Sensex drops 323 pts, Nifty ends near 17,400 mark; IT, autos drag

The domestic equities reversed intraday gains and settled with sharp losses on Wednesday, 24 November 2021. The Nifty ended near 17,400 mark after hitting the day's high of 17,600.60 in afternoon trade. Auto and IT stocks tumbled while private banks and oil & gas stocks bucked the trend.

The barometer index, the S&P BSE Sensex, dropped 323.34 points or 0.55% at 58,340.99. The Nifty 50 index lost 88.30 points or 0.50% at 17,415.05.

Maruti Suzuki India (down 2.62%), ITC (down 1.60%) and Reliance Industries (down 1.48%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 0.57% while the S&P BSE Small-Cap index rose 0.44%.

The market breadth was positive. On the BSE, 1,956 shares rose and 1,334 shares fell. A total of 140 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, dropped 5.10% at 17.095.

The ongoing correction is triggered by heavy foreign outflows. So far in November, foreign institutional investors have sold Rs 17,915.33 crore in the domestic equity market.

Buzzing Indian Segment:

The Nifty IT index fell 1.52% to 34,966.25. The index rose 0.07% in the previous session.

Mindtree (down 3.77%), Larsen & Toubro Infotech (down 2.73%), Infosys (down 2.69%), L&T Technology Services (down 2.69%), Mphasis (down 2.61%), Tech Mahindra (down 1.7%), Wipro (down 1.34%), Coforge (down 1.02%) and TCS (down 0.93%) tumbled.

Stocks in Spotlight:

Coal India rose 1.86% after the state-run coal producer said that its board will consider interim dividend on 29 November 2021.

TVS Srichakra gained 0.71%. The company intimated that TVS Eurogrip has joined hands with four-time IPL champions Chennai Super Kings as the Principal Sponsor for the next three years (2022-2024).

Balaji Amines added 0.61%. The firm said that production in the DMF plant has started after carrying out all the rectifications. The DMF plant was shutdown on 6 October due to a minor incident.

Larsen & Toubro (L&T) lost 1.47%. L&T announced that it signed a Memorandum of Understanding (MoU) with Tamil Nadu Government to establish a data center at Kanchipuram, Tamil Nadu. As part of the MoU, L&T will establish 90 MW capacity data centers and associated units in a phased manner in Kanchipuram over the next 5 years.

Bharti Airtel slipped 0.10%. Moody's Investors Service has revised Bharti Airtel's (Bharti) and its subsidiary Bharti Airtel Int'l (Netherlands) B.V.'s rating outlook to positive from stable. At the same time, Moody's has affirmed Bharti's Ba1 corporate family rating (CFR) and senior unsecured rating, as well as the Ba1 rating on the backed senior unsecured notes issued by Bharti Airtel Int'l (Netherlands) B.V.

Numbers to Watch:

The yield on 10-year benchmark federal paper rose to 6.368% as compared with 6.364% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.4, compared with its close of 74.4225 during the previous trading session.

MCX Gold futures for 3 December 2021 settlement rose 0.03% to Rs 47,450.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.23% to 96.722.

In the commodities market, Brent crude for January 2022 settlement fell 20 cents at $82.11 a barrel.

Foreign Markets:

European shares fell across the board on Wednesday as investors monitored the latest data out of the euro zone and the region's latest COVID-19 surge. Investors continued to monitor the acute COVID-19 crisis in the region this week, with more countries considering stricter restrictions and partial lockdowns to curb rising infections.

Asian stocks closed on a mixed note on Wednesday, as investors monitored the moves in US Treasury yields.

Singapore's economy grew 7.1% in the third quarter as compared with a year ago, according to the Ministry of Trade and Industry. It was higher than an earlier official advance estimate for 6.5% year-on-year (Y-o-Y) growth.

Japan's factory activity grew at the fastest pace in nearly four years in November. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 54.2, its fastest pace of expansion since January 2018.

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