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Taking Stock | Bears back in action; market falls 1% ahead of FOMC minutes

The BSE midcap and smallcap indices are down nearly one percent each.

January 04, 2023 / 04:14 PM IST

The Indian benchmark indices fell one percent on January 4 with the Nifty below 18,100 amid selling across the sectors, as the investors remained cautious ahead of the outcome of FOMC minutes and US manufacturing PMI data later tonight.

At close, the Sensex was down 636.75 points or 1.04 percent at 60,657.45, and the Nifty was down 189.50 points or 1.04 percent at 18,043.

The market started flat with a negative bias and extended the selling as the day progressed, with the Nifty and BSE Sensex touching an intraday low of 18,020.60 and 60,593.56.

Also Read - Services sector expands again in December, PMI rises to 58.5

Stocks and sectors

JSW Steel, Hindalco Industries, Coal India, Tata Steel and ONGC were among the top losers on the Nifty. However, gainers were Divis Labs, Maruti Suzuki, HDFC Life, Dr Reddy’s Laboratories and UltraTech Cement.

Among sectors, the Nifty metal index shed 2 percent, the PSU Bank index fell 1.8 percent, the Nifty Energy index declined 1.5 percent, while the Nifty Bank, Information Technology and infra indices were down 1 percent each.

BSE midcap and smallcap indices are down nearly 1 percent each.

IndexPricesChangeChange%
Sensex73,651.35655.04 +0.90%
Nifty 5022,326.90203.25 +0.92%
Nifty Bank47,124.60338.65 +0.72%
Nifty 50 22,326.90 203.25 (0.92%)
Thu, Mar 28, 2024
Biggest GainerPricesChangeChange%
Bajaj Finserv1,643.8561.20 +3.87%
Biggest LoserPricesChangeChange%
Shriram Finance2,359.80-26.55 -1.11%
Best SectorPricesChangeChange%
Nifty PSU Bank7007.25178.70 +2.62%
Worst SectorPricesChangeChange%
Nifty IT34898.15153.85 +0.44%

On the BSE, all the sectoral indices ended in the red with the metal index down nearly 3 percent, while information technology, oil and gas, power and realty were down 1-2 percent.

Among individual stocks, a volume spike of more than 300 percent was seen in Chambal Fertilisers and Chemicals, Petronet LNG and PVR.

A short build-up was seen in Hindalco Industries, Balrampur Chini Mills and JSW Steel, while a long build-up was seen in Havells India, GNFC and HPCL.

Outlook for January 5

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty faced resistance near a rising trendline and the key daily moving averages for yet another session. Thereon, the index tumbled sharply towards 18,000. The bulls managed to defend the key psychological level for the day.

Unless the Nifty breaks 18,000 on the downside, it can once again take a leap towards 18,250-18,300. On the other hand, a breach of 18,000 will allow the Nifty to slide further towards the lower end of the short-term consolidation, i.e. 17,800.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Investors offloaded their holdings ahead of the outcome of the US FOMC minutes that would indicate the signs of interest rate hike trajectory going ahead.

Other global macro-economic concerns like the China slowdown due to higher Covid cases, sliding crude oil prices, and the persisting geo-political tension continue to weigh on investors' minds. There could be heightened volatility in coming sessions due to rising uncertainty.

Ajit Mishra, VP - Technical Research, Religare Broking

Markets traded under pressure and lost over a percent amid mixed cues. After the flat start, the Nifty gradually inched lower as the day progressed and finally settled around the day’s low to close at 18,042 levels.

The decline was widespread wherein realty, metal and energy were among the top losers. The broader indices too traded in tandem and ended with a cut of over a percent each.

This decline has engulfed the gains of the last four sessions in the Nifty, and selling pressure in the banking index, which was acting as a saviour so far, has further deteriorated the mood. And we feel the pressure may increase below 18,000 levels in the Nifty. Keeping in mind the scenario, it is prudent to limit leveraged positions and wait for clarity.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Rakesh Patil
first published: Jan 4, 2023 04:00 pm

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