The markets opened in the positive terrain with strong global cues
The 55 basis point (bps) spike in the US 10-year bond yield, triggered by a combination of FOMC's hawkish commentary and BOJ's relaxation of the yield control curve (YCC) has made analysts cautious on Asian equities and expect them to trade sideways in the short-to-medium term.
The bloodbath at the markets ended with the Sensex losing 457 points to close at 10,482.
Half the stocks in the Nifty 100 index have seen a reduction in their target price by analysts this year due to fears of lacklustre earnings growth and uncertain economic environment. Adani Green Energy, FSN E-Commerce (Nykaa), Adani Ports & SEZ and Indus Towers are among the companies that have seen the maximum cut in TPs during the first three months of calendar 2023, shows Bloomberg data. On the other hand, Canara Bank, JSW Steel and Bank of Baroda have seen the highest increase in TPs.
The Indian equity market is likely to remain under pressure and rangebound over the next few months. This comes as global central banks, led by the US Federal Reserve look at a possibility of hiking rates aggressively to tame inflation. Back home, the Reserve Bank of India, too, remains data dependent in its endeavour to keep inflation in check and pursue an aggressive monetary policy stance.
Maruti Suzuki was the biggest gainer among Sensex scrips, rising 5.89 per cent, followed by M&M up 5.29 per cent.
TCS, Infosys and Wipro were down 0.4-2% each. Capital goods majors also ended lower with L&T and BHEL down 1.4-3.9% each.
Over half, or 269 NSE 500 stocks, have given over 10-fold (10x) returns in the last two decades, finds a recent report by Goldman Sachs that analysed 10 major markets across emerging and developed markets (EM/DM) that covered 6,700 stocks. The report examined '10-baggers' - stocks that have generated at least 10x total returns within a rolling 5-year period over the past two decades. Some of the prominent ones that comprise these 269 stocks in the Indian context stocks that delivered over 10x total returns over a 5-year rolling period since 2000 as per Goldman Sachs includes Westlife Foodworld, Bharti Airtel, Adani Total Gas, Patanjali Foods, Larsen & Toubro, BEML, Blue Star, Shree Cement, Lupin, Godrej Industries, Astral, Adani Enterprises, Hindustan Petroleum and Deepak Fertilisers.
'If individual stocks start falling 25% to 30% or more, then I doubt how many of them will be able to withstand that (kind of selloff). That is when you'll see panic coming in.'
Lump sum investments in equity and hybrid schemes of mutual funds (MFs) declined to Rs 17,900 crore in October - the lowest since January 2021. The fall in lump sum investments comes even as flows through systematic investment plans (SIPs) rose to a new all-time high of Rs 13,000 crore in October. The latest lump sum tally is just a third of the peak inflow of Rs 49,700 crore in July 2021.
It has mostly been a one-way street for markets that have moved up sharply since July. The front-line indices - the S&P BSE Sensex and the Nifty50 - have gained 6.7 per cent and 7.3 per cent, respectively, in the past three months. The rally in mid- and small-caps has been sharper, with both indices surging 14 per cent and 9 per cent, respectively, during this period. This sharp run has made analysts at Jefferies cautious.
Top losers in the Sensex pack include Bharti Airtel, Infosys, Asian Paints, RIL, Coal India, HDFC Bank, HDFC, TCS, ONGC and M&M, falling up to 3.09 per cent.
Oil & gas, banking and pharma sector stocks stole the show
After opening with a positive gap of 105 points at 19,708, the Sensex pared gains in early trades, and exhibited lacklustre movement for the major part of the day today.
Fresh selling towards the end saw the index slip to a low of 19,584 - down 311 points from the day's high. The Sensex finally ended with a loss of 65 points at 19,633. The NSE Nifty ended flat at 5908. The market breadth was fairly positive - out of 2,855 stocks traded, 2,182 advanced, 645 declined and 28 were unchanged on Monday.
The NSE Nifty ended at 4,475, up 11 points.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries
The markets plunged on account of heavy selling in scrips across sectors.
The Sensex closed at 10,684.30 up 174.77 points and the Nifty closed at 3142 up 66 points.
The BSE Sensex opened down 20 points at 10,641.33
The 30-share BSE Sensitive Index slipped into the negative region after opening firm.
Metal stocks were trading under pressure while IT, auto, realty stocks gained in today's deals
This is first time in 25 years that a benchmark equity index in India is trading at a P/E multiple of 40x or higher.
The markets have opened on a lacklustre note in the absence of major cues from the US markets that were closed on account of Independence Day holiday. The Sensex is down 15 points at 17,448. Nifty is flat at 5299.
M&M was the top loser in the Sensex pack, shedding over 2 per cent, followed by Dr Reddy's Bharti Airtel, Tech Mahindra, HUL, ICICI Bank and Infosys. NSE Nifty dropped 64.80 points to 14,341.35.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries
The Sensex opened with a positive gap of 99 points at 15,094. The index touched a high of 15,349, and a low of 15,056. Sensex ended up 294 points. HDFC, ICICI Bank, Wipro, Bharti Airtel, Hindustan Unilever, Reliance, ITC, L&T, ACC,Tata Motors, Ambuja Cements and TCS were major gainers. Tata Steel, Reliance Energy and Jaiprakash Associates were major losers. Reliance topped the value chart with a turnover of Rs 202 crore, followed by GSS America and Reliance Natural Resources.
'We like certain stocks from banking, insurance, retail, hospitals and capital goods.' 'Though some of these stocks may seem expensive, they will compound well over the long term, thus justifying their current multiples.'
ICICI Bank was the top gainer in the Sensex pack, rising over 3 per cent, followed by ITC, SBI, HCL Tech, Axis Bank, Bajaj Finserv and Tech Mahindra. NSE Nifty advanced 32 points to 15,856.05.
Heavyweights such as Coal India, L&T and SBI ran up losses, taking cues from overseas markets.
With the market closed on Friday, the index declined 868 points (4.3%) during the holiday-shortened week. While the small cap index slipped 102 points to 11,813, the mid cap index declined 55 points to 9026.
Sun Pharma emerged as the star performer and closed 4.03 per cent up at Rs 675.45, while Cipla rallied 1.58 per cent to Rs 592.60.
Stocks of new-age companies have seen a mixed performance thus far in calendar year 2023 (CY23). While those of One97 Communications (parent company of Paytm), PB Fintech and Zomato have surged up to 63 per cent year-to-date (YTD), FSN e-commerce, the parent company of Nykaa, however, has dropped 14 per cent YTD. By comparison, Nifty50 and Nifty 500 indices have advanced 7 per cent and 8.7 per cent, respectively, during the period, ACE Equity data show.
Shares of Avenue Supermarts (DMart) have rallied 15 per cent in the past month, even as the benchmark National Stock Exchange Nifty has remained flat. The stock has garnered favourable commentary from both fundamental and technical analysts after three years of poor performance. "DMart has reached its first 52-week high since October 2021, taking off from solid base formations.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
BSE Auto was the top sectoral loser with a 4.6% fall followed by realty sector down 3.7% and consumer durables 3.6% post disappointing IIP numbers
