What Happened With Market Today

Equity benchmarks declined after fluctuating between gains and loss for most of the session, dragged by metals, banking, power and realty stocks, amid rising concerns over the spread of omicron variant of covid-19 virus. Sensex dropped by nearly 100 points on account of profit booking in HDFC Bank, SBI and ITC. Global markets witnessed range bound ahead of New year holiday. Metal, tech and banking stocks witnessed profit booking while pharma and selects auto stocks recorded handsome gain.

Sensex ended 91 points or 0.20 per cent lower at 57806. Nifty fell by 20 points or 0.11 per cent to 17,214. ITC was the top loser in the Nifty pack, shedding over 1per cent, followed by SBI, NTPC, Tech Mahindra, Tata Steel, Kotak Bank and M&M. On the other hand, Sun Pharma, IndusInd Bank, Dr Reddy’s and Bajaj Finserv were among the gainers.

Markets were choppy throughout the session following a mixed bag in the global markets ahead of new year holiday. Governments, globally, are responding with caution and imposing some restrictions. In India too Maharashtra and Delhi have imposed some restrictions in the context of rising cases. Among the global markets, Asian markets ended on mixed bag while FTSE 100 at nearly a two-year high amid optimism that the omicron coronavirus variant may prove to be milder than earlier versions of the virus.

Among the major index, metal index witnessed biggest losses today and it has declined over 1%. However, Pharma Index climbed up by 1.5%. Nifty small cap and mid cap Index gained modestly. Nifty auto Index gained nearly half percent. Banking and IT Index declined nearly half percent each. Nifty 500 stocks advance decline ratio was1:1. India Vix declined 1% to close at 16.24.

Shares of the recently-listed initial public offerings (IPO) surged on the back of higher volumes after the SEBI had tightened rules for share sales. In order to stabilise share prices of newly listed firms and prevent potentially huge losses for retail and high net-worth investors, SEBI increased the lock-in period to 90 days from 30 days. Latent View rose 10 percent, Data Patterns India 9 percent, SJS Enterprises, Windlas Biotech, CE Info Systems gained smartly today.

Metal stocks witnessed profit booking. SAIL declined by 2% to close at Rs106. Tata Steel declined 1% to close at Rs1116. Jindal Steel, Vedanta and National Aluminum declined 1-2%. Banking stocks SBI slipped over 1% to close at Rs454. Rbl Bank, Bandhan Bank and Kotak Bank and declined 1% each.

Pharma stocks witnessed smart rally after the drug controller approved Covid drug in the domestic pharma players. Torrent to sell the anti-viral drug under brand name Molnutor, Cipla under brand Cipmolnu and Sun Pharmaceuticals under brand Molxvir. Torrent Pharma said it would sell MSD (Merck & Co., Inc, Kenilworth, NJ, USA) and Ridgeback’s oral anti-viral drug molnupiravir under the brand name Molnutor in India. Sun Pharma surged 3% to close at Rs839 amid 87.5 lakh shares traded on NSE. Laurus Labs gained nearly 4% to close at Rs548. Dr Reddy, Divis’ Labs, Ipca Labs, Biocon, Lupin, Torrent Pharma and Granules gained 1-2%.

Auto stocks witnessed fresh buying. Bajaj Auto surged by 3% to close at Rs3262 after the news that the company will invest Rs300cr to build capacity for 500,000 electric vehicles a year at its new plant at Akurdi in Maharashtra. Eicher Motor gained over 3% to close at Rs2562. Both TVS Motor and Maruti gained 2% and 1% respectively.

Technical Outlook:

Nifty index opened flattish and consolidated in a range throughout the day. It respected its previous day’s low levels but could not hold above 17250 zones and closed near its opening levels. It formed a Doji sort of candle on daily scale and has been forming higher highs – higher lows from the last two sessions. Now it has to hold above 17200 zones, for an up move towards 17300 and 17350 zones whereas support shifts higher to 17150 and 17100 zones.

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