Markets Wrap – Wed, 21 Dec ‘22: Stocks fall, rupee depreciates; Asia, Europe markets, Gold, Crude, Crypto updates Indian equity indices ended Wednesday’s session in the red. The Sensex closed below 61,100 while the Nifty settled below 18,200. The top gainers of the BSE Sensex were Sun Pharma (up 1.73%), HCL Tech (up 0.82%), TCS (up 0.62%), Tech Mahindra (up 0.56%) and Nestle India (up 0.49%) while IndusInd Bank (down 2.37%), Bajaj Finserv (down 2.16%), Maruti (down 2.15%), UltraTech Cement (down 2.14%) and Tata Motors (down 1.88%) were the top laggards.Indian stock market The BSE Sensex fell 635.05 points or 1.03%, settling at 61,067.24 while the NSE Nifty 50 dipped 186.20 points or 1.01% to 18,199.10. In the sectoral indices, Nifty IT rose 0.53% while Bank Nifty fell 1.71%. England’s FTSE100 was trading at 7,405.34, up 34.57 points or 0.47% at 3:05 PM (IST). Europe’s Euronext100 was up 10.86 points or 0.88% at 1,243.97. France’s CAC was trading 62.73 points or 0.97% higher at 6,513.16. Germany’s DAX was up 116.81 points or 0.84% at 14,001.07. The Dow Jones Industrial Average (DJIA) rose 92.20 points or 0.28% at 32,849.74 on Tuesday. The tech-heavy Nasdaq Composite Index rose 1.08 points or 0.01% at 10,547.11 and the S&P 500 rose 3.96 points or 0.10% to end at 3,821.62. The Indian rupee depreciated 0.07% at 82.8150 against the US dollar at 3:12 PM (IST). Gold futures on the multi-commodity exchange for February delivery were trading at 54996.00 up 98 points or 0.18% while Silver futures for March delivery were down 65 points or 0.09% at 69577.00 at 3:16 PM (IST). WTI Crude futures for January delivery were up 1.02% at $77.01 while Brent Crude futures for February delivery were trading 0.99% higher at $80.78 at 3:17 PM (IST). Bitcoin (BTC) at 3:20 PM (IST) was trading at $16,882.10, up by 0.31% in the last 24 hours. Its total market cap is $324,791,987,518. Ethereum (ETH) is trading at $1,214.96, up by 0.42% in the last 24 hours. It has a total market cap of $148,824,411,012.
However, he believes that the impact on the Indian market is going to be temporary since there could be some short-term impact on flows into Indian equity markets. But since the Indian economy is on a strong wicket and will continue to remain resilient.
“Improved fiscal situation, controlled current deficit, stable interest scenario combined with good corporate earnings should lead to limited impact on the Indian bond market and equity market too,” he added.
The midcap and smallcap indices took a bigger knock with the BSE MidCap fell 2.51%, while BSE SmallCap index dived 4.18%. According to Amnish Aggarwal, head, research, Prabhudas Lilladher, the valuations were already high and some correction was expected. “If the situation sustains as it is then further correction can’t be ruled out,” Aggarwal said.
Telecommunication and industrials indices were the top laggards with BSE Telecommunication declining 3.82%, followed by BSE Industrials falling 3.26%. JSW Steel (-2.99%), Tata Steel (-2.52%) and Tata Consultancy Services (-2.44%) were the top losers of Sensex.
Surprisingly, both foreign portfolio investors and domestic institutional investors were net buyers today. While, FPIs net bought shares worth Rs 252.25 crore, DIIs have purchased shares worth Rs 1,111.84 crore, as per provisional data from exchanges.
Calling this a “normal phenomena” Pankaj Pandey, head, research, ICICI Direct said, “I will not really give too much weight to a single day buying figure. Amid concerns of elevated interest rate and geopolitical tensions, in a typical market cycle, 8-10% correction is possible at any point in time.”
The brunt of geopolitical conflict, elevated interest rates and rising crude oil prices was also felt by other Asian- Pacific markets. Jakarta Composite Index lost 1.57% followed by Shanghai Composite Index and PSEi, which fell 1.47% and 0.89%, respectively. Nikkei and KOSPI declined 0.83% and 0.76%.