FINAL TRADE: Sensex ends 284 points lower after scaling fresh peak, Nifty settles at 18,771
Stock market today: Equities gave up gains on concerns of high valuations and as IT stocks dropped after US Federal Reserve Chair Jerome Powell indicated further rate hikes this year.
Stock market today: The market once again came under selling pressure on Thursday after scaling record levels during the day. The S&P BSE Sensex scaled a fresh peak of 63,601.71 during the session before settling at 63,238.89, down 284 points, or 0.45 per cent. The NSE's Nifty ended at 18,771.25, down 86 points, or 0.45 per cent. Equities gave up gains on concerns of high valuations and as IT stocks dropped after US Federal Reserve Chair Jerome Powell indicated further rate hikes this year.
"Apart from weak global market cues, the US Federal Reserve's testimony that inflation would take longer to cool sent jitters amongst the investors as this would mean more rate hikes are in the offing. However, the highlight of the day was the Sensex once again touching a new high before giving up gains due to profit-taking. Technically, on intraday charts, the Nifty has formed a double top formation and also formed a bearish candle on daily charts, which is largely negative. For day traders, 18,850 would be the immediate resistance level. Below this, the market could retest the level of 18,700–18,650. On the flip side, a fresh uptrend rally is possible only after the dismissal of 18850. Post the breakout, the Nifty is likely to rally till 18,900–18,935," said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Broader market
The Nifty Midcap 100 and Smallcap 100 closed lower as the market ended in the red zone. The Nifty Midcap 100 was down 1.06 per cent and the Smallcap 100 was down 0.76 per cent. For India VIX, all the broader market indices ended in the red.
Sectoral watch
Nifty Bank ended lower by 0.31 per cent or 134.35 points and closed at 43,724.85. IDFC First Bank, PNB, and Bank of Baroda were the top losers on the index. All the sectoral indices either ended flat or are in red territory.
Buzzing stocks
HDFC, HDFC Bank, and L&T supported the Nifty50 index, while Reliance, Infosys, and Bajaj Finance dragged the headline index. Insurance stocks saw a mixed close, Max Financial Services closed over 3 per cent higher while other stocks erased gains.
L&T gained nearly 1 per cent after the company announced a partnership with DRDO. Hindustan Construction Company's stock closed over 16 per cent higher after 3 per cent equity changed hands via a block deal. Indraprastha Gas Ltd. extended Wednesday’s gains on the Delhi government's move on CNG taxis, closing nearly 1 per cent higher.
Conversely, IT stocks came under pressure as the US Fed Chairman expects more rate hikes. Delhivery shares closed nearly 2 per cent lower while Sansera shares closed nearly 3 per cent higher after block deals.
Global market
In Asian markets, Seoul ended in the green while Tokyo settled lower. Equity markets in Europe were trading lower. The US markets ended in negative territory on Wednesday. Global oil benchmark Brent crude declined 1.39 per cent to USD 76.05 a barrel. Foreign Institutional Investors (FIIs) bought equities worth Rs 4,013.10 crore on Wednesday, according to exchange data.
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