What Happened With Market Today

Equity benchmark Sensex declined by 81 points on Wednesday due to losses in HDFC Bank, ICICI Bank and HUL amid a weak trend in global markets. There was profit booking in metals, realty and private banks as investors await U.S. inflation data, scheduled to be released later today.

Sensex ended 81points or 0.13 per cent lower at 60,353. Similarly, Nifty fell 27 points or 0.15 per cent to close at above 18k level at 18,017. IndusInd Bank was the top loser in the Nifty pack, shedding over 3 per cent, followed by Tata Steel, HUL, Asian Paints, Titan and SBI. On the other hand, Bharti Airtel, M&M, Sun Pharma, Reliance Industries and ITC were among the gainers.

Continued FIIs selling, fall in metal price globally and worries about rising Inflation have negative impact in the market. With inflation gauges in Europe, China and the U.S. hitting multi-year highs, concerns that rising prices will force central banks to tighten policy are increasingly weighing on the sentiment. China’s CPI rose 1.5 per cent YoY, while the producer price index rose by 13.5 per cent YoY owing to inflation and domestic supply shortages. Both Asia and European markets declined as global investors are awaiting the release of the US inflation data due later today, which is expected to continue at peak levels.

Among the major Index, Nifty metal Index slipped 2%, Bank Nifty declined 1%, both mid and small cap Index fell half percent each while Nifty IT Index shed quarter percent. Nifty Realty Index slipped 1.5%. However, Nifty Auto Index gained half percent. India Vix gained 2% to close at 16.30. Nykaa witnessed strong debut today and market cap surged to above 1lakh cr. The stock listed at Rs 2,001 a share, a 78% premium to its IPO price of Rs1,125. It gained further to hit an intraday high of Rs 2248 in intraday trade, up 100% against its IPO price. It has gained Rs1081 or 96% to close at Rs2206 amid 3.4cr shares traded on NSE.

Metal stocks declined after the news that the China’s steel prices decline rapidly amid weakening demand and lower material prices and prices are likely to slide further in the fourth quarter, said industry insiders. Tata Steel slipped 3% to close at Rs1299 and SAIL declined 4% to close at Rs118. Hindalco, JSW Steel, Nalco, NMDC and Jindal Steel declined 2-3%. However, Vedanta gained over 1% to close at Rs323.

Realty stocks like Oberoi Realty slipped 3% to close at Rs981. IB Real, Godrej Properties and Brigade declined 1-3%. However, Lodha advance 4% to close at Rs1234. Rating agency Moody’s upgraded Lodha group unit Macrotech Developers’s corporate family rating, or CFR, from “Caa1” to “B3”, following an improvement in the company’s credit profile due to debt reduction and a strong recovery in operating performance.

Auto stocks gained after M&M announced impressive Q2 results. M&M gained 3% to close at Rs920 and TVS Motor advance 3% to close at Rs753. Energy stocks like Reliance gained 1% to close at Rs2550. ONGC gained nearly 1% to close at Rs158 on account of increased oil price. Brent Crude surged to $85/bbl on account of fall in US inventory.

Banking stocks like Bank of Baroda slipped 5% to close at Rs101 after announced Q2 results. HDFC Bank declined 1% to close at Rs1555 on account of profit booking. ICICI Bank, SBI, Kotak Bank, AU Bank and Indusind Bank declined 1-3%. However, Bandhan Bank and Axis Bank manage to ended positive territory.

Pharma stocks like Strides Pharma slipped 9% to close at Rs504 as the company reported poor quarterly results. However, Aurobindo Pharma gained 3% to close at Rs700. IPCA Labs, Sun Pharma, Dr Reddy and Cadila gained 1% each.

Technical Outlook:

Nifty index opened negative in line with the global cues and moved in a range bound manner for the first half of the day. It recovered in the latter half and buying interest was seen on declines. It formed a small bodied Bullish candle on daily scale and closed with losses of around 27 points. Now it has to hold above 18000 levels for an up move towards 18150 and 18350 zones. While on the downside, index has major support at 17850 and 17777 levels.

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