Indian Stocks Slide Amid Weak Global Equities Market, Crude Oil Prices Rise

Indian shares fell on Thursday amid weakness in global equities markets, rise in crude oil prices and persistent FII selling. The BSE Sensex declined 610 points or 0.92 per cent, while its NSE counterpart Nifty50 was below the 19,550 level.

Today's bloodbath resulted in the market capitalisation of all listed companies on BSE declining by Rs 2.55 lakh crore to Rs 317.05 lakh crore. Among Sensex stocks, Tech Mahindra, Asian Paints and Wipro were the top laggards, falling 2 to 4 per cent. Kotak Mahindra, Bajaj Finserv, Infosys, and ITC also declined. On the other hand, L&T, Axis Bank, Bharti Airtel, Power Grid and SBI were in the green.

The broader market indices - Nifty Smallcap100 and Nifty Midcap100 plunged 0.4 per cent and 0.1.3 per cent, respectively. The market breadth was skewed in favour of the bears. About 2,158 stocks declined, 1,504 gained and 128 remained unchanged on the BSE.

FII and FPIs, on Thursday saw a net sales of Rs 3364.22 crore in the cash segment. A total of Rs 14075.61 crore was sales against a total purchase of Rs 10711.09 crore. Domestic institutional investors saw a net purchase of Rs 2711.48 crore in the cash segment. A total of Rs 12406.93 crore was sales against a total purchase of Rs 15118.41 crore.

Meanwhile, The selling was broad-based, as investors are on alert given the rise of oil prices. If crude continues to stay above the 90 USD level, it will be a threat to inflation and boil the operational margins.

Globally, US GDP data and the FED chief speech will be watched carefully, which will set the future trend. Currently, the combination of higher interest rates and US bond yields are influencing FIIs to stay in the selling mode.

Technically, the important key resistances are placed in August Nifty future are at 19,655 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 19,737 – 19,808 levels. Immediate support is placed at 19,606 – 19,505 levels.