Daily Big Picture : Media and Energy Stocks Drag Market; Godrej Consumer to Hike Price

Today’s Action

Nifty, -0.1%; Sensex, +0.1%; Model Portfolio, -0.6%; MSI Ind 47, -0.5%; Nifty Midcap, -0.5%; Smallcap, -0.3%.

Daily Market Review

Market Status: Rally Attempt

Benchmark indices failed to sustain the rally today on the back of profit booking seen in Nifty Media (-3.4%), Auto (-1.4%), and Energy (-1.2%). While Zee Entertainment Ents. (-4.8%) dragged the media index, Hindustan Petroleum (-5.4%), Bharat Petroleum (-4.6%), Oil & Natural Gas (-3.3%), and Indian Oil (-2.3%) led the correction in energy index. The broader market also witnessed sell-off as both the Nifty Midcap and Smallcap fell 0.5% and 0.3%, respectively.

On the other side, Nifty Realty (+2.4%) hit a six-month high today after the GST Council approves new tax rates. Under the new structure, builders will have to pick between paying the existing 12% tax rate with input tax credit benefit or 5% without the tax rebates on under-construction houses. Godrej Properties (+7.9%), Indiabulls Housing Fin (+5.0%), and Dlf (+2.8%) were the major gainers.

With respect to market direction, we will look for a legitimate follow-through day after which we will change the market status to a Confirmed Uptrend.

The advance-decline ratio was in favor of decliners. Of the 2,085 stocks traded on the NSE, 667 advanced, 1,086 declined, and 332 remained unchanged.

Stocks in News

Godrej Consumer Products: The Company is anticipating a price hike in select categories due to inflationary pressure. The stock was down 1.0% today.

Emami: The Company is taking its entire portfolio online to tap the ecommerce market and has appointed Rishi Agarwal as the head of ecommerce team. The stock closed flat today.

Leaders Up on Volume: Max Financial Svs. (+1.1%), Karnataka Bank (+0.7%), and Info Edge (India) (+0.4%)

Leaders Down on Volume: Power Finance (-5.2%), Pvr (-3.9%) and Tube Investments Of India Ltd (-3.4%)

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

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