Indices extends fall, Nifty tests 18,200; Eicher Motors jumps 7% post-Q4 nos

The market extended declines in the early morning trade on May 12, 2023. Last seen, the S&P BSE Sensex was trading over 300 points lower at 61,599.87 while the NSE's Nifty was hovering around 18,200 levels at 18,207.20, down 90 points, or 0.49 per cent. Among individual stocks, Eicher Motors got off to a flying start as the stock jumped 6.8 per cent to hit a high of Rs 3,639.05 apiece on the BSE. Metal, IT, and Oil & Gas stocks were under pressure.

"Even though the momentum is with the bulls the market is likely to remain subdued till there is clarity on two important issues. The US debt ceiling impasse is a short-term threat to the market even though the market believes that the issue will be sorted out just before the deadline. The Karnataka poll outcome can impact the market if the results surprise with either a big win for the Congress or the BJP contrary to the broad exit poll results. A decisive trend in the market will emerge only after clarity on these two issues. The outperformance of the broader market is significant and this is supported by good Q4 results. The latest mutual fund data shows that an increasing amount of mutual fund inflows is moving towards small caps. This can support the rally in the broader market," says Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The broader market indices, too, traded in the red. The S&P BSE MidCap index was trading 0.31 per cent lower at 26,203.72 levels while the S&P BSE SmallCap index quoted at 29,597.17, down 0.15 per cent.