trading the previous day, Indian shares succumbed to the selling pressure on November 13 amid mixed global markets and a downgrade of US credit rating outlook by Moody’s, which will keep yields elevated.
The 30-share flagship BSE Sensex declined 325.58 points or 0.5 percent to close at 64,933.87. Its broader peer Nifty 50 dropped 82 points or 0.42 percent to close at 19,443.55.
The broader market continued its outperformance. Buying was seen in PSU banking names and metals even others reeled under supply pressure.
"Post-Diwali, Indian equities continued consolidation amid global uncertainty. The sharp deceleration in IIP growth, from 10.3 percent in August to 5.8 percent in September, and weakening Manufacturing PMI reflect global trends driven by rising interest rates and inflation. The Indian rupee's weakness keeps FIIs cautious," said Vinod Nair, Head of Research at Geojit Financial Services.
However, the downside is limited by strong earnings, economic stability, and domestic institutional flows. "A potential reversal is likely, as domestic October CPI inflation is expected to moderate. Notably, public sector banks are outperforming due to strong credit growth, improved asset quality, and robust balance sheets, and this trend is expected to persist," he said.
Stocks and sectors
Nifty Midcap 100 rose marginally by 0.07 percent. Nifty Smallcap added 0.68 percent. Nifty 500, the broadest index on NSE, dropped 0.24 percent.
Among sectoral indices, Nifty PSU Bank and Nifty Metal were gainers that rose 2.64 percent and 0.37 percent, respectively. Nifty Consumer Durables was the biggest loser, down 0.81 percent. Nifty IT and Nifty Healthcare were other top losers.
Among Nifty 50 stocks, Coal India continued its ascent, rising another 5 percent on its Q2 show. Eicher Motors, Hindalco Industries, M&M, Bharat Petroleum and Britannia were other gainers.
SBI Life Insurance was the top loser, down 2.26 percent. Bajaj Finance, Grasim Industries, Infosys and Nestle India were other losers that dropped over 1 percent each.
OUTLOOK for Nov 15
Nagaraj Shetti, Technical Research Analyst, HDFC Securities
A small negative candle was formed on the daily chart, that filled the opening upside gap of Sunday's special session. Nifty is currently placed at the hurdle of down trend line at 19550 levels and is consolidating around the resistance.
The near-term trend of Nifty continues to be positive. Having placed at the crucial overhead resistance around 19550-19600 levels, there is a possibility of some more consolidation or minor weakness in the short term before showing any decisive upside breakout of the resistance. Further weakness from here could find support around 19300-19250 levels.
Rupak De, Senior Technical analyst at LKP Securities
Bank Nifty was unable to maintain levels above the psychological milestone of 44,000 and concluded its session below this mark. Nevertheless, the index managed to close above the crucial moving average. Additionally, the Relative Strength Index (RSI) is exhibiting a bullish crossover. In the short term, it is anticipated that the index will exhibit sideways movement. Support is positioned at 43,500 on the lower end, while resistance is noted at 44,200 on the higher end.
Ajit Mishra, SVP - Technical Research, Religare Broking
We are largely mirroring the US markets on the benchmark front however there is no shortage of stock-specific trading opportunities, thanks to prevailing outperformance of the broader indices and rotational buying across the sectors. We thus reiterate our view to focus more on stock selection and prefer long trades until the Nifty breaks 19,200.
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