Axis Bank emerges as the sole gainer in Nifty stocks following a positive report on their net profit for the September 2023 quarter. The bank saw a 10% increase, reaching Rs 5,864 crore, thanks to higher interest income. Meanwhile, other companies like Mahindra & Mahindra, Bajaj Finserv, and Bajaj Finance are experiencing a decline. On Wednesday, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,236.60 crore.
The stock market indices, Nifty and Sensex, continue their downward trend, influenced global market trends and foreign fund outflows. In morning trade on Thursday, the 30-share BSE Sensex fell 502.5 points to 63,546.56, while the Nifty dropped 159.55 points to 18,962.60. However, Axis Bank’s positive performance stands out amidst these losses.
Looking at the Sensex firms, Tech Mahindra saw a nearly 3% decrease in trade due to a 61% decline in consolidated net profit, which amounted to Rs 505.3 crore. This drop is primarily attributed to reduced client spending. Other major laggards include Mahindra & Mahindra, Bajaj Finserv, Bajaj Finance, JSW Steel, Tata Motors, Nestle, and Titan.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong also experienced downward trends. This followed the negative performance of US markets on Wednesday. The ongoing Israel-Hamas conflict and the persistently high US bond yields contribute to the current risk-off sentiment in global equity markets. Geopolitical concerns and an economic slowdown may further impact global growth.
From a technical standpoint, the Nifty and Sensex broke important support levels and formed bearish candles on the daily chart, indicating a negative sign for the market. Shrikant Chouhan, Head of Equity Research at Kotak Securities, suggests that due to consecutive days of selling, the market is nearing the oversold zone. However, he advises investors and short-term traders to seek buying opportunities in select stocks between 19,000 and 18,900 levels, with resistance expected at 19,180/19,200 levels.
On a global level, Brent crude, the oil benchmark, experienced a 0.29% decline, settling at USD 89.87 per barrel. Additionally, FIIs sold equities worth Rs 4,236.60 crore on Wednesday. The previous day saw the BSE benchmark plummet 522.82 points or 0.81% to close at 64,049.06, while the Nifty fell 159.60 points or 0.83% to reach 19,122.15.