|Nifty MidCap 50||11,600.65||+105.75||+0.92%|
|Nifty SmallCap 50||5,757.95||+23.75||+0.41%|
At the close, the Nifty 50 was at 19,674.55 up by 0.00%
In recent trading sessions, the Indian benchmark indices embarked on a tumultuous journey, breaking a four-day losing streak to ultimately settle with minimal changes in a highly unpredictable session. This volatile behavior can be attributed to a blend of global influences that maintained investors’ alertness throughout the day.
Market Commencement and Rebound The day commenced on a pessimistic note, but the afternoon session witnessed a notable resurgence. The Nifty50 approached the 19,750 threshold, briefly raising hopes. Regrettably, last-minute selling erased these gains, resulting in a balanced market sentiment.
NSE Nifty 50’s Favorable Start In contrast to the morning downturn, the NSE Nifty 50 initiated the day on a positive note, demonstrating its resilience. It managed to conclude the day in the positive zone, albeit with marginal gains. This affirmative momentum ensured that Nifty retained its foothold above the critical 19,650 level.
Discerning Purchases and Muted Trading The markets halted their four-session slide by registering modest gains, primarily propelled by selective purchases. Nevertheless, the overall trading activity remained subdued, with early volatility subsiding as the day progressed. This contrasted with the sluggish performance observed in European and other Asian indices.
Global Dynamics Impacting Indian Markets The recent upswing in US treasury yields has introduced an element of uncertainty into the investor psyche. Foreign Institutional Investors (FIIs) have continued their divestment from local equities, reflecting a cautious sentiment prevailing in the market.
Performance Across Sectors The market depicted a varied landscape, with certain sectors such as Realty, Banking, and Consumer Durables displaying robust performance, while IT and Pharma sectors encountered challenges. Investors actively adjusted their portfolios, with a heightened focus on domestic stocks, given concerns about a potential global economic deceleration, exacerbated by persistently high interest rates.
Encouraging Signs Amidst this atmosphere of uncertainty, the Indian market persists in displaying resilience, marked by promising developments in registration and consumption demand, particularly in anticipation of the forthcoming festival season. India’s inclusion in JP Morgan’s Emerging Markets Government Bond Index is also anticipated to have a positive impact on the financial sector, potentially reducing borrowing costs.
Bank Nifty: Up by 0.35%
In the most recent trading session, the Bank Nifty exhibited a strong upward trajectory right from the opening bell, beginning with a promising green signal and gaining a notable 0.35 percent before ultimately closing in positive territory at an impressive 44,766.10. Similarly, the BSE Sensex also followed the upward trend, posting a modest uptick of 0.02 percent and concluding on a positive note, reaching a peak of 66,023.69.
Within the sectorial landscape, the Realty sector stood out as a top performer, achieving a significant gain of 1.52% during the latest trading session. Particularly noteworthy, Indiabulls Real Estate Ltd. displayed remarkable strength, registering an impressive increase of 8.62%, while Sobha Ltd. also made a substantial contribution with a gain of 5.38%.
Conversely, the Information Technology (IT) sector encountered headwinds during the trading session, emerging as the leading decliner with a 0.78% downturn. In this sector, both Infosys Ltd. and Wipro Ltd. experienced losses, with Infosys Ltd. witnessing a decline of -1.39%, and Wipro Ltd. closely trailing with a loss of -1.00%.
Foreign Institutional Investors (FII/FPI) recorded a net selling value of -2,333.03 Rs. Cr., with purchase and sale values of 8,510.65 Rs. Cr. and 10,843.68 Rs. Cr., respectively. Meanwhile, Domestic Institutional Investors (DII) posted a net buying value of 1,579.28 Rs. Cr., with purchase and sale values of 8,621.77 Rs. Cr. and 7,042.49 Rs. Cr., respectively.
The Nifty Banking sector had some gainers and some losers for the day.
The gainers included Punjab National Bank with a 3.48% increase, Kotak Bank with a 1.68% increase, Bandhan Bank with a 1.28% increase, Bank of Baroda with a 0.98% increase, and Federal Bank with a 0.89% increase. On the other hand, the biggest losers in the sector included IndusInd Bank with a 0.82% decline, State Bank of India with a 0.70% decline, AU Bank with a 0.46% decline, and HDFC Bank with a 0.05% decline. These results suggest that some banking stocks performed better for the day.
Rupee Declines Amidst External Pressures The Indian rupee faced a downward trajectory on Monday, depreciating by 20 paise to settle at 83.14 (pro) against the US dollar. This decline can be attributed to several external factors, primarily the surge in crude oil prices and the robust performance of the US dollar against major currencies worldwide.
Equity Market and Foreign Funds Withdrawal The rupee’s subdued performance was further compounded by lackluster equity markets and the withdrawal of foreign funds. These factors contributed to a sense of caution among forex traders, prompting them to favor the relative safety of the US dollar.
Intraday Movements In the interbank foreign exchange market, the rupee exhibited a weak opening at 83.04 against the dollar. Throughout the trading session, it oscillated within a range, reaching a high of 83.04 and a low of 83.15 before ultimately settling at 83.14 (pro). This marked a 20 paise decline from the previous close.
Impact of JP Morgan’s Announcement It’s worth noting that the rupee had witnessed gains on the preceding Friday, primarily in response to JP Morgan’s announcement of its intention to include Indian government securities in its global bond index, starting in June 2024. This development is expected to usher in significant inflows, estimated at $25-30 billion, into the Indian debt market.
Strong Dollar and FIIs On Monday, the rupee faced headwinds from the strength of the US dollar, buoyed by a hawkish stance by the Federal Open Market Committee (FOMC) in the previous week. Additionally, selling pressure from Foreign Institutional Investors (FIIs) exerted further downward pressure on the rupee.
Bajaj Finance Ltd. Strong Price Surge and Robust Revenue Growth
Bajaj Finance Ltd. witnessed a substantial uptick in its share price, surging by an impressive 4.49% from its previous close of Rs 7,471.35 to reach a last traded price of Rs 7,806.90. Beyond its stock performance, the company’s financials also tell a compelling story. Bajaj Finance recorded an annual revenue growth rate of 30.86%, significantly outperforming its 3-year Compound Annual Growth Rate (CAGR) of 16.03%. This underscores the company’s ability to capitalize on growth opportunities and generate higher revenues.
In terms of financial management, Bajaj Finance allocated 30.34% of its operating revenues towards interest expenses and 12.22% towards employee costs for the fiscal year ending on March 31, 2023. This balanced allocation reflects prudent financial management practices that contribute to the company’s overall strength and resilience in the market.
Hindalco Industries Ltd. Share Price Decline and Stochastic Signal
Conversely, Hindalco Industries Ltd. experienced a decline in its share price, slipping by -2.06% from its previous close of Rs 478.85 to a last traded price of Rs 469.00. Additionally, a notable technical indicator, the weekly stochastic crossover, appeared on the week ending September 22, 2023. Historical data indicates that following this signal, the average price declined by -6.62% within 7 weeks over the last decade.
From a financial perspective, Hindalco Industries allocated 1.63% of its operating revenues towards interest expenses and 5.85% towards employee costs in the fiscal year ending on March 31, 2023. While the share price decline and stochastic signal warrant attention, the company’s efficient cost management practices contribute to its ability to weather market fluctuations.
Advance Decline Ratio
Today, the advance-decline ratio was 0.90, and the market breadth was negative. The volatility index India Vix increased by 2.25 percent to settle at 10.90 and the FIIs were net sellers today.
DAILY MARKET ACTION
Advancers – 1136
Decliners – 1260
52Wk High – 73
52Wk Low – 16
High Band Hitters – 75
Low Band Hitters – 51
200d SMA – 18477
50d SMA – 19632
20d SMA – 19721
Top Gainers and Losers Stocks
The top gainers were Bajaj Finance (+4.49%), Tata Consumer (+3.17%), Bajaj Finserv (+1.97%), Apollo Hospitals (+1.96%), and Coal India (+1.76%).
The top losers were Hindalco (-2.06%), SBI Life (-1.77%), Hero MotoCorp (-1.63%), Infosys (-1.39%), and M&M (-1.25%).
Top Gainers and Losers Sector
The top gainers sector were Realty (+1.52%), Financial Services (+0.56%), Consumer Durables (+0.48%), and FMCG (+0.07%).
The top losers were IT (-0.78%), Media (-0.73%), Pharma (-0.34%), Oil & Gas (-0.25%), and Metal (-0.11%).
SECTORS – NOTABLE ACTION
FINANCIAL SERVICES +0.56%
CONSUMER DURABLES +0.48%
Stocks Ban List
(SEBI) F&O ban list (CANBK open at +383.95 and close at -375.05), (GRANULES open at +338.80 and close at -333.75), (HINDCOPPER open at -153.75 and close at +157.40), (DELTACORP open at -157.90 and close at -142.80), (IBULHSGFIN open at -185.40 and close at +188.25), and (MANAPPURAM open at +140.80 and close at -140.40) 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.
INDUSTOWER, RBLBANK, NMDC, NATIONALUM, SAIL, INDIACEM, GNFC, L&TFH, and CHAMBLFERT stocks has the possibilities of enterance in the ban list.
IBULHSGFIN, and MANAPPURAM stocks has the possibilities of exit from ban list.
As per the above pivots data, 19600 to 19750 is the Nifty 50 trading range.
Read previous -Daily Insights- here
Nifty’s Soaring Journey Takes a Sudden Plunge A 2.80% Drop from All-Time High
Indices Decline 3rd Day as Fed Hints at Prolonged Higher Rates
Day of Losses and Selling Pressure Market Plunges
Market Reacts to Weak Global Cues, Ends Near Daily Low
This article is only for educational purposes and is not an investment advice.