Sensex, Nifty end in the red for 2nd day; midcap stocks outperform

Sensex, Nifty end in the red for 2nd day; midcap stocks outperform

NEW DELHI: Late hour selling in IT and FMCG stocks pushed benchmark indices lower for the second consecutive day, wiping out all morning gains, but the broader markets continued to outperform.

Nifty Midcap index is trading at record highs amid heavy buying in smaller names. Meanwhile, some bout of profit booking has started in their larger peers as valuations are looking extremely stretched.

The 30-share pack Sensex dropped 80.74 points, or 0.17 per cent, to 48,093.32. Its broader peer, NSE Nifty, fell 8.90 points, or 0.06 per cent, to 14,137.35. India VIX softened nearly 2 per cent, reflecting waning nervousness on the Street.

“Although the markets witnessed a range bound rally during the day, profit booking was seen towards the end of the session. Outperformance was seen in small and mid-cap stocks today. Realty stocks experienced upward momentum after Maharashtra cut levies on projects by 50 per cent,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance:

  • Dixon Tech surges 9% after getting contract to make speakers for boAt
  • Wendt falls 3% after launching OFS at 30% discount
  • Sobha surges 7% after reporting best ever sales in Q3
  • JSW Steel Q3 output up 2% YoY; shares gain 1%
  • NCL Industries climbs 5% after Dolly Khanna buys stake

Among the bluechip names, Tata Steel was the top gainer, rising 5.28 per cent. Hindalco, Bharti Airtel, Adani Ports, IndusInd Bank, Axis Bank, UPL, Bajaj Finserv, L&T and BPCL were other major gainers.

“Traders should maintain extra caution in the selection of stocks now and focus on overnight risk management”

— Ajit Mishra, Religare Broking

Losers among Nifty constituents were led by Nestle India that fell 2.04 per cent. HDFC Life Insurance, HUL, Titan, Divi’s Labs, HCL Tech and Infosys were others that ended in the red.

Broader market indices closed with gains and outperformed their larger peers. Nifty Smallcap added 1.37 per cent and Nifty Midcap rose 1.45 per cent. Nifty 500, the broadest index on NSE, rose 0.24 per cent.

Bharat Forge, Shriram Transport Finance, Sun TV, Dixon Technologies, Rain Industries and Ujjivan Small Finance Bank were top gainers from mid and smallcap indices, climbing in the range of 6-10 per cent.

Trident, Inox Leisure, Sterlite Technology, L&T Technology Services, Natco Pharma and MRF were major losers from the broader market space, falling in the range of 1-10 per cent.

Sectoral matrix was mixed on NSE. Nifty FMCG was the top loser, down 0.86 per cent, followed by 0.66 per cent drop in Nifty IT. Meanwhile, Nifty Metal surged 3.82 per cent, driven by hefty gains in Tata Steel.

Market breadth was in favour of gainers as 1,969 stocks ended in the green, while 1,108 names settled with cuts. As many as 449 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 35 names hit 52-week lows, mostly from the microcap space. About 560 stocks hit upper circuit limits and 165 lower circuit limits.

European markets were trading mixed. London-based FTSE was down 0.61 per cent, while Paris and Frankfurt added 0.41 per cent and 0.66 per cent. In Asia, barring Hong Kong that fell 0.52 per cent, all markets closed with gains.

Let’s prepare for tomorrow:

  • Q3 earnings: TCS will come out with its result on Friday, starting the Q3 earnings season.
  • FX Reserves: RBI will release forex reserves as of January 1, outlining how much dollar it has been buying.

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