04 Oct , 2024 By : Debdeep Gupta
The Sensex and Nifty were trading lower around noon on October 3, weighed down by declines in banks, FMCG, and auto stocks. In contrast, IT stocks offered a ray of hope, with the tech index rising by 0.8 percent.
The Indian benchmarks have been under pressure for the past four sessions due to rising geopolitical tensions in the Middle East, regulatory changes in the futures and options (F&O) segment, and concerns over foreign investment outflows.
At 1 PM, the Sensex was down 383 points or 0.5 percent at 82,113 and the Nifty was down 101 points or 0.4 percent at 25,148. About 1,658 shares advanced, 1,683 shares declined, and 104 shares remained unchanged.
The broader market also reflected this downward momentum, as both the BSE Midcap and Smallcap indices fell 0.4 percent. Meanwhile, the India VIX, or the fear gauge, rose over 7 percent to 14.
Sectoral Trend
Nifty Bank and FMCG fell by 0.3 percent and 1.4 percent, respectively, while Nifty IT surged nearly 2 percent, driven by gains in Infosys, TCS, and Tech Mahindra.
As Indian IT companies prepare to report their September quarter earnings, analysts project neutral to positive results, influenced by Accenture’s performance. IT stocks saw a strong performance from June to August amid expectations of demand recovery but declined nearly 2 percent in September.
Fundamental View
"The last three days have witnessed huge FII selling of Rs 30,614 crores in the cash market. FIIs are moving money from expensive India to cheap Hong Kong on expectations that the monetary and fiscal stimulus being implemented by the Chinese authorities will stimulate the Chinese economy and improve earnings of Chinese companies," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Vijayakumar said that the market direction in the near term will be influenced by the tug-of-war going on between the FIIs and DIIs. Going forward he expects the market to start responding to the Q2 results which will start flowing from next week onwards.
Technical View
"Looking ahead, key resistance levels are identified at 25,550 and 25,650," said Hardik Matalia, Derivative Analyst at Choice Broking. "On the downside, immediate support is at 25,150, followed by 25,000. A break below these levels could trigger additional selling pressure towards the 24,750 mark." Matalia said.
Key Nifty gainers
Infosys, ONGC, Wipro, Tech Mahindra, HDFC Life
Key Nifty losers
Bajaj Finance, M&M, Hero MotoCorp, Asian Paints, HUL
Key Sensex gainers
Infosys, Wipro, Tech Mahindra, Axis Bank, JSW Steel
Key Sensex losers
Bajaj Finance, M&M, Asian Paints, HUL, Nestle
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