The S&P BSE Sensex and Nifty 50 indexes fell sharply in trade on Wednesday as investors booked profits at record highs a day ahead of the monthly expiry of future and option contracts, analysts said. The Sensex crashed as much as 1,067 points from record high of 44,825.37 and Nifty 50 index touched an intraday low of 12,834 after hitting a record high of 13,145.85 during the session. HDFC Bank, Infosys, Kotak Mahindra Bank, HDFC, Reliance Industries, Axis Bank and Bharti Airtel were among the top drags in the Sensex. The Sensex slumped 695 points or 1.56 per cent to close at 43,828 and Nifty 50 index dropped 197 points or 1.51 per cent to settle at 12,858.
Selling pressure was visible across sectors as all the 11 sector gauges, barring the index of PSU banks, ended lower led by the Nifty Realty index’s 2.5 per cent decline. Private bank, pharma, bank, financial services and auto indexes also fell around 2 per cent.
Here are highlights of Wednesday’s market session:
The S&P BSE Sensex index ended 694.92 points – or 1.56 per cent – lower at 43,828.10, and the broader NSE Nifty 50 settled at 12,858.40, down 196.75 points – or 1.51 per cent – from its previous close. Eicher Motors, Axis Bank, Kotak Mahindra Bank, Sun Pharma and Bajaj Finance, closing between 2.43 per cent and 3.72 per cent lower, were the worst hit among 43 laggards in the Nifty basket of 50 shares. On the other hand, ONGC, GAIL, Adani Ports and SBI Life, up 1.32-5.91 per cent each, were the top gainers in the index.
The Sensex and Nifty witnessed heavy selling pressure at record highs. As of 3:20 pm, the Sensex was down 657 points at 43,865 and Nifty 50 index was down 190 points at 12,865.
The overall market breadth turned negative as 1,679 shares were trading lower while 1,093 were trading higher.
Shares of Snowman Logistics rose as much as 10 per cent to Rs 61 as trading volumes spiked.
As many as 12 lakh shares changed hands on the BSE compared with an average of 6 lakh shares traded daily in the past two weeks.
Shares of drug maker Shilpa Medicare rose as much as 10.64 per cent to Rs 479.25 in an otherwise weak market session on the back of heavy volumes.
As many as 1.24 lakh shares changed hands on the BSE compared to an average of 22,000 shares traded daily in the past two weeks.
Shares of oil drilling companies were outperforming in an otherwise weak market session.
Top gainers among oil drilling companies:
- Jindal Drilling up 9.41%
- Hindustan Oil Exploration Company up 4.05%
- ONGC up 5.72%
- Oil India up 3.12%
Twenty five out of 30 shares in the Sensex were trading lower led by Kotak Mahindra Bank’s over 3 per cent gain.
Top Sensex losers:
- Kotak Mahindra Bank down 3.18%
- Bharti Airtel down 2.41%
- Asian Paints down 2.35%
- Sun Pharma down 2.17%
- Axis Bank down 2.07%
Markets Remain Under Pressure In Noon Trading
The markets continue to be under pressure in noon trading; the Sensex is down 1.37 per cent at 43,909.60 and the NSE Nifty is down 1.3 per cent at 12,875.20. All the BSE sectoral indices are trading in the red, with the exception of the oil and gas space
European Markets Open Marginally Higher
European markets have opened higher on Wednesday on growing political certainty in the U.S. and positive news surrounding coronavirus vaccine.UK’s FTSE, German DAX and France’s CAC have edged higher by around 0.2 per cent each. Asian markets are trading mixed; Hang Seng, Nikkei and SET have gained up to 0.5 per cent each, while Straits Times, Taiwan and Shanghai have shed between 0.3 per cent and 1 per cent each.
Shares of Lakshmi Vilas Bank rose as much as 4.76% to Rs 7.65 on heavy volumes.
As many as 66.77 lakh shares changed hands on the BSE compared to an average of 5.32 lakh shares traded daily in the past two weeks.
The RBI has turned down the proposal of Muthoot Finance to acquire IDBI Bank’s mutual fund business on the ground that sponsoring a mutual fund is not in consonance with the activity of an operating NBFC, Muthoot Finance said in a regulatory filing to the stock exchanges.
Consequently, we have informed SEBI that Muthoot Finance Limited is unable to proceed with the proposed transaction, Muthoot Finance added.
Muthoot Finance shares rose 0.3 per cent to Rs 1,142.
IRB Infra shares rose as much as 1.47 per cent after it received the completion certificate for Agra Etawah Bypass build operate transfer (BOT) project.
The Agra Etawah BOT project implemented by AE Tollway Limited (SPV), which is now part of IRB Infrastructure Trust – Private InvIT, has been issued a completion certificate by the competent authority, IRB Infra said in a regulatory filing to the stock exchanges.
Consequently, toll rates for the SPV would be increased by 70 per cent and the SPV will collect toll at revised toll rates on this project, the company added.
The 12-member banking index – Nifty Bank index recovered from intraday low levels and was down 27 points at 29,710.50 after hitting an intraday low of 29,470.80.
Top gainers in Nifty Bank index:
- Punjab National Bank up 5.26%
- Bank of Baroda up 5.23%
- Bandhan Bank up 3.75%
- Federal Bank up 2.48%
- RBL Bank up 1.24%
Stock market rally is set to continue and hit new record highs in 2021, according to a Reuters poll of equity strategists who overwhelmingly expected corporate earnings to return roughly to pre-pandemic levels within a year.
The November 12-24 Reuters poll of over 35 equity strategists predicted the BSE Sensex index, which is currently trading at a record high, would set new all-time peaks in the next year. It was forecast to rise about 3% from Tuesday’s high to 45,750 by mid-2021.
It was then predicted to rise another 4 per cent to 47,550 by the end of 2021, with forecasts ranging from 36,000 to 54,400.
Those forecasts were based on recent progress in developing COVID-19 vaccines even as cases rise around the world, according to over three-quarters of strategists, or 26 of 34, who answered an additional question.
Global stock markets have rallied since a sharp sell-off in March, ignoring deep recessions in most economies and driven largely by billions of dollars of fiscal and monetary stimulus and hopes for a swift economic recovery.
Emerging market assets have also gained on the weakness in the dollar, which hit a three-month low against a basket of currencies on Monday. The Sensex has repeatedly hit record highs this month, surging more than 10 per cent on hopes for an economic revival on coronavirus vaccine progress.
Pharma major Lupin on Wednesday announced the launch of Tacrolimus Capsules USP, 0.5 mg, 1 mg, and 5 mg, after Lupin’s alliance partner Concord Biotech Limited (Concord) received an approval for its ANDA from the United States Food and Drug Administration (U.S. FDA).
Tacrolimus Capsules USP, 0.5 mg, 1 mg, and 5 mg, are the generic equivalent of Prograf Capsules, 0.5 mg, 1 mg, and 5 mg, of Astellas Pharma US, Inc., and are indicated for the prophylaxis of organ rejection, in adult patients receiving allogeneic kidney transplant, liver transplant, and heart transplant, and in pediatric patients receiving allogeneic liver transplants, in combination with other immuno suppressants.
Lupin shares were trading 0.15 per cent lower at Rs 894.
SBI shares gained 1 per cent this morning after India’s leading bank announced plans to raise Rs 2,500 crore through bonds to fund its business growth. The shares of SBI touched an intra-day high of Rs 249.30, up 2.2 per cent, on the BSE in early trading on the back of the news announcement. However, at 11:31 am, the shares of SBI had shed most of their intra-day gains and were trading at Rs 245, up 0.47 per cent.
The committee of directors for capital raising at its meeting held on Tuesday approved allocation of 25,000 Basel-lll compliant non-convertible, taxable, perpetual, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as AT 1 capital of the bank to subscribers, India’s largest bank said in a regulatory filing to the stock exchanges on Tuesday.
Foreign institutional investors (FIIs) have so far invested Rs 53,167 crore in Indian equities this month. In yesterday’s session alone FIIs bought shares worth Rs 4,889.55 crore.
State-run banking shares were witnessing buying interest in an otherwise weak market. The index of state-run lenders on the National Stock Exchange – Nifty PSU Bank index – was up 2.39 per cent.
Top gainers in PSU banking space:
- Indian Overseas Bank up 8.17%
- Punjab National Bank up 4.28%
- Bank of Baroda up 4.27%
- Central Bank of India up 3.39%
- Union Bank of India up 3.31%
Shares of Larsen & Toubro fell nearly 2 per cent despite the company winning contract to construct India’s longest river bridge.
L&T Construction, the construction arm of L&T, has secured a large contract to construct India’s longest road bridge across river Brahmaputra connecting Dhubri in Assam to Phulbari in Meghalaya.
The 19 km long bridge will be built along National Highway 127-B and will feature a Navigation Bridge of 12.625 km, approach viaducts of 3.5 km on the Dhubri side and 2.2 km on the Phulbari side, connected with approach roads and interchanges on both sides.
HDFC Securities has recommended buying Alkem Labs for target of Rs 3,223 in bull case and target of Rs 3,020 in base case for next two quarters.
“We remain positive on the long-term outlook considering the company’s strong brand presence in the domestic market with sustainable growth and scale up of US generic business. Strong brand equity in the domestic market, robust balance sheet and return ratios support our positive view on the stock. We feel investors can buy the stock at last traded price and add on decline to Rs 2,534-2,542 for base case target of Rs 3,020 and bull case target price of Rs 3,223 over the next two quarters,” HDFC Securities said in a research report.
World shares hit a record high following an advance on Wall Street that saw the Dow Jones benchmark crack 30,000 on U.S. president-elect Joe Biden’s transition to the White House and increasing confidence a COVID-19 vaccine would be ready soon.
Ashis Biswas, head of technical research at CapitalVia Global Research recommends buying Fortis Healthcare, Biocon and Bombay Burmah Trading Corporation.
Fortis Healthcare
The stock has been trading upwards of the 200 day moving average and the stock has currently breached a resistance level of Rs 143, and we can expect a target of Rs 160-162 in a short period of time.
We recommend a buy with a stop loss of Rs 135.70.
Bombay Burmah Trading Corporation (BBTC)
BBTC has breached the upper trend line of its downward moving channel. The stock is moving above its 200 day moving average which is indicating strong sentiments about the stock.
We recommend a buy with a stop loss of Rs 1,160.
Biocon
Biocon has been trading in an upward trending channel. We recommend a buy in Biocon above the level of Rs 440 for target of Rs 485-490 with a stop loss of Rs 386.70 in the short term.
The Sensex traded at 44,324.63, down 198.39 points – or 0.45 per cent – from its previous close, while the Nifty was down 72.00 points – or 0.55 per cent – at 12,983.15.
“We are seeing profit-taking. The market is definitely over-bought. There’s some shifting of portfolios,” said Neeraj Dewan, director at Quantum Securities.
“Other sectors that can benefit with the economy opening up in the next three or six months are expected to rise,” he said, adding infrastructure stocks could see more investor interest.
The rupee edged higher to 73.93 against the US dollar in morning deals.
“The news of Janet Yellen being president elect Joe Biden’s choice for the post of treasury secretary further buoyed risk sentiment. Appointment of Yellen as treasury secretary is believed to result in greater cohesion between monetary and fiscal policies,” said Abhishek Goenka, founder and CEO of forex advisory firm IFA Global.
“The RBI has been buying Dollars in spot and has been paying forwards in the 14-15 month tenor. Forwards beyond March are looking attractive to receive given the elevated last day March over first day April points. Given the abundant surplus liquidity in the banking system it is less likely that these points would flare up close to March end,” he added.
Selling pressure was visible across the sectors as nine of 11 sector gauges compiled by the National Stock Exchange were trading lower led by Nifty IT index’s 1.2 per cent decline.
Top losers in information technology space:
- Larsen & Toubro Infotech down 4.76%
- Tech Mahindra down 1.89%
- Mindtree down 1.41%
- Infosys down 1.08%
- HCL Technologies down 0.87%
Sensex Drops Over 600 Points From All-Time High
The S&P BSE Sensex index slumped 634.33 points from an all-time high, registered earlier on Wednesday, to hit 44,191.04 on the downside. The broader NSE Nifty 50 index slid to as low as 13,083.05, having risen to a record 13,145.85 earlier.
Selling pressure in IT and select consumer goods and pharmaceutical shares trimmed some of initial gains in the markets.
NIFTY SECTORS
Nifty PSU Bank: +2.63%
Nifty Media: +1.87%
Nifty Private Bank: +1.27%
Nifty Bank: +1.25%
Nifty Realty: +1.12%
Nifty Metal: +1.11%
Nifty Financial Services: +0.86%
Nifty Auto: +0.34%
Nifty Pharma: -0.18%
Nifty FMCG: -0.20%
Nifty IT: -1.19%
The country’s stock market rally is set to continue and hit new record highs in 2021, according to a poll of equity strategists by news agency Reuters who overwhelmingly expected corporate earnings to return roughly to pre-pandemic levels within a year.
Market LIVE: ONGC, Tata Motors, ICICI Bank Top Nifty Gainers
In the Nifty basket of 50 shares, ONGC, Tata Motors, ICICI Bank, SBI and Axis Bank, trading between 1.36 per cent and 4.93 per cent higher, were the top gainers. On the other hand, Tech Mahindra, Asian Paints, HCL Tech, Eicher Motors and Bajaj Finance, down 0.44-1.04 per cent each, were the worst hit among 15 laggards.
Sensex Up Over 250 Points, Nifty Firm Above 13,100 In Early Trade
At 9:27 am, the Sensex traded 251.79 points – or 0.57 per cent – higher at 44,774.81 while the Nifty was up 79.50 points – or 0.61 per cent – at 13,134.65. Except select IT counters, all sectors registered gains, led by financial and pharmaceutical shares.
The S&P BSE Sensex index opened 226.71 points – or 0.51 per cent – higher at 44,749.73 and the broader NSE Nifty 50 benchmark began the day at 13,130.00, adding 74.85 points – or 0.57 per cent – from its previous close — both all-time highs. Gains across most sectors, led by banking, financial services and pharmaceutical shares, supported the upmove.
At 7:30 am, the Singapore Exchange’s (SGX) Nifty futures traded up 63 points or 0.6 per cent at at 13,146, indicating a positive start for the National Stock Exchange’s Nifty 50 benchmark index..
Domestic stock markets are likely to open in the green, building on the record closing highs registered in the previous session, following favourable global cues. Equity markets elsewhere in Asia registered gains, on hopes of a fast global recovery from the coronavirus pandemic, after Wall Street closed at record highs overnight.
