Informist, Thursday, Dec 15, 2022

By Vaibhavi

NEW DELHI – Domestic equities slipped into red today as the US Federal Reserve hinted towards higher rate hikes throughout 2023, which spooked investors.

The Fed raised interest rates by 50 basis points, a smaller hike as compared to the previous four consecutive 75 bps increases. The US central bank also signalled that it would keep interest rates elevated throughout 2023 to ease price pressures, which was against market expectations of a cut in rate hikes from the second half of next year.

"Markets were disappointed after the Fed indicated that the rate hike regime would continue next year, which further accentuated the already fragile sentiment, prompting investors to trim their equity exposure," said Shrikant Chouhan, head of equity research (retail), Kotak Securities.

Today, benchmark indices opened lower on weak global cues and extended their losses through the day. The Nifty 50 ended 1.3% lower at 18414.90 points and the 30-stock Sensex shed 1.4% to settle at 61799.03 points.

Ajit Mishra, vice-president – research, Religare Broking, did not expect to see such a sharp fall in the market today and anticipated a bounce back after the initial weakness in early trade.

A lack of positive domestic triggers and accentuated weakness after European markets also opened lower may have intensified selling in Indian equities today, analysts said. 

The sharp correction witnessed today also erased much of the gains notched by benchmark indices in the past two sessions and triggered a spike in "fear-gauge" India VIX. The risk aversion on part of investors lifted the India VIX index nearly 7% higher to 13.7325 points.

The market breadth also remained negative as the advance-to-decline ratio titled in favour of declines. Even the broader market faced the brunt of selling, with all small and mid-cap indices on the National Stock Exchange falling 0.4-1.0%.

Even with largely broad-based losses, it was the fall in banks and information technology stocks, along with Reliance Industries, that the dragged key indices sharply lower.

IT stocks snapped their two-day winning streak and fell sharply as anticipation of a high interest rate environment led to a spike in US bond yields, which do not augur well with growth sensitive sectors. The Nifty IT index ended over 2% lower.

Index heavyweight Reliance Industries also shed 1.4% and contributed 27.7 points to the Nifty 50's 245.40-point decline today. 

Private and public sector banks witnessed a bout of profit booking after the recent upswing and dragged indices lower. Bank of India, Union Bank of India, HDFC Bank, ICICI Bank, State Bank of India slipped 1-5%.

However, fertiliser stocks were a bright spot in the otherwise weak trade. Soaring fertiliser prices due to the Russia-Ukraine war and hopes that the government may announce higher subsidies for urea in the next Union Budget aided sentiment for the companies. Most fertiliser stocks ended 3-20% higher.

* Among Nifty 50 stocks, 5 rose and 45 fell 

* Among Sensex stocks, 2 rose and 28 fell   

* On the BSE, 1,405 stocks rose, 2,152 fell, and 123 were unchanged

* Nifty Bank: Down 1.3%; Nifty Metals: Down 2.1%; Nifty MNC: Down 1.1%

BSE                                              National Stock Exchange
Sensex: 61799.03, down 878.88 pts (1.4%)         Nifty 50: 18414.90, down 245.40 pts (1.3%)

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)

End

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Informist, Thursday, Dec 15, 2022

By Vaibhavi

NEW DELHI – Domestic equities slipped into red today as the US Federal Reserve hinted towards higher rate hikes throughout 2023, which spooked investors.

The Fed raised interest rates by 50 basis points, a smaller hike as compared to the previous four consecutive 75 bps increases. The US central bank also signalled that it would keep interest rates elevated throughout 2023 to ease price pressures, which was against market expectations of a cut in rate hikes from the second half of next year.

"Markets were disappointed after the Fed indicated that the rate hike regime would continue next year, which further accentuated the already fragile sentiment, prompting investors to trim their equity exposure," said Shrikant Chouhan, head of equity research (retail), Kotak Securities.

Today, benchmark indices opened lower on weak global cues and extended their losses through the day. The Nifty 50 ended 1.3% lower at 18414.90 points and the 30-stock Sensex shed 1.4% to settle at 61799.03 points.

Ajit Mishra, vice-president – research, Religare Broking, did not expect to see such a sharp fall in the market today and anticipated a bounce back after the initial weakness in early trade.

A lack of positive domestic triggers and accentuated weakness after European markets also opened lower may have intensified selling in Indian equities today, analysts said. 

The sharp correction witnessed today also erased much of the gains notched by benchmark indices in the past two sessions and triggered a spike in "fear-gauge" India VIX. The risk aversion on part of investors lifted the India VIX index nearly 7% higher to 13.7325 points.

The market breadth also remained negative as the advance-to-decline ratio titled in favour of declines. Even the broader market faced the brunt of selling, with all small and mid-cap indices on the National Stock Exchange falling 0.4-1.0%.

Even with largely broad-based losses, it was the fall in banks and information technology stocks, along with Reliance Industries, that the dragged key indices sharply lower.

IT stocks snapped their two-day winning streak and fell sharply as anticipation of a high interest rate environment led to a spike in US bond yields, which do not augur well with growth sensitive sectors. The Nifty IT index ended over 2% lower.

Index heavyweight Reliance Industries also shed 1.4% and contributed 27.7 points to the Nifty 50's 245.40-point decline today. 

Private and public sector banks witnessed a bout of profit booking after the recent upswing and dragged indices lower. Bank of India, Union Bank of India, HDFC Bank, ICICI Bank, State Bank of India slipped 1-5%.

However, fertiliser stocks were a bright spot in the otherwise weak trade. Soaring fertiliser prices due to the Russia-Ukraine war and hopes that the government may announce higher subsidies for urea in the next Union Budget aided sentiment for the companies. Most fertiliser stocks ended 3-20% higher.

* Among Nifty 50 stocks, 5 rose and 45 fell 

* Among Sensex stocks, 2 rose and 28 fell   

* On the BSE, 1,405 stocks rose, 2,152 fell, and 123 were unchanged

* Nifty Bank: Down 1.3%; Nifty Metals: Down 2.1%; Nifty MNC: Down 1.1%

BSE                                              National Stock Exchange
Sensex: 61799.03, down 878.88 pts (1.4%)         Nifty 50: 18414.90, down 245.40 pts (1.3%)

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)

End

Edited by Aditya Sakorkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.