Nifty, Sensex Decline Marginally Amid Selling Pressure In Auto, FMCG & Metal
While the S&P BSE Sensex declined 140 points or 0.21 per cent to close at 65,655.15, the broader Nifty settled 56.50 points or 0.19 per cent lower at 19,750. Today’s negative closing by headline indices was the second in a row.
Top Nifty gainers in the day’s trade were Divi’s Laboratories, Bharti Airtel, Wipro, HCL Technologies and Coal India while the top losers were Adani Enterprises, Bajaj Finance, SBI Life Insurance Company, Mahindra & Mahindra (M&M) and UltraTech Cement.
Out of 15 Nifty sectoral indices, 10 closed in the red and four in the green while one remained unchanged. The top losers were Nifty Auto, Nifty FMCG and Nifty Metal which fell between 0.76 per cent and 0.38 per cent. The top performer was Nifty IT which maintained its previous week’s winning run and closed with gains of 0.60 per cent. Nifty Pharma, Nifty PSU Bank and Nifty Healthcare Index closed with small gains amid action in selective stocks.
Broader markets gave up their morning gains and ended mixed. While the Nifty Midcap 100 closed 0.09 per cent up, the Nifty Smallcap 100 declined 0.09 per cent.
FII and FPIs, on Monday, saw a net sales of Rs 645.72 crore in the cash segment. A total of Rs 9,421.90 crore was sold against a total purchase of Rs 8,778.18 crore. Domestic institutional investors saw a net purchase of Rs 77.77 crore in the cash segment. A total of Rs 6,369.06 crore was sold against a total purchase of Rs 6,446.83 crore.
Elevated long-term interest rate trends and a weakening global economy continue to hurt inflows and market movement. The recent softening of inflation in the US and India and the negative trend of crude are expected to help the view on global equity and India in the short term.
The ease in FIIs selling is helping the domestic markets but continues to consolidate primarily due to India's premium valuation relative to global peers. In this scenario, the IT sector is benefiting; however, valuation continues to be on the higher side compared to long-term history, suggesting a cautious approach in the sector in the medium term.
Technically, the important key resistances placed in October Nifty future are at 19,750 levels, which could offer the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 19,808 – 19,880 levels. Immediate support is placed at 19,676 – 19,606 levels.
