NIFTY: 19,745.00. Change: -234.15 (-1.17%)
SENSEX: 66,684.26. Change: -887.64 (-1.31%)
Historic Winning Streak Ends for Sensex, Nifty
Putting an end to a record-breaking six-day uphill, both the Sensex and the Nifty experienced sharp downslides on Friday (July 21), caused primarily by substantial losses observed in heavyweight contenders including Infosys, Reliance Industries, TCS, and Hindustan Unilever (HUL)
Post-Quarterly Results Lead to a Slump in Infosys and HUL Shares
Shares of Infosys and HUL took a hit following their June quarter results, whereas Reliance Industries prepared for a tumble ahead of its Q1FY24 earnings disclosures. After declaring its lackluster first-quarter revenue since FY21, and downwards revision of the annum revenue prognosis for this fiscal year, Infosys shares were badly hit. The IT leader also readjusted its revenue forecast for FY24 to just 1-3.5 per cent, a remarkable downgrade from the previously outlined 4-7 per cent.
Dim Revenue Forecast Causes Panic amongst Investors
Infosys’ drastic descending revision of their revenue outlook sparked unrest amongst investors, triggering much of the severe sell-off experienced on the stock that day. This decline significantly impacted on the trade of other tech stocks. Specifically, this led to a 4 per cent dip in the Nifty IT index with a total of nine stocks experiencing losses. The only tech stock to remain up was Mphasis, managing to stay in positive terrain with a 4.95 per cent jump.
Reliance Industries Stocks Drop due to Subdued Predictions
Reliance Industries Limited also saw a dip in stocks as the Street predicts softer data due to underwhelming performance in the O2C (oil to chemicals) department. However, better prospects from the retail and telecom arms of the business could offset this dip, which is dependent upon the depleted O2C sector.
Market Hinges on Global Factors
Global stock movements, underwhelming earnings figures from Tesla and Netflix, and central bank interest rate decisions this week influenced the adverse climate on Dalal Street. The Sensex was down by 888 points or 1.31 per cent, concluding at 66,684.26. Markedly, Nifty and suffered, closing with the loss of 234 points or 1.17 per cent at 19,745.
Midcaps and Smallcaps Flourish Despite Down turning Market
Despite the overall downtrend, the midcap and smallcap indices demonstrated strong resilience in the bearish market. The BSE Midcap index showed a diminutive decrease in activity, while the BSE Smallcap index closed with a marginal gain of 0.13 per cent. Remarkably, the Smallcap index hit its all-time high of 34,198.82 during the session.
Massive Blow to BSE-Listed Firms’ Market Capitalization
Notably, the overall market capitalization of all companies listed on the BSE saw a severe shock, plunging to roughly ₹302.1 lakh crore from an exceeding ₹304 lakh crore earlier. Consequently, investors saw their collective wealth having eroded by almost ₹1.9 lakh crore in a single day’s course.
Nifty Market Movers
Within the Nifty bundle, a total of 36 stocks recorded losses while just 14 stocks saw gains. Tech giants like Infosys, Hindustan Unilever, HCL Tech, Wipro, TCS and Reliance Industries were amongst the top losers on the Nifty index, tumbling down by 7.73%, 3.60%, 3.17%, 3.05%, 2.58% and 2.48% respectively.
Conversely, shares of Larsen & Toubro, ONGC and NTPC emerged as the top gainers, accentuating by 3.91%, 2% and 0.93%, consecutively.
Sectoral Performances Overview
Except for Nifty Media, PSU Bank, and Auto which saw minor upticks of 0.47%, 0.25%, and 0.09% respectively, all other sectoral indices logged a downward curve. The IT sector seemed the hardest hit with the index plummeting by 4.09%, followed by losses in the Consumer Durables and FMCG sectors declining by 1.3% and 1% correspondingly.
Bad Day for Nifty Bank
Featuring amongst the suffering sectors, the Nifty Bank also ended the day in red, showing a decrease of 0.24% in the turbulent session. Investors continue to maintain cautious optimism as they monitor further movements closely and wait for the start of a new trading week.
Top Gainers – NIFTY
- Larsen & Toubro: 2586.25. Change: 96.65 (3.88%)
- ONGC: 170.40. Change: 3.20 (1.91%)
- NTPC: 195.05. Change: 2.10 (1.09%)
- St Bk of India: 614.70. Change: 4.75 (0.78%)
- Kotak Mah. Bank: 1971.10. Change: 13.70 (0.70%)
Top Losers – NIFTY
- Infosys: 1330.40. Change: -118.45 (-8.18%)
- Tech Mahindra: 1194.35. Change: -58.40 (-4.66%)
- Unilever: 2603.80. Change: -98.55 (-3.65%)
- HCL Technologies: 1116.75. Change: -38.45 (-3.33%)
- Reliance Industr: 2536.20. Change: -83.60 (-3.19%)
52-Week High (NSE)
- Utkarsh Small Finance Bank: 48.00. Change: 23.00 (92.00%)
- DB Corp: 230.60. Change: 32.90 (16.64%)
- Tanla Platforms: 1,266.10. Change: 148.85 (13.32%)
52-Week Low (NSE)
- KKV Agro Powers: 629.00. Change: -69.00 (-9.89%)