Markets consolidate as banking and real estate equities thrive despite cautious attitudes

NiftyTrader • December 4, 2024

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The Sensex concluded at 80,956.33, up modestly by 110.58 points or 0.14 percent, while the Nifty 50 finished nearly flat at 24,467.45, adding 10.30 points or 0.04 percent.

The stock markets had a turbulent trading day on Wednesday, with benchmark indexes underperforming amid robust sectoral moves. The Sensex closed at 80,956.33, up 110.58 points, or 0.14 percent, while the Nifty 50 finished nearly level at 24,467.45, up 10.30 points, or 0.04 percent.

The day’s trading was marked by mixed sector performance, with banking and real estate equities emerging as strong performers.

HDFC Life topped the gainers with a 2.52% increase, followed by HDFC Bank (1.67%), Bajaj Finserv (1.42%), Apollo Hospitals (1.38%), and NTPC (1.37%).

In contrast, the telecom and car industries had significant falls, with Bharti Airtel down 2.28 percent, Cipla falling 2.21 percent, Bajaj car down 1.77 percent, Tata Motors sliding 1.63 percent, and Adani Ports falling 1.62 percent.

Market breadth remained favorable, with the Bombay Stock Exchange (BSE) reporting 3,978 equities traded, with 2,251 rising, 1,590 falling, and 137 remaining unchanged. Notably, 227 equities reached 52-week highs, while just 10 hit 52-week lows. The market has 352 equities in the upper circuit and 182 in the lower circuit.

Sectoral indexes had varying performances. The Nifty Bank index climbed 1.08 percent to 53,266.90, while the Nifty Financial Services index increased 1.10 percent to 24,562.60. The Nifty Midcap Select index rose by 0.89 percent to 12,927.50.

Vinod Nair, Head of Research at Geojit Financial Services, commented on the market dynamics: “The domestic market maintained a positive trajectory, despite some volatility caused by mixed sentiments in Asian markets due to the situation in South Korea.” Broader indexes outperformed, with the banking and financial industries continuing to thrive.”

Ajit Mishra, SVP of Research at Religare Broking, added: “The markets had a tumultuous session and finished practically flat, taking a break after three days of advances. While the tone remained upbeat for much of the afternoon, profit-taking in a few heavyweights restrained the advance.

According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, “Indian equity indices extended their gains for the fourth consecutive session, driven by strength in banking and realty stocks.” According to his estimate, the auto and FMCG industries fell 0.5% apiece, while real estate and PSU banks increased by 2% each.

Technical experts have different viewpoints on the market’s near-term prospects. According to Nagaraj Shetti of HDFC Securities, “After exhibiting a durable up move in the past three sessions, Nifty has gone into a consolidation… Technically, this market activity shows the creation of a high-wave type candle pattern at the highs, reflecting the market’s continuous volatility.

Hrishikesh Yedve of Asit C. Mehta Investment Intermediates offered a technical analysis, noting that the Nifty has formed a spinning top candle around the supply zone of 24,550-24,575. “If the index sustains above 24,575, then an up move could extend towards 24,700-24,800 levels,” according to him.

Investors are now keenly following impending events, such as the probable Federal Reserve policy announcement and the RBI Monetary Policy Committee meeting, which might have an impact on market mood in the coming sessions.