Sensex Today Slumps 888 Points | Nifty Falls Below 19,750 | 3 Reasons Why Indian Share Market is Falling

Fri, 21 Jul Closing

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On Friday, Indian share markets witnessed selling pressure throughout the trading session and ended deep in the red.

Benchmark indices witnessed a steep correction, dragged by IT stocks after Infosys slashed its revenue guidance, citing weakness in client spending.

The IT index fell over 4%, with Infosys losing over 9% and dragging the markets down.

Meanwhile, FMCG major Hindustan Unilever (HUL) fell over 2% after missing June quarter profit on the back of higher costs.

The fall in markets can also be attributed to Reliance Industries, as India's most valuable company tumbled 3% amid selling pressure after the demerger of Jio Financial Services. Reliance shares were also in focus as the company was expected to announce its June quarter results.

Today's decline comes after six straight sessions of gains, where benchmarks BSE Sensex and NSE Nifty scaled fresh record highs.

At the closing bell, the BSE Sensex stood lower by 888 points (down 1.3%).

Meanwhile, the NSE Nifty closed lower by 234 points (down 1.2%).

L&T, NTPC and Tata Motors were among the top gainers today.

Infosys, HUL and HCL Tech, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 19,812, down by 46 points, at the time of writing.

The BSE MidCap index ended lower by 0.3% while the BSE SmallCap index gained 0.1%.

Sectoral indices ended on a mixed note with stocks in the IT sector, consumer durables sector and metal sector witnessing most of the selling pressure.

While capital goods stocks witnessed buying.

Shares of IndiaMart Intermesh, Tanla Platforms and Rites hit their respective 52-week highs today.

Now track the biggest movers of the stock market using stocks to watch today section. This should help you keep updated with the latest developments...

Asian share markets ended lower. Japan's Nikkei fell as decline in chip-related shares accelerated tracking a sell-off in US peers.

The Hang Seng gained 0.8% while the Nikkei fell 0.6%. The Shanghai Composite declined 0.1%.

US stock futures are trading on a positive note today as traders assessed the latest corporate earnings results, and the Dow Jones Industrial Average tried to stretch its winning streak to 10 sessions.

Dow Futures were trading up by 32 points while Nasdaq futures inched higher by 0.3%.

The rupee is trading at 81.96 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.4% at Rs 59,320 per 10 grams.

Speaking of the stock markets, the Indian stock market is on a roll. New highs are being scaled every week.

The sentiment among traders and investors alike is extremely bullish. So bullish in fact that it brings back memories of 1991.

So, what do the charts say? Are we seeing a repeat of the Harshad Mehta rally?

Find out in the below video...

UltraTech Cement Q1 Results

In news from the cement sector, UltraTech Cement on Friday reported a consolidated net profit of Rs 16.9 billion (bn) for the quarter ended June 2023. The company posted a profit of Rs 15.8 bn in the same period last year.

Revenue during the quarter rose 17% YoY to Rs 177.4 bn.

Domestic sales volume for the quarter under review grew by 20% YoY with capacity utilization of 89%.

The company said that it has commissioned a cement capacity of 3.0 MTPA, taking total grey cement capacity of the company to 129.95 MTPA in India.

The company said demand for cement across all sectors continues to remain strong, which is highly favorable for its performance.

UltraTech Cement share price ended the day lower by 1.1%.

Gautam Adani meets Sri Lanka's President

The Adani group conglomerate's Chairman Gautam Adani held a meeting with Sri Lankan President Ranil Wickremesinghe today to discuss multiple projects in the island nation.

The discussions included the development of the Colombo Port West Container Terminal (WCT).

In March 2021, Adani Ports received a Letter of Intent (LOI) from Sri Lankan authorities for the development and operations of WCT in Colombo.

Adani Ports will partner John Keells Holdings PLC, Sri Lanka's largest diversified conglomerate, and with the Sri Lanka Ports Authority (SLPA) as a part of the consortium awarded this mandate.

The project is expected to boost WCT's container handling capacity and further consolidate Sri Lanka's locational advantage as one of the world's top strategic nodes along the busiest global transhipment route.

Adani Ports share price ended the day down by 0.5%.

IT Stocks Bloodbath

IT stocks witnessed a major correction on Friday with Infosys leading the charge following its June quarter earnings, where it significantly cut its FY24 revenue growth guidance.

Infosys shares plunged over 9% today. The last major fall for Infosys was on 17 April 2023 when the stock corrected by over 14%.

Infosys projected its FY24 revenue to grow 1-3.5% in constant currency, or excluding exchange rate fluctuations, compared with the previous estimate of 4-7%, underlining the global macro challenges for the IT sector which is seeing tepid demand for outsourcing services.

Keeping the results factor aside, lead chartist at Equitymaster Brijesh Bhatia believes that a positive shift in the stock price is on the cards on the back of a short-covering rally in several IT stocks.

 

According to Brijesh, the stock found support at the 200-week exponential moving average (200WEMA), positioned at Rs 1,300. It successfully overcame the resistance at Rs 1,400.

An ongoing short-covering rally and the adherence to Wyckoff's theory suggest a potential long-term base forming at Rs 1,185.

Check out this editorial to get more technical inputs on the IT company - Infosys: Rising from the Ashes?

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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