Daily Big Picture : Nifty Down 0.6%; IT, Pharma Stocks Decline

Today’s Action

Nifty, -0.6%; Sensex, -0.5%; Model Portfolio, -0.4%; Nifty Midcap, -0.2%; Smallcap, -0.1%.

Daily Market Review

Market Status: Confirmed Uptrend

After a strong rally in yesterday’s session, the Nifty declined 0.6% today. During the session, it fell to a intraday low near the 12,000 mark, where it managed to find support. Volume was lower than the last session and therefore today will not be counted as a distribution day. The distribution day count is down to one, as one expired yesterday. The Nifty Midcap and Smallcap closed marginally in the red.

On the sectoral front, only PSU Bank (+0.3%) and Metal (0.2%) closed in the green. Nifty IT (-1.6%) declined the most as TCS was down 2.6%. Nifty Pharma (-1.2%) continues to underperform the market. Nifty Bank and Financial Services were volatile and posted minor losses before the outcome of the Reserve Bank of India’s monetary policy committee meeting. Most of the estimates indicate a 25bps rate cut amid a slowdown in GDP.

The advance-decline ratio is in favor of decliners. Of the 2,095 stocks traded on the NSE, 786 advanced, 990 declined, and 316 remained unchanged.

Key News

Bharat Heavy Electricals Ltd: The Company received the order from Indian Railways for 25 broad gauge 5000 HP AC electric locomotives of type WAG-7 with the regenerative feature. The stock was up ~2% intraday but closed lower.

Bharat Petroleum and Hindustan Petroleum will take a 25% stake each from Indian Oil to lay down the LPG pipeline from Kandla in Gujarat to Gorakhpur in Uttar Pradesh. The project is of Rs 9,000 crore. The stocks were down as the DG GST Intelligence has filed a case against BPCL and HPCL for alleged tax evasion.

Leaders Up on Volume: Manappuram Finance (+3.3%), Inox Leisure (+2.7%), and Icici Lombard General Ins Co (+1.9%)

Leaders Down on Volume: Acc (-3.9%), L&T Technology Services (-3%), and Vinati Organics (-2.9%).

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

Continue reading with a MarketSmith India Premium subscription…

To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.

Leave a Reply

Your email address will not be published. Required fields are marked *