Equity Markets End in the Red Amidst IT Losses

Equity Markets End in the Red Amidst IT Losses

VoM News Desk | October 12, 2023 | 06:11 PM IST | Breaking News | Follow on Google News

Equity Markets End in the Red Amidst IT Losses

Equity Markets End in the Red Amidst IT Losses

Equity benchmarks Nifty 50 and Sensex ended on a negative note on Thursday, October 12, primarily due to losses led by major IT firms, such as TCS, Infosys, HCL Tech, and Tech Mahindra. Meanwhile, global markets exhibited positivity, with investors eagerly awaiting US and Indian inflation data.

US inflation data for September is anticipated to come in at around 3.6 percent. India’s September Consumer Price Index (CPI)-based inflation is expected to be approximately 5.5 percent, a decrease from the 6.83 percent recorded in August. In addition, IT giants Infosys and HCL Tech are set to release their September quarter financial reports, with Infosys expected to report soft numbers due to a demand slowdown in key markets. HCL Tech may also report softer growth for the same period, likely reducing its revenue guidance from 6-8 percent to 4-6 percent.

Market Performance Highlights

Nifty 50 opened at 19,822.70 and closed at 19,794, down 0.09 percent, while Sensex opened at 66,564.57 and closed at 66,408.39, down 0.10 percent. Mid and small-cap stocks outperformed the benchmarks, with the BSE Midcap index rising 0.30 percent and the Smallcap index gaining 0.60 percent. Over 280 stocks, including Bharti Airtel, Coal India, GAIL, Grasim Industries, Lupin, and Zomato, reached their fresh 52-week highs in intraday trading on the BSE.

Top Nifty Gainers and Losers

Among the Nifty index stocks, 29 ended with gains, with BPCL, Maruti, Coal India, Power Grid, Grasim Industries, and Bajaj Auto as the top gainers. The top losers included Infosys, Tech Mahindra, Apollo Hospitals, TCS, HCL Tech, and LTIMindtree.

Sectoral Performance

While most sectoral indices ended in the green, Nifty IT fell by 1.67 percent. Nifty Realty and Nifty PSU Bank indices closed in the red. Nifty Media surged by 3.02 percent, while Nifty Oil & Gas, Nifty Auto, Metal, and Nifty Bank all showed positive performance.

Expert Opinions

Shrikant Chouhan, Head of Research at Kotak Securities, mentioned that the IT sector’s underwhelming results and near-term prospects contributed to the market’s negative bias. However, he noted strength in the broader market in anticipation of healthy Q2 results due to volume demand, despite a global slowdown.

Vinod Nair, Head of Research at Geojit Financial Services, attributed the positive global trend to favorable UK GDP figures and expectations of moderation in US CPI inflation, potentially influencing the Fed’s future actions.

Technical analysts Rupak De and Jatin Gedia provided insights into Nifty’s technical outlook, pointing out the rangebound movement and potential levels for the index.

Chouhan emphasized key support and resistance levels for traders, suggesting 19,750-19,700 as support and 19,850-19,900 as resistance.

VoM News Desk

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