Indian Stock Market Ends Slightly Lower in Volatile Session

At the close, the Nifty 50 was at 19,406.70 down by 0.03%

In the Indian stock market, today’s trading session was marked by volatility and uncertainty. The NSE Nifty 50 opened in the red and closed with a slight loss of 0.03 percent, with the Nifty index still holding above the 19,400 mark. This contrasted with the positive trend seen in the previous three trading sessions.

Mixed global cues played a significant role in the market’s performance, as it began the day with marginal losses that extended into the initial hours of trading. However, the market managed to stay range-bound for the rest of the session, with late-hour buying helping to mitigate the losses, resulting in a flat closing.

Investor caution has been heightened due to the commencement of key state elections, and the market has also reacted to negative global cues stemming from a more significant than expected decline in Chinese exports, which indicates a prolonged global trade slowdown.

On a positive note, despite geopolitical tensions, crude oil prices have moderated, which is beneficial for India. Additionally, the moderation in US bond yields and a positive ongoing earnings season are expected to provide support for long-term returns.

Bank Nifty: Up by 0.27%

The Bank Nifty displayed a mixed performance during the trading session. It initially opened in the red but managed to recover, ultimately closing in the green with a modest gain of 0.27 percent at a closing value of 43,737.90. On the other hand, the BSE Sensex experienced a less favorable outcome, as it started the day with a decline of 0.03 percent and closed in the red zone. The Sensex concluded at a lower level of 64,942.40.

In the sectorial front, The pharmaceutical sector has demonstrated remarkable growth, with an impressive 1.32% increase. Notably, Alkem Laboratories Ltd. has excelled in this sector, registering a substantial gain of 5.69%. Similarly, Gland Pharma Ltd. has performed admirably, securing a gain of 4.96%. Conversely, the real estate sector has faced challenges, experiencing a decline of 1.34%. Sobha Ltd. has been significantly affected by this trend, reporting a loss of -3.52%. Godrej Properties Ltd. has also seen a downturn, with a loss of -3.24%.

FIIs/FPIs made purchases amounting to Rs. 7,580.65 crore, indicating their interest in Indian securities. However, they also engaged in significant selling, with a total value of Rs. 8,077.86 crore. As a result, the net value, which is the difference between the purchase and sale values, stood at -Rs. 497.21 crore. This negative net value suggests that FIIs/FPIs were net sellers in the market during this period.

On the other hand, Domestic Institutional Investors (DIIs) had a different trend. They purchased securities worth Rs. 8,596.01 crore, showcasing their positive outlook on the market. Their selling activities amounted to Rs. 7,895.73 crore. As a result, the net value for DIIs was a positive Rs. 700.28 crore, indicating that they were net buyers during the observed period.

Bank Nifty

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

The gainers included Federal Bank with a 2.57% increase, Punjab National Bank with a 1.60% increase, IndusInd Bank with a 1.10% increase, State Bank of India with a 1.04% increase, and Axis Bank with a 1.00% increase. On the other hand, the biggest losers in the sector included Bank of Baroda with a 1.94% decline, Bandhan Bank with a 0.67% decline, AU Bank with a 0.60% decline, and HDFC Bank with a 0.30% decline. These results suggest that some banking stocks performed better for the day.

Buzz

Rupee Slightly Weakens Against the US Dollar

The Indian rupee saw a modest decline of 5 paise, closing at 83.26 (pro) against the US dollar in a range-bound trading session. This decline was influenced by the strength of the US dollar in the global market and continued outflows of foreign funds from the Indian markets.

The negative trend in domestic equities also had a bearing on the local currency’s performance, as market conditions remained somewhat bearish. However, a correction in oil prices provided some support to the rupee.

During the trading session, the rupee opened at 83.23 and touched a low of 83.27 against the US dollar before settling at 83.26 (pro), indicating a 5 paise loss compared to its previous close.

In the near term, the rupee is expected to trade within a range, as investors are increasingly inclined to buy the US dollar, driven by demand from Foreign Portfolio Investors (FPIs), oil-related transactions, and External Commercial Borrowing (ECB) redemptions.

Notably, the US dollar gained strength, with the dollar index, measuring its performance against a basket of six major currencies, trading 0.37% higher at 105.60. Furthermore, Brent crude futures, the global oil benchmark, experienced a 1.78% decline, reaching $83.66 per barrel, which could have implications for India’s currency and economy.

Buzzing

Sun Pharmaceutical Industries Ltd. displayed a commendable 2.00% increase in its share price, rising from the previous close of Rs 1,150.00 to a last traded price of Rs 1,173.00. The company’s financial performance has been noteworthy, with an annual revenue growth of 12.49% outperforming its 3-year Compound Annual Growth Rate (CAGR) of 9.87%. Furthermore, the Return on Equity (ROE) for the year ending on March 31, 2023, stood at 15.13%, surpassing the 5-year average of 8.89%. Intraday trading data reveals that only 1.57% of sessions in the last 18 years saw intraday gains exceeding 5%. Sun Pharmaceutical Industries Ltd. has efficiently managed its expenses, allocating less than 1% of its operating revenues to interest expenses and 18.9% towards employee costs in the same period.

Hero MotoCorp Ltd. experienced a minor decline, with its share price decreasing by -1.04% from the previous close of Rs 3,166.90 to a last traded price of Rs 3,134.00. However, there is a buy signal in play, as a 20-day moving average crossover recently appeared. In the last 5 years, this signal has yielded an average price gain of 2.68% within 7 days. The company’s annual revenue growth of 15.35% has outperformed its 3-year CAGR of 4.97%. Intraday data indicates that only 1.39% of trading sessions in the last 19 years saw intraday gains exceeding 5%. Hero MotoCorp Ltd has effectively managed its expenses, allocating less than 1% of operating revenues to interest expenses and 6.59% towards employee costs in the year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 1.10, and the market breadth was positive. The volatility index India Vix increased by 0.78 percent to settle at 11.19 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1268
Decliners – 1155
52Wk High –  121
52Wk Low – 11
High Band Hitters – 142
Low Band Hitters – 51
200d SMA – 18657
50d SMA – 19561
20d SMA – 19406

Top Gainers and Losers Stocks

The top gainers were Sun Pharmaceuticals (+2.00%), BPCL (+1.69%), NTPC (+1.57%), Dr. Reddy (+1.38%), and IndusInd Bank (+1.10%).

The top losers were Hero MotoCorp (-1.04%), Bajaj Finance (-0.83%), JSW Steel (-0.77%), Divi’s Laboratories (-0.72%), and Reliance (-0.68%).

Top Gainers and Losers Sector

The top gainers sector were Pharma (+1.32%), Oil & Gas (+0.66%), Metal (+0.15%), Financial Services (+0.12%), and FMCG (+0.10%).

The top losers sectors were Realty (-1.34%), Media (-0.64%), Consumer Durables (-0.24%), and Auto (-0.18%).

SECTORS – NOTABLE ACTION
PHARMA +1.32%
OIL & GAS +0.66%
METAL +0.15%
REALTY -1.34%
MEDIA -0.64%
CONSUMER DURABLES -0.24%

Stocks Ban List

(SEBI) F&O ban list (GNFC open at +703.10 and close at -683.40) 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.

MANAPPURAM, DELTACORP, INDIACEM, CHAMBLFERT, and BALRAMCHIN stocks has the possibilities of enterance in the ban list.

Daily Pivots

As per the above pivots data, 19330 to 19470 is the Nifty 50 trading range.

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