Today’s Action:
Benchmark indices headed higher in morning trade, before a sell-off resulted in both the Nifty and the Sensex closing with losses. Broader indices moved higher, continuing their winning streak for a fifth consecutive day.
Daily Market Review:
The benchmark indices opened on a positive note in today’s session. The indices advanced higher in the early part of the day, before they faced resistance at higher levels and subsequently sold off to close the day with losses.
The Nifty opened higher at 9,927.00. After hitting the day’s high of 9,945.95, the index gradually sold off to reach a low of 9,881.85 for the day. By the close of the session, the index settled at 9,888.70, losing 0.26% from Wednesday’s close. The BSE Sensex lost 0.25% in today’s session and closed at 31,592.03. The index opened at 31,725.85 and traded in the range of 31,562.25-31,772.41.
The market breadth, indicating the overall health of the market, was in favor of gainers today. On the NSE, 934 stocks advanced, compared with 733 stocks declining, and 108 stocks remaining unchanged.
The broader markets extended their gains in today’s session, as the Nifty Midcap and Smallcap indices advanced 0.55% and 0.98%, respectively.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 1.11% today.
On the sectoral chart, seven indices witnessed losses, while five notched up gains for the day. The top three gainers in today’s session were the Nifty Realty, Media, and Metal indices, rallying 0.91%, 0.60%, and 0.29%, respectively. Among the losers, the Nifty Financial Services, FMCG, and Pvt Bank indices slipped the most – 0.44%, 0.38%, and 0.30%, respectively.
Activity in India’s services sector came out of contraction in September on the back of recovery in demand, which in turn pushed firms to increase hiring at the fastest pace in more than six years. The Nikkei/IHS Markit Services Purchasing Managers’ Index rose to 50.7 in September from 47.5 in August, returning above the 50-mark that separates growth from contraction. A composite PMI, which combines both manufacturing and services activity, returned above break-even to 51.1 in September from 49.0 in August.
In a bid to bring more transparency into the setting of lending rates, an internal committee of the RBI has suggested that pricing of bank loans should be switched to an external benchmark in a time-bound manner. This move has come at a time when the marginal cost of funds based lending rate (MCLR) system, which was implemented in April 2016 to decide interest rates on new loans, has not delivered the effective transmission of monetary policy.
In stock news, Glenmark Pharma gained 4% intraday as the U.K. drug regulator has renewed its manufacturing certificate for the Company’s Baddi unit. Furthermore, the Czech drug regulator has also renewed its manufacturing certificate for the drug-maker’s Fibichova unit.
The Nifty witnessed lower trading volume in today’s session; while the Sensex saw a slight increase in volume, thereby picking up a distribution day today. The distribution day count now stands at three and four for the Nifty and the Sensex, respectively. The market status remains in an 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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