Domestic indices began trading higher in the early hours of Wednesday, the Sensex was up 200 points at 57,351.74, and the Nifty opened above 17,000 and is currently trading at 17,038.10, up by 60.15 points.
In the last three trading sessions, the Indian equity markets displayed volatile swings. The Nifty and Sensex fell 1.91% and 1.79%, respectively, in the last two trading sessions, wiping out gains made in the first week of October. Overall, the Sensex fell 3.4% in the previous month, while the Nifty50 dropped 3.6%.
Indian equities are also being impacted by the rupee's ongoing decline. After losing 2.4% in September, the rupee has lost 0.87% of its value against the dollar so far in October.
On the other hand, crude oil prices rallied 15% in the last week, marking the single largest weekly gain since March after OPEC+ members agreed to cut oil production by 2 million barrels per day, the largest reduction since the pandemic began.
Meanwhile, in the cash segment, FPIs were net sellers of ₹4,612.7 crore on Tuesday. DIIs pumped a net amount of ₹2,430.8 crore on the same day, according to Trendlyne data.
The International Monetary Fund (IMF) on Tuesday cut its forecast for India’s gross domestic product (GDP) growth in the financial year 2022-23 (FY23) by 60 basis points (bps) to 6.8 per cent, warning of a long and tough economic winter.
As markets remain in a bearish trend, 17 of the Nifty50 stocks have fallen between 20 and 45% from their 52-week highs.
|Scrip Name||% Fall from 52-week high|
|HDFC Life Insurance||27.82|
|Kotak Mahindra Bank||20.64|
Due to growing recessionary concerns and rate increases from global central banks, IT stocks are continuing their downward trend. In the Nifty 50 index, Wipro shares experienced the greatest decline by falling 46% from their 52-week high of ₹739.8 The stock has dropped steadily since the beginning of 2022 with no sign of relief. So far in 2022, the stock has lost 43% of its value.
Other blue-chip IT stocks, such as Infosys, TCS, Tech Mahindra, and HCL, have also fallen between 24 and 45 percent from their 52-week highs.
Shares of Hindalco dropped 37.73% from its 52-week high of Rs. 636, set on March 29, 2022, and with Tuesday's closing price of Rs. 396.05, the stock is 28% away from its 52-week low of Rs. 309.
Oil marketing companies continue to lose money, according to media reports. For the first time, OMCs may post a second consecutive quarterly loss due to holding a record six-month freeze in petrol and diesel price revisions. As crude oil prices have started to rise after a fourth-month fall, experts believe the freeze will be extended further.
The state-owned Indian Oil Corporation and BPCL and HPCL dropped 30–40% from their 52-week highs.
Other stocks, including Tata Steel, ONGC, Hindalco, Divi's Laboratories, Ultratech Cement, HDFC, UPL, and Kotak Mahindra Bank, also witnessed a 20 to 36% decline from their 52-week highs.
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