Market Wrap: Sensex and Nifty close lower amidst negative sentiment!
Against the backdrop of cautious global sentiment, European markets are anticipated to commence trading on a lower note. This sentiment is driven by ongoing evaluations of Monetary Policy and renewed concerns surrounding China's Real Estate sector.
Market Update at 3:45 PM: Sensex and Nifty indices have concluded the session with declines, marking decreases of 0.31 per cent and 0.44 per cent respectively.
Similarly, within the Nifty spectrum, the Nifty Midcap has ended with a dip of 0.33 per cent, while the Nifty Smallcap has experienced a more significant decrease, closing lower by 0.6 per cent.
Additionally, the India VIX has recorded a decline of 0.82 per cent, indicating a slight reduction in market volatility.
Among sectoral performances, the Nifty PSU Bank, Nifty FMCG, and Nifty Metal segments have emerged as the top performers, displaying positive trends. Conversely, the Nifty IT, Nifty Realty, and Nifty Pharma sectors have faced losses, ranking among the top losers.
Specifically, within the Nifty 50 index, Adani Enterprises, Adani Ports, and Eicher Motors stood out as top gainers. On the contrary, Coal India, Hero Motocorp, and TCS were prominent losers in this context.
A broader market sentiment analysis reveals that approximately 918 stocks were advancing, whereas 1047 stocks were declining. This marked difference underscores a prevailing negative sentiment within the broader market landscape.
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Market Update at 12:50 PM: In the latest trading session, both the Sensex and Nifty encountered declines of 0.41 per cent and 0.37 per cent respectively. Nifty Midcap followed suit with a 0.3 per cent drop, while Nifty Smallcap faced a more substantial decline, falling by 0.58 per cent.
Against the backdrop of cautious global sentiment, European markets are anticipated to commence trading on a lower note. This sentiment is driven by ongoing evaluations of Monetary Policy and renewed concerns surrounding China's Real Estate sector. European futures, specifically DAX and FTSE, are projected to open with declines of 0.16 per cent and 0.13 per cent respectively.
The India VIX witnessed a decrease of 0.41 per cent, signalling a shift in market volatility.
Nifty Media, Nifty FMCG, and Nifty Metal emerged as the top gainers amidst the market dynamics. However, Nifty IT, Nifty Realty, and Nifty Pharma faced setbacks, positioning them as the top losers.
Notably, Adani Enterprises, Adani Ports, and Eicher Motors made strides in the gainers' category within the Nifty 50. Conversely, Coal India, TCS, and Wipro found themselves among the top losers.
With approximately 766 stocks advancing compared to 1200 stocks facing declines, the broader market sentiment remains characterized by a negative tone.
Market Update at 11:00 AM: In the latest market movements, both the Sensex and Nifty experienced declines of 0.48 per cent and 0.49 per cent respectively. Nifty Midcap mirrored the trend, dipping by 0.28 per cent, while Nifty Smallcap also observed a downtrend with a 0.36 per cent fall.
The India VIX registered a slight surge of 0.65 per cent, marking an uptick in market volatility.
Nifty PSU Bank and Nifty Media emerged as the top gainers in the current scenario. However, Nifty IT, Nifty Realty, and Nifty Metal faced challenges, positioning them as the top losers.
Eicher Motors, Dr Reddy's Laboratories, and Axis Bank were at the forefront of gainers in the Nifty 50, while Wipro, Coal India, and TCS encountered notable losses.
Amid the trading landscape, approximately 834 stocks advanced, with 1116 stocks facing declines. This reflects a prevailing negative sentiment within the broader market spectrum.
Market Update at 9:25 AM: In the initial market movement, both the Sensex and Nifty commenced with a decline of 0.25 per cent. However, Nifty Midcap displayed slight gains, edging up by 0.21 per cent, and Nifty Smallcap showcased a stronger opening, rising by 0.24 per cent.
The India VIX surged by 1.23 per cent, reflecting increased market volatility.
Nifty PSU Bank, Nifty Media, and Nifty Pharma emerged as the top gainers, displaying strength. Nevertheless, Nifty IT, Nifty Realty, and Nifty Energy faced challenges, positioning them among the top losers.
Dr Reddy’s Laboratories, Cipla, and L&T led the gainers' list within the Nifty 50. In contrast, Coal India, TCS and Wipro encountered early losses, marking them among the top losers.
Broader market sentiment leaned towards the positive side, with approximately 1167 advancing stocks contrasting with 622 declining stocks. This balance indicated a cautious yet optimistic sentiment prevailing in the broader market context.
Pre-Market Update at 7:50 AM: During Thursday's regular session in the US, the Dow closed below the 50-day moving average for the first time since June 1, signalling bearish sentiment. The Nasdaq Composite declined 1.17 per cent while the S&P 500 experienced a 0.77 per cent decline. Concurrently, the 10-year US Treasury yield hit its highest level since October 2022. This followed the Federal Reserve's July meeting minutes, hinting at possible future interest rate hikes due to inflation concerns.
Oil prices surged over 1 per cent on Thursday following China's central bank's efforts to counter pessimism surrounding the property market and the overall economy. The previous session had witnessed price declines due to concerns about reduced fuel demand linked to China's property crisis and the potential for heightened U.S. interest rates. Brent crude futures experienced a USD 1.15 increase, reaching USD 84.60 per barrel. Simultaneously, the Dollar index traded slightly lower in futures at 103.35, as the dollar's value remained close to Rs 83.10.
The GIFT Nifty suggests a slight negative opening for the benchmark indices, showing a decline of 65 points following the Nifty's 99-point drop to 19,365 points on August 17. GIFT Nifty futures are positioned at 19,317 points.
On August 17, foreign institutional investors (FII) offloaded shares worth Rs 1,510.86 crore, while domestic institutional investors (DII) sold shares worth Rs 313.97 crore.
Stocks that are banned for trading in the F&O segment on August 18, 2023, are Chambal Fertilisers & Chemicals Ltd, Delta Corp, GNFC, Granules, Hindustan Copper, Indiabulls Housing Finance, India Cements, PNB, SAIL and Zee Entertainment.