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Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Bhaskar Dutta and here are the top headlines at this hour.
– Supreme Court says nobody can be forced to take Covid jab
– Heat pushes power demand to record high
– Sufficient stock of edible oils in India
– India-UAE free trade pact comes into force
– Jobless rate rises to 7.83% in April, says CMIE

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets started off the fresh week on a jittery note ahead of the all-important policy statement by the US Federal Reserve on Thursday.

Speculation of the Fed hiking rates by 50 basis points and signalling similar rate actions in the near future sent the US dollar index higher and soured the outlook on emerging market assets, with FIIs relentlessly dumping Indian stocks.

A large selloff in US stock markets on Friday dragged down Asian markets and then domestic stocks in early trade, with technical analysts expressing a pessimistic view on the Nifty50.

The index managed to claw back some ground towards the end of the day, however, settling barely above the technically crucial 17,000 mark. The Nifty50, which swung in a band of 175 points on Monday, has given up 132 points over the last five trading days.

Auto, IT and consumer durables counters saw the heaviest selling pressure while buying in media, metals and private banks provided some relief.

The BSE barometer Sensex settled below the 57,000 mark, losing 85 points for the day. The index, which moved in a band of 642 points, has lost 381 points over the last five trading days.

Broader markets suffered more than their headline peers, with the BSE Midcap and Smallcap indices losing 0.5 and 0.9 per cent, respectively. Fear gauge India VIX gained 4.5 per cent to end at 20.28.

19 of the 30 stocks on the BSE Sensex declined, with Titan and Wipro shedding 3 per cent each. Tech Mahindra and Infosys lost 2 per cent each while Asian Paints gave up 1 per cent.

IndusInd Bank led the gainers with a 4 per cent rise, followed by NTPC which gained 3 per cent and Power Grid which gained 2 per cent. Tata Steel and HDFC also added on 2 per cent each.

11 stocks hit upper circuits, while 7 tested their lower circuit limits during the day. 43 stocks tested their 52-week highs during the session, whereas 35 tested their 52-week lows.

We have Sunil Jain from Nirmal Bang to share his views on the day’s action and the road ahead:

Welcome to the show, sir:

1. Markets traded on a jittery note ahead of the US Fed’s meeting. How much of an impact would a 50-bps US rate hike have on Dalal Street?
2. The LIC IPO is a key theme being talked about as India’s largest ever listing. What would the impact be on the secondary market?

We also caught up with Nirav Chheda of Nirmal Bang Securities Research to decode the technical charts for you.

1. The Nifty50 settled just above the 17,000 level. What do the technical charts suggest about it?
2. Bank Nifty notched up gains even as the headline index fell. What is your outlook?

Asian markets, the ones which were open, ended on a mixed note. European markets were mostly trading with cuts. Meanwhile, US stock futures were up, signalling a firm start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!


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