POST-MARKET

REPORT
31-10-2023
Market Today

Indian blue-chips fell on Tuesday to log their worst month in 2023 as

elevated U.S. interest rates triggered persistent sales by foreign
investors, while a rise in oil prices due to the Middle East conflict also
added to the selling pressure.

The benchmark NSE Nifty 50 NIFTY fell 0.32% to 19,079.60, while the
S&P BSE Sensex SENSEX settled 0.37% lower at 63,874.93. They have
lost nearly 3% each in October.

Bank Nifty also witnessed a gap up opening however it could not

sustain at higher levels and closed in the red down ~190 points.
The concerns around the Middle East conflict have led to a spike in oil
prices, a negative for net importers like India.

More tellingly, the U.S. Federal Reserve's rhetoric of higher-for-longer

rates has helped send U.S. Treasury yields to multi-year highs, making
them more attractive for investors.

As a result, foreign investors have offloaded 228.50 billion rupees

($2.74 billion) worth of Indian shares so far in October, the most for
any month since January.

The Fed is widely expected to hold rates at its policy decision after the
bell on Wednesday, but Chair Jerome Powell's commentary will be key.

Any indication of rates remaining high for a prolonged period will

weigh on IT stocks, which have already warned of weak spending by
their U.S. and European clients. The IT index CNXIT lost 0.19% on the
day and 3.78% for the month - its worst in 2023.

Stocks and sectors

Auto stocks lost 0.67% ahead of monthly sales data. Mahindra and
Mahindra , Eicher Motors fell 2.62% and 1.85% respectively, and were
among the top losers on the Nifty.

Sun Pharma lost 2.39% on multiple block deals.

Outlook for NOV 01

Weak Asian market cues saw key benchmark indices languish in

negative territory for a major part of the trading session amid selling in
banking, auto and IT stocks. Even as India has somewhat managed to
shrug off global challenges amid strong growth numbers, persistent FII
selling has caused local markets to falter over the past month or so.

We may see a mixed trend for markets in the near to medium term. On
daily charts, the Nifty has formed a bearish candle indicating further
weakness from the current levels. We are of the view that the market
is likely to consolidate within the range of 18980 to 19220. However,
below 18980, traders may prefer to exit out from long positions.

Disclaimer : The opinions and investment recommendations of the analysts are for reference only, and the actual trading
needs to be carefully decided based on the individual's investment style and financial planning.