Sensex, Nifty Equal Longest Losing Streak In 2022 Ahead Of RBI Rate Decision; FPIs Stay Net Sellers
Live updates from India's equity markets on Sept. 29.
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India's stock benchmarks declined for the seventh day in a row in a volatile session, dragged by losses in consumer discretionary, power, utilities, banking, auto stocks while healthcare, metal stocks gained.
This is the joint longest losing streak for Sensex and Nifty in 2022 so far, equalling the seven consecutive days of decline that ended on February 24, 2022. The losing run comes after of much anticipated Monetary Policy Committee rate decision by India's central bank.
The Sensex lost nearly 200 points (0.33%) to 56,409.96. The 30-stock gauge rose over 560 points to an intraday high of 57,166.14 in a volatile session.
The Nifty shed 0.24% to 16,818.10, lowest close in two months since June 27, 2022.
Today 25 of Nifty 50 stocks rose, while 25 fell. ONGC, Hindalco, Apollo Hospitals, HDFC Life and ITC were the top Nifty 50 gainers while Asian Paints, Tech Mahindra, Hero MotoCorp, Bajaj Auto, Titan declined the most among index constituents.
The broader indices outperformed their larger peers with MidCap gauge gaining 0.3% and SmallCap measure gaining 0.6%. Ten of the 19 sectoral indices compiled by BSE declined with Power and Utilities measures losing over 1%. On the flipside, healthcare and metal indices added over 1%.
The market breadth was skewed in the favour of bulls. About 1,888 stocks rose, 1,539 fell and 135 remained unchanged.
"Market was extremely volatile on the F&O expiry day, and traders preferred to cut their position in some of the rate-sensitives ahead of the credit policy announcement. The market is already in an oversold position and if the rate hike is above the estimate, then we could see bouts of intra-day volatility with a negative bias for some more time. Technically, despite a solid start, the benchmark Nifty failed to sustain above the 200-day SMA (Simple Moving Average) or 17000 level. In the intraday time frame, the index has formed a double top formation and conversely it is consistently taking support at 16800. As long as the index trades above 16800, the chances of a quick pullback rally is bright. Above the same, the index could retest 16950-17000 levels. However, below 16800, the index could slip till 16700-16650", Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. wrote in a note.
Foreign Investors Net Sellers
Overseas investors remained net sellers for the seventh day in a row, on Thursday.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 3,599.42 crore today; creating a new record of the highest worth of net selling in 14 weeks.
On the contrary, Domestic institutional investors remained net buyers for the eighth straight day and bought equities worth Rs 3,161.73 crore today.
Institutions have net sold Rs 6,023.67 crore worth of equities this month so far and Rs 39,506.75 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Closes Little Changed
Yield on the 10-year bond fell 7bps to 7.27% during the session.
The 10-year bond yield erased all the losses to close at 7.34%
Rupee Trims Gains Against U.S. Dollar
Indian Rupee appreciated 36 paise to 81.58 during the session before paring most of the gains to close at 81.85 against the greenback.
Abbott India, Torrent Pharma Gain Most Among Nifty Pharma Stocks
Aarti Industries Falls Most In Over Nine Months
Shares of Aarti Industries fell over 6.7%, most in over nine months since December 20, 2021. Trading volume is 3.6 times the 30-day average. The relative strength index of the stock is 27, suggesting it may be oversold.
Of the 27 analysts tracking the company, 15 maintain 'buy', four suggest 'hold' and eight recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 27.2%.
The sharp decline comes after Morgan Stanley downgrade its recommendation on the stock from 'underweight' to 'overweight', on Wednesday. The target price has been slashed from Rs 957 to Rs 685, an implied downside of 12.31%.