Profit-Booking Pulls Down Domestic Equities in Last Trading Session of 2023

At the close, the Nifty 50 was at 21,731.40 down by 0.22%

The NSE Nifty 50 commenced the day on a subdued note, marking a 0.22 percent decline and concluded in negative territory, settling below the 21750 mark. The closing of 2023 witnessed a shift in investor sentiment as profit booking led to a downturn, particularly impacting the banking and IT sectors, which carry substantial weight within the Nifty index. Despite this, the year culminated on a positive trajectory, with benchmark indices hovering close to record highs, showcasing a commendable 20 percent surge throughout the year.

Remarkably, the broader market indices outshone the Nifty’s performance, with the midcap index soaring by nearly 45% and the small-cap index surging by 55%, significantly outpacing the Nifty’s 20% appreciation.

As we approach the onset of the new year, optimism prevails, driven by expectations of continued momentum attributed to rate cuts and declining bond yields. Notably, a silver lining emerges from the 10% dip in oil prices over the year, potentially alleviating inflationary concerns and bolstering corporate operational efficacy.

Despite a moderately tempered outlook for broader indexes in the short to medium term, large-cap stocks are poised to maintain their vigor. This resilience is fueled by robust earnings growth and the anticipation of sustained premium valuations.

The year 2023 witnessed dynamic fluctuations within the stock market, showcasing both peaks and troughs, yet closing with an overall upward trajectory, underlining the resilience and adaptability of the market to diverse economic influences.

Bank Nifty: Down by 0.45%

Today’s trading session witnessed a subdued opening for the Bank Nifty, reflecting a downward trend as it commenced in the red, declining by 0.45%. The day concluded with the Bank Nifty closing at 48,292.25, further emphasizing the downward trajectory that persisted throughout the trading period. Similarly, the BSE Sensex mirrored this trend, opening with a decline of 0.23%. This downward movement persisted, resulting in the Sensex concluding the day in the red at a low of 72,240.26.

In the sectorial front, the Automotive sector is witnessing a notable upsurge, marking a 1.14% increase in recent market trends. Within this domain, Samvardhana Motherson International Ltd. demonstrated a robust growth of 4.05%, while Tata Motors Ltd. experienced a commendable surge of 3.38%. Conversely, the Oil & Gas sector faced a setback, declining by 0.97% in recent assessments. Hindustan Petroleum Corporation Ltd. experienced a notable decrease of -4.70%, while Bharat Petroleum Corporation Ltd. observed a decline of -3.18%.

Foreign Institutional Investors (FIIs/FPIs) recorded a buy value of Rs. 9,503.57 crore and a sale value of Rs. 8,044.45 crore, resulting in a net value of Rs. 1,459.12 crore. On the other hand, Domestic Institutional Investors (DIIs) reported a buy value of Rs. 10,908.46 crore and a sale value of Rs. 10,354.07 crore, leading to a net value of Rs. 554.39 crore.

Bank Nifty

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

The gainers included Bandhan Bank with a 0.73% increase, Federal Bank with a 0.61% increase, Punjab National Bank with a 0.21% increase, HDFC Bank with a 0.20% increase, and IDFC First Bank with a 0.11% increase. On the other hand, the biggest losers in the sector included State Bank of India with a 1.49% decline, IndusInd Bank with a 0.91% decline, Kotak Bank with a 0.90% decline, Bank of Baroda with a 0.90% decline, and ICICI Bank with a 0.75% decline. These results suggest that some of the banking stocks performed better for the day.

Indian Rupee’s Year-End Performance and Central Bank Intervention

In 2023, the Indian rupee experienced a relatively modest decline, marking the smallest annual decrease in a six-year consecutive losing streak. The currency shed 0.5% of its value over the year, a notable contrast to the sharp 10% decline recorded in 2022, positioning it more neutrally among Asian currencies this year.

This year’s subdued volatility was a significant feature, hitting decadal lows primarily due to persistent interventions by the Reserve Bank of India (RBI). The central bank’s active involvement remained a crucial factor in managing the rupee’s performance, strategically leveraging periods of rupee strength to bolster forex reserves and selling dollars during instances of rupee depreciation or when nearing record lows.

The Indian rupee’s year-end standing against the U.S. dollar settled at 83.2075, fluctuating between a high of 80.88 on January 23 and reaching a historic low of 83.42 on November 10, illustrating the currency’s trajectory throughout the year.

As the RBI continues its intervention strategies, market observers anticipate its sustained influence on the rupee’s fortunes throughout 2024. The relatively stabilized performance of the rupee in 2023, amidst global economic shifts and domestic policies, reflects the impact of deliberate central bank actions in managing currency fluctuations and preserving market stability.

Stocks Highlights

Tata Motors Ltd. witnessed a positive surge in its share price, marking a 3.38% increase from its previous closing value of Rs 753.90, reaching Rs 779.40 in its latest trade. The company showcased a robust financial performance, surpassing its three-year Compound Annual Growth Rate (CAGR) of 9.81% with an impressive annual revenue growth of 24.54%. Notably, Tata Motors allocated 2.96% of its operating revenues towards interest expenses and 9.73% towards employee costs in the fiscal year ending March 31, 2023.

Conversely, Bharat Petroleum Corporation Ltd. (BPCL) experienced a decline in its share price, dropping by -3.18% from its previous close of Rs 465.80 to Rs 451.00 in the latest trade. Despite this decline, BPCL exhibited notable financial growth, surpassing its three-year revenue CAGR of 18.13% with an outstanding annual revenue growth of 35.99%. Interestingly, BPCL allocated less than 1% of its operating revenues towards interest expenses and a mere 0.59% towards employee costs for the fiscal year ending March 31, 2023.

Additionally, analyzing intraday trading patterns, BPCL saw only 1.78% of its trading sessions in the last 19 years witnessing intraday gains higher than 5%, showcasing a consistent trend in its trading behavior.

Advance Decline Ratio

Today, the advance-decline ratio was 1.09, and the market breadth was positive. The volatility index India Vix decreased by 4.21 percent to settle at 14.50 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1292
Decliners – 1180
52Wk High –  190
52Wk Low – 9
High Band Hitters – 103
Low Band Hitters – 44
200d SMA – 19142
50d SMA – 20171
20d SMA – 21166

Top Gainers and Losers Stocks

The top gainers were Tata Consumer (+4.61%), Tata Motors (+3.38%), Bajaj Auto (+1.74%), Nestle India (+1.50%), and Adani Enterprises (+1.39%).

The top losers were BPCL (-3.18%), SBIN (-1.49%), ONGC (-1.34%), Infosys (-1.28%), and Coal India (-1.25%).

Top Gainers and Losers Sector

The top gainers sector were Auto (+1.14%), FMCG (+0.85%), Realty (+0.73%), Metal (+0.65%), and Media (+0.36%).

The top losers sector were Oil & Gas (-0.97%), IT (-0.49%), Financial Services (-0.22%), and Pharma (-0.17%).

SECTORS – NOTABLE ACTION
AUTO +1.14%
FMCG +0.85%
REALTY +0.73%
OIL & GAS -0.97%
IT -0.49%
FINANCIAL SERVICES -0.22%

Stocks Ban List

(SEBI) F&O ban list (HINDCOPPER open at +275.25 and close at +273.65) 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.

Daily Pivots

As per the above pivots data, 21650 to 21900 is the Nifty 50 trading range.

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