Benchmark indices BSE Sensex and NSE Nifty ended lower on Tuesday. The market continued its downward momentum amid ongoing geopolitical uncertainty for the second consecutive day.
BSE Sensex closed 0.53 per cent or 456 points lower at 72,943.68 levels, while NSE Nifty50 closed 0.56 per cent or 124.60 points lower at 22,147.90 levels.
On the BSE, HUL, Titan were the top gainers surging 1.7 per cent and around 1.5 per cent, respectively. On the other hand, Infosys ended nerly 3.6 per cent lower ahead of its March 2024 quarter earnings scheduled to be released this Friday.
Eicher Motors, Divi’s Lab, ONGC, and HDFC Bank were some of the top gainers among the Nifty 50 stocks that moved up over 1 per cent each in trade on Tuesday, April 16.
In the broader markets, the smallcaps were in demand. The smallcap index on the NSE ended the day higher by 0.5 per cent, while the midcap index slipped a marginal 0.1 per cent after a volatile day of trade.
Exide Industries, Titagarh Wagons, GE Shipping, Cochin Shipyard, Radico Khaitan and GSPL were among the top smallcap gainers that rallied up to 15 per cent on Tuesday, April 16 on the NSE.
Sectorally, the Nifty IT index lost nearly 3 per cent, followed by Nifty PSU Bank, which fell nearly 0.9 per cent.
The markets will remain closed on Wednesday, April 17 on account of Ram Navami.
Stock Market View: Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Two issues- one economic and the other geopolitical- will continue to weigh on markets in the near-term. The economic factor is the rising US bond yields ( 10-year yield is above 4.6% ) which reduces the prospects of rate cuts by the Fed this year. High bond yields are negative for risky assets like equity and will accelerate FII selling in emerging markets like India.
The market is more concerned about the geopolitical issue. Israel’s military chief’s statement that “there will be a response to Iran’s attack on Israel” has increased the probability of escalation of tensions in the Middle East. We don’t know the timing and the nature of the Israeli response, which can be unexpected. This is likely to keep the markets weak in the near term.
Dollar Surges to 5-Month High
The dollar surged to its highest level in five months against other major currencies on Tuesday due to stronger-than-anticipated U.S. retail sales data, leading to concerns about potential intervention as the yen remained at its lowest level since 1990.
Meanwhile, the Chinese yuan steadied after initially dropping to its lowest point since November during early trading in Asia. This drop was reversed following the release of China’s first-quarter GDP data, which exceeded expectations. This positive economic news provided support to policymakers who are working to restore confidence amidst an ongoing property market crisis.
Global Cues
Overnight in the US, benchmark indices reversed early gains and ended at the lows of the day, Dow Jones slipped 0.7 per cent. Nasdaq plunged 1.8 per cent and the S&P 500 fell 1.2 per cent at close.
Meanwhile, the US 10-year bond yield jumped to 4.6 per cent. In commodities, Gold futures rose back to $2,400 per ounce. Brent Crude Oil remained steady around $90 per barrel.
Near home, Japan’s Nikkei and Malaysia’s Kospi tumbled 1.7 per cent each. Taiwan too was down over 1 per cent.
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