Today’s Action:
Benchmark indices recover from the day’s lows to end with small losses. Broader markets underperform.
Daily Market Review
The market opened flat in today’s session in the wake of mixed cues from the Asian markets. However, soon after, selling was witnessed across the board, resulting in the Nifty slipping 100 points below its peak for the session. The market gradually recovered as the day progressed, with both the Nifty and the Sensex closing for the day with minor losses.
Today, the Nifty opened lower at 10,139.60. After peaking at 10,158.90, the index sold off reaching a low of 10,058.60. By the close of the session, the index recovered from its lowest point to settle at 10,121.90, down 0.19% from yesterday’s close. The BSE Sensex opened marginally higher at 32,406.42 points. After trading in the range of 32,164.42-32,462.61, the index finally settled at 32,370.04, slipping 0.09% from Wednesday’s close.
The market breadth, indicating the overall health of the market, showed the losers taking a lead over the gainers in today’s session. On the NSE, 583 stocks advanced, compared with 1,106 stocks declining, and 92 stocks remaining unchanged.
The broader markets registered losses today, as the Nifty Midcap and Smallcap indices fell 0.63% and 0.68%, respectively.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, lost 0.74% today, underperforming the benchmark indices.
The sectoral chart showed the losers outnumbering the gainers. Only the Nifty Pharma and IT Indices managed to edge higher in today’s session, advancing 3.33% and 0.02%, respectively. Among the losers, the Nifty Media, Realty, and PSU Bank indices slipped the most, losing 1.83%, 1.52%, and 1.04%, respectively.
The GST Council will soon offer relief to exporters, who are reeling under liquidity constraints post the implementation of the GST. The decision has come after the Committee on Exports headed by the Revenue Secretary Hasmukh Adhia, met eight export promotion councils today to hear their suggestions and formulate a suitable strategy to aid the sector. The Committee primarily took up the issue of the delay in GST refund to exporters resulting in a blocking of their working capital funds, thereby, escalating their tax compliance burden.
The government today announced a new public-private-partnership (PPP) policy for the affordable housing sector. It allows extending interest subsidy of up to INR 2.5 lakh on bank loans as upfront payment under the Credit-Linked Subsidy Scheme (CLSS) component of Pradhan Mantri Awas Yojana (Urban). The policy has also given the green signal to private investments in affordable housing projects on government lands in urban areas. The new policy provides eight PPP options for the private sector to invest in the affordable housing segment.
In stock news, State Bank of India is looking to hire merchant bankers for the sale of its non-core investments to augment its capital base. The Bank has stakes in stock exchanges, depositories, clearing and warehousing corporations, and credit rating agencies.
Dr Reddy’s Laboratories today said it has received an establishment inspection report (EIR) from the USFDA for unit II of its Srikakulam plant in Andhra Pradesh. In a separate filing, the Company has informed the exchanges that it has received zero observations for its custom pharmaceutical services facility and technology development center at Miyapur in Hyderabad after the audit of the facility by the U.S. health regulator.
Today, both the Nifty and the Sensex observed lower trading volume compared to yesterday’s session. The distribution day count stands at 3 for both the Nifty and the Sensex.
Current Outlook:
– Market environment conducive for new purchases, but remain selective.
– Focus on fundamentally strong stocks breaking out of strong technical patterns.
– Stay disciplined and exercise sound buy and sell rules.
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