It seems that the recent results season for the June 2023 quarter has brought some challenges to Dalal Street. The Nifty50 Index has experienced a correction of almost 3%, and BSE’s Sensex has dropped below 65,000-levels. While the majority of companies have reported in-line results, there have been a few exceptions, with some companies surpassing analysts’ estimates while others falling short.
Despite an overall contraction in revenue, the broader markets have been performing well, driven by growth in profits and improved margins. However, there are several factors that may have impacted sentiments at Dalal Street. Weak global cues, concerns over economic health, inflationary worries, high interest rates, a slowing global economy, the risk of a broader slowdown, and FIIs selling triggered by a weaker rupee are some of the challenges being faced.
It is important to note that while bearish sentiment may have taken over for now, market conditions can be unpredictable and subject to change. It is advisable for investors to stay updated with the latest developments and consult with financial experts before making any investment decisions.
Domestic equity markets week negative note due to muted global cues and concerns over interest rate hikes and the health of the Chinese and US economies. The 30-share BSE Sensex dropped 0.31% to settle at 64,948.66, while the NSE’s Nifty fell 0.28% to 19,310.15. The broader markets also performed poorly, with the BSE midcap and smallcap indices ending lower. The fear gauge India VIX dropped about 1% to 12.14 levels. The sharp rise in US bond yields has led to currency depreciation in China and other emerging markets, prompting investors to move their funds into safe haven assets and exit risky equity assets. On the technical side, the Nifty is holding a lower top formation on daily charts and has formed a small bearish candle on weekly charts.
However, it is consistently finding support near the 50-day SMA. On the sectoral front, the Nifty IT index dropped over 1%, while the Nifty realty, healthcare, consumer durables, and pharma indices fell about 1% each. Among the gainers were the Nifty media index, Nifty PSU bank, FMCG, and metal indices. The total market capitalization of Gautam Adani’s listed companies crossed the Rs 11 lakh crore mark for the first February this year.
In terms of individual stocks, Adani Enterprises and Adani Ports were the top gainers, while Hero MotoCorp, Tech Mahindra, Tata Consultancy Services, Hindalco Industries, Infosys, Mahindra & Mahindra, and ONGC were among the top losers.
