The equity market snapped its two-day winning streak on April 22 as the benchmark indices declined more than 1 percent amid across-the-board selling. NSE’s Nifty50 ended below 17,200 levels.
Weak global cues after the US Fed chair hinted at a 50 bps rate hike in May, made market participants cautious. The benchmark indices started the day gap-down and remained in negative territory throughout the session. The selling extended in the final hour of the trade which pushed the indices to end near the day’s low.
At close, the Sensex was down 714.53 points or 1.23% at 57,197.15, and the Nifty was down 220.60 points or 1.27% at 17,172.
However, for the week, BSE Sensex fell 1,141.78 points (1.95 percent), while the Nifty50 declined by 303.65 points (1.73 percent).
“The recent trend of the market was due to the release of high inflation data, the uncertainty surrounding Russia -Ukraine peace talks, volatile crude prices, and weak quarter results,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Fed chair’s comment of an aggressive rate hike of 50bps by May made investors extra cautious. Inflation is not expected to remain elevated in the long term, a change from hyperinflation to normal is likely in the short to medium term in anticipation of improvement in supply,” the market expert said
“However, the short-term apprehensions are FIIs selling and elevated level of the Indian broad market,” Nair added.
Hindalco Industries, SBI, Cipla, IndusInd Bank, and HUL were among the top Nifty losers while Adani Ports, M&M, Bharti Airtel, ITC, and Maruti Suzuki were the top gainers.
All sectoral indices ended in the red with Nifty Bank, Pharma, Metal, and PSU Bank indices losing 1-2 percent.
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Stocks and sectors
On the BSE, capital goods, bank, healthcare, metal, and realty indices slipped up to 2 percent. Meanwhile, auto, FMCG, IT and oil & gas indices fell 0.5 percent each.
The broader indices outperformed the benchmarks with the BSE midcap index falling 0.7 percent and smallcap index declining 0.38 percent.
A long build-up was seen in United Breweries, Colgate Palmolive (India) and Mindtree, and Jubilant FoodWorks, while a short build-up was seen in the Polycab India, ICICI Lombard General Insurance Company, and Hindalco Industries.
Zee Media Corporation, NHPC, Shree Renuka Sugars, Goa Carbon, and Adani Power, touched their 52-week high on the BSE.
Among individual stocks, a volume spike of more than 400 percent was seen in Tata Power, Grasim Industries, and United Breweries.
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Outlook for April 25
Ajit Mishra, VP – Research, Religare Broking:
Markets reversed yesterday’s gain and shed nearly one and a half percent following weak global cues. The hawkish statement from the US Fed dented sentiment globally including in our markets. The benchmark, after the gap-down start, tried to recoup some of its losses in the middle but selling pressure in the latter half pushed the index to the day’s low. Finally, the Nifty index closed at 17,171; down by 1.3%. In line with the trend, most sectoral indices ended in the red wherein metal, banking and healthcare were the top losers.
Markets will react to the ICICI Bank numbers in early trade on Monday. Besides, global cues like updates on the Russia-Ukraine crisis, and China’s COVID situation will also remain on the participants’ radar. The slide in the Nifty index has faded hopes for a directional move and we may see further consolidation ahead. Amid all, participants should maintain focus more on stock selection and overnight risk management.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities:
We are of the view that, the short-term texture of the market is non-directional. For the bulls now, the fresh pullback rally is possible only after 17,280 breakouts. Above which, the index could move up to 17,400-17,550.
On the flip side, as long as the Nifty is trading below 200-day SMA or 17,200, the correction wave is likely to continue. Below the same, Nifty could retest the level of 17,000-16,800.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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