Sensex Today: Benchmark indices ended on a negative note in the highly volatile session on Monday. However, the key benchmark indices recouped most losses in the latter half led by renewed buying interest in IT and select auto, banking stocks. TCS in particular was up nearly 2 per cent ahead of its Q2 results later today.
Towards the end, a notable recovery in the US stock futures also aided the sentiment. Meanwhile, elsewhere in Asia, Hang Seng and Shanghai Composite ended with steep loss of up to 3 per cent after China imposed fresh lockdowns and travel restrictions after the number of new daily Covid-19 cases tripled during the weekend holiday.
The BSE benchmark index recovered from a low of 57,366, to end the day at 57,991 – down 200 points. The NSE Nifty 50 was down 74 points at 17,241.
In the broader markets, the BSE Midcap and Smallcap indices were down over 0.5 per cent each. Whereas, among sectors, the BSE IT index was the sole gainer – up nearly 1 per cent. On the other hand, the Consumer Durables, Power, FMCG and Capital Goods indices lost significant ground.
The BSE Bank was down marginally at close, down 0.1 per cent at 44,657, having recovered smartly from the day’s low of 43,990.
Among other sectors, shares of shipbuilding & allied services extended their recent outperformance. Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers logged new highs in trade on Monday. READ MORE
The overall breadth was fairly negative, with nearly 2,100 declining stocks versus 1,460 advancing shares on the BSE.
Rupee Close:
Indian rupee closed flat at 82.32 per dollar against previous close of 82.32.
The domestic currency has repeatedly posted record lows in recent sessions on concerns over oil prices, rising Treasury yields, corporate outflows and offshore demand for the U.S. currency. The Reserve Bank of India’s interventions have not been able to arrest the slide in the rupee, unlike in prior occasions.
“The double whammy of higher U.S. rates and higher crude prices is back to haunt the rupee,” said IFA Global Research Academy. “While the RBI was able to defend the rupee successfully through the last round of simultaneous stress on current and capital account by spending it’s reserves, this time around things are likely to be different.”
Global Cues
Stocks slipped in Asia on Monday after a surprise drop in U.S. unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again.
Wall Street fell sharply on Friday following a solid jobs report for September that increased the likelihood the Federal Reserve will barrel ahead with an interest rate hiking campaign many investors fear will push the U.S. economy into a recession.
Oil prices jumped about 4 per cent to a five-week high on Friday, lifted again by an OPEC+ decision this week to make its largest supply cut since 2020 despite concern about a possible recession and rising interest rates.
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