What happened with the Share Market Today

Equity benchmark Sensex nosedived over 1000 points to close at below 59000 mark on account of weak global markets. Across the global market declined sharply between 1-2% amid concern of the US Fed to aggressively hike interest rates in the next week’s policy meeting (21st Sept). Nifty declined over 500 points or 3% in three consecutive days. The losses were led by the banking, metal, auto, FMCG, and IT stocks. India Vix surged by 8% to close at nearly 20 which indicated sharp volatility in the domestic market. US Dollar Index spiked to nearly 110 and the 2-year Treasury yield surged to a 15-year high at 3.87% resulting in a pull-down of global metal prices like metal, gold, and crude oil. Gold price fell to a 3-year low to below $1700/ounce in the international market and Brent crude declined to a 7-month low.

Back home, Sensex tanked 1,093 points or 1.8 percent to settle at 58,841. During the day, it tumbled 1,247 points or 2 percent to 58,687. Nifty declined 346 points or 2 percent to close at 17,531 while touching an intra-day low of 17497. From the Nifty, Tata Consumer, UPL, Tech Mahindra, Infosys, Heromoto Corp, M&M, and UltraTech Cement emerging as the major laggards while Indusind Bank is the only major gainer.

Among the Global Market,  Asian markets slipped  2% followed by Wall Street lower on Friday after higher-than-expected US inflation dashed hopes the Federal Reserve might ease off more interest rate hikes. US Future declined by 1% while yesterday fell by 1%. European equities declined 1%  for the fourth day as investors expected stubbornly high inflation to keep central banks hawkish, bolstering fears of an economic downturn.

The southbound journey continued on tech stocks amid the global economic slowdown and the looming worries of recession in the developed nations. Nifty IT Index slipped 2% to a 3-month low at 27000 while it has declined nearly 10% in the last four trading sessions. Global IT major Index – Nasdaq Composite nosedived 6% in the last 4-trading sessions amid concerns about persistently high inflation keeping the US central banks from aggressively hiking interest rates in the next policy meeting. Infosys slipped 4% to close at Rs1377 and Tech Mahindra declined 4% to close at Rs1033. TCS, HCL Tech, LTI, LTTS, and Wipro fell between 3-5%.

Shipbuilding stocks witnessed a smart rally due to a strong order book by the government of India on the Make in India plan to encourage local players like Mazagon Dock, Cochin Refinery, and Garden Reach. Mazagon Dock gained 3% to close at Rs430 while touching an intra-day high of Rs457. Both Cochin Refinery and Garden Reach gained 2% each.

Metal stocks recorded a sharp decline due to falling in base metal price on  LME (London Metal Exchange). Vedanta tanked over 7 percent to close at Rs291. The company on Thursday clarified that the proposed business of manufacturing semiconductors will be undertaken by its holding company Volcan Investments Limited. Hindalco, National Aluminum, Jindal Steel, SAIL, and Tata Steel declined between 1-3%.

Banking stocks witnessed profit booking. Bandhan Bank declined over 5% to close at Rs289. HDFC Bank, IDFC Bank, ICICI Bank, SBI, and Bank of Baroda declined 1-3%. However, Indusind Bank surged over 3% to close at Rs1227 after the bank re-appointed Sumant Kathpalia as its MD and CEO.

Technical Outlook:
The nifty index opened the gap down by around 80 points and nosedived by more than 300 points to touch the intraday low of 17497 zones. It moved in the weak territory and bears had a full charge to close the index with losses of around 350 points. It formed a Bearish candle on a daily and weekly scale. It wiped off its gains of the entire week and formed a Bearish Engulfing sort of candle on the weekly frame. Now, till it holds below 17777 zones, weakness could be seen towards 17442 and 17250 zones whereas hurdles are placed at 17777 and 17850 zones