U-turn! Sensex swoons 630 points from day's high; HDFC Bank, ICICI Bank play spoilsport
Tech Mahindra, HCL Tech, Tata Steel, and JSW Steel exerted downward pressure on the Sensex. Conversely, M&M, Power Grid, Bajaj Finance, and IndusInd Bank contributed positively to the index.
Indian benchmarks surrendered their earlier gains and closed lower, primarily due to the drag from heavyweights HDFC Bank and ICICI Bank. Additionally, declines in metal and IT stocks added further pressure to the benchmarks.The 30-share BSE benchmark declined 189 points or 0.25% to settle at 74,483. The broader NSE dropped 39 points or 0.17% to end at 22,604.
HDFC Bank, ICICI Bank, Tech Mahindra, HCL Tech, Tata Steel, and JSW Steel exerted downward pressure on the Sensex. Conversely, M&M, Power Grid, Bajaj Finance, and IndusInd Bank contributed positively to the index.
Mahindra and Mahindra rose 4.5% to a record high after launching its compact sports utility vehicle, which analysts said was at a competitive price.
Nifty Auto rose 1.8%, led by M&M, Exide Industries, and Apollo Tyres. Bajaj Auto, Hero MotoCorp and Maruti Suzuki jumped between 0.9% and 2.1%.
The Nifty small and midcap indices ended flat. Nifty IT, Media, Metal, Pharma, Oil & Gas, and Healthcare closed 0.5-1% lower.
Among individual stocks, Jana Small Finance Bank was locked in a 20% upper circuit after it reported a four-fold surge in quarterly profit.
The market breadth was skewed in the favour of the bears. About 1,822 stocks gained, 1,995 declined, and 133 remained unchanged on the BSE.
Domestic initial Q4 corporate earnings forecasts were conservative. However, Nifty50 companies’ earnings to date have remained marginally better, with the exception being the IT sector, while auto and realty continue to be robust, he said.
Aditya Gaggar, Director of Progressive Shares, said, "At record levels, the index has made a bearish candle with a probable divergence in the RSI (not yet confirmed). A break and close above Tuesday's high will negate the candlestick implications while trade below 22,500 will drag the Index further lower to the 22,400-22,360 zone."
The MSCI All-World index was last up 0.1% on the day, driven by gains in Europe and carrying some of the positive momentum from a rally on Wall Street the day before. But the index is heading for a loss of 2.2% in April, its worst monthly performance since October.
Brent crude futures rose 27 cents, or 0.3%, to $88.67 a barrel, while U.S. West Texas Intermediate crude futures gained 30 cents, or 0.4%, to $82.93 a barrel.
The rupee closed at 83.4250 against the US dollar, mildly stronger from its close of 83.47 in the previous session. The local unit was little changed month-on-month.
Earlier in the day, the rupee had declined to a low of 83.5250, just shy of its lifetime low of 83.5750, but eventually pared its losses.
(With inputs from agencies)
HDFC Bank, ICICI Bank, Tech Mahindra, HCL Tech, Tata Steel, and JSW Steel exerted downward pressure on the Sensex. Conversely, M&M, Power Grid, Bajaj Finance, and IndusInd Bank contributed positively to the index.
Mahindra and Mahindra rose 4.5% to a record high after launching its compact sports utility vehicle, which analysts said was at a competitive price.
Nifty Auto rose 1.8%, led by M&M, Exide Industries, and Apollo Tyres. Bajaj Auto, Hero MotoCorp and Maruti Suzuki jumped between 0.9% and 2.1%.
The Nifty small and midcap indices ended flat. Nifty IT, Media, Metal, Pharma, Oil & Gas, and Healthcare closed 0.5-1% lower.
Among individual stocks, Jana Small Finance Bank was locked in a 20% upper circuit after it reported a four-fold surge in quarterly profit.
The market breadth was skewed in the favour of the bears. About 1,822 stocks gained, 1,995 declined, and 133 remained unchanged on the BSE.
Expert Take
"Global markets remained mixed ahead of US FED policy meet, as markets appear to have already factored in the slim chance of a near-term rate cut. Profit booking ensued towards a close given the sharp rally in the last couple of days and a holiday-led truncated week," said Vinod Nair, Head of Research, Geojit Financial Services.Domestic initial Q4 corporate earnings forecasts were conservative. However, Nifty50 companies’ earnings to date have remained marginally better, with the exception being the IT sector, while auto and realty continue to be robust, he said.
Aditya Gaggar, Director of Progressive Shares, said, "At record levels, the index has made a bearish candle with a probable divergence in the RSI (not yet confirmed). A break and close above Tuesday's high will negate the candlestick implications while trade below 22,500 will drag the Index further lower to the 22,400-22,360 zone."
Global Markets
Global shares headed for their first monthly loss in six months on Tuesday ahead of a slew of economic data, earnings and the US Federal Reserve's policy meeting.The MSCI All-World index was last up 0.1% on the day, driven by gains in Europe and carrying some of the positive momentum from a rally on Wall Street the day before. But the index is heading for a loss of 2.2% in April, its worst monthly performance since October.
Oil Rises
Oil steadied on Tuesday after the previous day's drop as Israel-Hamas talks offered hopes of a ceasefire even as Red Sea attacks continued, while investors awaited signals on US interest rates ahead of a key meeting on Wednesday.Brent crude futures rose 27 cents, or 0.3%, to $88.67 a barrel, while U.S. West Texas Intermediate crude futures gained 30 cents, or 0.4%, to $82.93 a barrel.
Currency Watch
The Indian rupee ended mildly higher on Tuesday after recovering from a decline in the earlier half of the session, aided by dollar sales from foreign and state-run banks.The rupee closed at 83.4250 against the US dollar, mildly stronger from its close of 83.47 in the previous session. The local unit was little changed month-on-month.
Earlier in the day, the rupee had declined to a low of 83.5250, just shy of its lifetime low of 83.5750, but eventually pared its losses.
(With inputs from agencies)
Source: Stocks-Markets-Economic Times
