Indian markets declined for the 5th straight session on Wednesday, November 13 on the back of weak global trends, rise in dollar index, weakening rupee and continuous foreign investor selling. The Sensex fell 559.39 points or 0.7 percent to it’s day’s low of 78,115.79 while the broader Nifty lost 203 points or 0.8 percent to its intra-day low of 23,680.50.
Both benchmarks are over 9 percent away from their respective record highs, hit in September-end. Just in these 5 sessions of decline, the indices have lost over 3 percent.
Broader markets underperformed the benchmarks with the Nifty Midcap and Nifty Smallcap indices declining around 2 percent each.
“The Trump victory has added an element of high volatility to markets. From the emerging market perspective, the rise in the dollar index and the sharp spike in the US 10-year bond yield to 4.42% are causes of concern. Such high yields in US bonds will facilitate more outflows from emerging markets to the US. This will continue to be a headwind for India,” explained V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Investors should be cautious in investing in sectors like cement, metals and petroleum refining which are facing growth slowdown. Safety is sectors like banking, new age digital companies, hotels, pharma and IT where growth prospects are good, he advised.
Sectors and stocks
On BSE Sensex, only 5 stocks were in the green – NTPC, ITC, Tata Motors, Titan and HUL while the remaining 25 fell during the day. Tata Steel, M&M, JSW Steel, Adani Ports, and PowerGrid were the top losers.
All sectoral indices were in the red for the day. Nifty Realty shed the most 2.66 percent followed by Nifty Metal, which lost 2.2 percent and Nifty Auto, down 1.9 percent. Meanwhile, Nifty PSU Bank and Nifty Media also fell 1.7 percent each. Nifty Bank, Nifty Fin Services, Nifty Pharma, and Nifty Oil and Gas also declined between 0.9-1.5 percent each. Nifty IT fell the least, down 0/4 percent.
