At the close, the Nifty 50 was at 19,745.00 down by 1.17%
On July 21, the Nifty50 experienced a significant setback, recording a loss of over one percent. This decline marked the first time in the past seven consecutive sessions that the index closed off its record highs. The retreat was primarily driven by a steep plunge in technology stocks, particularly Infosys, following its quarterly earnings report, which resulted in a reduction of its full-year revenue growth guidance.
Today, the NSE Nifty 50 commenced on a low note, witnessing a downturn of 1.17 percent, eventually closing in the red zone, below the 19800 mark. The Indian IT sector faced uncertainty due to a cautious outlook prompted by Infosys’ weak guidance. This development hindered Nifty’s progress towards the coveted 20,000 milestone. Nonetheless, amidst the bearish trend, small-cap stocks demonstrated remarkable resilience.
Global markets presented a mixed performance, with the US market struggling due to disappointing earnings, while UK retail sales pleasantly surprised with a 0.7 per cent month-on-month growth.
Bank Nifty: Down by 0.24%
The Bank Nifty also opened in the red zone, experiencing a 0.24 percent decline, closing at 46,075.20. Similarly, the BSE Sensex faced a substantial drop of 1.31 percent, concluding at a low of 66,684.26.
An overnight plunge in the tech-heavy Nasdaq index triggered a significant correction in local software stocks, with Infosys at the forefront. Infosys, in response to a sharp decline in discretionary spending by its clients, revised down its revenue growth guidance for the remainder of the year. This development sent shockwaves through the market, prompting investors to closely monitor the tech sector’s performance.
The extraordinary surge in the markets within a short span had already sparked concerns about overextended prices. Consequently, investors seized the opportunity presented by weak US cues to carefully trim their holdings. However, it’s important to note that India’s fundamentals continue to remain solid and robust.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included Bandhan Bank with a 3.05% increase, IDFC First Bank with a 1.97% increase, State Bank of India with a 0.87% increase, Kotak Bank with a 0.67% increase, and ICICI Bank with a 0.49% increase. On the other hand, the biggest losers in the sector included Punjab National Bank with a 1.80% decline, Federal Bank with a 1.64% decline, IndusInd Bank with a 1.17% decline, AU Bank with a 0.95% decline and Bank of Baroda with a 0.85% decline. These results suggest that some banking stocks performed better for the day.
The Indian rupee experienced a second consecutive week of appreciation, supported by foreign inflows into equities. However, its gains were limited due to expectations that the central bank would control significant appreciation of the currency.
Closing at 81.9450 against the US dollar, compared to 81.9850 on Thursday, the rupee recorded a modest 0.1 percent rise this week. Throughout the week, the domestic currency mostly remained around 82 per dollar, displaying minimal volatility. In the previous week, the rupee had registered a more substantial 0.6 percent increase.
Currently, the rupee finds itself in an unusual phase where typical influences, whether global or domestic, seem to be ineffective.
Larsen & Toubro Ltd. witnessed a positive shift in its share price, rising by 3.91% from its previous close of Rs 2,489.70, reaching Rs 2,587.00. Over the past three years, the stock yielded a remarkable return of 165.41%, outperforming the Nifty 100’s return of 76.45%. Notably, the company’s annual revenue growth of 17.31% surpassed its three-year CAGR of 7.93%.
On the other hand, Infosys Ltd. experienced a downturn of -7.73% in its share price from the previous close of Rs 1,449.50, resulting in a last traded price of Rs 1,337.45. Over the past three years, the stock generated a return of 54.74%, compared to Nifty 100’s return of 76.45%. Despite this, the company’s annual revenue growth of 20.6% outperformed its three-year CAGR of 16.7%.
In the sectorial front, Media gained the most at 0.47%. Notably, PVR Inox Limited witnessed a gain of 3.83%, while Sun TV Network Limited rose by 2.59%. Conversely, the IT sector faced a decline of 4.09%, with Infosys Limited experiencing a loss of -7.73% and Persistent Systems Limited facing a downturn of -5.59%.
Advance Decline Ratio
Today, the advance-decline ratio was 1.07, and the market breadth was positive. The volatility index India Vix decreased by 2.54 percent to settle at 11.49 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 5480
Decliners – 5101
52Wk High – 131
52Wk Low – 18
High Band Hitters – 57
Low Band Hitters – 38
200d SMA – 18105
50d SMA – 18869
20d SMA – 19373
Top Gainers and Losers Stocks
The top gainers were LT (+3.91%), ONGC (+2.00%), NTPC (+0.93%), SBIN (+0.87%), and Tata Motors (+0.74%).
The top losers were Infosys (-7.73%), Hindustan Unilever (-3.60%), HCL Technologies (-3.17%), Wipro (-3.05%), and TCS (-2.58%).
Top Gainers and Losers Sector
The top gainers sectors were Media (+0.47%), Auto (+0.09%).
The top losers sectors were IT (-4.09%), Consumer Durables (-1.30%), FMCG (-1.00%), Metal (-0.66%), and Oil & Gas (-0.50%).
The Nifty Midcap 50 was down by 0.28 percent, while the Nifty Small Cap 50 was up by 0.65 percent on the day.
The Nifty Midcap 50 index currently closed at 10,446.55, while the Nifty Small Cap 50 index currently closed at 5,183.90.
SECTORS – NOTABLE ACTION
CONSUMER DURABLES -1.30%
Stocks Ban List
(SEBI) F&O ban list (DELTACORP open at +189.65 and close at -188.35), (BALRAMCHIN open at +388.50 and close at +391.70), (PNB open at -63.80 and close at -62.60), (IBULHSGFIN open at +123.00 and close at -121.25), (L&TFH open at -131.00 and close at +129.45), (MANAPPURAM open at +126.35 and close at +129.05), and (RBLBANK open at +220.00 and close at +221.60) are not currently on the stock exchange.
The Securities and Exchange Board of India (SEBI) has banned DELTACORP, BALRAMCHIN, PNB, IBULHSGFIN, L&TFH, MANAPPURAM, and RBLBANK from trading in the futures and options (F&O) segment of 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.
ZEEL, BHEL, CANBK, INDIACEM, GNFC, HINDCOPPER, GRANULES, LICHSGFIN, INDUSTOWER, and TATACHEM are stock that are potentially facing the possibility of being included in the ban list.
L&TFH, MANAPPURAM, and RBLBANK has the possibilities of exit from ban list.
As per the above pivots data, 19660 to 19870 is the Nifty 50 trading range.
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This article is only for educational purposes and is not an investment advice.