The Indian equity market witnessed significant intraday volatility yesterday, with the Nifty closing at a seven-month low. The selling pressure was widespread, and market breadth heavily favored declines. Sentiment remains bearish due to a weak start to the Q3 earnings season, persistent foreign institutional investor (FII) outflows, and uncertainties surrounding U.S. President Trump’s policies.
Globally, Wall Street closed on a positive note as investors perceived Trump’s initial actions on international trade to be less aggressive than anticipated. Meanwhile, Asian markets have opened mixed, and the GIFT Nifty indicates a positive opening for the Indian market.
Key Indices
• DOW: +537
• GIFT Nifty: +57 (Prev. close: 23,117)
• Nifty 50: 23,024
• Sensex: 75,838
Institutional Activity
• FII: Net outflow of ₹5,920 crore
• DII: Net inflow of ₹3,500 crore
Market Breadth
• Advances: 1,106
• Declines: 2,881
Currency and Commodities
• Dollar: ₹86.58
• Dollar Index: 108.08
• Gold: $2,749 per ounce (gaining on safe-haven demand)
• Crude Oil: $79.29 per barrel
Bond Yields
• 10-Year US Bond Rate: 4.59%
• 10-Year Indian Bond Rate: 6.80%
Derivative Updates
• PCR (Put-Call Ratio): 0.65 (indicating bearish sentiment)
• VIX: 17.05 (higher volatility expected)
• Option Analysis:
• Maximum Call OI: At 24,000, followed by 23,500 strikes
• Maximum Put OI: At 22,000, followed by 23,500 strikes
• Expected Trading Range: Broader range between 22,500–23,500; immediate range 22,800–23,300
Today’s Key Earnings Announcements
• HDFC Bank
• Hindustan Unilever
• Bharat Petroleum Corporation
• Pidilite Industries
• Persistent Systems
• Polycab India
• Tata Communications
Results Recap
Above Estimates:
• PNB Housing Finance, South Indian Bank, Manorama Industries, UCO Bank
Inline Estimates:
• IndiaMART, KEI Industries, Jana Small Finance Bank
Below Estimates:
• Dalmia Bharat, India Cements, Tata Technologies, Aditya Birla Real Estate, Cyient DLM, Indoco Remedies, Tanla Platforms, Rossari Biotech
Corporate Updates
• Neuland Laboratories: The Board has approved a ₹342 crore capex to increase peptide synthesizer reactor capacity in Unit-1 and add 52 KL capacity in Unit-3.
• JK Tyre & Industries: Secured a $100 million sustainability-linked loan from IFC, with ₹30 million allocated directly to JK Tyre and ₹70 million to its subsidiary Cavendish Industries.
Securities in Ban for Trade
• ABFRL, ANGELONE, BANDHANBNK, CANFINHOME, DIXON, KALYANKJIL, LTF, MANAPPURAM, MGL, RBL BANK
Summary
The market remains under pressure due to weak earnings and FII outflows, but global positivity may lend support to Indian indices. Investors should tread cautiously amid higher volatility.
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