Closing bell: Benchmark Indices register marginal declines while broader indices show resilience - October 16th, 2023
India’s foreign exchange reserves have witnessed a continuous fall for five consecutive weeks, reaching USD 584.74 billion as of October 16, 2023.
In the recent market session, Indian markets experienced minor setbacks on Monday. The Sensex saw a modest decline of 0.17%, closing just below the 66,200 mark, while the Nifty recorded a 0.1% drop, ending below 19,800. On the other hand, Nifty Midcap reported a 0.21% increase and Nifty Smallcap showed a moderate 0.37% surge.
In terms of sector performance, several segments displayed notable gains. Leading the way was Nifty Metal, followed by Nifty PSU Bank, Nifty Auto, and Nifty Energy as the top-performing sectors. Conversely, Nifty Pharma, Nifty Realty, Nifty Media, and Nifty FMCG faced challenges during the trading session.
Within the Nifty 50 index, significant gains were observed in stocks such as Hero MotoCorp, which surged over 2%, along with JSW Steel, Tata Steel, and Coal India. On the flip side, Divi’s Laboratories, Nestle India, TCS, and IndusInd Bank experienced declines, making them the leading decliners in the index.
Broader market stocks also displayed positive movements. Notable gains were recorded in FACT, NMDC, IIFL, and GNFC, while Adani Power, Gujarat Fluorochem, JB Chemicals and Pharma, and Finolex cables faced losses.
Additionally, India’s foreign exchange reserves have witnessed a continuous decline for five consecutive weeks, reaching USD 584.74 billion as of October 6. This figure represents the lowest level in over five months and reflects a decrease of USD 2.17 billion from the previous week. Over the previous four weeks, the reserves had contracted by nearly USD 12 billion.
Looking at the global perspective, Federal Reserve officials appear inclined to maintain unchanged interest rates for the second consecutive month in their upcoming meeting. However, they are not ruling out the possibility of future tightening measures.
In recent days, policymakers with varying positions on monetary policy have indicated their readiness to delay a rate hike during the October 31 to November 1 meeting, citing the recent upturn in bond yields, which has exerted constraints on financial conditions.
Nonetheless, considering the robust performance of the labour market and signs of a sturdy economy, the Federal Open Market Committee is unlikely to completely abandon the prospect of future rate hikes.
Overall, market sentiment appeared to be optimistic, with 1079 stocks advancing compared to 957 stocks declining, indicating a positive mood in the market.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.