Weak global cues drag indices further in volatile session

Weak global cues drag indices further in volatile session

By Siddhant Mishra

Indian equities faced a see-saw day on Friday, eventually extending their losing run for the second straight session amid weak global cues, as selling pressure continued. The Bank of England and European Central Bank raised interest rates in line with the Fed to fight inflation.

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The Nifty PSU Bank index was the biggest loser among sectoral indices, tumbling 2.92%, with UCO Bank the only stock to close in the green. The Bank Nifty also shed 0.64%, with PNB shedding 4.13% and SBI down 1.88%. Realty, IT, media, healthcare and auto were other sectoral indices to decline over 1%.

“The Nifty remained volatile with a bearish bias during the day as it slipped below the support of 18,350. The momentum indicator RSI (14) is in a bearish crossover and falling with a current reading of 44, suggesting an extension of a bearish momentum. The short-term trend is likely to remain bearish till the index sustains below 18,500. On the lower end, support is pegged at 18,100-18,000,” said Rupak De, senior technical analyst at LKP Securities.

Among Sensex stocks, HDFC Bank closed in the green, up 0.49%, while HDFC lost 0.2%, index heavyweight Reliance Industries was down 0.53%, and TCS lost over 2%. Infosys, Tech Mahindra, Wipro and HCL, too, extended losses, as did banking stocks except HDFC Bank.

Also Read: Sensex, Nifty extend losses; wait for correction to end, Nifty must breach 18,450 for bulls to regain strength

All sectoral indices ended in the red, with the realty index shedding the most at 1.57%. The BSE MidCap and SmallCap indices both shed over 1% each.

A total of 1,344 stocks advanced on the BSE, with 2,213 stocks declining.

“Domestic equities slipped into negative territory following the US Fed’s hawkish commentary and weakness in global markets. The markets seems to have taken a pause after reaching new highs, with the Nifty down 3% in the last few sessions. They are likely to remain in the consolidation range owing to lack of triggers in the near term. Lower participation from institutional investors due to upcoming year-end holidays will also keep markets lacklustre. However, investors will keep one eye on the US Home Sales and GDP (QoQ) numbers, to be released next week. Selling might be seen in banking stocks on account of profit-booking,” said Siddhartha Khemka, head (retail research), Motilal Oswal Financial Services.

While DIIs were net buyers, pumping in Rs 1,542.50 crore, FIIs remained net sellers, taking out Rs 1,975.44 crore.

Brent crude was trading at below $80 a barrel, as of 6pm (IST).