Informist, Thursday, Oct 26, 2023
By Anshul Choudhary
MUMBAI – The Nifty 50 ended lower for the sixth straight session with the index losing nearly 6.8% from its earlier lifetime high of 20222.45 points. Today, losses in the index heavyweights such as HDFC Bank, Reliance Industries, and ICICI Bank kept the indices under pressure. At the same time, several other large-cap stocks ended over 3% down each, leading to further losses.
"We are seeing an impact of a number of factors such as affect of war on crude oil prices, high bond yields in the US, the upcoming state elections...market reaction right now is a culmination of these issues," said Trivesh D., chief operating officer at Tradejini.
Today, the Nifty 50 and the Sensex closed 1.4% lower each at 18857.25 and 63148.15 points, respectively.
Analysts did not think correction in large-caps was an alarming situation. "I don't think there are any new factors for the market fall today and in a correction phase like this, 8-10% fall is normal," said Ajit Mishra, vice-president, technical research, at Religare Broking.
HDFC Bank, Reliance Industries, and ICICI Bank--three stock with the maximum weightage in Nifty 50--have lost 4%, 3.2%, and 2.6%, respectively, this week. Today, HDFC Bank closed at its lowest level in over 11 months at 1,463.4 rupees. RIL fell to its lowest level in over five months at 2,226.5 rupees, and ICICI Bank ended at its lowest level in over six months at 908.65 rupees.
The losses were not limited to heavyweights and the market witnessed selling across sectors, with all the sectoral indices ending lower. Among stocks, Mahindra and Mahindra ended 4% lower, while Bajaj Finance, UPL, Asian Paints, Bajaj Finserv lost over 3%.
Only five stocks of Nifty 50 managed to end in the green today.
Asian Paints was among the major companies that released its earnings today. Its consolidated net profit for the September quarter rose 54% on year to 12.05 bln rupees, which was slightly lower than analysts' estimates of 12.3 bln rupees. The stock extended losses after the announcement of results and ended 3.3% lower at 2,960.30 rupees.
Shares of Axis Bank were among the handful of gainers today and closed 1.7% up--the maximum gain any large-cap stock could accumulate today. Various brokerages raised their target prices on the bank after it posted strong earnings in the Jul-Sep quarter. Brokerage firm Nirmal Bang raised the target price on the scrip by 4.5% to 1,181 rupees. Emkay Global raised the target price by over 3% to 1,300 rupees.
Apart from this, investors also reacted to the earnings of Tech Mahindra, which were announced on Wednesday post market hours. Its consolidated revenue fell 2.2% on quarter to 128.64 bln rupees, while the net profit saw a much steeper fall of 28.7% to 4.94 bln rupees.
Post weak earnings, several brokerages lowered the target price of the scrip. Nomura lowered the target price on Tech Mahindra by over 10% to 1,320 rupees while retaining a 'buy' rating on the stock. Similarly, Nirmal Bang also lowered the target price of the stock by almost 4% to 1,229 rupees. "We believe the impact of portfolio restructuring and weak demand will weigh on growth and margin in 2H (Oct-Mar) and hence, FY24F (forecast of 2023-24) as a whole," Nomura said in a note.
In the broader market, Nifty mid-cap and Nifty small-cap indices witnessed sharper losses for most of the session but later came off lows, to end 1.1-1.6% and 0.3-0.6% lower, respectively. These have fallen on concerns around valuations.
"Earnings of certain stocks in this space have not been able to justify high valuations, which had stretched to PE (price-to-earnings) ratio of over 100," said Trivesh.
* Of the Nifty 50 stocks, 5 rose and 45 fell
* Of the Sensex stocks, 4 rose and 26 fell
* On the BSE, 1,330 stocks rose, 2,335 fell, and 135 were unchanged
* Nifty Metal: Down 1.6%; Nifty Auto: Down 1.6%; Nifty Financial Services: Down 1.6%
BSE NSE
Sensex: 63148.15, down 900.91 pts, or 1.4% Nifty 50: 18857.25, down 264.90 pts, or 1.4%
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 Deepshikha Bhardwaj
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