nifty: Market Watch: How equities would be affected as rupee hits fresh lows | The Economic Times Podcast

-Indian crude oil basket hits 10-year high
-34% jump in FY22 stamp duty collection
-India’s wheat export forecast to be 7 million tonnes in 2022-23
-Oil firms to compensate ethanol makers
-Fitch revises India’s GDP forecast downwards to 7.8% for FY23
-Actis buys road assets of Welspun for Rs 6,000 crore

Let’s take a quick glance at what happened on Dalal Street today.

Benchmark domestic headline indices suffered a sharp drop on Friday, racking up their first weekly losses after a month as risk appetite took a turn for the worse before a crucial inflation release in the US.

The US is scheduled to release inflation data late on Friday amid expectations of consumer prices remaining around a 40-year high in the country.

The data is likely to play a key role in determining the pace of interest rate hikes by the US, which in turn will determine the direction of global markets and overseas investors’ approach to Indian stocks.

With the Fed having already hiked rates twice since March, FIIs have relentlessly sold domestic stocks – offloading a massive Rs 1.7 lakh crore so far in 2022.

Elevated crude oil prices and weakness in the rupee, which touched a fresh record low on Friday, also aggravated the selling pressure in equities.

Hit by a sell-off in IT and bank stocks, the BSE benchmark Sensex cracked 1,016.84 points to close at 54,303.44. Its broader peer, the Nifty 50, settled 276.30 points or 1.68 per cent lower at 16,201.80. The index has logged its worst week in a month.

22 stocks on the Sensex fell, with Kotak Mahindra Bank and Bajaj Finance each shedding 3.9 per cent. HDFC lost 3.8 per cent, while Reliance cracked 3 per cent. Asian Paints gained 0.8 per cent, while Dr Reddy’s rose 0.6 per cent.
12 stocks hit the upper circuit while 2 tested their lower circuit limits. 22 stocks tested their 52-week highs, whereas 58 tested their 52-week lows.

We have Arijit Malakar from Ashika Stock Broking to share his views on the action and the road ahead:

Welcome to the show sir:
1. The fear of tighter financial conditions across the globe has unleashed significant volatility in equities. How should retail players approach markets in this environment?
2. The rupee is charting fresh lows ahead of the Fed’s policy statement. How would equities be affected?

We also caught up with Vaishali Parekh of Prabhudas Lilladher to decode the technical charts for you.
1. The Nifty50 slumped and settled below the 16,250 level. What do the technical charts suggest about it?
2. Bank Nifty fell in line with the headline index today. What is your outlook on the sector?

Asian stocks settled with cuts for the day. European markets were trading with losses. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!