Closing bell: Frontline indices plummet with Nifty Bank among the top losers | 17th Januar, 2024
On Wednesday, the Indian Frontline indices concluded the trading day on a negative note while Nifty Bank underperformed the most, dragged by HDFC Bank’s Q3FY24 results.
Major Indices Performance:
On Wednesday, the Indian Frontline indices concluded the trading day on a negative note while Nifty Bank underperformed the most, dragged by HDFC Bank’s Q3FY24 results. The Sensex substantially declined by 2.23%, concluding at 71,500.76 level, while the Nifty also plummeted by 2.09%, closing at 21,571.95 level. Similarly, Nifty Bank experienced major decline of 4.28%, closing at 46,064.45. Additionally, the trend continued in the broader market with Nifty Midcap substantially declining by 1.08%, while Nifty Smallcap plummeted by 1.2%.
Within the sectoral landscape, Nifty IT was the only major sector which was trading positively while Nifty Bank, Nifty Financial Services, Nifty Metal and Nifty PSU Bank were among the top losers.
Top Gainers and Losers:
Among the Nifty 50, HCL Technologies stood out as the leading gainer with an impressive surge of over 1%, followed by SBI Life, LTIMindtree and TCS. Conversely, HDFC Bank, Tata Steel, Kotak Bank and Hindalco found themselves among the top losers.
In the broader markets, which include the Nifty Midcap and Nifty Smallcap, Rail Vikas Nigam, Indian Railway Finance Corporation, Cochin Shipyard and Housing & Urban Development Corporation registered substantial gains, standing among the top gainers. On the flip side, Steel Authority of India, Macrotech Developers, Indian Energy Exchange and Easy Trip Planners have witnessed major declines, ranking among the top losers.
Fitch Affirms India’s ‘BBB-’ Rating with Stable Outlook:
Fitch Ratings has maintained India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB-’ with a stable outlook. The agency, in its statement released on January 16, highlighted India’s position as one of the fastest-growing countries globally in the coming years.
However, Fitch noted a potential increase in uncertainty regarding the fiscal path beyond FY24, emphasizing the trade-offs between economic growth and consolidation. The ratings agency has also adjusted its growth forecast for India, anticipating a growth rate of 6.9 percent for the fiscal year ending March 2023, up from the previous forecast of 6 percent in May of the previous year. Nevertheless, it anticipates a slight easing in GDP growth to 6.5 percent in fiscal year 2024-25.
Oil prices exhibited volatility on Tuesday as investors assessed the impact of Middle East tensions amidst a stronger dollar and tempered expectations of U.S. interest rate cuts.
Brent crude futures inched up by 16 cents, or 0.2%, reaching $78.31 per barrel. Although the contract had surged more than $1 above its Monday settlement earlier in the session, US West Texas Intermediate crude experienced a decline of 27 cents, or 0.37%, from Friday, settling at $72.41 per barrel.
Geopolitical concerns, including an escalating shipping crisis in the Red Sea and Iranian missile strikes on targets in Syria and Iraq, contributed to the oil price’s geopolitical risk premium on Tuesday. However, the potential for prices to rise further may be limited unless there is a production shutdown.
NSE Advance/Decline Ratio:
The broader market sentiment presents a nuanced trend, with 523 advancing stocks compared to 1711 declining stocks, signalling a pessimistic sentiment in the broader 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.