Nifty, +0.03%; Sensex, -0.2%; Nifty Midcap, +0.3%; Nifty Smallcap, +0.8%; and Model Portfolio, -0.6%.
Daily Market Review
Market Status: Rally Attempt
Nifty closed the volatile session with a minor gain. After a gapped up opening, the index fell into a bear’s trap and hit the day’s low of 10,816 in the afternoon session. Energy stocks rallied strongly, with oil marketing companies, led by Oil & Natural Gas (+5.2%), Bharat Petroleum (+4.7%), and Hindustan Petroleum (+3.1%), being the top gainers. Among others, auto stocks, for a change, also gained momentum after the Union Road Transport and Highway Minister announced a possible GST rate cut and export incentive for the sector. Stocks such as Tata Motors (+7.8%) and Motherson Sumi Sys. (+2.8%) emerged as the top gainers.
On the sectoral front, Nifty Metal (+2.6%), Auto (+2.1%), and Media (+1.6%) were the top performers. On the flip side, Nifty Realty (-1.8%) declined the most, followed by Nifty Financial Service (-1.1%) and Bank (-0.8%). The advance-decline ratio was skewed towards advancers. Of the 2,116 stocks traded on the NSE, 1,129 advanced, 631 declined, and the rest remained unchanged.
Looking forward, we would like Nifty to hold above its correction low of 10,637. If it fails to hold, the status will be downgraded to a Downtrend. On the flip side, we would look for a follow-through day before shifting the market back to a Confirmed Uptrend.
Bajaj Finance shares gained 1.3% after the lender picked banks like Nomura Holdings and Kotak Mahindra Bank to arrange share sales of about $1B, according to media reports.
Ntpc announced that its Nabinagar super thermal power 660 mw project will commence operation on September 6. The stock closed 3.1% higher.
Aditya Birla Capital gained 1% today after its board approved raising Rs 2,100 crore through a preferential share allotment to certain marquee investors and the promoter.