Indian markets traded lower on Monday, erasing gains recorded in the auspicious hour of the Diwali festival. Pharma, private banks and metal stocks dragged the benchmarks Sensex and Nifty 50. Investors are betting cautiously ahead of key macroeconomic data that is scheduled for later in the week. Also, corporate earnings for Q2 of FY22 will be keenly observed. Furthermore, the IPO market will witness a busy week starting with the country’s biggest IPO, Paytm that will launch its issue from today onward.
At around 09.40 am, Sensex was trading at 59,993.32 down by 74.3 points or 0.12%. The index has touched an intraday high and low of 60,434.38 and 59,836.78 respectively.
Nifty 50 traded at 17,885.95 below 30.85 points or 0.17%. The index has touched an intraday high and low of 18,040.20 and 17,837.70 respectively.
In terms of sectoral indices, on BSE, the Healthcare index nosedived more than 345 points. The Bankex and Metal index tumbled by over 250 points and 120 points respectively.
Bulls on Sensex were – Bharti Airtel slipping nearly 2% followed by Titan, Kotak Bank, Ultratech Cement and Tech Mahindra rising more than 1% each.
Bears on Sensex were – IndusInd Bank plummeting by over 10.5% followed by Sun Pharma, Asian Paint, HDFC Bank, M&M, Tata Steel and RIL shedding between 0.8-1%.
Investors carried heavy profit booking in IndusInd Bank after a news article claimed that whistleblowers raise loan evergreening issue at the Bank’s arm. However, IndusInd has clarified exchanges, stating the allegations, “inaccurate and baseless.”
Three IPOs are set to launch their IPO for raising in total nearly Rs21,000cr. One97 Communications will open Rs18,300cr PaytmIPO, the largest-ever IPO in history, between November 8 and November 10. KFC and Pizza Hut operator Sapphire Foods will launch its Rs2,073cr IPO on November 9 which will close on November 11.
Market participants will be closely eyeing macroeconomic such as IIP and CPI inflation of November 12.
Today, companies that will be in focus ahead of their Q2 numbers are – Britannia Industries, Aurobindo Pharma, Sobha, 3i Infotech, Action Construction Equipment, Balrampur Chini Mills, Elgi Equipments, GVK Power & Infrastructure, HG Infra Engineering, KRBL, MM Forgings, PTC India Financial Services, Pricol, RSWM, Shankara Building Products, Shyam Metalics and Energy, Talbros Automotive Components, Ujjivan Small Finance Bank, Vijaya Diagnostic Centre, V-Mart Retail, and Wockhardt.
In the early deals, globally, Asian markets were mixed with the Japanese ‘Nikkei’ trading marginally lower even as the Taiwan and South Korean markets see mixed trade with technology stocks leading the gainers while broader markets see profit booking. Chinese stocks will again be in action as rising in Covid cases sees disruption in manufacturing activity.
Last week, on Friday, on Wall Street, US markets closed at fresh new all-time highs as jobs data spurs bulls to push equities higher. Bond yields fall to 1.47% even as the US$ index hits a fresh new 4-month high at 94.28. Oil prices remain range-bound as supplies see an increase while the rise in Covid cases in the EU sees demand consolidation.
Investors will be eyeing U.S. inflation data to be announced this week.