Discount offers are running in the Indian stock market during the festive season. Foreign investors sold a record $10 billion during the first two weeks of October, sending the market into a frenzy. However, local funds have also tried to prevent a major correction by buying $9 billion in front. Corporate earnings have been mixed so far and the market has lacked follow-up due to this.
Due to this, important benchmarks are collapsing after falling below support levels. Stocks witnessed a sell-off due to increased caution among domestic investors despite fund buying support in mid- and small-cap stocks. After a steady morning opening at 81,770, the Sensex tumbled to 80,811 under the weight of weak global flows and FPI sell-off, after sliding down 960 points intraday, later recovering on the back of short covering and positive news, finally falling a modest 73.48 points to close at 81,151.27 to sustain the 81,000 level. was successful. However, Nifty could not sustain the level of 24,800.
Banking stocks remained at the centre, where there was biased volatility. Shares like Tata Consumer, Kotak Bank, Bajaj Finserv, BPCL, IndusInd Bank fell by 3 percent to 7 percent in the FTI. Additionally, due to SEBI's measures, large positions in the market are also being avoided. Breadth remained weak as against 1122 advancers there were 2915 advancers.
US markets at record levels, Sino-Japan volatility On the one hand, the US stock market has reached a record high, while the emerging market had a mixed trend. Economic data stability in the US against improvement due to instability in China and Japan has also seen volatility at the global level and its impact has been on the Indian stock market. Due to prolonged monsoon and its negative impact on demand, the operations of companies have slowed down. Now how does the demand improve in the festive season? Second quarter corporate earnings estimates were cut by most brokerages.
A slowdown in the banking-finance sector Banking stocks had a direct impact on performance. RBL Bank's share price tumbled 14.3 percent to its lowest level in the year. The share price slipped to 176 as banks reported lower profits. While Kotak Bank also posted a lower-than-expected profit, at one stage it fell 7 percent to 1743 and dented its market cap by Rs 25,000 crore, but later recovered to close 4.3 percent lower at 1789.55. However, the star among banking stocks was HDFC Bank, which rose 2.8 percent to 1728.80.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).