The Bluechip indices have rebounded for 10 consecutive days, the biggest rally in 13 years, and have shown signs of fatigue in recent days. Analysts expect volatility to continue and suggest cautious stock selection. India VIX, the measure of volatility, soared more than 4 percent.
“The Nifty has opened less clearly in its intraday direction this morning. While the major trend remains positive, the intraday trend appears to be a bit confusing. We would need to move past 12.030-12.040 for an intraday bullish move and a breakout of 11,800 would indicate a move lower. Until then, we could expect some movements within the range with a positive bias, “said Manish Hathiramani, proprietary index trader and technical analyst at Deen Dayal Investments.
Equity investors lost Rs 2.7 crore lakh in Thursday’s session as the total market capitalization of companies listed on the BSE slipped to Rs 157.85 crore lakhs.
Factors driving markets
- The first hopes of stimulus fade: US Treasury Secretary Steve Mnuchin said he and House Speaker Nancy Pelosi were “very far apart” on another coronavirus financial aid package, and that it would be difficult to reach an agreement sooner. of the November 3 elections.
- Tensions between the United States and China: Tensions between Beijing and Washington remain on the surface after the US State Department put forward a proposal for the Trump administration to add China’s Ant Group to a trade blacklist, according to a Reuters report, before e-commerce giant Alibaba’s fintech division to be scheduled. go in public.
- Covid returns: Concerns that a resurgence of the Covid-19 pandemic could lead governments to shut down economies again fueled profit-taking, particularly after the recent rally in stocks. With cases on the rise, some European nations are closing schools, canceling surgeries and recruiting medical students as overwhelmed authorities prepare for a repeat of the nightmare scenario seen earlier this year.
How are the bluechips?
After opening with minor cuts, the benchmark indices extended their losses as the day progressed. At 1:12 p.m., the BSE’s flagship Sensex was down 892 points, or 2.19 percent, to 39,902. The NSE’s benchmark Nifty followed, dropping 215 points or 1.8 percent to 11,755.
In the package of 50 Nifty shares, Tata Steel gained the most, 2.33 percent. BPCL, ONGC, UPL, NTPC, Indian Oil, Adani Ports and Asian Paints were among other top winners.
The TI package posted massive gains as HCL Tech was the top loser, down 3.84 percent. Tech Mahindra, HCL Tech, ICICI Bank, Bajaj Finance, TCS and ITC were among other big names opening with cuts.
Wider markets
The broader market indices were trading lower: the Nifty Smallcap was down 0.38% while the Nifty Midcap was down 0.41%. The broadest NSE index, Nifty 500, was down 0.87 percent.
Ashok Leyland, Bharat Forge, Tata Power, Alok Industries, Tata Elxsi and Century Textiles were among the top winners from the space, while Lemon Tree Hotels, Thyrocare, PNB Housing Finance, Vodafone Idea, Trent and Bata India were under selling pressure.
Global markets
MSCI’s broader Asia-Pacific equity index outside of Japan lost 0.5 percent, while Japan’s Nikkei fell 0.5 percent.
US S&P 500 futures fell 0.27% in Asia after major US stock indices closed the previous session lower, with the S&P 500 closing 0.7% and the index Nasdaq Composite losing 0.8%.
What to expect
- Second Quarter Earnings: Mindtree, Jupiter Infomedia, Hathway Cable, Cyient, Dolat Capital, South Indian Bank and Trident are among those giving their numbers.
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