Market Corrects After Last Session Gain; Nifty, Sensex In Red
In the Nifty 50 index, merely 20 stocks advance in the positive territory, while 30 stocks end in the red territory
The Indian stock market ended in red in the Wednesday trading session. The continuous foreign outflows, in geo-political tension upcoming global events made investors nervous.
The National Stock Exchange (NSE) Nifty 50 index 0.51 per cent lower at 24,340, while the S&P Bombay Stock Exchange (BSE) Sensex also settled 428 points or 0.53 per cent lower at 79,940 levels on the closing bell.
Nifty Moves
In the Nifty 50 index, merely 20 stocks advanced in the positive territory, while 30 stocks ended in the red territory.
Among the winners Adani Enterprises topped the index with 4,24 per cent gain followed by more than 3 per cent gain in Tata Consumer. Heromoto Corp and Britannia gained more than 2 per cent, while Maurti, Indusind Bank, BEL and Adani Ports gained more than 1 per cent .
Among the laggards, Cipla India plummeted 4 per cent, while Shriram Finance, SBI Life, Trent, HDFC Life and Infosys lost more than 1 per cent.
Analyst Note
"The domestic market remains cautious due to aggressive selling by FIIs. Positively, strong domestic inflows are supporting market resilience though volatility has markedly increased. Other EMs are also consolidating in anticipation of upcoming US economic data releases, elections, and the FOMC interest rate decision. Considering the weak Q2 domestic earnings and muted commentary, India's premium valuations are moderating," said Vinod Nair, Head of Research, Geojit Financial Services.
"Nifty remained volatile throughout the day, trading within a range of 24,300 to 24,500. On the hourly chart, Nifty encountered resistance around the 50 EMA, leading to a correction toward 24,300. Sentiment may stay sideways as long as Nifty remains within the range of 24,250 to 24,500. A decisive breakout from this range is likely to give direction to Nifty. On the lower end, supports are placed at 24,250 and 24,000, while resistances are seen at 24,500 and 24,750," said Rupak De, Senior Technical Analyst, LKP Securities.
Sectoral Movement
In terms of sectoral performance, Nifty Bank and Financial Services ended with 0.98 per cent and 1.32 per cent loss respectively, while PSU Banks also ended 0.26 per cent lower.
Other sectoral indices displayed mixed trade, Auto ended with negligible gain, and Realty closed marginally lower. Pharma and IT lost 1 per cent, whereas FMCG traded nearly 1 per cent higher.
The more domestically focussed indices, Mid-cap gained margined, however Small-cap closed 1.05 per cent higher.
