Stock market today: Indian stock market benchmark witnessed an across-the-board selloff on Friday, April 12, amid a significant rise in the US dollar and long-term bond yields as expectations of a rate cut in the US in June faded away after hotter-than-expected US CPI prints for March.
The US dollar and 10-year treasury yields on Friday traded near their five-month high levels as investors now expect the Fed to delay rate cuts beyond June. Concerns are also growing that the US central bank may not cut rates materially. Experts said the Fed is expected to reduce its main funds rate by less than 50 bps this year.
Also Read: US Fed rate cut unlikely in June as US inflation hots up. What this means for Indian investors and what should they do?
Moreover, caution ahead of the March quarter numbers of IT major TCS also contributed to the Indian stock market’s downward march.
TCS is expected to report modest growth in revenue and PAT.
Also Read: TCS Q4 results today: Here are 5 crucial things to watch out for
The market appears to have no dearth of concerns. Apart from sticky inflation and elevated geopolitical tensions, rising geopolitical tensions are an additional major concern for the market.
A Reuters report suggested heightened tension between Israel and Iran.
“Israel is keeping up its war in Gaza but is also preparing for scenarios in other areas, Prime Minister Benjamin Netanyahu said on Thursday, amid concern that Iran was preparing to strike Israel in response to the killing of senior Iranian commanders,” reported Reuters.
Sensex closed 793 points, or 1.06 per cent, down at 74,244.90 while the Nifty 50, too, ended the day with a significant loss of 234 points, or 1.03 per cent, at 22,519.40.
BSE Midcap index closed 0.49 per cent lower while the Smallcap index ended 0.60 per cent down.
Also Read: Nifty 50, Sensex drop about 1% each: Explained with 5 reasons why Indian stock market is falling today
The overall market capitalisation of BSE-listed firms dropped to nearly ₹399.7 lakh crore from nearly ₹402.2 lakh crore in the previous session, making investors poorer by about ₹2.5 lakh crore in a single session.
Only five stocks – Divi’s Labs, Bajaj Auto, Tata Motors, TCS and Nestle – ended in the green in the Nifty 50 index.
Among the 45 stocks that ended in the red, Sun Pharma, Maruti, Power Grid, Titan and ONGC ended as the top losers.
Also Read: Top Gainers and Losers today on 12 April, 2024: Divis Laboratories, Bajaj Auto, Sun Pharmaceutical Industries, Maruti Suzuki India among most active stocks; Check full list here
All major sectoral indices ended in the red with Nifty Pharma, PSU Bank, Oil & Gas, Media and FMCG falling over a per cent each. Nifty Bank closed with a loss of 0.86 per cent.
Also Read: Motilal Oswal makes key changes to its model portfolio ahead of Q4 earnings; adds Chola Investments, Hindalco, JK Cement
Expert view on markets
“US inflation soared by 0.4 per cent month-on-month, surpassing expectations and triggering a spike in US treasury yields. Investors are questioning the feasibility of the US Fed’s anticipated three rate cuts this year, leading to underperformance in emerging markets. Meanwhile, European markets excelled as the ECB maintained policy rates but hinted at a potential rate cut soon. Indian markets consolidated amidst worries over delayed US rate cuts, escalating Middle East tensions driving oil prices up, and subdued Q4 earnings projections,” said Vinod Nair, Head of Research, Geojit Financial Services.
Technical views on Nifty 50
According to Prashanth Tapse, Senior VP (Research), Mehta Equities, bulls will heave a sigh of relief only above the 22,800 mark. Till then, it seems a bear machete is likely to rule the roost.
“Nifty has a strong support at 22,339-22,101 levels, while the index faces resistance at 22,810 to 23,100,” said Tapse.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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