Benchmarks Swing Between Gains and Losses, Nifty 50 Closes Marginally Lower

At the close, the Nifty 50 was at 22,200.55 down by 0.08%

The NSE Nifty 50 index commenced on a positive note today, but ultimately closed in the red, marking a decline of 0.08%. Despite the initial optimism, the index struggled throughout the day, swinging between gains and losses before settling marginally lower. The benchmark ended at 22,200.55, down by -17.30 points.

Investor sentiment remained cautious amidst ongoing election-related uncertainties, with market volatility expected until the announcement of election results in June. However, analysts maintain optimism regarding India’s long-term growth trajectory, viewing election-related fluctuations as temporary.

The Nifty 50 held steady above the crucial 22,200 level, with market participants closely monitoring upcoming US inflation data, which could influence the Federal Reserve’s rate decisions.

Throughout the session, the Nifty exhibited sideways movement, failing to achieve a significant directional breakout. Bulls encountered resistance in pushing the index above the 22,250 mark on a closing basis.

Wednesday’s trading session reflected extreme volatility, as investors adopted a cautious approach amidst election-related apprehensions. Foreign Institutional Investors (FIIs) continued to divest, while domestic investors focused on selective stock picks.

Despite the overall uncertainty, positive performance in the capital goods sector and promising growth outlook garnered investor interest, leading to sectoral outperformance. Additionally, market participants are closely observing the US 10-year yield ahead of the release of critical Consumer Price Index (CPI) data, seeking insights into potential rate movements.

Bank Nifty: Down by 0.36%

The Bank Nifty and BSE Sensex, India’s prominent stock market indices, both commenced trading on a positive note, with the Bank Nifty opening in the green. However, both indices witnessed a reversal in fortunes, closing the session in the red.

The Bank Nifty saw a decline of 0.36%, settling at 47,687.45 by the end of the trading session. Similarly, the BSE Sensex experienced a decrease of 0.16%, closing at 72,987.03, marking a day of losses for investors.

In the sectorial front, the Real estate sector exhibited notable gains, with an increase of 1.02%. Among the standout performers, Brigade Enterprises Ltd. surged by 9.18%, demonstrating robust market performance. Sobha Ltd. also saw significant growth, with an increase of 5.05%.

On the other hand, the FMCG sector experienced a decline, registering a loss of 0.91%. Colgate Palmolive (India) Ltd. faced a downturn with a decrease of -5.21%, while Marico Ltd. observed a decline of -1.57%.

Foreign Institutional Investors (FIIs/FPIs) recorded a net selling value of Rs. -2,832.83 crore in the Indian market. Their buy value stood at Rs. 11,412.04 crore, while the sale value was reported at Rs. 14,244.87 crore.

In contrast, Domestic Institutional Investors (DIIs) exhibited a net buying behavior, with a net value of Rs. 3,788.38 crore. DIIs purchased shares worth Rs. 12,915.36 crore and sold shares amounting to Rs. 9,126.98 crore during the trading period.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Bank of Baroda with a 1.17% increase, Axis Bank with a 0.46% increase, ICICI Bank with a 0.41% increase, State Bank of India with a 0.31% increase, and Bandhan Bank with a 0.29% increase.

On the other hand, the biggest losers in the sector included AU Bank with a 2.63% decline, HDFC Bank with a 1.38% decline, Punjab National Bank with a 1.27% decline, IDFC First Bank with a 0.84% decline, and Federal Bank with a 0.79% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Marginally Strengthens Against US Dollar Amid Market Dynamics

The Indian rupee made a marginal gain of 1 paisa, settling at 83.50 (pro) against the US dollar on Wednesday, benefitting from the retreat of the American currency from its recent high levels. However, the local unit faced headwinds due to sustained outflows of foreign funds and a sluggish trend in domestic equities.

The USD/INR pair is expected to remain within a range-bound trajectory with a slight bias towards weakness, driven by foreign investors’ preference for the US dollar and the Reserve Bank of India’s interventions in selling the greenback.

Trading at the interbank foreign exchange market commenced with the rupee opening at 83.49 and maintaining a narrow trading band of 83.51-83.47 throughout the session before settling at 83.50 (pro), recording a modest uptick of 1 paisa from its previous close.

The rupee’s marginal appreciation was supported by the weakening of the US dollar. However, subdued domestic markets and selling pressure from Foreign Institutional Investors (FIIs) restrained sharper gains.

Meanwhile, the dollar index, reflecting the greenback’s performance against a basket of six major currencies, experienced a slight decline to 104.85, down by 0.15%. This came as Federal Reserve Chair Jerome Powell downplayed the significance of the recent Producer Price Index (PPI) data, particularly after a downward revision of March’s figures.

In the commodities market, Brent crude futures, the global oil benchmark, witnessed a modest uptick of 0.18%, reaching USD 82.53 per barrel. These developments underscore the complex dynamics influencing currency and commodity markets, necessitating a cautious approach for investors and traders alike.

Stocks Highlights

Coal India Ltd. witnessed a positive uptrend in its share price, marking a significant increase of 4.19% from its previous close of Rs 448.70 to reach Rs 467.50. Notably, the stock’s trading history reveals that only a mere 1.07% of trading sessions in the last 13 years saw intraday gains exceeding 5%.

In terms of financial performance, Coal India Ltd. has managed its expenses efficiently, allocating less than 1% of its operating revenues towards interest expenses and approximately 34.28% towards employee costs for the fiscal year ending on March 31, 2024. Furthermore, the company demonstrated robust stock returns, outperforming the Nifty 100 index with a 3-year return of 205.65%.

Contrastingly, Tata Motors Ltd. experienced a decline in its share price, dropping by -1.93% from its previous close of Rs 964.65 to Rs 946.00. Despite this, the company exhibited a commendable return on equity (ROE) of 26.21% for the fiscal year ending on March 31, 2024, surpassing its 5-year average.

Analyzing expenditure patterns, Tata Motors allocated 2.96% of its operating revenues towards interest expenses and approximately 9.73% towards employee costs for the fiscal year ending on March 31, 2023. Similar to Coal India Ltd., Tata Motors also showcased impressive stock returns, with a 3-year return of 208.94%, surpassing the Nifty 100 index.

Advance Decline Ratio

Today, the advance-decline ratio was 1.47, and the market breadth was positive. The volatility index India Vix increased by 0.38 percent to settle at 20.27 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1503
Decliners – 1024
52Wk High – 100
52Wk Low – 14
High Band Hitters – 173
Low Band Hitters – 50
200d SMA – 20882
50d SMA – 22302
20d SMA – 22317

Top Gainers and Losers Stocks

The top gainers were Coal India (+4.19%), Cipla (+3.55%), BPCL (+3.42%), Bharti Airtel (+2.47%), and Power Grid (+1.65%).

The top losers were Tata Motors (-1.93%), Bajaj Auto (-1.91%), Asian Paint (-1.85%), Eicher Motors (-1.75%), and Britannia (-1.53%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.02%), Oil & Gas (+0.59%), Consumer Durables (+0.49%), Metal (+0.32%), and Pharma (+0.14%).

The top losers sector were FMCG (-0.91%), Media (-0.51%), Auto (-0.50%), Financial Services (-0.32%), and IT (-0.02%).

SECTORS – NOTABLE ACTION
REALTY +1.02%
OIL & GAS +0.59%
CONSUMER DURABLES +0.49%
FMCG -0.91%
MEDIA -0.51%
AUTO -0.50%

Stocks Ban List

(SEBI) F&O ban list (BSOFT open at +609.90 and close at +612.45), (PEL open at +835.00 and close at -825.20), (ZEEL open at +132.90 and close at -130.80), (BALRAMCHIN open at +376.90 and close at -377.25), (HINDCOPPER open at +384.90 and close at +383.60), (IDEA open at +13.35 and close at -13.20), (GMRINFRA open at +83.55 and close at +83.75), (SAIL open at +165.00 and close at +166.40), and (CANBK open at -116.25 and close at -119.00)are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

INDIACEM, LICHSGFIN, BANDHANBNK, BIOCON, ABCAPITAL, IDFCFIRSTB, ABFRL, PVRINOX, NATIONALUM, GNFC, UPL, and IEX stocks has the possibilities of entrance in the ban list.

SAIL, and CANBK stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22100 to 22350 is the Nifty 50 trading range.

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This article is only for educational purposes and is not an investment advice.