Equity markets remained quiet on Wednesday, trading in the negative zone for a second straight day, as one of the US Fed official’s hawkish comments and rising bond yields globally halted rally. At close, the Sensex was down 566.09 points or 0.94% at 59,610.41, and the Nifty was down 149.70 points or 0.83% at 17,807.70. About 2094 shares have advanced, 1229 shares declined, and 92 shares are unchanged.
Besides, HCL Tech, Infosys, Tech M, Shree Cement, TCS, Divis Labs, Kotak Bank, Axis Bank, and M&M were the other losers, sliding upwards of 1 per cent each.
These losses were, however, trimmed by gains in Coal India, Tata Steel, NTPC, UPL, PowerGrid, BPCL, and Bharti Airtel. These shares added in the range of 1 per cent to 3 per cent.
In the broader markets, the BSE MidCap and SmallCap indices advanced about 0.4 per cent each on the back of up to 20 per cent gains in YES Bank, Tata Power, Adani Power, Vodafone Idea, OnMobile Global, and Vaibhav Global.
Among the lot, shares of Tata Power hit a fresh record high of Rs 296.5, up 8 per cent on the BSE in Wednesday’s intra-day trade, in an otherwise weak market, on the back of heavy volume on improved business outlook. The stock of Tata Group electric utilities company has rallied 24 per cent in the past four trading days.
Shares of Vodafone Idea (Vi), too, moved 7 per cent higher to Rs 11.06 on the BSE in Wednesday’s intra-day trade on the back of heavy volumes, in an otherwise weak market. The stock of the telecom services company was trading higher for the fourth straight day and has rallied 14 per cent during the same period. READ MORE
That apart, shares of Gautam Adani-led Adani Group companies continued their upward march with Adani Enterprises and Adani Green Energy hitting respective life-time highs after these two companies along with Adani Transmission announced plans to raise funds. Technical charts suggest up to 18 per cent upside in Group stocks.
On the flipside, shares of Ruchi Soya Industries continued to witness selling pressure, and fell as much as 19 per cent to Rs 706 on the BSE in Wednesday’s intra-day trade amid heavy volumes ahead of the listing of shares allotted via follow-on-public offering (FPO). The stock of edible oil company has slipped 28 per cent in the past one week, as compared to a 2.8 per cent rise in the S&P BSE Sensex.
Sectorally, the Nifty PSU Bank and Metal indices were the only gainers in this subdued market, rising 2 per cent and 1.3 per cent, respectively. On the downside, the Nifty Financial Services and IT indices slipped 1.6 per cent each, followed by the Nifty Bank index, down 1.2 per cent.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Market has bounced back smartly from the recent Nifty low of below 16,000 to around 18,000 level assisted by positive news on the economy, crude declining from the peak of $139 and the proposed merger of the HDFC twins. Data relating to GST and credit growth indicate smart economic recovery and corporate tax collections for FY22 indicate earnings momentum. But since valuations are again high there will be selling at higher levels and therefore the market is likely to consolidate around current levels with subdued volatility in the near term.”
Global Cues
US stocks closed lower and bond yields jumped Tuesday as remarks by a Federal Reserve governor fueled expectations on Wall Street that the central bank is prepared to more aggressively raise interest rates and take other steps in a bid to tame surging inflation. The S&P 500 fell 1.3 per cent after shedding a modest early gain. The Dow Jones Industrial Average fell 0.8 per cent and the Nasdaq slid 2.3 per cent.
Asian share markets slipped on Wednesday as investors faced up to the possibility of aggressive monetary tightening by the US Federal Reserve to fight inflation, while focus was also on new Western sanctions against Russia over its invasion of Ukraine. In early trade in Asia, Japan’s Nikkei shed 1.5 per cent, while South Korean shares fell 0.8 per cent and Australian shares lost 1.2 per cent. Markets in mainland China were set to reopen after two days of public holidays.
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