Sensex Ends Volatile Week on Muted Note: Market Analysis and Trends

The 30-share Senex experienced a setback of 190.97 points, marking a decline of 0.33 per cent, ultimately settling at 57,124.31. Throughout the day, the index oscillated within an 810-point range, showcasing considerable volatility.

NEW DELHI: Uncertainty loomed over Dalal Street as the benchmark indices relinquished their three-day ascent on Friday. Traders exercised caution following the implementation of restrictions in numerous states across India.
While IT stocks observed an uptick in buying interest, other sectors faced selling pressure.

The 30-share Senex concluded the session with a decline of 190.97 points, or 0.33 per cent, closing at 57,124.31. Simultaneously, its broader counterpart NSE Nifty witnessed a drop of 68.85 points, equivalent to 0.40 per cent, settling at 17,003.75.

Analysts attributed the prevailing concern among investors to cost-push inflation across various sectors, raising apprehensions about its ramifications on consumer behavior.

Market Summary:

• HCL Tech surged by 3% amid reports of promoters contemplating a stake increase.
• Lakshmi Automation recorded a 7% spike as United Insurance divested its shares.
• India VIX experienced a 2% climb, reaching 16.15.
• Data Patterns soared by 29% during its debut trade, followed by profit booking.
• L&T Finance Holdings witnessed a 7% decline following the sale of its MF arm.

“While the surge in exports and tax collections, alongside the success of PLI schemes, offer optimism, certain sectors await consolidation, demanding attention from long-term investors amidst the ongoing corrective phase,” remarked S Ranganathan, Head of Research at LKP Securities.

Among prominent stocks, HCL Tech emerged as the top gainer, with a notable rise of 2.86 per cent. Additionally, Tech Mahindra, SBI Life Insurance, Asian Paints, Wipro, ITC, Infosys, TCS, and Reliance Industries witnessed gains.

On the flip side, Grasim Industries and NTPC led the decliners in the Nifty pack, registering a 2.93 per cent fall. Other notable losers included Eicher Motors, ONGC, M&M, Indian Oil, Axis Bank, and Kotak Mahindra Bank.

The broader market indices closed lower, trailing their headline counterparts. Nifty Smallcap witnessed a 0.52 per cent drop, while Nifty Midcap declined by 1.05 per cent. Nifty 500, the most comprehensive index on NSE, concluded with a 0.59 per cent decrease. Noteworthy gainers from the mid and small-cap indices encompassed KPIT Tech, Suzlon Energy, Firstsource Solution, Coforge, Ajanta Pharma, and Balkrishna Industries, registering gains ranging from 2-6 per cent.

Conversely, major losers from the broader market segment included Bajaj Electricals, Delta Corp, BEML, L&T Financial Holdings, Dhani Services, and Syngene International, experiencing declines ranging from 3-7 per cent.

Except for Nifty IT, which witnessed a 0.98 per cent increase, all sectoral indices on NSE concluded in the negative territory. Nifty PSU Bank emerged as the top loser, plummeting by 1.94 per cent, followed by Nifty Realty with a 1.48 per cent cut. Nifty Auto and Pharma also featured among the top decliners.

“With varying trends across sectors, traders should concentrate on IT, select FMCG, and pharmaceuticals for long trades, while the banking sector might continue to exhibit subdued performance.”

Market breadth favored the decliners, with 1,573 stocks closing in the green and 1,751 ending with losses. A total of 293 securities reached 52-week highs, primarily from the small-cap segment. Meanwhile, 18 stocks touched 52-week lows, predominantly from the micro-cap space. Approximately 520 stocks hit upper circuit limits, while 135 touched lower circuit limits.

European markets displayed a mixed trend, with the FTSE from London recording a 0.39 per cent increase, while Paris and Frankfurt experienced marginal declines of 0.02 per cent and a surge of 1.04 per cent, respectively. Across Asia, China, Thailand, and Japan concluded lower, whereas all other markets ended in positive territory.