Dear
Trader…
The BSE benchmark Sensex plunged 693 points or 0.87% to
settle at 78,956. The broader NSE Nifty Future dropped 198 points or 0.81% to
end at 24,158.
From the Sensex pack, HDFC Bank alone contributed to a
378-point decline, while SBI, ITC, Tata Motors, and Bajaj Finance also weighed
on the index.
Meanwhile, the market capitalisation of all listed companies
on BSE dropped by Rs 4.45 lakh crore to Rs 445.37 lakh crore. HDFC Bank, India’s
top private lender and the heaviest stock in the Nifty 50, fell 3.4%.
Global indices provider MSCI raised the proportion of HDFC
Bank’s shares available for purchase by overseas investors but said the changes
will come into effect in two stages, in August and in November, contrary to
market expectations of one move in this month.
Nifty Auto, FMCG, Media, Metal, Realty, and Oil & Gas
also closed up to 1% lower.
Market sentiment was also influenced by upcoming key data
releases this week. These include US producer price data for July, due later on
Tuesday, and the US consumer price index (CPI) data for July, expected on
Wednesday. The CPI data is anticipated to show a 0.2% month-on-month increase
in inflation.
Global
Market Check –
MSCI’s broadest index of Asia-Pacific shares outside Japan
rose 0.15% to 556.55. Chinese stocks edged down while Hong Kong’s Hang Seng
Index ticked up 0.1%.Japan’s Nikkei jumped over 3% following a holiday
on Monday, a welcome relief after last week’s wild swings that began with a
massive sell-off spurred by a rising yen and fears of a U.S. recession.
Europe’s STOXX 600 index rose 0.3% as investors
held back from making big bets ahead of US producer prices later in the day.
Crude
Oil – Oil prices steadied on Tuesday after
rising for five consecutive sessions, as markets refocused on concerns about
demand after OPEC on Monday cut its forecast for demand growth in 2024 due to
softer expectations in China. Benchmark Brent crude futures were down 30
cents, or 0.36%, at $82.00 a barrel. U.S. West Texas Intermediate crude was
down 29 cents, or 0.36%, at $79.77.
Rupee
vs Dollar – The Indian rupee ended nearly
unchanged on Tuesday as intervention by the central bank helped avert a fall to
the key psychological support level of 84 to the dollar.The rupee closed
at 83.97, nearly unchanged from its close at its all-time low of 83.9725 in the
previous session.
Nifty futures opened at 24349 points against the previous
close of 2424356 and opened at a low 24125 points. Nifty Future closed with an
average movement of 265 points and a decline of around 198 points and closed 24158
points…!!
Meanwhile,
The domestic market plunged into red terrain in
the latter half, amidst mixed global sentiments. Recent IIP data indicates a
lackluster growth in the major manufacturing sector. Persistent selling by FIIs
and elevated valuations is further contributing to the decline.
Despite having minimal impact on the recent adverse
developments, the market currently shifts attention towards underlying earnings
growth, which remains bleak this quarter and may lead to a downgrade if
resilience isn’t shown in subsequent quarters.
At the start of intra-day trading, October gold opened at Rs.70630
fell from a high of Rs.70870 points to a low of Rs.70538 with a decline of 03
points, a trend of around Rs.70735 and September Silver opened at Rs.81168,
fell from a high of Rs.81475 points to a low of Rs.80556 with a decline of 748
points, a trend of around Rs.80937.
Technically, the
important key resistances are placed in Nifty future are at 24158 levels, which
could offer for the market on the higher side. Sustainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24240 – 24373 levels. Immediate support is placed at 24088 –
24008 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
