Informist, Monday, Oct 23, 2023
By Anshul Choudhary
MUMBAI – The concerns around high US bond yields, geopolitical tensions in West Asia, weakness in global markets culminated into a wide sell-off towards the end of today's session. Today, the Nifty 50 fell by 260 points, its steepest fall since Feb 22, and closed at its lowest level in over a month at 19281.75 points.
The Nifty 50 has now fallen by 4.7% from its earlier lifetime high of 20222.45 points. The Sensex ended 1.3% lower at 64571.88 points, closing at its lowest level in over three months.
"The sentiments are negative as yields in the US are hitting 5%, the situation in the Middle East is not improving, and there are continuous outflows from foreign investors," said Narendra Solanki, head of equity research at Anand Rathi Share & Stock Brokers. "There is also a risk-aversion taking place due to holiday tomorrow."
The US 10-year Treasury yields have surged since Thursday after the US Federal Reserve's Chairman Jerome Powell reiterated that rates would be higher for longer as controlling inflation would require a slower-growing economy. The benchmark 10-year US bond yields rose to intraday high of 5.022% today.
This pushed Dow Jones Industrial Average's December futures contract lower, which fell as much as 230 points to 33026 points today. "Dow Jones index is heading towards a major breakdown, and we are seeing its impact on Indian markets as well," said Jay Vora, senior technical & derivatives analyst at Indiacharts.com.
Indian equity markets are closed on Tuesday on account of Dussehra.
"There was some panic-type situation today," said Mehul Kothari, assistant vice-president of technical research.
Indices saw losses across sectors, which worsened after 1430 IST. The Nifty 50 started falling sharply after it fell below the support of 19500 points and could not recover. Only two Nifty 50 stocks managed to close in the green. Information technology and metal stocks were some of the worst hit, with LTIMindtree, Adani Enterprises, and Hindalco Industries falling over 3% each.
Shares of JSW Steel fell 2.7%. The company announced its earnings after market hours on Friday, and posted a consolidated net profit of 27.60 bln rupees against a loss of 8.48 bln rupees a year ago. Post earnings, Prabhudas Lilladar cut the target price for the stock to 903 rupees on expectation of pressure on margins due to high coking coal prices. It maintained a 'buy' rating for the stock.
Within sectoral indices, Nifty Media ended 5% lower, Nifty PSU Bank fell 3.8% and Nifty Metal fell 3.3%.
The broader market witnessed even steeper losses, with small-cap indices falling 3.6-3.9% and mid-cap indices losing 1.8-2.7%. "Valuations are a major concern now for mid-caps and small-caps," Solanki said. Kothari spoke on similar lines and went on to say that this weakness in the broader market may persist.
Nifty Midcap 100 index and Nifty Smallcap 250 closed at their lowest levels in over a month.
* Of the Nifty 50 stocks, 2 rose and 48 fell
* Of the Sensex stocks, 2 rose and 28 fell
* On the BSE, 593 stocks rose, 3,253 fell, and 144 were unchanged
* Nifty Media: Down 5%; Nifty PSU Bank: Down 3.8%; Nifty Metal: Down 3.3%
BSE NSE
Sensex: 64571.88, down 825.74 pts or 1.3% Nifty 50: 19281.75, down 260.90 pts or 1.3%
S&P BSE Sensitive Index Nifty 50
Lifetime High: 67927.23 (Sep 15, 2023) : Lifetime High: 20222.45 (Sep 15, 2023)
Record Close High: 67838.63 (Sep 15, 2023) : Record Close High: 20192.35 (Sep 15, 2023)
2023 1st day close: 61167.79 (Jan 2) : 2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 67838.63 (Sep 15, 2023) : 2023 Closing High: 20192.35 (Sep 15)
2023 Closing Low: 59288.35 (Feb 27) : 2023 Closing Low: 17311.80 (Oct 17)
2023 High (intraday): 67927.23 (Sep 15) : 2023 High (intraday): 20222.45 (Sep 15)
2023 Low (intraday): 58699.20 (Jan 30) : 2023 Low (intraday): 17098.55 (Jan 17)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1) : 2022 Closing High: 18812.50 (Dec 1)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1) : 2022 High (intraday): 18887.60 (Dec 1)
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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