Market Digest: Sensex Dips, Nifty Holds, Sectoral Shifts in Focus

In the world of financial markets, the Sensex took a downturn by 254 points, influenced by global market trends, while the Nifty managed to maintain its position above the 17,700 mark.

The PSE index showcased resilience for the second consecutive day, particularly driven by the performance of Power stocks. Amidst the widening gap between growth and value stocks, notable sectoral shifts are becoming evident.

The day in New Delhi concluded with benchmark indices ending in negative territory, navigating through another day of volatility. While global cues predominantly remained bearish, a glimmer of hope emerged with some positive movement in European markets, injecting confidence among traders on Dalal Street.

Once again, the PSE index exhibited strength, climbing for the second day in a row, prominently led by Power stocks. As the divergence between growth and value stocks persists, we are observing notable sectoral rotations. Analysts noted that Metals & PSU banks played a crucial role in facilitating a recovery during afternoon trading sessions.

The Sensex, comprising 30 major stocks, experienced a decline of 254.33 points, marking a decrease of 0.43%, ultimately closing at 59,413.27. Throughout the day, the index fluctuated within a range of 567 points. Meanwhile, its counterpart, the NSE Nifty, recorded a marginal decline of 37.30 points, or 0.21%, settling at 17,711.30.

S Ranganathan, Head of Research at LKP Securities, commented on the market’s volatility, attributing it to concerns surrounding inflation due to supply-side disruptions and escalating commodity prices. He also highlighted the potential export opportunities for Indian companies as China grapples with power shortages, further buoyed by the PLI schemes.

A Quick Market Overview:

• NTPC continued its upward trajectory for the third consecutive day, witnessing a surge of 6%.
• Coal India saw a notable increase of over 6% amid rising coal prices.
• HDFC AMC faced a decline of 6%, triggered by Standard Life’s decision to reduce its holding.
• Aditya Birla AMC’s IPO garnered a subscription rate of 44% on its first day.

In the blue-chip segment, NTPC emerged as the top performer, registering a significant gain of 6.40%. Other gainers included Coal India, Power Grid, Sun Pharma, Indian Oil, Hindalco, SBI, JSW Steel, ONGC, and Cipla.

Conversely, HDFC experienced the most significant decline among Nifty constituents, dropping by 2.05%. Other notable losers encompassed Kotak Mahindra Bank, Asian Paints, UltraTech Cement, Eicher Motors, Hero MotoCorp, and HUL.

The broader market indices outshone their headline counterparts, with Nifty Smallcap advancing by 0.41% and Nifty Midcap by 1.08%. However, Nifty 500, the comprehensive index on NSE, concluded with a marginal decrease of 0.06%.

Looking Ahead:

Market participants anticipate continued volatility in light of the approaching expiry. Sectors such as Banks, Telecommunication, Power, and Pharma are likely to be closely monitored.

— Rahul Sharma, Equity99

Noteworthy gainers from the mid and smallcap segments included IRB Infra Developers, Indian Energy Exchange, HEG, Oil India, Tata Power, and GMR Infra, with gains ranging between 6-10%.

On the other hand, CAMS, Thyrocare Technologies, JB Chemicals and Pharmaceuticals, IRCTC, Bharat Electronics, and Balkrishna Industries emerged as significant losers in the broader market space, with declines ranging from 1-10%.

The sectoral landscape on the NSE exhibited a mixed picture, with Nifty PSU Bank and Nifty Metal leading the gains, while Nifty Private Bank recorded the most substantial decline.

Market breadth favored gainers, with 1,915 stocks closing in the green compared to 1,364 in the red. Furthermore, 218 securities reached their 52-week highs, predominantly from the smallcap segment, while 28 touched their 52-week lows, primarily from the microcap space. Notably, 365 stocks hit their upper circuit limits, whereas 160 encountered lower circuit limits.

In the global arena, European markets depicted upward momentum, with FTSE, Paris, and Frankfurt showing gains. However, mixed sentiments prevailed in Asian markets, with some registering gains while others experienced losses.