Today's stock market saw a gain of 100 points, or 0.15 percent, for the Sensex, which ended the day at 65,880.52, and a gain of 36 points, or 0.18 percent, for the Nifty50, which ended the day at 19,611.05.
The Sensex and the Nifty, two important equity indices, closed higher for the fourth day in a row thanks to increases in the shares of a few industry heavyweights, including HDFC Bank, ITC, and Bharti Airtel.
Gains for them were, however, limited by weak global indications as worries about interest rate increases and slowing global economic growth continued to weigh on sentiment.
When the Sensex closed, major European markets in the UK, France, and Germany saw weaker trading as worries about an economic slowdown were sparked by recent tepid economic data from China and Europe. While the global economic outlook is dimming, inflation is still high in the majority of the world's major economies, which could lead to interest rates remaining higher for longer.
The local market is encouraged by India's strong development prospects and the likelihood that inflation will decline in the coming months. However, a weak monsoon and rising crude oil costs pose a risk.
Present-day stock market
In contrast to the previous closing of 65,780.26, the Sensex opened 36 points lower at 65,744.19, and it moved subduedly for the majority of the day. In several of its constituents, the index experienced fag end purchasing, which helped it close higher.
The Sensex ended the day 100 points, or 0.15 percent, higher at 65,880.52, and the Nifty50 ended the day at 19,611.05, up 36 points, or 0.18 percent. The benchmark equity indexes have increased by approximately 2% during the past four sessions.
After setting a brand-new session high of 32,182.66 points, the BSE Midcap index finished with a gain of 0.13 percent at 32,122.06. The last seven sessions' winning run for the BSE Smallcap index were broken when it finished in the red. The index reached a new record high during the session of 38,142.34, but it later gave back all of its gains, falling by 0.04 percentage points to close at 37,948.61.
Up to 287 equities, including those from HCL Tech, ONGC, Bharat Forge, Indian Hotels Company, LTIMindtree, Marico, and United Spirits, reached new 52-week highs during intraday trade on the BSE.
Along with losses in Asian rivals and a strong increase in crude oil prices, the Indian rupee dropped 14 paise to a 10-month low versus the US dollar on Wednesday during the intraday session. On worries about the expansion of the world economy and the need for fuel, the price of crude oil somewhat declined. Around 4 o'clock, the price of a barrel of Brent Crude fell by 5%, to $89.50.
Best and worst performers on the Nifty today
The Nifty index saw a net gain of 24 stocks, while Jio Financial was one of the 27 stocks that experienced a loss.
Tata Consumer Products (up 4.11%), Divi's Laboratories (up 1.77%), and Bharti Airtel (up 1.62%) ended as the top gainers in the Nifty index.
On the other hand, Tata Steel (down 1.71%), Hindalco (down 1.65%), and Axis Bank (down 1.48%) ended up being the biggest losers in the index.
Sectoral indexes at present
Today's sectoral indexes concluded in a mixed bag. As the biggest loser among sectoral sectors, the Nifty PSU Bank index dropped by 1%. Other sectors that underperformed included Nifty Realty (down 0.96%), Metal (down 0.79%), Private Bank (down 0.43%), Nifty Bank (down 0.28%), IT (down 0.16%), and Auto (down 0.13%).
On the other hand, Tata Steel (down 1.71%), Hindalco (down 1.65%), and Axis Bank (down 1.48%) ended up being the biggest losers in the index.
Sectoral indexes at present
Today's sectoral indexes concluded in a mixed bag. As the biggest loser among sectoral sectors, the Nifty PSU Bank index dropped by 1%. Other sectors that underperformed included Nifty Realty (down 0.96%), Metal (down 0.79%), Private Bank (down 0.43%), Nifty Bank (down 0.28%), IT (down 0.16%), and Auto (down 0.13%).
As opposed to this, the Nifty FMCG index increased by 1%, followed by the Nifty Healthcare (up 0.92%), Pharma (up 0.90%), Oil & Gas (up 0.77%), and Consumer Durables (up 0.59%) indices.
Opinions of experts on markets
The markets experienced a turbulent ride in early trades, but selective purchasing in late trades enabled benchmark indexes to post gains for the fourth straight session, according to Shrikant Chouhan, Head of Research (Retail) at Kotak Securities.
"Despite the market's ongoing upward trend, it lacks depth as investors' confidence is a little weakened by the increasing level of global uncertainty. "A new increase in US bond yields and the dollar index is causing uncertainty in international markets, including India, and this has once again resulted in the FIIs selling off local shares," said Chouhan.
A rise in crude oil prices, according to Vinod Nair, Head of Research at Geojit Financial Services, sent shockwaves through the world, raising concerns about inflation and igniting fears of a Fed rate hike. As a result, US bond yields increased sharply, leading investors to turn to bonds for safety and reversing the foreign investors' buying tendency in the domestic market.
Nair continued, "However, the domestic markets' resilience shone through as investors staked their bets on an improved outlook, ultimately aiding the market's recovery from the initial shock."
Nifty technical analysis
Chouhan claimed that the Nifty found support close to 19,500 and then immediately recovered. There is a good chance that the present uptrend will continue, according to a favourable intraday reversal shape.
"For the trend-following traders right now, 19,550 would be the trend-decider barrier, above which the index might rally to 19,650-19,700. On the other hand, when 19,550 was rejected, new selling pressure might be noticed, and below that level, prices could fall to 19,500–19,460, according to Chouhan.
According to Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, the important hourly moving averages, which are located around 19,500, saw buying interest during today's intraday correction.
Gedia thinks that since the main trend is up, people will likely buy into these dips.
"From a short-term perspective, we anticipate the Nifty to target levels of 19,650 to 19,700. In terms of levels, 19,490 to 19,520 should serve as critical support and 19,650 to 19,700 as an instant obstacle, according to Gedia.
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