FIRST TRADE: Sensex slips over 700 pts; Nifty below 21,800 amid weak global cues; HDFC Bank tumbles 7%
Stock market today: Last seen, the S&P BSE Sensex traded 1,141.64 points lower at 71,987.13 while the NSE Nifty was down 320 points at 21,712.3.
Stock market today: Bears took over Dalal Street as the domestic equity indices Sensex and Nifty 50 slipped over 1 per cent on Wednesday, January 17, tracking Asian peers after China's quarterly growth missed expectations. HDFC Bank plunged as much as 7 per cent post-Q3 results and dragged the headline index. Last seen, the S&P BSE Sensex traded 1,141.64 points lower at 71,987.13, while the NSE Nifty was down 320 points at 21,712.3.
"The market is likely to turn slightly weak in the near term, getting impacted by some negative global and domestic cues. The global negativity will come from the rising bond yields in the US (the 10-year yield is at 4.04 per cent) responding to concerns that the sharp rate cuts expected from the Fed this year may not materialise. Now indications are that the Fed is unlikely to cut in March, and the total cuts in 2024 may not be five or six that the market had partly discounted. This will be a drag on global equity markets," said Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Dr. Vijayakumar added that domestically, even though the economy is doing well and corporate earnings are good, all these positives are in the price, and the valuations are elevated, warranting a correction. The mid- and small-cap space is highly overvalued and is sustained at high levels only by the high liquidity in the system. Some profit booking and moving the money to fixed income can be considered now.
Meanwhile, the Nifty Mid Cap 100 and Small Cap 100 mirrored the losses of the headline index. High-beta Nifty Bank was also down 2.11 per cent at 47,109.8.
BUZZING STOCKS
Capri Global Capital shares extended gains for the second day and were over 5 per cent after the company obtained the composite corporate agency licence from the IRDAI.
ICICI Lombard shares were up over 7 per cent after the company posted close-to-estimated results.
RVNL shares were up over 2 per cent after the company formed a joint venture with Jakson Green Private Limited to explore opportunities in solar power projects in India and abroad.
Conversely, HDFC Bank shares were down as much as 7 per cent a day after the company posted Q3 results.
IEX shares slipped over 4 per cent on fears of market coupling.
Hindalco Industries shares were down over 2 per cent after the dollar index soared by 1 per cent and ALCOA descended 7 per cent.
GLOBAL MARKETS
Asian equities slumped on Wednesday, led by Chinese stocks, after a slew of data pointed to a patchy recovery in the world's second-biggest economy, while the dollar was near a one-month high as traders dialled back bets on early interest rate cuts.
MSCI's broadest index of Asia-Pacific shares outside Japan slid 1.34 per cent, touching a fresh one-month low and on course for its weakest weekly performance since August. The index is down 3 per cent for the week.
(With input from agencies.)
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