What next for markets after the Monday mayhem?

The week began on a dismal note at the markets, as earnings disappointment by index heavyweights Infosys and HDFC Bank triggered a sell-off in IT and financial stocks. A spike in WPI-based inflation to 14.55% in March also weighed on the investor sentiment. At close, the BSE Sensex and the NSE Nifty 50 declined 2.0 per cent and 1.7 per cent, respectively. The Nifty IT tumbled 4.6 per cent, and the Bank Nifty shed 2 per cent. The HDFC duo – that is, HDFC and HDFC Bank – along with Infosys accounted for more than 70 per cent of the day’s losses on the S&P BSE Sensex. Infosys registered its biggest intra-day fall in two years as it tumbled over 9 per cent.

The stock eventually ended 7.3 per cent lower at Rs 1,621. Other major losers were…. HDFC, HDFC Bank, Tech Mahindra and TCS – down in the range of 3.7 to 4.8 per cent on Monday. According to Naveen Kulkarni of Axis Securities, the markets will continue to witness volatility in FY23, especially in the first half of the year with rising interest rates globally and high inflation, expected to persist. In this scenario, he expects money to move from long-duration debt funds to equity funds in the second half of the year. Kulkarni is positive on metals, hospitals, hospitality, oil refining and capital goods sectors, but believes discretionary consumption, IT, NBFCs may underperform. Given the fall in indices, wherein the NSE Nifty has shed nearly 6 per cent in just eight trading sessions from its recent high of 18,115. The next major question on investors mind is that will the indices decline further or shall we see a reversal? That apart on Tuesday, shares of ACC, L&T Infotech, Mastek and Tata Steel Long Products are likely to be in focus as the companies are scheduled to announce Q4 earnings.

Watch video

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor