Today’s Action:
The benchmark indices pare yesterday’s losses. Broader indices outperform key composites.
Daily Market Review
The market staged a good comeback in today’s trading session after yesterday’s subdued performance. The benchmark indices started marginally higher as investors took a cautious stance amidst the ongoing geopolitical tensions. However, as the session progressed, the indices built on early gains and ended the day significantly higher.
Today, the Nifty opened positive at 9,931.95 and traded flat early in the session to hit an intraday low of 9,901.70. In the second half, the index built momentum, hitting an intraday high of 9,962.75, before finally settling at 9,952.20, up 0.40% from the previous close. The BSE Sensex opened at 31,755.16, and soon touched a low of 31,674.67. Later in the session, the index trended higher hitting a high of 31,863.01. Finally, the index closed at 31,809.55, adding 0.34% from yesterday’s close.
The market breadth, indicating the overall health of the market, turned positive in today’s session. On the NSE, 999 stocks advanced, compared with 425 stocks declining, and 47 stocks remaining unchanged.
Broader markets rebounded sharply in today’s session with the Nifty Midcap and Smallcap indices gaining 1.03% and 1.10%, respectively. The Nifty Smallcap index notched a fresh closing high, while the Midcap index is marginally below its all-time high.
Today, the MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, comfortably outperformed all the major indices with a gain of 1.25%.
Today, all the sector indices except the Nifty Pharma (-0.36%), posted healthy gains. The Nifty Realty, Metal and Energy indices were the top three performers with increments of 1.41%, 0.86%, and 0.85%, respectively.
The GST reform continues to adversely impact the Indian services sector, revealed latest economic data. The Nikkei India Services PMI Index declined in the month of August to 47.5, the second consecutive month of contraction. However, the rate of decline was slower compared to July’s 45.9.
The Central Board of Trustees is considering the idea of increasing Employees’ Provident Fund Organisation’s (EPFO) equity investment bracket from the current 5-15% to a bracket of 15-25%. Upon implementation of this plan, the CBT expects to invest INR 25,000-30,000 crore annually in equities. The final approval of this plan is expected in late September or early October.
Trading volume in today’s session was slightly higher on the Sensex, while it was lower on the Nifty, compared to yesterday. Today, the Sensex dropped a distribution day from its tally due to ageing. The revised distribution day count for the Sensex and the Nifty is 7.0 and 6.0, respectively. The Indian market status remains in Uptrend Under Pressure.
Current Outlook:
– Be cautious with any new purchases.
– Make a defensive game plan for your portfolio.
– Stay disciplined and exercise sound sell rules.
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