India Stocks Review: End lower as fear of longer Fed rate hike looms

Informist, Tuesday, Dec 6, 2022


By Vaibhavi


NEW DELHI – Domestic equity indices witnessed selling pressure today as fears that the US Federal Reserve may have to keep raising interest rates for a longer time took a toll on investor sentiment. The fall in domestic equities was in-line with the losses across most global markets.


The broader sentiment in the market reflected the weakness as the advanced-to-decline ratio favoured the laggards. Weakness also spread across the broader market as investors chose to book some profits after their recent outperformance. All the small and mid-cap indices on the NSE ended with losses.


Today, the Nifty 50 and the BSE Sensex opened lower on weak global cues and extended their losses to hit lows of 18577.90 points and 62390.07 points, respectively. However, some buying at lower levels helped the indices come off their day's lows and end at 18642.75 points and 62626.36 points, both down 0.3% from their previous close.


"Today's decline can be largely attributed to profit booking in the US market which spilled over to other markets, including ours. Moreover, some caution also persisted due to the Reserve Bank of India policy meet outcome on Wednesday and state election results on Thursday. In a way, the market is taking a breather after hitting multiple record highs last week," said Ajit Mishra, vice-president – research, Religare Broking.


Despite pricing in a 25-35 bps rate hike from the RBI, investors still chose to remain on the sidelines as they await the commentary from Governor Shaktikanta Das on the future policy tightening trajectory of the central bank, analysts believe.


The fall in domestic equities also weighed on the Indian rupee as it depreciated to a near one-month low of 82.63 against the US dollar.


Metal and information technology stocks bore the brunt of selling today. Concerns over rising possibility of a recession in advanced economies triggered fears of a slowdown in demand and pulled down prices of base metals. Some profit booking after their recent strong gains was also at play, resulting in a 1-3% fall in frontline metal stocks.


The information technology pack also mirrored the losses in its global peers after the sentiment for growth-oriented sectors took a hit in the wake of a rise in US bond yields. The Nifty IT index ended 1.5% lower. However, analysts maintain that the correction in the sector in 2022 has moderated its valuations and consequently value buying in IT counters may soon kick in.


Comprising a few pockets in the market that managed to eke out gains today was consumer goods. In the wake of rising fears of a slowdown in economic growth, investors chose to shift bets towards more quality stocks and sectors that are more cushioned in the face of recessionary risks, which helped in the outperformance of consumer goods stocks today, said a head of research at a brokerage firm.


* Among Nifty 50 stocks, 19 rose, 30 fell and 1 was unchanged

* Among Sensex stocks, 15 rose, 15 fell 

* On the BSE, 1,596 stocks rose, 1,899 fell, and 137 were unchanged

* On the NSE, 1,313 stocks rose, 932 fell, and 407 were unchanged

* Nifty Media: Down 1%; Nifty FMCG: Up 0.3%; Nifty Pharma: Down 0.8%

BSE                                                National Stock Exchange
Sensex: 62626.36, down 208.24 pts (0.3%)             Nifty 50: 18642.75, down 58.30 pts (0.3%) 

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 63583.07 (Dec 1, 2022)           :  Lifetime High: 18887.60 (Dec 1, 2022)
Record Close High: 63284.19 (Dec 1, 2022)       :  Record Close High: 18812.50 (Dec 1, 2022)

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)




Edited by Maheswaran Parameswaran


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