Consistent foreign inflows along with better quarterly results are continuing to set the pace of the broad market. Analysts expect Q3 earnings to be better than the previous quarter, on the back of swifter recovery.
The 30-share pack Sensex dipped 24.79 points or 0.05 per cent to 49,492.32. Its broader peer, NSE Nifty, however, closed up 1.40 point or 0.01 per cent.
“Following positive global cues and ease in inflation for the month of December, the market opened with good gains. However, selling in heavyweights due to 1.9 per cent contraction in factory output, as per IIP data, knocked down the gains in the main benchmark while the broader market followed the positive trend,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Tata Motors continues to gain, rises 23 per cent in three days
- Bharti Airtel gains 2 per cent after company gets nod for 100 per cent FDI limit
- Nifty PSU Bank continues to gain, surges over 3 per cent
- India VIX adds 2 per cent, reflecting growing nervousness among traders
- 320 stocks hit 52-wk highs: MRF, Tata Power, M&M, Maruti, ICICI Bank, HDFC Bank and DLF top names
Among the bluechip names, Mahindra & Mahindra was the top gainer, rising 5.66 per cent. SBI, Adani Ports, Indian Oil, NTPC, ITC, BPCL, Tata Steel, Grasim Industries and Tata Motors were other major gainers.
Losers among Nifty constituents were led by Bajaj Finance, which fell 2.94 per cent. Shree Cement, HDFC, UPL, Bajaj Finserv, Dr Reddy’s Labs, Divi’s Labs and Titan were other counters that ended in the red.
Broader market indices closed with cuts underperforming their headline peers. Nifty Smallcap dipped 0.18 per cent and Nifty Midcap fell 0.60 per cent. Nifty 500 — the broadest index on NSE — slid 0.14 per cent.
HUDCO, L&T Tech Services, Tata Chemicals, Aegis Chemicals, Mishra Dhatu Nigam and Moil were the top gainers from mid and smallcap indices, climbing in the range of 4-9 per cent.
Vakrangee, KEC International, Rashtriya Chemicals, Varun Beverages, Shriram Transport Finance and Chola Finance were major losers from the broader market space, falling in the range of 3-5 per cent.
Sectoral matrix was mixed on NSE. Nifty Pharma was the top loser, down 0.92 per cent, followed by Nifty Financial Service and Nifty Realty also dipped. Meanwhile, Nifty PSU Bank surged 3.27 per cent while Nifty Auto rose 0.88 per cent.
“We expect stock-specific volatility to remain high on account of earnings announcement so participants should prefer hedged positions instead of outrights.”
Market breadth was in favour of losers as 1,236 stocks ended in the green, while 1,828 names settled with cuts. As many as 321 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 44 names hit 52-week lows, mostly from the microcap space. About 365 stocks hit upper circuit limits and 283 lower circuit limits.
European markets were trading higher at the last count. London-based FTSE was up 0.03 per cent while Paris and Frankfurt added 0.23 per cent and 0.02 per cent. In Asia, markets in Hong Kong and China closed in the red while others registered gains.
Let’s prepare for tomorrow:
- Q3 earnings: DEN, Reliance Industrial Infra and HFCL will come out with their numbers.
- Macroeconomic data: The government will release wholesale inflation data for December.