FINAL TRADE: Sensex down 232 pts; Nifty settles below 19,550; ITC down over 2%

Stock market today: The Indian share market on Friday, October 20, settled in negative territory for the third straight session amid broad-based selling. Globally, US Federal Reserve Chair Jerome Powell's comments fanned worries over higher-for-longer interest rates, and the Middle East crisis dented sentiments.

At close, the S&P BSE Sensex was down 231.62 points, or 0.35 per cent, at 65,397.62, and the NSE Nifty was down 82.05 points, or 0.42 per cent, at 19,542.65.

In the broader markets, the Nifty Mid Cap 100 and Small Cap 100 ended below the flatline.

High-beta Nifty Bank was flat at 43,723.05.

In the Nifty basket, 36 stocks finished in negative territory. ITC, Tata Steel, BPCL, Divi's Laboratories, and Cipla were the worst hit, with losses to the tune of 1.87 to over 2.75 per cent. Conversely, Kotak Mahindra Bank, IndusInd Bank, SBI Life, NTPC, and TCS were the top gainers, rising between 0.63-1.81 per cent for the day.

ITC, Tata Steel, and Hindustan Unilever were the top stocks that dragged the 30-scrip index.

"Nifty concluded on a downbeat tone, following the lead of the global market, with the majority of sectoral indices also doing so. The Nifty PSU Bank and Nifty oil and gas were the top non-performing sectors down by 1.57 per cent and 1.44 per cent. Market volatility increased as a result of the tensions in West Asia, additional unpredictability, and the US Fed Chair's emphasis on the need to keep tightening monetary policy. The domestic monetary climate and worries about the operational metrics of the companies can be impacted by rising oil prices and rising US bond yields, " said Vaibhav Vidwani, Research Analyst, BONANZA PORTFOLIO LTD.

TECHNICAL VIEW 

"Considering prices are trading at crucial support levels only a breach below 19500 – 19450 zone shall lead to a sharp decline. In terms of levels, 19550 – 19500 is the crucial support zone while 19640 – 19660 shall act as an immediate hurdle zone. Today the fall was more evident in the broad market with the Midcap index was down ~1%. The fall appears a bit overstretched in the short term and we expect a pullback during the next week," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Further, for Nifty Bank Gedia said there are signs of recovery in heavyweights of Bank Nifty like Kotak Bank, IndusInd Bank and HDFC Bank which increases the probability of a pullback in the Bank Nifty as well. We expect a recovery during the next week.

BUZZING STOCKS 

Indraprastha Gas Ltd shares were down over 11 per cent after Jefferies double-downgraded the stock.

Aarti Drugs shares were down over 5 per cent a day after the company posted its Q2 numbers.

HUL shares were down over 1 per cent post-Q2.

ITC shares were down over 2 per cent post-September quarter results.

Conversely, Tanla Platform stock was up over 4 per cent a day after the company posted its Q2 results.

Jindal Stainless shares were up over 4 per cent after the company posted its Q2 results.

United Breweries shares were up over 2 per cent after the beer maker's Q2 results beat estimates.

GLOBAL MARKETS 

World shares retreated as the prospect of a 5 per cent yield on the 10-year U.S. Treasury for the first time since 2007 added to pressure on Wall Street, though the yield held steady below that level early Friday. Germany’s DAX fell 1 per cent to 14,868.33, and the CAC 40 in Paris lost 1.3 per cent to $6,833.21. Britain’s FTSE 100 was down 0.6 per cent at 7,458.28. The futures for the S&P 500 and the Dow Jones Industrial Average were virtually unchanged. 

Investors were keeping an eye on the Middle East, where Israel bombarded Gaza early Friday, hitting areas in the south where Palestinians had been told to seek safety. Oil prices surged anew, with escalating conflict fueling supply concerns.

(with agency inputs)

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