Closing Bell: Sensex dragged down 405 points to 62165 with IT stocks hit by US slowdown, Nifty at 18490

Nestle India, Sun Pharma, Dr Reddy's Laboratories, Titan Company, and Eicher Motors were among the major gainers on the Nifty

FPJ Web DeskUpdated: Friday, December 09, 2022, 10:22 PM IST
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Today, the benchmark indices ended lower with Nifty at 18490.

The Sensex was down 405.59 points or 0.65% at 62165.09, and the Nifty was down 118.85 points or 0.64% at 18490.50. The indices have been bogged down by a drop in value for IT stocks, because of a slowdown in the US market which generates revenue for Indian tech firms. HCL lost big with a 7 per cent slump in stock prices, as its growth for FY23 hit the lower end of expectations.

About 1,199 shares advanced, 2,220 shares declined, and 113 shares were unchanged. 

Nestle India, Sun Pharma, Dr Reddy's Laboratories, Titan Company, and Eicher Motors were among the major gainers on the Nifty while the top Nifty losers were HCL Technologies, Tech Mahindra, Infosys, Wipro, and Hindalco Industries.

BSE midcap index fell 0.4% and smallcap index slipped 1%.

Gainers and Losers on the BSE Sensex

Gainers and Losers on the BSE Sensex | Source: BSE

The IT sector went down nearly 3%.

PSU bank, metal index and realty indices were down 1% each, while FMCG index gained nearly 1%.

"Profit taking was back in action as investors dumped IT, metal and realty stocks, even as benchmark Sensex still managed to end above the psychological level of 62000 mark. The recent trend indicates that markets may continue to exhibit intra-day volatility as investors keenly await the outcome of the US Fed's decision on interest rate next week. More than the rate hike, investors would be more interested in knowing about the forward looking statement on inflation and rate decision going ahead. Technically, the lower top formation on intraday charts and bearish candle on weekly charts is indicating further weakness from the current levels. For short-term traders, the 20-day SMA (Simple Moving Average) or 18450 would act as a sacrosanct support zone, above which, we could expect a one pullback rally till 18700. In case of any further upside, the index could move up to 17800. On the flip side, below 20 day SMA or 18450, further sell off is possible till 18300-18200", Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd.

"The total net cash outgo under the supplementary demand for grants, which is somewhat smaller than our expectations, is dominated by fertilizer subsidy, food subsidy, payments to the OMCs for domestic LPG operations, and funds towards NRGEGA. Additionally, capex has been augmented by around Rs. 31000 crore, which should help to ensure that the capex target is achieved. With savings likely under other heads, we do not see the supplementary demands resulting in a meaningful breach of the fiscal deficit target of 6.4% of GDP", Aditi Nayar, Chief Economist, ICRA on Supplementary demands for grants.

"USDINR spot closed 14 paise lower at 82.27 on the back of weaker US Dollar Index and lower oil prices. We could see USDINR remain range bound ahead of the US Fed on Wednesday. We expect a range of 82.00 and 82.50 on spot", Anindya Banerjee, VP - Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.

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