Indian equity indices ended on a lower note on Thursday. The NSE Nifty 50 fell 7.40 points or 0.03%, from its previous close, to settle the day’s trading at 24,406.10. While the BSE Sensex closed 109 points points or 0.14% lower at 80,040. Auto and oil & gas stocks led the market’s recovery. L&T and Tata Motors along with HDFC Bank contributed the highest among other stocks, pushing the indices to close on a flat level.
“After a volatile session, the Indian market concluded on a flat note, influenced by lower-than-expected earnings growth from major banks,” said Vinod Nair, Head of Research at Geojit Financial Services.
Sectoral Index Bucked Trend
Bank Nifty slumped 428.25 points or 0.83% to end the session at 50,888.75. However, Nifty Midcap 100 added 131 points or 0.23% settling the day’s trading at 56,741.75. In the broader markets, smallcap and midcap stocks closed in the red.
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Sectoral draggers
Among the sectoral indices, Nifty Auto and Oil & Gas were the major gainers in today’s trade. However, metal and banking stocks took a hit.
“Global indices also reacted pessimistically due to the disappointing results from top US tech companies. However, the government’s commitment to improving consumption and bridging the gap for energy transition in the budget buoyed sectoral sentiments. Despite ongoing enthusiasm from retail investors in the broader market, the current high valuations are likely to prompt a shift towards large-cap stocks,” said Nair of Geojit.
According to Ajit Mishra, senior vice president at Religare Broking, markets are showing significant resilience during this consolidation phase. Due to this, Religare recommends looking for buying opportunities on dips as long as Nifty holds above the 24,200 level. “Given the mixed trends across sectors, it is crucial to focus on stock selection. In addition to earnings reports, the performance of global indices, especially in the US, will be closely watched for further cues,” said Mishra.
Bank Nifty
“Bank Nifty has been leading this fall. Today it achieved our short-term target of 50600 and thereafter consolidated. Considering it has reached a crucial support the fall from hereon may be less intense and can witness a consolidation in the near term. In terms of levels, 50600 – 50400 is a crucial support zone while 51300 – 51600 is the immediate hurdle zone for the Bank Nifty,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.