Here are 4 key factors that weighed on the benchmark indices:
- Reliance Industries
Reliance Industries shares corrected more than 2 percent after Reliance Retail Ventures informed of an interim order passed by the Emergency Arbitrator in the arbitration proceedings invoked by Amazon under a shareholders' agreement with the promoters of Future group.
Reliance Retail Ventures said it had entered into the transaction for the acquisition of assets and business of Future Retail under proper legal advice and the rights and obligations are fully enforceable under Indian Law.
- Metals and others
The Nifty Metal fell the most among sectoral indices, down 4 percent after JSW Steel reported lower than expected earnings for the quarter ended September 2020.
The stock itself fell more than 4.5 percent, while others Jindal Steel & Power, Hindalco and Tata Steel corrected between 4-7.5 percent.
Among others, Nifty Bank fell more than 2 percent while Auto corrected nearly 3 percent and Pharma over 1 percent.
- Global Cues
Asian markets were trading weak at the time of writing this article, as coronavirus cases increased in the United States and some European nations which raised concerns over global growth.
China's Shanghai Composite was down 0.82 percent and South Korea's Kospi fell 0.72 percent, while Australia's ASX 200 declined 0.18 percent and Japan's Nikkei was down 0.09 percent.
United States reported the highest single-day spike of over 85,000 cases on October 23, while France also recorded more than 50,000 cases in a day on October 25. Italy ordered to close bars early and shut gyms, while Spain announced nationwide curfew to control rising infections.
- Technical View
The Nifty50 has broken 11,800 mark and formed a bearish candle on the daily charts, but the index still defended 11,750 which is a crucial support level.
Experts feel the market is still in the range of 11,700-12,000 levels, but if it breaks 11,700 then it could go down up to 11,600.
Team RYR&Co.
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