Daily Big Picture : Benchmark Indices Fall After Range Bound Action, SBI Cuts Benchmark Rates by 5bps

Today’s Action

Nifty, -0.8%; Sensex, -0.9%; Model Portfolio, -0.2%; MSI Ind 47, +0.3%; Nifty Midcap, -0.3%; Smallcap, +0.3%.

Daily Market Review

Market Status: Rally Attempt

Benchmark indices fell sharply in the second half after trading in a range bound manner in the first half. The indices opened in the red but did not fall more than 0.3% in the first four hour, after which a sudden sell-off was observed.

Nifty Midcap (-0.3%) and Smallcap (+0.3%) materially outperformed the market.

On the sectoral front, Nifty Realty (+1.1%) and Pharma (+0.8%) were the top performers, but partially offloaded their gains in the second half. Nifty Auto (+0.3%) was supported by Tata Motors (+4.9%). Nifty Bank (-1.0%) and IT (-0.8%) were the top losers.

The advance-decline ratio was in favor of losers. Of the 2,087 stocks traded on the NSE, 757 advanced, 974 declined, and 356 remained unchanged.

Key News

State Bank Of India: The bank announced today that it has cut its benchmark lending rate, i.e. MCLR by 5bps for all tenors. The auto, home and other loans linked to this rate will automatically become cheaper. The stock ended 1.2% lower today.

Mahindra & Mahindra: As per a news report, Mahindra & Mahindra is in talks with the U.S. automaker Ford to form a JV. The deal is expected to be completed in about three months.

Bharti Airtel: In an official event on Wednesday, Ericsson announced that Airtel has selected Ericsson for expanding former’s Voice over LTE (VoLTE) services in India.

Leaders Up on Volume: Praj Industries (+6.0%), Oberoi Realty (+4.2%), and Godrej Properties (+2.3%)

Leaders Down on Volume: Capri Global Capital (-1.5%)

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