Nifty 50 Ends Higher Despite IT Sector Slump

NiftyTrader • March 22, 2024

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Index	Price	Change	% Chg
Nifty 50	22,096.75	+84.80	+0.39%
Nifty MidCap 50	13,329.95	+24.55	+0.18%
Nifty SmallCap 50	6,971.50	+48.50	+0.70%
Nifty Bank	46,863.75	+178.85	+0.38%
Nifty Financial	20,783.55	+68.75	+0.33%
BSE SENSEX	72,831.94	+190.75	+0.26%

At the close, the Nifty 50 was at 22,096.75 up by 0.39%

The NSE Nifty 50 exhibited resilience today, commencing with a slight downturn but ultimately closing in the green, up by 0.39 percent. Trading above the 22000 mark, the equity benchmarks showcased strength, extending their winning streak for the third consecutive session. The market’s positive performance was largely attributed to widespread buying across sectors, excluding information technology.

Despite an initial dip driven by weakness in IT stocks following Accenture’s downward revision of its full-year revenue growth projection, the market rebounded as buying activity in other sectors offset the losses. Notably, the Nifty recorded gains of 84.80 points, closing at 22,096.75.

Looking ahead, market participants are preparing for closure on March 25 due to the Holi festival. Meanwhile, technical analysis indicates a potential retracement of the recent fall in the Nifty index, with divergent signals from daily and hourly momentum indicators suggesting a period of consolidation.

While global markets maintain a bullish outlook, domestic sentiment remains cautiously optimistic, with the IT sector experiencing a slowdown in response to Accenture’s revised revenue forecast. Despite this, positive cues from global markets, coupled with lower crude oil prices, contributed to the overall positive sentiment in the domestic market, underscoring its resilience amidst mixed signals.

Bank Nifty: Up by 0.38%

The Bank Nifty commenced trading on a downward trajectory but managed to close in the green, exhibiting a growth of 0.38 percent and concluding at 46,863.75. Similarly, the BSE Sensex mirrored this positive sentiment, recording a rise of 0.26 percent and closing at a notable high of 72,831.94.

Despite the initial dip in the Bank Nifty, favorable market dynamics supported its upward movement throughout the trading session, reflecting investor confidence in the banking sector. Similarly, the BSE Sensex witnessed a steady climb, buoyed by buying activity and positive sentiment across various market segments.

In the sectorial front, the real estate sector has demonstrated a notable surge, with a significant increase of 1.76%. Swan Energy Ltd. leads the pack with a remarkable gain of 6.83%, closely followed by Prestige Estates Projects Ltd. which gained by 4.90%. However, the IT sector faces challenges, experiencing a decline of 2.33%. LTI Mindtree Ltd. suffered a loss of -2.94%, while Infosys Ltd. recorded a decline of -2.78%.

Foreign Institutional Investors (FII/FPI) recorded a net sell-off in the Indian equity market, with a buy value of Rs. 17,460.11 crore and a sale value of Rs. 20,769.87 crore. The net value stood at -Rs. 3,309.76 crore. Conversely, Domestic Institutional Investors (DII) displayed a contrasting trend, registering a net investment with a buy value of Rs. 12,729.17 crore and a sale value of Rs. 8,964.30 crore. The net value for DII activity amounted to Rs. 3,764.87 crore.

Bank Nifty

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

The gainers included IndusInd Bank with a 2.22% increase, Bank of Baroda with a 1.70% increase, Punjab National Bank with a 1.40% increase, Bandhan Bank with a 0.78% increase, and ICICI Bank with a 0.71% increase. On the other hand, the biggest losers in the sector included Axis Bank with a 0.44% decline, AU Bank with a 0.30% decline, and HDFC Bank with a 0.22% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Hits Record Low Against Dollar Amid Global Currency Fluctuations

The Indian rupee faced significant depreciation, sliding 35 paise to settle at an all-time low of 83.48 against the US dollar on Friday. This decline was attributed to the strengthening of the greenback against major currencies in international markets, coupled with weakness among Asian peers.

Trading at the interbank foreign exchange market, the rupee began at 83.28 against the dollar, eventually closing at the record low of 83.48, marking a notable fall from the previous close of 83.13. In intraday trading, the rupee touched a low of 83.52 against the American currency.

This recent dip in the rupee follows its earlier lowest closing level of 83.40 on December 13, 2023, indicating ongoing pressure on the Indian currency. Concurrently, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose by 0.31 percent to 104.32 on Friday.

In global markets, Brent crude futures, the benchmark for oil prices, experienced a marginal decline of 0.05 percent, settling at $85.74 per barrel. Despite fluctuations in currency and commodity markets, investors remain vigilant, closely monitoring developments that may impact exchange rates and overall economic stability.

Stocks Highlights

Hero MotoCorp Ltd. Hero MotoCorp Ltd. witnessed a notable increase in share price, rising by 3.94% to Rs 4,698.15 from its previous close of Rs 4,519.90. In the last 19 years, only 1.36% of trading sessions have seen intraday gains higher than 5%, indicating the rarity of such occurrences. The company’s annual revenue growth of 15.35% has outperformed its 3-year compound annual growth rate (CAGR) of 4.97%. However, in terms of stock returns, Hero MotoCorp saw a 3-year return of 46.0%, slightly lower than the Nifty 100’s return of 51.68%. Moreover, the company’s expenditure on interest amounts to less than 1% of its operating revenues, while employee costs represent 6.59%.

LTIMindtree Ltd. Contrastingly, LTIMindtree Ltd. experienced a decline in share price, dropping by -2.94% to Rs 5,008.00 from its previous close of Rs 5,159.90. Similarly, only 1.42% of trading sessions in the last 7 years have witnessed intraday gains higher than 5%. Despite this decline, the company’s annual revenue growth of 109.1% surpasses its 3-year CAGR of 43.86%, indicating robust performance. Additionally, a bullish trend is anticipated with a 5-day moving crossover signal, historically associated with an average price gain of 3.49% within 7 days. However, LTIMindtree’s 3-year stock return stands at 26.06%, significantly lower than the Nifty 100’s return of 51.68%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.88, and the market breadth was positive. The volatility index India Vix decreased by 2.33 percent to settle at 12.22 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1667
Decliners – 885
52Wk High – 39
52Wk Low – 20
High Band Hitters – 176
Low Band Hitters – 60
200d SMA – 20346
50d SMA – 21946
20d SMA – 22168

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+3.94%), Maruti (+3.32%), Sun Pharmaceutical (+3.25%), UPL (+3.08%), and Apollo Hospitals (+2.95%).

The top losers were LTIM (-2.94%), Infosys (-2.78%), Wipro (-2.46%), HCL Technologies (-2.44%), and TCS (-1.61%).

Top Gainers and Losers Sector

The top gainers sector were Realty (+1.76%), Auto (+1.67%), Media (+1.25%), Pharma (+1.25%), and Metal (+0.97%).

The top losers sector were IT (-2.33%).

SECTORS – NOTABLE ACTION
REALTY +1.76%
AUTO +1.67%
MEDIA +1.25%
IT -2.33%

Stocks Ban List

(SEBI) F&O ban list (SAIL open at +127.90 and close at +130.00), (TATACHEM open at -1024.05 and close at +1046.40), (INDUSTOWER open at -250.50 and close at +271.30), (BIOCON open at +250.20 and close at +252.20), (BALRAMCHIN open at +366.50 and close at -366.15), (ZEEL open at -140.90 and close at +142.45), and (PEL open at +848.00 and close at +861.50) 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.

NATIONALUM, INDIACEM, BANDHANBNK, PVRINOX, ABFRL, IDEA, NMDC, MANAPPURAM, BHEL, PNB, GNFC, and CANBK stocks has the possibilities of entrance in the ban list.

ZEEL, and PEL stocks has the possibilities of exit from the ban list.