Informist, Tuesday, Jul 26, 2022
By Vidya Sreedhar
MUMBAI – Domestic equities ended lower due to risk aversion among investors to take aggressive bets in the run-up to the US Federal Reserve's two-day policy meeting, starting today.
Weakness during most of the session saw the benchmark Nifty 50 slip below its key support level of 16500 points intraday and end below that level. The index ended nearly 1% lower at 16483.85 points after it touched a high of 16636.10 points in early trade and later slipped to a low of 16463.30 points.
The 30-stock Sensex shed over 497 points and ended around 1% lower at 55268.49 points, after it touched a high of 55834.38 points and then a low of 55203.43 points intraday.
As inflation remains at a multi-decade high in the US, expectations are high that the US Fed will raise interest rates aggressively.
The Fed has raised interest rates by 150 basis points since March, and economists at BofA Securities expect another 125-bps hike by September.
"Current inflation of almost 9% in the US is far from their target inflation (rate) of 2%, and hence, at least 150 bps of a rate hike in this cycle (July-August) can't be ruled out, effectively ending the pandemic era support for the US economy," said Aishvarya Dadheech, a fund manager at Ambit Asset Management.
An aggressive rate hike or a very hawkish commentary for the remaining leg of the rate hike cycle will make investors jittery, Dadheech said.
LAGGARDS
Shares of information technology companies witnessed selling pressure as challenges to earnings growth in the near term turned away investors. The Nifty IT index shed nearly 3% and ended at 27418.85 points. In the small-cap space, shares of Tanla Platforms slumped to a 17-month low today after the company reported dismal earnings.
Shares of automobile companies such as Hero MotoCorp, Tata Motors, Eicher Motors, and Bajaj Auto ended over 1-2% lower. However, Bajaj Auto ended slightly off the day's low as it reported an expansion in operating margin and a growth in profit for the June quarter.
Shares of Zomato remained in the unfavoured list as they shed over 12% and hit a record low of 41.20 rupees. The stock has lost over 22% in two sessions, and market participants see room for further losses in the coming sessions.
GAINERS
Although the market breadth was negative, selective stocks made it to the list of gainers, with one of them being Bajaj Finserv. The stock gained nearly 6% and also touched a one-month high intraday as the company plans to consider bonus issue and a stock split in its board meet later this week.
Shares of Asian Paints recouped the day's losses and touched a one-month high as the company reported better-than-expected earnings despite inflationary pressures.
Similarly, Ujjivan Small Finance Bank's shares surged nearly 10% and hit an over five-month high of 19.10 rupees as the lender reported an all-around strong performance in the June quarter.
* Among Nifty 50 stocks, 11 rose, 38 fell and 1 was unchanged
* Among Sensex stocks, 8 rose and 22 fell
* On the BSE, 2,177 stocks fell, 1,154 rose, and 136 were unchanged
* Nifty FMCG: Down 1.4%; Nifty Midcap 100: Down 1.3%; Nifty Metal: Down 0.3%
BSE National Stock Exchange
Sensex: 55268.49 points, down 497.73 pts (0.9%) Nifty 50: 16483.85, down 147.15 pts (0.9%)
S&P BSE Sensitive Index Nifty 50
Lifetime High: 62245.43 (Oct 19, 2021) : Lifetime High: 18604.45 (Oct 19, 2021)
Record Close High: 61765.59 (Oct 18, 2021) : Record Close High: 18477.05 (Oct 18, 2021)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17) : 2022 Closing High: 18308.10 (Jan 17)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17) : 2022 High (intraday): 18321.55 (Jan 17)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14) : 2021 Closing High: 18338.55 (Oct 14)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14) : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)-
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
End
Edited by Vidhi Verma
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