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Market Watch: What dented market’s confidence today

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.

Finance Ministry to clarify doubts on TDS applicability

Group of Ministers agree on 28% GST on online gaming

Cabinet amends biofuels policy

Ruchi Soya to change name to Patanjali Foods

Sri Lanka gets $160 million from World Bank

UK inflation hits 40-year high of 9%

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

Domestic equity markets surrendered all gains and ended in the red, snapping a two-day winning streak, as investors locked in profits amid concerns over high domestic inflation and a growth slowdown in China.

Headline indices started off on a strong footing as risk appetite improved globally after data released Tuesday showed a strong pace of consumer spending in the US despite high inflation in the world’s largest economy.

US stocks gained post the data, with the bullishness spilling over into Indian markets in early trade.

As the day progressed, however, selling in banks, metal, capital goods and realty stocks dragged the headline indices lower. With the Sensex having surged more than 1,000 points on Tuesday, investors took the chance to lock in trading gains, especially in index heavyweights.

The 30-share pack Sensex fell 109.94 points or 0.20 per cent to close at 54,208.53. The index fell nearly 1 per cent from the day’s high. Its broader peer NSE Nifty also gave up gains to settle below the 16,250 mark.

Broader markets ended largely flat, with the BSE Midcap index falling 0.1 per cent while the BSE Smallcap index added on 0.3 per cent. Fear gauge India VIX fell 2 per cent to end at 22.30.

17 of the 30 stocks on the BSE Sensex fell, with Power Grid slumping 5 per cent, followed by Tech Mahindra which declined 2 per cent. SBI, L&T, Bajaj Finserv and Bharti Airtel each dropped 2 per cent as well. HUL, Ultratech and Asian Paints each rose 2 per cent.

13 stocks hit upper circuits while 7 tested their lower circuit limits during the day. 22 stocks tested their 52-week highs during the session, whereas 20 tested their 52-week lows.

We have Tanusree Banerjee of Equitymaster to share her views on the day’s action and the road ahead:

Welcome to the show ma’am:

1. Benchmark indices were unable to hold onto gains today. What dented the market’s confidence?

2. With interest rates set to head much higher both in the US and India, what should the strategy be for retail investors?

We also caught up with Rajesh Bhosale of Angel One to decode the technical charts for you.

1. The Nifty50 settled near the 16,250 level. What do the technical charts suggest about it?

2. Bank Nifty fared worse than the headline index today. What is your outlook on the sector?

Asian stock markets settled with gains for the day. European markets were largely trading with gains. US stock futures were down, signalling a weak 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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