Daily Big Picture : Banking Stocks Drag Benchmark Indices; SBI and HDFC Among Top Losers

Today’s Action

Nifty, -0.1%; Sensex, -0.1%; Model Portfolio, +0.1%; Nifty Midcap, -0.6%; Smallcap, +0.5%

Daily Market Review

Market Status: Uptrend Under Pressure 

Nifty continued its bearish trend as it fell for the fourth session in a row. The selling pressure was more intense in banking space as stocks such as State Bank Of India (-2.5%), Housing Development Fin. (-2.2%), and HDFC Bank (-1.5%) corrected heavily. Nifty reversed early session weakness to trade at day’s high of 11,398.15, but closed 0.6% off day’s high.

Nifty PSU Bank (-3.1%) was the biggest loser followed by Nifty Financial Services (-0.72%) and Pharma (-0.7%). On the flipside, Nifty Realty (+1.0%), Nifty FMCG (+1.0%), and IT (+0.3%) were the top gainers.

Looking forward, we would closely watch the distribution day count. Weaker breadth and breakdown of some leading stocks following poor results is worrisome. We may change the market status to a Downtrend if the Nifty breaches key support and adds two-three distribution days.

Key News

Hdfc Life Insurance Co: The Company reported Q1 FY20 results today. The Company recorded strong top-line growth with strong traction in savings, protection, and retirement solutions. Net profit grew 12% y/y. The individual annualized premium equivalent (APE) grew 64% y/y to Rs1,378 crore and new business premium rose 47% y/y. The stock ended 3.7% higher today.

NTPC: The stock closed 1.7% higher. The Company seeks shareholders’ nod in raising Rs 15,000 crore through the issuance of bonds and debentures and to increase borrowing limit to Rs 2 lakh crore from the existing Rs 1.5 lakh crore. The raised capital will be used for capex, working capital, and general corporate purposes.

What do you think? Please email us any questions or comments.

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