The domestic equity market benchmarks ended lower on November 14 due to profit booking amid mixed global cues and a fall in the rupee.
Sentiments were roiled after a US central banker hinted that the Fed’s fight against inflation will not get softer soon as inflation remains high.
The US dollar firmed against its major global peers, following which the rupee fell 45 paise to close at 81.26 per dollar.
“Markets exhibited sideways movement in a lacklustre trading session and ended lower as traders booked profit in select counters after the last week's robust upsurge. Lack of fresh positive triggers from the global front prompted investors to trim their holdings, but any uptick in crude oil prices & currency movement could fuel a fresh round of profit-taking,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Sensex opened 29 points lower at 61,765.86 and fell 223 points to hit its intraday low of 61,572.03. The index finally closed 171 points, or 0.28%, lower at 61,624.15 while the Nifty settled at 18,329.15, down 21 points, or 0.11%.
Mid and smallcaps outperformed as their sectoral indices ended in the green. The BSE Midcap index ended with a nominal gain of 0.05% but the Smallcap index rose 0.25%.
The losses of the domestic market were capped due to healthy macroeconomic indicators.
As Mint reported, India's annual wholesale price index (WPI) inflation for the month of October 2022 eased to 8.39% year-on-year, in single digits and the lowest since March 2021.
The WPI inflation for October was lower than the 10.70% recorded in September 2022. This is the first time in 19 months that the WPI inflation print has come in single digits. The last was in March 2021 at 7.89%.
"Although there were favourable domestic indicators, the market was under pressure due to weakness in the US and other Asian markets. India's wholesale inflation dropped below forecasts, aided by a slowdown in the prices of manufactured goods and fuel and electricity," said Vinod Nair, Head of Research at Geojit Financial Services.
Analysts believe the retail inflation print will also show signs of easing which will boost market sentiment.
Shares of Kotak Mahindra Bank, Tata Steel and Power Grid ended as the top gainers in the Sensex index. On the flip side, Dr Reddy’s Labs, ITC and Hindustan Unilever ended as the top laggards in the Sensex basket of stocks.
On the sectoral front, Nifty Media fell 2.40%, dragged by losses in shares of Sun TV, Zee Entertainment and PVR.
The FMCG index also fell (1.35%) significantly. Metal stocks, however, witnessed healthy traction. The Nifty Metal index rose 1.73 % with Hindalco, Nalco and Hindustan Zinc as top gainers. The Nifty Realty index also rose over a percent.
Technical views by analysts
Rupak De, Senior Technical Analyst at LKP Securities said the Nifty remained sideways during the session as it failed to give any directional breakout.
“On the daily chart, the index has sustained above the 50 EMA (17,619), which confirms the positive trend. The momentum indicator is in positive crossover and rising. The trend for the short term looks positive. On the higher end, resistance is visible at 18,450-18,500. On the lower end, support is visible at 18,250,” said De.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.