Indian equity markets reversed their day’s gain and ended in the red on Thursday after the Reserve Bank of India (RBI) maintained key policy rates as expected, but hinted at tight monetary conditions to fight inflation.
The 30-share BSE benchmark Sensex ended 294 points or 0.47% lower to settle at 62,848. The broader NSE Nifty dropped 92 points or 0.49% to end at 18,634.The RBI’s monetary policy committee (MPC) left the repo rate at 6.50% for a second straight meeting but signalled that monetary conditions will remain tight for some time.
In the Sensex pack, Sun Pharma, Kotak Bank and Tech Mahindra were the top laggards, falling over 2%. M&M, Tata Motors, HUL, Axis Bank, TCS and Bajaj Finance also end lower. On the other hand, NTPC, Power Grid, L&T, HDFC, Reliance and HDFC Bank closed higher.
Sectorally,Nifty Realty declined 1.59% and Nifty IT fell 1.12%. Banks, financial, auto, FMCG, media, pharma, and healthcare sectors also closed lower. In the broader market, Nifty Midcap100 fell 0.55%, while Smallcap100 dropped 0.95%.Meanwhile, the market capitalisation of all listed companies on BSE declined by Rs 1.54 lakh crore to Rs 287.51 lakh crore.
Global Markets –
Asian shares fell Thursday after heavy selling of big-name tech stocks pushed benchmarks lower on Wall Street. Japan’s benchmark Nikkei 225 sank 0.9%, while South Korea’s Kospi slipped 0.2%. Hong Kong’s Hang Seng edged less than 0.1% lower, while the Shanghai Composite gained 0.4%.
The European STOXX 600 is down 0.1%, with market attention staying on the outlook for global interest rates, after hikes from the Australian and Canadian central banks this week, while the coming weeks will see more meetings from the Fed, ECB and BoE.
Currency watch –The Indian rupee ended mostly flat after the Reserve Bank of India (RBI) kept the key policy rate unchanged as widely expected, while the focus shifted to the U.S. Federal Reserve rate outcome next week.
The rupee ended at 82.57 to the US dollar, compared with 82.5475 in the previous session. The rupee moved in a narrow range of 82.54-82.6125 during the day.
Oil fell – Oil fell on Thursday as worries about weakening demand in a global economic slowdown overshadowed a pending drop in supply resulting from Saudi Arabia’s pledged production cuts.Brent crude fell 28 cents, or 0.4%, to $76.67 a barrel, while U.S. West Texas Intermediate crude slipped 27 cents, or 0.4%, to $72.26.
Nifty futures opened at 18811.10 points against the previous close of 18798.40 and opened at a low of 18693.50 points. Nifty Future closed with an average movement of 148.50 points and a rise of around 88.45 points and 18709.95 points…!!
On the NSE, the midcap 100 index will down 0.55% and small cap 100 index is closing down 0.95%.
At the start of intra-day trading, August gold opened at Rs.59528 fell from a high of Rs.59580 points to a low of Rs. 59425 with a decline of 36 points, a trend of around Rs.59467 and JULY Silver opened at Rs.71798, fell from a high of Rs.72390 points to a low of Rs.71790 with a rise of 495 points, a trend of around Rs.72220.
Meanwhile, Investor sentiment took a downturn following the in-line monetary policy announcement by the RBI, as the market had higher expectations for a more optimistic revision in the inflation outlook, taking into account the recent easing of inflation data.
Technically, the important key resistances are placed in Nifty future are at 18709 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 18770 – 18880 levels. Immediate support is placed at 18606 – 18474 levels.