Informist, Tuesday, Nov 16, 2021

By Abhishek Saini and Ankika Biswas

MUMBAI– Domestic headline indices snapped a two-day gaining streak and the Nifty 50 ended below the crucial support level of 18000 points, as lack of supportive cues from the global markets prompted investors to shift bets to haven assets like government bonds and the US dollar.

Rising yields on the US 10-year treasury bill, a firm US dollar index near the 16-month-high level hit earlier in the month, along with the US equity futures contracts trading lower saw selling pressure intensify in the market.  

The Nifty 50 index closed at 17999.20 points, shedding 0.6%, while the Sensex closed at 60322.37 points, down 0.7%. However, the Nifty 50 and the Sensex managed to close higher than their intraday lows of 17958.80 points and 60199.56 points, respectively. 

Analysts expect the consolidation phase in the headline indices to continue going ahead, with the Nifty 50 seen moving in a range of 17900-18300 points. 

The rate-sensitive banking sector was among the worst hit today. Nifty heavyweights HDFC Bank, Kotak Mahindra Bank and ICICI Bank ended 0.6-1.2% lower, pushing the Nifty Bank index to close over 1% lower at 38307.10 points, nearly 8% off its record high hit on Oct 25.

Banks are underperforming as the market is pricing in the US Federal Reserve's interest rate hike, said a research analyst with Edelweiss Securities. The outlook for the Nifty Bank index looks bearish, and it could drop below the 37000-level. 

Apart from banks, sharp losses in shares of Reliance Industries also weighed on the indices. The stock slumped over 3% today and fell below the 2,500-rupee mark during the day for the first time in five sessions. The scrip ended over 2% lower at 2517.90 rupees.

Losses were also seen in other frontline sectors such as metals and consumer goods.

However, automobile companies, another rate-sensitive sector, bucked the market trend on reports that the worst phase of the semiconductor chip shortage is now over. The chip shortage issue in the automobile sector is now in the rearview mirror given the rise in semiconductor production in October, Morgan Stanley said in its report. 

Major companies like Tata Motors and Mahindra & Mahindra ended 3% higher each, respectively, while the shares of Maruti Suzuki India closed over 7% higher. This helped Nifty Auto index buck the weak trend and end over 2% higher. 

Among other specific stocks, shares of some cement companies erased their gains and several others extended their day's losses as companies dropped their plans to hike prices due to the weak demand environment in November. Further, some companies also reduced prices in Delhi and adjoining regions by 15 rupees per 50 kg.

Shares of India Cements, Ultratech Cement, Dalmia Bharat, The Ramco Cements and Orient Cement fell 1-4%.

Among other major gainers, shares of Coforge closed over 4% higher following the company's plans to file papers with the US Securities and Exchange Commission for an initial public offer through the American Depository Receipts route.

Further, shares of newly listed PB Fintech closed nearly 12% higher after US-based Capital Research And Management Co A/C New World Fund Inc purchased 3.42 mln shares of the company through a bulk deal on the NSE.

As for the other new debutant, shares of Sigachi Industries hit an upper circuit for the second straight day of trading on the bourses, suggesting that strong investor appetite for the stock remains intact following a blockbuster listing on Monday.

In the broader market, while buying interest was seen in the small-cap space, the mid-cap segment succumbed to selling pressure. While mid-cap indices ended 0.2-0.4% lower, most small-cap indices closed 0.3-0.6% higher.

* Among Nifty 50 stocks, 13 rose and 37 fell 

* Among Sensex stocks, 9 rose and 21 fell

* On the NSE, 895 stocks rose, 1,103 fell and 86 were unchanged

* On the BSE, 1,602 stocks rose, 1,729 fell and 143 were unchanged

* Nifty Auto: up 2.5%; Nifty IT: up 0.5%; Nifty Bank: down 1%

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BSE                                             National Stock Exchange
Sensex: 60322.37, down 396.34 pts (0.7%)            Nifty 50: 17999.20, down 110.25 pts (0.6%) 

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S&P BSE Sensitive Index                         Nifty 50
Lifetime High:62245.43 (Oct 19)                 : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18)            : Record Close High: 18477.05 (Oct 18)
2021 1st day close: 47868.98 (Jan 1)            : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61765.59 (Oct 18)            : 2021 Closing High: 18477.05 (Oct 18) 
2021 Closing Low: 46285.77 (Jan 29)             : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 62245.43 (Oct 19)         : 2021 High (intraday): 18604.45 (Oct 19)
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)

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End

Edited by Snigdha Kuttikat

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