Indian Equity Market Trades Lower Amid Global Caution and Fed Stance

Equity benchmarks in India experienced sustained pressure on Thursday afternoon, with the Sensex down by 452.19 points (0.53%) and the Nifty falling by 133.10 points (0.51%). Both indices opened lower and remained in negative territory throughout the session. This cautious trading sentiment is largely a reaction to the recent policy announcement by the US Federal Reserve and comments from Chair Jerome Powell regarding the future path of interest rates.

The market breadth indicated weakness, with 2,176 stocks declining against 1,771 advances on the BSE. A significant number of stocks hit their 52-week highs (134) and lows (45), while circuit breakers were triggered for 162 stocks hitting the upper circuit and 132 hitting the lower circuit.

Among the top performers on the Nifty, Larsen & Toubro gained 1.14%, Coal India rose 1.09%, Maruti Suzuki advanced 0.70%, UltraTech Cement added 0.47%, and Jio Financial Services edged up 0.36%. Conversely, Dr Reddy’s Laboratories was the worst performer, tumbling 3.86%. Other notable decliners included HDFC Life (-2.13%), Bharti Airtel (-1.73%), Max Healthcare (-1.38%), and Bajaj Finance (-1.38%).

Sectoral performance was mixed. The Nifty Bank saw a decline of 0.33%, and the Nifty Financial Services fell by 0.53%. The Nifty Next 50 and Nifty Midcap 100 also registered minor losses. Traders attribute the continued pressure to persistent global uncertainties and anticipation of further corporate earnings reports due later in the week.

Impact: This news indicates a bearish short-term sentiment in the Indian stock market, influenced by global economic factors. It highlights sector-specific and stock-specific movements within a broader market decline, affecting investor confidence and potentially leading to portfolio adjustments. Rating: 6/10

Difficult terms: * Equity benchmarks: These are stock market indices like the Sensex and Nifty that represent the overall performance of the stock market or specific sectors. * Sensex: A benchmark index of 30 large, well-established, and financially sound companies listed on the Bombay Stock Exchange (BSE). * Nifty: A benchmark index of 50 well-established, large, and liquid Indian companies listed on the National Stock Exchange (NSE). * Market breadth: Refers to the number of stocks advancing versus declining in a stock market. A weak breadth suggests a decline is not broadly supported. * BSE: Bombay Stock Exchange, one of the oldest stock exchanges in Asia. * 52-week highs/lows: The highest and lowest prices a stock has traded at over the past 52 weeks (one year). * Upper circuit: The maximum price increase allowed for a stock on a particular day, as set by the exchange. * Lower circuit: The maximum price decrease allowed for a stock on a particular day, as set by the exchange. * Sectoral indices: Indices that track the performance of a specific industry or sector within the stock market (e.g., Nifty Bank, Nifty IT). * Nifty Bank: An index that represents the banking sector in India. * Nifty Financial Services: An index that tracks the performance of financial services companies listed on the NSE. * Nifty Next 50: An index comprising the next 50 largest Indian companies by market capitalization after the Nifty 50. * Nifty Midcap 100: An index representing the performance of the 100 mid-cap companies in India.