Equity Market: On January 10, Indian equity indices closed in the red and Nifty went below 23,450. At the end of trading, Sensex closed 241.30 points or 0.31 per cent lower at 77,378.91 and Nifty closed 95 points or 0.40 per cent lower at 23,431.50. Vinod Nair of Geojit Financial Services It is said that the domestic market remained sluggish due to rising crude oil prices, supply-related concerns and strengthening of the dollar index. Despite good early Q3 results and strength in the IT sector, concerns over Trump’s policies and expensive valuations led to a decline in the broader indices. In such a situation, consolidation may continue in the near future. Investors will be closely watching US non-farm payrolls data due today to gauge what’s next.
Ajit Mishra of Religare Broking It is said that there were ups and downs in the market today. The trend of decline continued and the market closed with a decline of about half a percent. Despite a slight recovery from intraday lows led by a rally in IT stocks post TCS results, the market closed lower due to sector-wide weakness. Except IT, there was selling pressure in all other sectors. Pharma, banking and realty declined the most. The broader indexes fell even more. Mid and smallcap indices fell by 2-2.5 per cent.
There is tension in the market, even a slight decline is creating selling pressure. In the absence of any clear signs of trend reversal, especially in the banking index, traders are advised to use the rebound as a shorting opportunity. Give priority to caution by focusing on risk management. Additionally, market volatility is likely to increase as the results roll out. To deal with the current conditions, it is important to adopt a hedged strategy and maintain position sizing in a disciplined manner.
Prashant Tapse of Mehta Equities The downtrend in the market continued as the rupee hit a new low due to the strengthening dollar, it said. This worsened investor sentiment even further. Amid fears of slowing economic growth and a slowdown in quarterly earnings, investors lightened positions in banking and mid and small cap stocks. There is also concern about the expensive valuations of Indian markets. In future, we will see investors taking stock specific actions.
Market outlook: Market closed in red, know how it may move on January 13
Shrikant Chauhan, Equity Research Head, Kotak Securities Said that Indian equity markets have underperformed most global markets. This week Sensex and Nifty have fallen by about 2 percent. The decline in midcap and smallcap shares has been more. BSE Midcap and Smallcap indices have declined by 5 percent on a weekly basis.
There has been a decline in almost all important sectors this week. In which BSE Capital Goods, BSE Power and BSE Reality indices have seen a decline of more than 5 percent on a weekly basis.
On the other hand, BSE IT index rose after TCS results. TCS’s earnings have been flat. At the same time, BIT margin has increased by 40 basis points, which is broadly in line with our estimates. TCS deals TCV has seen good growth both quarterly and annually.
Crude oil prices continued to rise during this week and any further increase could pose some challenges to the economy. The upcoming inflation data will be an important macro data to keep an eye on. Stock specific action is expected in the next few weeks as companies will declare their third quarter results.
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