Indian Markets Flatline as Global Equities Waver—Will Key Rate Decisions Ignite a Shift?

At the close, the Nifty 50 was at 24,857.30 up by 0.09%

Today, the NSE Nifty 50 began its trading session with a positive note, showing a slight uptick of 0.09% and closing at 24,857.30, up by 21.2 points. Despite starting strong, the index ended up flat as it faced selling pressure in the latter part of the day, erasing most of its intraday gains.

The index’s modest increase marked its third successive session of gains, driven by buying interest in auto, energy, and realty sectors, though FMCG and pharma stocks lagged.

Global market cues played a significant role in today’s performance, with Indian markets tracking mixed international equities ahead of crucial rate decisions from the Bank of Japan (BoJ) and the US Federal Reserve (Fed). Both central banks will commence their two-day meetings on Tuesday, with policy announcements expected on Wednesday.

While profit-booking at higher levels restrained the Nifty’s ascent towards the 25,000 mark, the anticipation of dovish statements from the Fed and potential rate cuts by the Bank of England (BoE) contributed to market optimism. Conversely, the BoJ’s expected rate hike to address rising inflation could introduce market volatility.

Will the upcoming central bank decisions steer the Nifty towards new highs or introduce new challenges?

Bank Nifty: Up by 0.18%

The Bank Nifty kicked off the day with a positive start, advancing by 0.18% and closing at 51,499.30. In parallel, the BSE Sensex showed a modest increase of 0.12%, finishing strong at 81,455.40. Both indices ended the session in the green, reflecting investor confidence amidst a mixed global market backdrop.

In the sectorial front, Consumer Durables have outshone others with a notable gain of 1.12%. Among the key players, Kajaria Ceramics Ltd. saw an impressive increase of 3.42%, while Crompton Greaves Consumer Electricals Ltd. followed closely with a rise of 3.19%.

Conversely, the FMCG sector faced a challenging day, emerging as the top loser with a decline of 1.11%. Varun Beverages Ltd. experienced a significant drop of 6.49%, and Godrej Consumer Products Ltd. decreased by 2.23%.

FIIs recorded a buy value of Rs.14,451.86 crore and a sale value of Rs. 20,050.50 crore, resulting in a net outflow of Rs. 5,598.64 crore.

In contrast, DIIs showed a positive net buying trend with a buy value of Rs. 18,718.94 crore and a sale value of Rs. 13,153.84 crore, leading to a net inflow of Rs. 5,565.10 crore.

Bank Nifty

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

The gainers included IDFC First Bank with a 1.46% increase, IndusInd Bank with a 1.27% increase, HDFC Bank with a 0.57% increase, Federal Bank with a 0.46% increase, and AU Bank with a 0.30% increase.

On the other hand, the biggest losers in the sector included Punjab National Bank with a 1.17% decline, Kotak Bank with a 0.51% decline, ICICI Bank with a 0.49% decline, Axis Bank with a 0.24% decline. These results suggest that most of the banking stocks performed better for the day.

Gold and Silver

Rupee Edges Up Amid Market Optimism: What’s Driving the Currency?

The Indian rupee displayed resilience on Tuesday, closing at 83.72 against the US dollar, a mere one paisa appreciation. While domestic markets exuded optimism, the global stage was set for a dramatic performance as investors eagerly awaited the Federal Reserve’s policy announcement.

The rupee traded within a narrow range of 83.72-83.74 throughout the session, reflecting a cautious approach by market participants. Expectations of a potential rate cut by the Fed in September have been simmering, but the central bank has maintained its hawkish stance for the past year to combat inflation.

Crude oil prices inched downward, offering some support to the rupee. However, a strengthening US dollar, fueled by anticipation of the FOMC meeting, limited the Indian currency’s upward trajectory. The dollar index remained relatively stable at 104.56.

Will the Fed’s decision ignite a ripple effect on the global currency markets, and how will it impact the rupee’s trajectory?

Stocks Highlights

NTPC Ltd. has seen a remarkable surge, with its share price moving up by 3.24%, climbing from Rs 393.90 to a last traded price of Rs 406.65. Over the past three years, NTPC has delivered a staggering return of 237.24%, outpacing the Nifty 100’s 61.67% return.

Compared to the BSE Power index, which yielded 209.83%, NTPC has proven its resilience and growth potential. Additionally, the company allocated 6.75% of its operating revenues to interest expenses and 3.69% to employee costs in the fiscal year ending March 31, 2024.

On the flip side, LTIMindtree Ltd. experienced a decline, with its share price falling by 2.07%, from Rs 5,786.60 to Rs 5,667.00. Despite this dip, intraday declines exceeding 5% have been a rare occurrence, happening in only 0.7% of trading sessions over the last eight years. LTIMindtree’s three-year return stands at 32.8%, lagging behind the Nifty 100’s 61.67% and Nifty IT’s 36.8% returns.

Advance Decline Ratio

Today, the advance-decline ratio was 1.39, and the market breadth was positive. The volatility index India Vix decreased by 0.50 to settle at 12.88 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1547
Decliners – 1111
52Wk High – 220
52Wk Low – 19
High Band Hitters – 159
Low Band Hitters – 38
200d SMA – 21919
50d SMA – 23698
20d SMA – 24490

Top Gainers and Losers Stocks

The top gainers were Tata Motors (+3.38%), NTPC (+3.24%), BPCL (+3.08%), Power Grid (+2.09%), and Titan (+1.77%).

The top losers were LTIM (-2.07%), SBI Life (-1.67%), Cipla (-1.61%), Grasim (-1.57%), and Sun Pharmaceutical (-1.47%).

Top Gainers and Losers Sectors

The top gainers sector were Consumer Durables (+1.12%), Media (+0.66%), Auto (+0.58%), Oil & Gas (+0.57%), and Realty (+0.43%).

The top losers sector were FMCG (-1.11%), Pharma (-0.62%), and IT (-0.11%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.12%
MEDIA +0.66%
AUTO +0.58%
FMCG -1.11%
PHARMA -0.62%
IT -0.11%

Stocks Ban List

(SEBI) F&O ban list (INDIACEM open at -374.00 and close at -369.10) 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.

BANDHANBNK, RBLBANK, MANAPPURAM, SBICARD, and INDUSTOWER stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 24650 to 25100 is the Nifty 50 trading range.

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