1,100 stocks hit lower circuit as indices slip on profit booking, rate cut uncertainty

Sensex closes below 73,000 and Nifty down 1.5% [View in browser]( [See all newsletters]( 14 March 2024 1,100 stocks hit lower circuit as indices slip on profit booking, rate cut uncertainty As many as 1,100 stocks hit the lower circuit on Wednesday as the benchmark indices slid more than a per cent, after an uptick in US inflation raised uncertainty on the Federal Reserve’s plans for rate cuts. - Also read: [Sensex tanks 900 points to slip below 73k amid broad-based selloff; smallcap, midcap tumble]( The [Sensex]( closed below the psychological 73,000 mark to end at 72,762, down 1.2 per cent, with 1,100 stocks hitting the lower circuit. Of the 3,976 stocks that traded, 3,512, or 88 per cent declined and 404 advanced. 253 stocks hit a 52-week low. The [Nifty]( ended below the 22,000 mark to end at 21,998, down 1.5 per cent. Adani Ports, Coal India, and Power Grid Corporation were the top Nifty losers, each losing over 7 per cent. The broader markets saw a sharper fall, with the Nifty Midcap 100 and Nifty SmallCap 100 slipping 4.4 per cent and 5.3 per cent, respectively. The indices have slid 5.9 per cent and 8.2 per cent in the past week. FPIs sold shares worth ₹4,595 crore, while domestic institutions bought shares worth ₹9,093 crore on Wednesday. According to Vinod Nair, Head of Research at Geojit Financial Services, the unfavourable risk-reward balance of mid- and small-cap stocks, fuelled by prolonged premium valuations, has aggravated the downfall. “Globally, the persistent US inflation rate has cast doubt on the Fed’s ability to implement imminent rate cuts. While domestic inflation appears to be showing signs of easing. However, the easing trend in global commodity prices may prompt central banks to consider rate cuts in the latter half of 2024, which could be positive for equity,” he said. India’s Consumer Price Index (CPI) increased by 5.09 per cent year-on-year in February. The Index of Industrial Production grew by 3.8 per cent year-on-year in January, at a slower pace than the 4.2 per cent seen in December 2023. “The ongoing scrutiny from SEBI, the pending outcome of the MF stress test, and the expensive valuation post-smart rally seen in the last few months led to profit booking. We expect the sluggishness in the market to continue in the near term with Nifty’s major support at 21500 zone,” said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services. Global shares were mixed in muted trading Wednesday as optimism set off by a record rally on Wall Street gradually ran out of momentum and investors awaited a slew of economic data this week, including producer prices and retail sales numbers, for clues on the Federal Reserve’s rate-cut path. Among Asian peers, Straits Times rose the most, gaining 0.6 per cent. You Might Also Like [Rains delay India’s wheat harvest, put off procurement]( [Agri Business]( [Rains delay India’s wheat harvest, put off procurement]( [Govt will ensure supply chains are in place for the chip units being set up: Rajeev Chandrasekhar]( [Info-tech]( [Govt will ensure supply chains are in place for the chip units being set up: Rajeev Chandrasekhar]( [SEBI chief bats for sachetisation of REITs and InvITs]( [Markets]( [SEBI chief bats for sachetisation of REITs and InvITs]( [Will try to roll out first semiconductor products even before deadline: Tata Sons Chairman]( [Info-tech]( [Will try to roll out first semiconductor products even before deadline: Tata Sons Chairman]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](