November 13, 2024
New Delhi, India
Stock Market Highlights
Markets experienced a significant downturn on Wednesday, with the BSE Sensex and NSE Nifty50 indices closing sharply lower. A rise in October retail inflation dampened hopes for a rate cut by the Reserve Bank of India (RBI) next month, triggering a bearish sentiment among investors.
Key Market Indices Performance
- Sensex: Closed at 77,690.95, down 984.23 points (-1.25%)
- Nifty50: Ended at 23,559.05, a decline of 324.40 points (-1.36%)
Both indices traded within tight ranges, with Sensex moving between 78,690.02 and 77,533.30, while Nifty’s range was 23,873.60 to 23,509.60.
Sectoral Performance
- All sectoral indices ended in the red, with significant losses in:
- PSU Bank and Realty indices: Down by over 3%
- Bank Nifty, Auto, Media, Metal, and Private Bank indices: Fell by more than 2% each
- Broader market indices also declined:
- Nifty Smallcap100: Down by 2.96%
- Nifty Midcap100: Down by 2.64%
The bearish trend was driven by weak earnings reports and continued foreign outflows, with FIIs selling equities worth over ₹3,000 crore. Domestic investors managed to provide some cushion by infusing ₹1,854 crore.
Stock Performance
- Top Losers: Hero MotoCorp, Hindalco, Tata Steel, Mahindra & Mahindra, and Eicher Motors faced heavy losses, declining up to 4.21%.
- Top Gainers: Despite the market rout, Britannia, Tata Motors, Grasim, Asian Paints, and NTPC managed to close in the green, with gains reaching up to 0.40%.
Market Sentiment: India VIX and Inflation Impact
The India VIX, a measure of market volatility, surged by 5.03%, closing at 15.33 points. The spike in volatility reflects investor anxiety amid rising inflationary pressures. The domestic inflation rate was recorded at 6.2% in October, exceeding the RBI’s preferred range, further dampening market expectations.
Broader Economic Indicators
- Foreign Outflows: FIIs sold ₹3,000 crore worth of equities
- Domestic Inflows: DIIs invested ₹1,854 crore
- Commodity Market:
- Gold prices dipped amid cautious trading ahead of US inflation data
- Brent crude is trading at $72.09 per barrel, reflecting global economic uncertainties
IPO Updates and Market Debut
- Swiggy IPO: Listed at an 8% premium over its issue price, showing initial positive investor interest despite broader market weaknesses.
- Zinka Logistics IPO: Opened for subscription amid mixed market sentiment.
Outlook
With higher-than-expected inflation and continued foreign selling, the market outlook remains cautious. Investors are closely monitoring global economic indicators, especially the upcoming US inflation data, which could further influence market movements.
The day’s sharp decline across sectors and indices reflects broader concerns over domestic inflation, earnings reports, and foreign capital flows. Analysts advise caution and suggest that investors adopt a wait-and-watch approach until clearer trends emerge in the global and domestic economic landscape.
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