Domestic equity markets extended their gains for the second straight session on Thursday. Headline indices recouped their early losses, thanks to buying in IT stocks which pushed the market higher. However, global sentiments remained mixed.
Most Asian stocks fell today following a string of hawkish comments from the US Federal Reserve officials. European stocks rose, after touching nine-month highs on Wednesday as investors pinned hopes on peaking inflation and recession now looking less likely on the continent.
For the day, BSE Sensex jumped 142.43 points, or 0.23 per cent, to 60,806.22. The Nifty50 Index also gained slightly and settled at 17,893.45, adding 21.75 points, or 0.12 per cent. However, broader markets underperformed the headline peers as BSE midcap and smallcap indices settled in the red. India VIX dropped another 4 per cent to 13.04-level.
Traders mostly remained on the sidelines in the absence of any fresh positive triggers, as worries of global slowdown and no signs of any pause on the global rate hike cycle continued to weigh on the sentiment. Although markets were range-bound with a positive bias, fluctuation in the market could continue in the near term, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
“Technically, on daily charts, the index has formed a Doji candlestick indicating indecisiveness between the bulls and bears. For traders, 17800 could act as a sacrosanct support level while 17950 could be the important hurdle. Post 17950, the chances of hitting 18000-18100 would turn bright. On the flip side, a fresh round of selling is possible only after the dismissal of 17800, below which the index could retest 17650-17600 levels,” he said.
On a sectoral front, Nifty Metal index topped the laggards with a 2 per cent fall. Auto, pharma and realty indices were among the other top losers. On the contrary, IT and media indices gained over a per cent each. The financial services index also posted mild gains.
Among the Adani stocks, Adani Enterprises plunged over 11 per cent and Ambuja Cements tanked 7 per cent after Morgan Stanley Capital International’s (MSCI’s) free-float review announcement. Adani Total Gas, Adani Green Energy, Adani Transmission, Adani Power and NDTV hit a lower circuit of 5 per cent each. Adani Ports and ACC shed 3 per cent, each.
Adani Wilmar hit an upper circuit of 5 per cent after it reported a good set of December quarter results. Adani Wilmar also released a statement clarifying that the Himachal Pradesh GST department has not found any irregularities in operations and dealings of the company.
In the Nifty50 pack, Bajaj Finserv, Hindalco Industries, HDFC Life Insurance and Asian Paints topped the gainers with a 2 per cent rise. IndusInd Bank, Bajaj Finance, Infosys and SBI Life Insurance were the other top gainers among the blue-chip counters.
Barring the Adani Group stocks, Hero MotoCorp and Cipla topped among the losers with a 2 per cent fall. JSW Steel, Bharti Airtel, Bajaj Auto and Ultratech Cement were down about a per cent, each.
Following the shaky closing of the US markets, domestic markets traded close to the flatline as more Fed speakers echoed Jerome Powell’s aggressive remarks. While FII selling continued to lower investor confidence, significant support from DIIs provided the domestic market a comforting cushion, said Vinod Nair, Head of Research at Geojit Financial Services.
“Investors need to adopt value buying as a strategy. Due to a decrease in valuation near long-term averages, smallcap companies are looking appealing over the long term,” he said.
A total of 3,613 stocks traded for the day on BSE, of which 1,711 settled higher, while 1,752 settled lower. The remaining 150 stocks ended unchanged. A total of 174 stocks hit an upper circuit on BSE, whereas 180 stocks hit the lower circuit during the trading session.
Pump maker WPIL hit an upper circuit of 20 per cent after a strong quarterly performance. BF Investments soared 14 per cent, whereas Cigniti Technologies, Sunflag Iron & Steel and Indian Hume Piper jumped 10-11 per cent each. Atul Auto gained 9 per cent, whereas PB Fintech and Trent added over 8 per cent.
On the contrary, Jtekt India tanked 15 per cent after disappointing results in December 2022 quarter. Everest Kanto, Patel Engineering and Manali Petrochem were down 9 per cent, each. Restaurant Brands Asia and Panama Petrochem shed 6 per cent, respectively.
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