Key equity indices the Sensex and the Nifty ended lower on November 3, mirroring weak global sentiment after the US Fed hiked rates by 75 bps and Fed Chair Jerome Powell said policy rates may rise even higher than the previously estimated levels.
Media reports suggest that now the Bank of England may go for the biggest interest rate hike in over three decades.
Weak global cues continued weighing on sentiment, making the equity benchmarks the Sensex and the Nifty extend their losses into the second consecutive session.
Sensex opened at 60,511.57 against the previous close of 60,906.09 and touched its intraday high and low of 60,994.37 and 60,485.14 respectively.
The index closed 70 points, or 0.11%, lower at 60,836.41 while the Nifty50 settled 30 points, or 0.17%, lower at 18,052.70.
The BSE Midcap (up 0.22%) and Smallcap (0.11%) indices ended in the green, outperforming the benchmark Sensex.
"Fed’s refusal to tone down the rate hike narrative shattered the global markets as investors were in expectation of a dovish commentary. Powel cautions that the desired fed rate level is higher than expected, even though he indicated a rate hike of less than 75 bps in the upcoming meetings," said Vinod Nair, Head of Research at Geojit Financial Services.
SBI, Titan and Bharti Airtel ended as the top gainer stocks while Tech Mahindra, Power Grid and NTPC ended as the top laggards in the Sensex index.
Among the sectoral indices, BSE Utilities (down 1.26%), Power (down 1.18%) and IT (down 1.13%) fell more than a percent each.
"On the back of concerns about the US recession, IT stocks led the domestic selloff, while FII support helped limit the losses," said Nair.
Even though the market ended in the red, as many as 135 stocks, including SBI, ITC, Karnataka Bank, Federal Bank, Canara Bank and Raymond, hit their 52-week highs in intraday trade on BSE.
Crude oil prices declined but the Brent Crude still traded near the $95 a barrel mark. The rupee fell 10 paise to close at 82.89 per dollar level.
Technical view by analyst
Palak Kothari, Senior Technical Analyst of Choice Broking pointed out that the Nifty is moving in a positive upward channel.
The index has been witnessing resistance at 18,180 for the last two sessions and it has failed to break it. It has also formed a bearish engulfing pattern which is a negative sign for the short term, Kothari added.
Nifty, on a weekly basis, however, is still positive and will not lose momentum until it breaks 17,900 as it was seen as a very crucial resistance last year. The index may be in the range of 18,120 to 17,900, said Kothari.
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.
