Dear Trader –
Indian shares fell on Thursday amid weakness in
global equities markets, rise in crude oil prices and persistent FII selling.
The BSE Sensex declined 610 points or 0.92%, while its NSE counterpart Nifty50
was below the 19,550 level.
Today’s bloodbath resulted in the market
capitalisation of all listed companies on BSE declining by Rs 2.55 lakh crore
to Rs 317.05 lakh crore.
Among Sensex stocks, Tech Mahindra, Asian Paints
and Wipro were the top laggards, falling 2-4%. Kotak Mahindra, Bajaj Finserv,
Infosys, and ITC also declined. On the other hand, L&T, Axis Bank, Bharti
Airtel, Power Grid, and SBI were in the green.
The broader market indices – Nifty Smallcap100
and Nifty Midcap100 plunged 0.4% and 0.1.3%, respectively.The market
breadth was skewed in favour of the bears. About 2,158 stocks declined, 1,504
gained, and 128 remained unchanged on the BSE.
Global Markets –
Surging US Treasury yields and the dollar on
fears that interest rates will remain higher for longer has been weighing on
the global equity markets since the Federal Reserve struck a hawkish tone
earlier in the month.
In Thursday’s trade, the Hang Seng fell 1% and is
close to a 10-month low. The mainland CSI300 fell 0.2%. Japan’s Nikkei fell
1.8%.Meanwhile, the pan-European STOXX 600 index slipped 0.2%, while
Germany’s DAX eased 0.2%.
Evergrande Effect – On Thursday, shares
in cash-strapped developer China Evergrande were suspended in Hong Kong after a
report that chairman Hui Ka Yan was under police watch.
Oil Extends Rally –
Oil extended gains Thursday to a fresh one-year
high and towards the $100-a-barrel mark on concerns about growing demand and
waning supplies.
Brent crude futures were up 36 cents to $96.91 a
barrel after rising to the highest since November earlier in the session.
US West Texas Intermediate crude futures (WTI) were up 24 cents at $93.92 a
barrel, after rising above $95 earlier in the session for the first time since
August 2022.
Currency Watch – The Indian rupee
rose 3 paise to $83.19 against the US dollar on Thursday. The dollar index,
which tracks the movement of the greenback against a basket of six major world
currencies, declined 0.29% to 106.36 level.
Nifty futures opened at 19828.90 points against the previous close
of 19860.70 and opened at a low of 19610.10 points. Nifty Future closed with an
average movement of 250.06 points and a decline of around 173.90 points and 19655.00
points…!!
On the NSE, the midcap 100 index will decline 1.32% and small cap100
index is rise 0.41%.
At the start of intra-day trading October gold opened at Rs.57631 fell
from a high of Rs.57647 points to a low of Rs.57450 with a decline of 122 points,
a trend of around Rs.57550 and October Silver opened at Rs.70562, fell from a
high of Rs.70866 points to a low of Rs.70457 with a rise of 281 points, a trend
of around Rs.70830.
Meanwhile,
The selling was broad-based, as investors are on
alert given the rise of oil prices. If crude continues to stay above the 90 USD
level, it will be a threat to inflation and boil the operational margins.
Globally, US GDP data and the FED chief speech
will be watched carefully, which will set the future trend. Currently, the
combination of higher interest rates and US bond yields are influencing FIIs to
stay in the selling mode.
Technically,
the important key resistances are placed in August Nifty future are at 19655 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 19737 – 19808 levels. Immediate support is placed at 19606 –
19505 levels.
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