The stock market witnessed a volatile session today as investors weighed the impact of rising bond yields, inflation concerns, and corporate earnings. The benchmark indices ended the day with marginal losses, while the broader markets outperformed.
Nifty and Sensex snap two-day winning streak
The Nifty 50 index closed at 19,079.60, down 61.30 points or 0.32%, while the BSE Sensex settled at 63,874.93, down 237.72 points or 0.37%. The Nifty and Sensex snapped their two-day winning streak, as selling pressure emerged in banking, IT, and metal stocks.
Among the sectoral indices, the Nifty Bank, Nifty IT, and Nifty Metal declined by 0.45%, 0.78%, and 0.76%, respectively. On the other hand, the Nifty Pharma, Nifty FMCG, and Nifty Auto gained by 0.64%, 0.38%, and 0.24%, respectively.
The market breadth was positive, as 1,776 stocks advanced, while 1,411 stocks declined on the BSE. The volatility index, India VIX, rose by 2.87% to 16.75.
Top gainers and losers of the day
Among the Nifty 50 stocks, Sun Pharma, BPCL, Hindalco, and Bajaj Auto were the top gainers, rising by 2.53%, 2.19%, 0.69%, and 0.57%, respectively. On the flip side, Adani Enterprises, Coal India, SBI Life, and Asian Paints were the top losers, falling by 3.37%, 2.41%, 2.32%, and 2.04%, respectively.
Some of the notable movers of the day were:
- HDFC Bank fell by 0.13% to Rs 1,474.50, after reporting a 17.6% year-on-year growth in net profit to Rs 8,834.5 crore for the quarter ended September 2021.
- Reliance Industries rose by 0.41% to Rs 2,297.40, ahead of its quarterly earnings announcement on Friday. The oil-to-telecom conglomerate is expected to report a strong performance, driven by higher margins in its refining, petrochemical, and retail segments.
- ICICI Bank slipped by 0.14% to Rs 914.05, despite posting a 28.9% year-on-year increase in net profit to Rs 6,232.3 crore for the quarter ended September 2021. The bank also announced a dividend of Rs 2 per share.
- L&T declined by 1.15% to Rs 2,895.30, after reporting a 28.4% year-on-year rise in net profit to Rs 3,197 crore for the quarter ended September 2021. The engineering and construction giant also raised its revenue guidance for the fiscal year 2023 to 15-17% from 12-15% earlier.
Global cues and outlook
The global markets were mixed today, as investors awaited the outcome of the US Federal Reserve’s monetary policy meeting. The Fed is widely expected to announce the tapering of its monthly bond purchases, which could have implications for the liquidity and interest rate environment.
The US Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite were trading flat to marginally lower at the time of writing. The European markets were also subdued, as the FTSE 100, the DAX, and the CAC 40 were down by 0.11%, 0.07%, and 0.03%, respectively.
The Asian markets closed mostly higher, as the Nikkei 225, the Shanghai Composite, and the Hang Seng rose by 0.89%, 0.76%, and 0.59%, respectively. However, the Kospi and the Straits Times fell by 0.27% and 0.17%, respectively.
The outlook for the Indian stock market remains cautious, as the rising bond yields, inflation worries, and valuation concerns could limit the upside potential. However, the strong corporate earnings, the festive demand, and the vaccination drive could provide some support to the market sentiment.
