DSIJ Mindshare

It Is All Red On Global Canvas

Indian equity indices ended at one-month lows following the expiry of September derivative contracts yesterday. If we look at the factors that weighed down the index was government deferred its decision on gas pricing till November 15. No wonder the Oil & Gas companies witnessed a cold shoulder from investors. Further, as mentioned in our morning note yesterday the metal and bank shares also witnessed selling pressure after the Supreme Court's verdict on coal block allocations.

The Sensex ended down 276 points at 26468and the Nifty ended down 91 points at 7912. Nifty September F&O series ended lower after seven consecutive positive series with Metal Index falling the most. The F&O turnover stood at Rs. 5.3 lakh crore and the total market turnover crossed the Rs. 8.50 lakh crore for the first time ever. The Indian rupee was trading lower at Rs 61.19 to the US dollar compared to the previous close of Rs 60.96 on the back of month-end dollar demand from importers and weakness in domestic equities. Broader markets continued to underperform as the mid cap and small cap indices also witnessed a decline. While the mid cap index is down 2.40%, the small cap index was down 3.21%.

The scenario does not seem to be very good as we start the new series today. While the global equities are already trading with deep cuts, there are few domestic challenges as well. The factors like delayed gas pricing formula and cancellation of coal blocks is likely to keep the markets under pressure at least in short term.

Further there is RBI meet scheduled on the September 30th, where the RBI is unlikely to cut repo rates. Apart from that RBI will provide its stance on the economic situation. As a result not many would be taking a bold step to take any exposure, especially when there is an extended holiday in coming week.

As regards the global equities, US markets witnessed a sharp decline yesterday. The S&P 500 index lost 32.31 points, or 1.6 %, to close at 1965.99. The Dow slumped 264.26 points, or 1.5 %, to close at 16945.80. The NASDAQ composite, which is dominated by technology companies, dropped 88.47 points, or 1.9 %, to 4,466.75.It was the worst day for all three indexes since July 31.

A stumble by Apple set off the worst rout in the stock market since July on Thursday. News reports suggested that, Apple dropped nearly 4 percent following its announcement late Wednesday that it had pulled a software update which prevented users from making phone calls. Other technology stocks also slumped. The selling in markets started early and picked up strength in the afternoon. By the close of trading session, all 30 big companies in the Dow Jones industrial average and the 10 industries in the Standard & Poor's 500 index lost ground. Most investors said the drop wasn't a sign of worry because the forces behind the market's long rally remain in place. Even the leading European indices closed on negative note with more than 1% decline.

Taking the cues from the US and European markets, even the Asian Indices are trading in red with Nikkei being the biggest loser. Nikkei is trading down by 177 points or 1.09%. Hang Seng and Shanghai Composite are also trading in red with decline of 0.72% and 0.31% respectively. SGX Nifty is not an exception as it is trading with cut of 0.60%.

We are of the opinion that the change of political scenario in Maharashtra where the BJP and Shiv Sena alliance has been broken may create some negative sentiments. Further ahead of few important announcements like RBI policy we feel the markets are likely to remain range bound.

DSIJ MINDSHARE

Mkt Commentary28-Mar, 2024

Multibaggers28-Mar, 2024

Interviews28-Mar, 2024

Multibaggers28-Mar, 2024

Multibaggers28-Mar, 2024

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR