Key equity indices, Sensex and Nifty50, opened in the red on Wednesday, dragged down by banking and financial stocks amid persistent foreign selling and weak corporate earnings.
The BSE Sensex was trading 331 points, or 0.41%, lower at 80,042. The Nifty50 was down 111 points, or 0.46%, trading at 24,355 around 9:17 am.
The Nifty 50 has fallen over 5.5% in October so far, heading for its worst monthly performance since March 2020, when lockdown-related restrictions shook investor confidence and triggered a global equity market meltdown.
Among Sensex stocks, Sun Pharma, Bajaj Finserv, Titan, HCL Tech, Axis Bank, and ICICI Bank opened lower, while Maruti Suzuki, IndusInd Bank, Tata Motors, TCS, and L&T saw early gains.
Marico shares surged over 9% after the company exceeded second-quarter profit estimates, supported by recent price hikes.
Garden Reach Shipbuilders shares also surged 4% after the company signed a contract for an acoustic research ship in a deal worth Rs 491 crore.
On the sectoral front, Nifty Pharma and Nifty Healthcare each fell 1.5%, while Nifty Bank, Financial Services, and Consumer Durables opened over 0.5% lower. In the broader market, Nifty Smallcap100 rose 0.4%, and Nifty Midcap100 gained 0.1%.
Experts Take
"In the near term the market will be influenced by two factors - one positive and the other negative. The positive is the sharp decline in FII selling to just Rs 548 crores yesterday. This is an indication that the FII tactical trade of ‘Sell India, Buy China’ is coming to an end. With more DII and retail money coming to the market and FII selling tapering off, the market may get a near-term boost, aided by the festive mood," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"But the uptrend is unlikely to sustain since the Q2 earnings numbers indicate softness in earnings for FY25. The consensus earnings estimates are likely to be revised down by most brokerages. With Nifty now trading at about 24 times FY25 estimated earnings, there is no valuation comfort in the market. This negative factor will cap the rally driven by domestic money," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "Nifty can find support at 24,300 followed by 24,200 and 24,100. On the higher side, 24,550 can be an immediate resistance, followed by 24,650 and 24,750."
Global Markets
Asia shares eased on Wednesday on the back of weakness in China, as investors brace for a tightly contested U.S. election that could have huge ramifications for the world's second-largest economy, even as Beijing tries to shore up growth.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.22% in early trade, tracking a decline in Chinese assets. The CSI300 blue-chip index fell 0.16%, while Hong Kong's Hang Seng Index slid 0.64%.
Meanwhile, US stock futures ticked higher, buoyed by a solid result from Google-parent Alphabet, which reported quarterly revenue that beat estimates. Nasdaq futures gained 0.42%, while S&P 500 futures rose 0.36%.
FII/DII Tracker
The foreign institutional investors (FIIs) sold equities worth Rs 548.69 crore on October 29, while domestic institutional investors bought equities worth Rs 730.13 crore on the same day.
Crude Oil
Oil prices stabilised on Wednesday on industry data showing a surprise drop in US crude and gasoline inventories, following two previous sessions of losses on the prospect of hostilities easing in the Middle East.
Brent crude futures gained 21 cents, or 0.3%, to $71.33 a barrel. US West Texas Intermediate crude futures rose 22 cents, or 0.3%, to $67.43 per barrel.
Rupee vs Dollar
The Indian rupee fell 2 paise to 84.07 against the US dollar in early trade. The 10-year U.S. Treasury yield retreated, having hit a four-month high on Tuesday, and the dollar index inched lower.
(With inputs from agencies)
The BSE Sensex was trading 331 points, or 0.41%, lower at 80,042. The Nifty50 was down 111 points, or 0.46%, trading at 24,355 around 9:17 am.
The Nifty 50 has fallen over 5.5% in October so far, heading for its worst monthly performance since March 2020, when lockdown-related restrictions shook investor confidence and triggered a global equity market meltdown.
Among Sensex stocks, Sun Pharma, Bajaj Finserv, Titan, HCL Tech, Axis Bank, and ICICI Bank opened lower, while Maruti Suzuki, IndusInd Bank, Tata Motors, TCS, and L&T saw early gains.
Marico shares surged over 9% after the company exceeded second-quarter profit estimates, supported by recent price hikes.
Garden Reach Shipbuilders shares also surged 4% after the company signed a contract for an acoustic research ship in a deal worth Rs 491 crore.
On the sectoral front, Nifty Pharma and Nifty Healthcare each fell 1.5%, while Nifty Bank, Financial Services, and Consumer Durables opened over 0.5% lower. In the broader market, Nifty Smallcap100 rose 0.4%, and Nifty Midcap100 gained 0.1%.
Experts Take
"In the near term the market will be influenced by two factors - one positive and the other negative. The positive is the sharp decline in FII selling to just Rs 548 crores yesterday. This is an indication that the FII tactical trade of ‘Sell India, Buy China’ is coming to an end. With more DII and retail money coming to the market and FII selling tapering off, the market may get a near-term boost, aided by the festive mood," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"But the uptrend is unlikely to sustain since the Q2 earnings numbers indicate softness in earnings for FY25. The consensus earnings estimates are likely to be revised down by most brokerages. With Nifty now trading at about 24 times FY25 estimated earnings, there is no valuation comfort in the market. This negative factor will cap the rally driven by domestic money," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "Nifty can find support at 24,300 followed by 24,200 and 24,100. On the higher side, 24,550 can be an immediate resistance, followed by 24,650 and 24,750."
Global Markets
Asia shares eased on Wednesday on the back of weakness in China, as investors brace for a tightly contested U.S. election that could have huge ramifications for the world's second-largest economy, even as Beijing tries to shore up growth.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.22% in early trade, tracking a decline in Chinese assets. The CSI300 blue-chip index fell 0.16%, while Hong Kong's Hang Seng Index slid 0.64%.
Meanwhile, US stock futures ticked higher, buoyed by a solid result from Google-parent Alphabet, which reported quarterly revenue that beat estimates. Nasdaq futures gained 0.42%, while S&P 500 futures rose 0.36%.
FII/DII Tracker
The foreign institutional investors (FIIs) sold equities worth Rs 548.69 crore on October 29, while domestic institutional investors bought equities worth Rs 730.13 crore on the same day.
Crude Oil
Oil prices stabilised on Wednesday on industry data showing a surprise drop in US crude and gasoline inventories, following two previous sessions of losses on the prospect of hostilities easing in the Middle East.
Brent crude futures gained 21 cents, or 0.3%, to $71.33 a barrel. US West Texas Intermediate crude futures rose 22 cents, or 0.3%, to $67.43 per barrel.
Rupee vs Dollar
The Indian rupee fell 2 paise to 84.07 against the US dollar in early trade. The 10-year U.S. Treasury yield retreated, having hit a four-month high on Tuesday, and the dollar index inched lower.
(With inputs from agencies)
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