Daily Big Picture – Benchmark Indices Erased Morning Gains

Broader indices have a different tale to narrate. They ended the day with gains, thus outperforming the key indices, this strength in the mid-cap and small-cap indices should be carefully monitored as they act as a prelude for the major market recovery.

In the much awaited news about the monetary policy decision, the RBI maintained its status quo by keeping the key rate unchanged. It flagged off any upward risks to inflation and marginally lowered growth projections for this year.

The Nifty and the Sensex dropped 0.21% and 0.33%, respectively, while the Nifty Midcap and the Smallcap indices gained 0.40% and 2.30%, respectively.

Sectoral chart yet again depicted a mixed picture thus failing to give any sectoral trend in this current market. The top-performing sectors were Nifty Realty (+1.69%), Media (+1.61%), and Pharma (+0.73%).

The market breadth remained in favor of gainers today. On the NSE 1,196 shares advanced against a decline of 313 shares. A total of 49 shares remain unchanged.

The IND 47 index, which is a list of top 47 stocks in chart and fundamental characteristics, gained 2.78% today, thus outperforming the benchmark indices.

From the earnings corner, Spicejet’s Q3 FY 2018 net profit grew 32% y/y, while the margin increased 390 basis points. Its EBIDTA grew 73%, y/y to INR 302 crore.

Cipla announced its Q3 FY 2018 numbers today, the operating profit grew 5% y/y, due to operating efficiency. The net margin stood at 20.9% beating the consensus estimate of 19.3%.

Today, both the indices skipped one distribution day to lower trading volume compared with yesterday’s trading session. The total distribution day count now stands at three each on the Sensex and the Nifty. Both the indices have breached their 50-DMA and are trading below it, thus the market condition remains at ‘’Uptrend Under Pressure.’’