The Nifty 50 index had risen 4.6% this month until Aug. 18, after which investors began to book profits. The index shed 2.6% in the last two sessions.
“The correction was very sharp in the last few days and this isn’t a trend reversal… Market is moving down,” said AK Prabhakar, head of research at IDBI Capital, adding that there was pressure on both ends with the derivative expiry on Thursday.
Sentiment was bearish, as Asian shares fell for a sixth straight session after a renewed spike in European energy prices stoked fears of recession.
Higher U.S. Treasury bond yields and slump in the euro to 20-year lows further pressured markets.
IT stocks weighed down stocks in India, with the Nifty IT index falling 1.7%.
Infosys Ltd fell 2% and was the top percentage loser on the Nifty 50 index.
A media report said the IT major had reduced average variable payout to 70% for the first quarter on margin pressure.
Nifty Energy index was down 1.2%.
Among gainers, the Nifty Auto index was up as much as 1.5%. Mahindra and Mahindra and Ashok Leyland were up 1.5% each.
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Investment via P-notes declines to Rs 75,725-cr in July
Investment in the Indian capital markets through participatory notes declined to Rs 75,725 crore at the end of July, the lowest level in nearly two years, mainly in the wake of aggressive rate hikes by the US Fed. This also marks the third consecutive monthly decline in investment numbers. Participatory notes (P-notes) are issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly.They, however, need to go through a due diligence process.
Rupee falls 4 paise to close at 79.88 against US dollar
The rupee depreciated 4 paise to close at 79.88 (provisional) against the US dollar on Tuesday, tracking a strong American currency in the overseas market and rising crude oil prices. At the interbank foreign exchange market, the local currency opened at 79.85 and saw an intra-day high of 79.81 and a low of 79.90 against the American currency.It finally ended at 79.88, down 4 paise over its previous close.In the previous session, the rupee had closed at 79.88 against the US dollar.
Nifty ended the day with a significant green candle that pierced through the body of the previous bear candle on the daily chart. On the lower end, the Nifty found support at a near-term moving average. Going ahead, the trend may remain positive as long as the index holds above 17400 on a sustained basis. On the higher end, 17700 may act as immediate resistance; a decisive move above 17700 may induce a rally towards the recent high of 18000.
– Rupak De, Senior Technical Analyst at LKP Securities
Fear of uncertainty is visible in the market as they move with high volatility, led by weak signals from global peers, while a stronger domestic economy is providing some comfort. Global markets were under pressure with a spike in European energy prices and rate hike fears ahead of the Jackson Hole gathering. On the domestic front, gains in banks, autos and metals were countered by selling in IT stocks as majors are scaling down variable pay due to margin pressure.
– Vinod Nair, Head of Research at Geojit Financial Services
Advance-decline ratio at nearly 2:1
Sector Watch: Barring Nifty IT, all indices end higher
Sensex Heatmap: Top gainers & losers from the index
Closing Bell: Sensex rebounds after 2-day break, ends 257 pts higher; Nifty tops 17,550; M&M jumps 4%, Adani Power drops 5%
MCA likely to approve NMDC Nagarnar steel plant demerger in the August 25th meeting; NMDC stock jumps 6%
MCA likely to approve NMDC Nagarnar steel plant demerger in the August 25th meeting, sources tell @Meghnamittal23.… https://t.co/cGVzG4e4IW
— ET NOW (@ETNOWlive) 1661248662000
Gold rose by Rs 157 to Rs 51,707 per 10 gram in the national capital on Tuesday amid an increase in international yellow metal prices, according to HDFC Securities. In the previous trade, the precious metal settled at Rs 51,550 per 10 gram. Silver also jumped by Rs 364 to Rs 55,662 per kg.
Drug firm Unichem Laboratories on Tuesday said it has received approval from the US health regulator to market Carbamazepine Tablets, an anticonvulsant drug, in the American market.
Price as on 23 Aug, 2022 03:17 PM, Click on company names for their live prices.
Sensex Heatmap: Top gainers & losers at this hour
SpiceJet airline is looking to raise funds to the tune of Rs 2000 cr; stock spikes 4%
SpiceJet airline is looking to raise funds to the tune of Rs 2000 cr. Recently the airline board passed the resolut… https://t.co/E9hCqYt1Fz
— ET NOW (@ETNOWlive) 1661244206000
SBI expects India’s April-June GDP growth at 15.7% YoY
Indian economy is expected to have grown by 15.7% year-on-year in April-June, with a large possibility of an upward bias, State Bank of India’s economic research wing says. Of the 41 high frequency leading indicators, 89% showed an acceleration in Q1FY23 compared with 75% acceleration in Q1FY22,” Soumya Kanti Ghosh, group chief economic adviser at SBI says in a note. (Source: Reuters)
Indian EV market to hit annual sales of 17 mn units by 2030: Report
- India’s electric vehicle market is expected to expand at a compounded annual growth rate of 49 per cent between 2021-2030, with the segment’s volumes set to cross annual sales of 17 million by 2030, a new report said on Tuesday.
- This projected growth is expected to be driven by factors such as rising fuel prices, entry of new players, advancement in EV technology, continued subsidy support from both the central and state governments as well as anticipated implementation of emission standards, India Energy Storage Alliance (IESA) said in its report.
Gujarat Mineral Development Corporation to partner with technology consultants for Dry Beneficiation Technology Pyrite/Sulphur removal plant
Price as on 23 Aug, 2022 12:35 PM, Click on company names for their live prices.
Rated Indian cos better placed to withstand rising interest rates, inflation: S&P
Companies and banks in India could feel the bite of rising rates and inflation, but rated firms are better cushioned to withstand the pressure, S&P Global Ratings said on Tuesday. It said further hike in interest rates is on the cards as the inflation remains above the RBI’s upper tolerance limit of 6 per cent despite a 140 basis points increase in policy rate in the current fiscal year.”In a stress scenario we conducted, credit profiles will deteriorate for companies that account for 20 per cent of the outstanding debt analyzed. This is according to a stress test of more than 800 largely unrated companies in India, representing USD 570 billion in debt. Rated issuers are generally better cushioned to withstand rising rates and higher input costs,” S&P said in a report.
Global Market Check
- S&P 500 futures fell 0.2% as of 7:09 a.m. in London
- Nasdaq 100 futures lost 0.2%
- Japan’s Topix index fell 1%
- Australia’s S&P/ASX 200 index weakened 1.2%
- South Korea’s Kospi index dropped 1%
- China’s Shanghai Composite index was steady
- Hong Kong’s Hang Seng index was 1% lower
- Euro Stoxx 50 futures fell 0.3%
Adani Group stocks fall after Fitch report
Price as on 23 Aug, 2022 11:48 AM, Click on company names for their live prices.
Several factors will contribute to inflation including spillovers globally including Europe and US, RBI Governor Shaktikanta Das tells ET Now
Several factors will contribute to inflation including spillovers globally including Europe and US, #RBI Governor S… https://t.co/eUbPWVoOiF
— ETMarkets (@ETMarkets) 1661234612000
Adani Group ‘deeply overleveraged’: Fitch
#MarketsWithETNOW | According to Fitch Group's CreditSights, Adani Group is' deeply overleveraged' @creditsights… https://t.co/4lcaMQhJhW
— ET NOW (@ETNOWlive) 1661232244000
Has Inflation peaked? Is the Indian economy on track for a soft-landing? RBI Governor sets the record straight
LIVE | Has Inflation peaked? Is the Indian economy on track for a soft-landing? RBI Governor @DasShaktikanta sets t… https://t.co/Rr418rkP8z
— ET NOW (@ETNOWlive) 1661233146000
A strong US Dollar is bad news for Emerging Market stocks overall, as flows reverse: Ajay Bagga
DXY crossed 109 again yesterday. A little soft this morning in Asia trading. A strong US Dollar is bad news for Eme… https://t.co/fyDi6LrPnB
— Ajay Bagga (@Ajay_Bagga) 1661221726000
IT software stocks trade with cuts; Mphasis, L&T tech worst losers
Price as on 23 Aug, 2022 11:09 AM, Click on company names for their live prices.
Devyani International plunges 7% amid bulk deal reports
Shares of Devyani International plunged as much as 7 per cent during the early trade on Tuesday following reports of bulk deals on the counter. On BSE, 3.17 crore equity shares worth Rs 581.11 crore were traded. On the other hand, more than 1.08 crore shares worth Rs 202.54 crore exchanged hands on National Stock Exchange (NSE). According to a Bloomberg report, about 2.5 per cent of the equity of the company was traded during the early hours on Tuesday. However, the details of buyers and sellers were not known by the time of writing this report.
Selling Returns! Nifty slips below 17,450
The benchmark Nifty50 remained volatile in trade and was last trading below the 17,450 mark. It touched a high of 17,588.55 in trade earlier.
GOLDMAN SACHS ON GLAND PHARMA | Initiate BUY | TARGET PRICE: Rs 2830
- Gland Pharma is a leading global player
- Expect a rebound in FY24E, with a
- 27% topline growth
- EBITDA margins to remain largely stable between FY22 and FY24E (Text Source: ET NOW)
And when the markets are in a bearish phase, people squaring off positions creates a really large impact. That’s what happened in the US from March to June this year. The last bit of the fall was leverage being unwound really fast.
In India, we did not have that problem this year because there was hardly any leverage – be it at the customer level, broker level or at the entire industry level. There were hardly any forced leverage square offs, which meant that when other markets fell we fell less. And as it bounced back, we are almost close to all-time highs.
Apple Inc plans to start manufacturing iPhone 14 in India about two months after the product’s initial release out of China, Bloomberg News reported on Tuesday.
Price as on 23 Aug, 2022 10:17 AM, Click on company names for their live prices.
Yes Bank, Adani Power, Tata Steel among most active stocks on NSE
Price as on 23 Aug, 2022 10:16 AM, Click on company names for their live prices.
Market View: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The sharp decline in India is also due to some profit taking by DIIs who have been sustained sellers in recent days. Profit booking is normal since the market had risen too fast ( Nifty rallied 18% from the June lows) in 2 months. Investors can now buy the dips in a calibrated manner. High quality financials, autos and capital goods can bounce back sharply when the market trend turns.
SENSEX RECLAIMS 59,000
Nifty is now back to Oct-2021 level; Financials, cement, telecom and L&T are top picks, notes Neelkanth Mishra of Credit Suisse in his latest note
#MarketsWithETNOW | Nifty is now back to Oct-2021 level; Financials, cement, telecom and L&T are top picks", notes… https://t.co/TIQUYAJXyR
— ET NOW (@ETNOWlive) 1661217571000
MOSL on IT sector
Macroeconomic weakness due to rising interest rates, elevated inflation, and the resultant slowdown in corporate growth has led to heightened concerns on demand for IT Services. We analyzed 40 companies across seven key industries to attain a sense of demand environment. Key snippets of their commentaries suggest limited cutbacks, with the exception of severely impacted sectors such as Retail. We continue to see long-term demand for IT Services, and retain our positive stance on the sector.
You always get opportunities in market: Sandip Sabharwal
There is no "Missing the Bus" in the #Stockmarkets You always get opportunities You actually should be careful wh… https://t.co/8mK64ceSpj
— sandip sabharwal (@sandipsabharwal) 1661166942000
Auto stocks in fast lane! Here are the 5 top winners
Price as on 23 Aug, 2022 09:46 AM, Click on company names for their live prices.
MARKET NOW | Sensex recovers from day’s low, trades flat
After starting the session with deep cuts, the benchmark index traded flat 15 mins into the session as buying returned after 2-day selloff.
Solana topped among the losers followed by Shiba Inu with a 2 per cent cut, whereas Cardani and Ethereum posted similar gains each. The global cryptocurrency market cap was trading marginally higher at the $1.02 trillion mark, almost unchanged in the last 24 hours. However, the total trading volume rallied over 18 per cent, close to $70.62 billion.
Barring Metal, all indices trade lower on NSE
OPENING BELL: Sensex drops 380 points, Nifty below 17,400; Adani Power tanks 4%, Wipro 2%
Europe’s energy woes haunt euro, Asian stocks
Asian shares were down for a sixth straight session on Tuesday after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows. Benchmark gas prices in the European Union surged 13% overnight to a record peak, having doubled in just a month to be 14 times higher than the average of the past decade.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 49.5 points, or 0.28 per cent, lower at 17,440.50, signaling that Dalal Street was headed for a negative start on Tuesday.
Tech View: Nifty confirms failed breakout, bears in driving seat
Nifty50 on Monday fell for the second straight day and formed a bearish candle on the daily chart. This was after the formation of the Bearish Engulfing pattern on Friday. Analysts said the index slipped back below a falling trend line, indicating a failed breakout. They see further weakness ahead.
Oil prices rise after Saudi says OPEC could cut output
Oil prices edged up on Tuesday, after Saudi Arabia warned that OPEC could cut output to correct a recent drop in oil futures. Brent crude futures rose 32 cents to $96.80 a barrel by 0004 GMT, after a choppy session on Monday when they dropped by more than $4 before paring losses to trade near flat.
Tokyo shares open lower after US falls
Tokyo stocks opened lower Tuesday after jitters over the speed of rate hikes by the US Federal Reserve drove down Wall Street shares overnight. The benchmark Nikkei 225 index fell 1.00 percent, or 288.64 points, to 28,505.86 in early trade, while the broader Topix index lost 0.84 percent, or 16.73 points, to 1,975.86.
Wall Street ends sharply lower on fears of aggressive Fed
Wall Street ended sharply lower on Monday as investors fretted about a U.S. Federal Reserve gathering later this week in Jackson Hole, Wyoming, that is expected to reinforce a strong commitment by the central bank to stamp out inflation.
Rupee ends flat at 79.84 against US dollar
The rupee recovered early losses to close flat at 79.84 against the US dollar on Monday amid a strong greenback overseas and massive sell-off in equities. However, lower crude oil prices supported the local unit, forex dealers said.
Sensex, Nifty on Monday
The 30-pack BSE Sensex tanked 872 points or 1.46 per cent, to end below the 59,000 level at 58,773.87. Nifty50, meanwhile, fell 267.8 points to end at 17,490.70.