Informist, Tuesday, Sep 26, 2023

By Maitri Seth

MUMBAI – Benchmark indices witnessed "sideways movement" for a second consecutive day and ended marginally lower, as the Nifty 50 nears its monthly derivatives expiry on Thursday. However, analysts believe that losses were limited due to the consistent bullishness of domestic institutional investors, who absorbed the selling from foreign institutional investors during this month.

"Most of the selling from FIIs (foreign institutional investors) have been absorbed by DIIs (domestic institutional investors)," said Ruchit Jain, lead research analyst at 5Paisa. He attributed the buying from DIIs to strong domestic data, such as India's GDP, and strong inflows in Systematic Investment Plan schemes.

Today, both the Nifty 50 and Sensex closed 0.1% lower at 19664.70 points and 65945.47 points, respectively. In the broader market, most mid-cap indices ended in the red, replicating similar momentum. However, buying was seen in small-cap stocks and all the three major small-cap indices closed 0.4-0.7% higher today. 

Apart from the weakness due to the monthly derivative expiry, investors have also turned slightly indecisive ahead of the Jul-Sep earnings starting early next month.

Asked about the view on the global front, market participants said that a slight recovery in the US markets could aid the indices after the monthly expiry of Nifty 50 contracts.

But for now, analysts believe that comments from the US Federal Reserve on prolonged higher interest rates have been mostly factored in. "The marginal rebound on the global front (US indices) combined with oversold positions is limiting the downside, however the tone is still bearish", said Ajit Mishra, senior vice-president, technical research at Religare Broking.

US indices closed higher on Monday after posting four days of consecutive losses, while Asian markets closed sharply lower today. Indices in China and Hong Kong were also impacted after a dip in shares of property developer Evergrande Group led to selling in other property stocks.

Most sectoral indices closed lower today, barring fast-moving consumer goods, metals, automobile and real estate. The Nifty Auto closed 0.4% higher on account of gains in Eicher Motors. Shares of Eicher Motors hit over a two-month high of 3,539.20 rupees and closed 2.5% up after Jefferies raised the target price for the stock to 4,150 rupees from 4,000 rupees earlier, while retaining its "buy" rating.

Shares of heavy constituent Hero MotoCorp also ended 2% higher, and became one of the top gainers in the Nifty 50 index today. 

Further, the Nifty FMCG index also closed 0.5% higher today, largely boosted by gains in Colgate and Varun Beverages. Shares of Varun Beverages hit a lifetime high of 974.90 rupees and closed 4.5% higher today after media reports said that BofA Securities has hiked the target price of the company's shares by 11.4% to 1,030 rupees apiece from 925 rupees earlier.

Further, Jain is also positive on other select stocks under the FMCG pack, such as Hindustan Unilever and Marico, ahead of the release of the Jul-Sep results.

On the losing side, the information technology stocks were among the worst-hit today, but market participants still carry a positive view on the sector. "We believe the market is taking the view that the worst is over and that revenue/earnings will accelerate sharply in FY25", said Nirmal Bang Institutional Equities on IT companies. Banks, financial services, and pharmaceutical sectors also closed lower today.

Among stock specifics, shares of Vodafone Idea closed over 7.1% higher today, and analysts expect it to extend gains up to 17 rupees in the next few sessions, leading to a further upside. Shares of HLE Glascoat were the worst-hit in the Nifty 500 index, closing 12.8% lower. The company today acquired a 35.6% stake in Kinam Engineering Industries for 799.7 mln rupees.

The Nifty 50 is expected to move in a range of 19600-19750 points on Wednesday, with 19600 points as the support level for the index, which can limit the downside. 

* Of the Nifty 50 stocks, 27 rose, and 23 fell, 0 unchanged

* Of the Sensex stocks, 15 rose, and 15 fell

* On the BSE, 1,871 stocks rose, 1,791 fell, and 131 were unchanged

* Nifty Media: down 0.86%; Nifty PSU Bank: down 0.64%; Nifty FMCG: up 0.5%

BSE                                                NSE
Sensex: 65945.47, down 78.22 pts or 0.12%         Nifty 50: 19664.70, down 9.85 pts or 0.05%

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 67927.23 (Sep 15, 2023)          :  Lifetime High: 20222.45 (Sep 15, 2023)
Record Close High: 67838.63 (Sep 15, 2023)      :  Record Close High: 20192.35 (Sep 15, 2023)

2023 1st day close: 61167.79 (Jan 2)            :  2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 67838.63 (Sep 15, 2023)      :  2023 Closing High: 20192.35 (Sep 15)

2023 Closing Low: 59288.35 (Feb 27)             :  2023 Closing Low: 17311.80 (Oct 17)

2023 High (intraday): 67927.23 (Sep 15)         :  2023 High (intraday): 20222.45 (Sep 15)

2023 Low (intraday): 58699.20 (Jan 30)          :  2023 Low (intraday): 17098.55 (Jan 17)

2022 1st day close: 59183.22 (Jan 3)            :  2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1)             :  2022 Closing High: 18812.50 (Dec 1) 
2022 Closing Low: 51360.42 (Jun 17)             :  2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1)          :  2022 High (intraday): 18887.60 (Dec 1)

2022 Low (intraday): 50921.22 (Jun 17)          :  2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)            :  2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)             :  2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)         :  2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)          :  2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)            :  2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)             :  2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)         :  2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)          :  2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)         :  2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)          :  2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))         :  2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)           :  2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         :  2017 High(intraday): 10515.10 (Dec 26)

End

Edited by Tanima Banerjee

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