Indices: The Indian benchmark indices opened considerably lower, with a drop of over 130 points which was in line with the Asian peers and the US markets which closed Friday’s trading session in the negative territory.
The indices witnessed recovery after opening, but went into consolidation before continuing its downward move. The fear index, India Vix witnessed a spike of over 8 percent, posting its best day since July 8. The Nifty index fell over 150 points to close the day in the red. Whereas, Nifty Bank on the other hand, lost over 600 points and ended the day with a loss of over 1%.
Broader Market Movement
Looking at the broader market performance, the indices turned in a mixed performance, as the midcap index ended with a loss of 0.81 percent whereas the small cap index ended with marginal gains of 0.03 percent. Looking at the sectoral performance, barring Nifty Pharma and Realty index, all the other sectoral indices ended in the red, as Banking and Financial indices were the top losing sectors with Nifty Private Bank being the top losing index led by HDFC Bank, IndusInd Bank.
On the stocks specific front, 41 stocks out of Nifty 50 ended in the negative territory with heavy weight HDFC Bank being the top loser, along with HDFC Life and Indusind Bank among the other top losing stocks. NTPC, BPCL and Divis Labs were among the top gainers, each gaining more than 1 percent.
Stocks in News
Shares of HDFC Bank tumbled more than 3 percent in today’ session, as the company posted higher standalone profit and net interest income for the first quarter of FY22 compared to the same quarter last year.
The stock ended as the top loser of the day. Shares of Just Dial fell over 5 percent as reports that Reliance Retail Ventures, the subsidiary of Reliance Industries, will take a controlling stake in Just Dial. L&TFH shares corrected over 5 percent after the company declared its Q1 FY22 results.
Global Data Front
The US benchmark indices moved sharply lower over the course of the trading session on Friday after failing to sustain an early move to the upside. The initial upside was on the back of an unexpected increase in retail sales in the month of June. For the week, the tech-heavy Nasdaq tumbled by 1.9 percent, the S&P 500 slumped by 1 percent and the Dow decreased by 0.5 percent.
The futures of Wall Street’s three major indices are trading sharply lower. The Dow Jones Futures down 1.44 percent, the Nasdaq Futures down 0.94 percent, and the S&P 500 Futures down 1.20 percent. While on the European front, the indices are trading deep in the negative territory as FTSE, DAX and CAC 40 were trading with a cut of over 2 percent.
To Summarise, the benchmark indices opened the day with sharp cuts but managed to reduce some losses at the end of the day, yet ended in the red. The 30-share BSE Sensex ended at 52553, down 586 points or 1.10 percent and the Nifty index ended at 15752, down 171 points or 1.07 percent. The levels to watch on Nifty for the coming days are 15900 – 15950 on the upside, and on the downside, 15700 – 15650 would be the levels to watch out for.
This article is shared with Prittle Prattle News in the form of a Press Release.
By Mr. Aamar Deo Singh, Head – Advisory, Angel Broking Ltd.