Summary On November 8, 2024, the Indian stock market saw a second consecutive day of decline, primarily driven by weakness in large-cap stocks like Reliance Industries, ICICI Bank, State Bank of India, and Trent. Despite a 25-basis point rate cut by the U.S. Federal Reserve on Thursday, investor sentiment remained cautious due to subdued Q2 earnings.
Market Indices
- Nifty 50 closed at 24,148 points, down 0.21% today and down 0.64% for the week.
- Sensex fell by 55 points, ending at 79,486, marking a weekly loss of 0.30%.
Market Overview Indian markets initially showed volatility, with early trades experiencing a 700-point fluctuation. However, markets settled into a range-bound trend, pressured by selective selling in banking, telecom, metal, oil & gas, and realty stocks. While global indices saw a recovery, Indian markets continued to experience outflows from Foreign Institutional Investors (FIIs), contributing to the negative sentiment.
The Nifty Midcap 100 and Nifty Smallcap 100 indices bore the brunt of today’s selloff, declining by 1.42% and 1.76%, respectively.
Sectoral Performance
| Sector | Closing Change (%) |
|---|---|
| Realty | -3.00% |
| Media | -2.09% |
| PSU Bank | -1.00%+ |
| Oil & Gas | -1.00%+ |
| Energy | -1.00%+ |
| Metal | -1.00%+ |
| IT | +0.71% |
| FMCG | +0.31% |
| Pharma | Flat |
| Auto | Flat |
Top Gainers: IT stocks benefited from renewed investor interest due to the U.S. Fed’s rate cut, with the Nifty IT index rising by 0.71%. The Nifty FMCG index also rebounded, posting a gain of 0.31%.
Top Losers: Realty and Media stocks saw continued bearish momentum, with the Nifty Realty index declining by 3% and the Nifty Media index falling 2.09%.
Nifty 50: Individual Stock Highlights
Gainers
Out of 50 stocks, 23 Nifty constituents ended in the green:
- Mahindra & Mahindra led the gains with a 2.9% increase, following a strong Q2 performance that exceeded market expectations.
- Other Gainers: Titan Company, Tech Mahindra, Infosys, Nestle India, HUL, Power Grid, Cipla, and a few others saw gains above 1%.
Losers
27 Nifty stocks ended in the red:
- Trent was the largest loser, dropping 3.2% after disappointing Q2 earnings, marking a two-day decline of 9.5%. The stock is down 24.52% since its October peak.
- Other Losers: Coal India, Asian Paints, and Tata Steel declined by over 1%.
Key Market Drivers
- Subdued Earnings: Q2 earnings for several companies have been below expectations, affecting investor confidence.
- FII Outflows: Continued outflows from Foreign Institutional Investors are putting pressure on market liquidity and sentiment.
- Global Rate Cuts: The U.S. Fed’s rate cut has sparked some interest in IT stocks, but the Indian market has largely been unaffected due to local economic concerns.
- Inflation Concerns: Rising inflation expectations in India could lead the RBI to hold rates, despite the Fed’s easing stance.
Technical Outlook for Nifty 50
- Support Level: 24,000 is considered a crucial support level. If this level holds, the market may recover, potentially reaching 24,500 in the near term.
- Downside Risk: A breach below 24,000 could signal further downside, leading to a possible market correction.
- Momentum Indicators: The RSI remains in positive crossover territory, suggesting short-term momentum may remain intact, barring any significant downside triggers.
Conclusion and Outlook
While today's rate cut by the Fed provided some optimism for selective sectors, broader market sentiment remains cautious due to disappointing earnings and FII outflows. If the Nifty 50 holds above the 24,000-support level, there is potential for a near-term recovery. However, a fall below this threshold could prompt a further correction in the coming days.
No comments:
Post a Comment