Sensex Falls 143 Points to 73,709, Nifty Ends at 22,811

The Sensex closed 143.21 points, or 0.19 per cent, lower at 73,709.69 on Wednesday, 21 October, and the Nifty 50 ended 77.60 points, or 0.34 per cent, down at 22,811.35, according to PTI’s market report. Early gains on hopes of an India-US trade deal faded through the session as foreign investors kept selling and Brent crude rose past $111 a barrel. Banking, power and financial shares led the fall on both the BSE and the NSE.

Midcaps and Smallcaps Fall Harder

The broader market took a bigger hit than the benchmarks. The Nifty Midcap 100 fell 1.58 per cent and the Nifty Smallcap 100 dropped 2.37 per cent, Business Standard reported, and most NSE sector indices ended in the red. Consumer durables were the weakest. IT shares held up better than the rest of the market. The Sensex swung between 73,229 and 74,682 during the day.

For small investors holding midcap or smallcap funds, the day’s losses were therefore deeper than the headline index moves suggest.

Foreign Selling and a $111 Crude Price

Foreign institutional investors sold shares worth Rs 1,148.64 crore on Monday, while domestic institutions bought Rs 3,201.19 crore, the latest figures in the PTI report. Foreign investors have pulled out heavily this month; IPB has reported that October outflows had crossed Rs 52,100 crore. Costlier crude adds to the pressure because India imports most of its oil, which raises costs for companies and weighs on the rupee. Rising US bond yields were also cited as a drag.

Not everything is weak, though. The Rs 30,213 crore Jio Platforms IPO opened on Wednesday and was reported fully subscribed within about 100 minutes, which suggests investors are still putting money into new issues even as they sell listed shares.

Nifty Support Near 22,600

The Nifty slipped below its 20-day moving average, and technical analysts quoted by Whalesbook are watching 22,600-22,650 as the next support, with 22,300 below that. The 23,000 mark remains the level the index has to clear. The Jio IPO closes on 23 October, and the RBI’s next moves on liquidity, covered in IPB’s report on the T-bill auction, will also be watched. Markets reopen on Thursday.

Source: Based on reporting by The Daily Jagran (PTI), Business Standard and Whalesbook.

Image: PTI.