Today’s Action
Benchmark indices witness sharp sell-off for two consecutive days. Nifty, -0.7%, Sensex, -0.7%, Model Portfolio, -0.4%; MSI Ind 47, -0.8%.
Daily Market Review
The Nifty and the Sensex ended in red for the second consecutive day, tracking weakness in global markets. The Sensex (-0.7%) observed a distribution day, increasing the count to 3, while the Nifty (-0.7%) escaped a distribution day as the volume was low.
RBI kept interest rates unchanged. But, the inflation forecast for H2 FY2019 decreased to 2.7 -3.2% from 3.9 -4.5%. SLR to reduce by 25 bps each quarter from the quarter starting January 2019, until it reaches 18% of NDTL (Net Demand and Time Liabilities).
On the sectoral front, Nifty IT (+0.04%) was the only gainer. Nifty Metal (-3.7%) and, Nifty Pharma (-2.5%) declined the most. Hindustan Unilever(+2.2%), Housing Development Fin. (+1.8%), and Hcl Technologies (+1.4%) were the leaders among Nifty50 stocks.
The Nifty Midcap is down 1.5% and the smallcap is down 1.7%.
The advance-decline ratio was in favor of decliners. Of the 2,062 stocks traded on the NSE, 467 advanced, 1,242 declined, and 353 remained unchanged.
The market status remains unchanged at a Confirmed Uptrend. The distribution day count stands at two on the Nifty. We would suggest investors to track fundamentally strong stocks trading above their 50- and 200-DMA and take positions on strong breakouts. Investors should begin with a smaller allocation and increase it gradually as market displays positive signals like additional follow-through days.
Stocks in News
Maruti Suzuki India to increase its car prices effective January 1, 2019. The Company plans to transfer increased costs to its customers, to offset the adverse impact of rise in commodity prices and foreign exchange rates. The stock was down 2.2%.
Lupin in its regulatory filing, said that, 22 observations were made by the US FDA at its Mandideep plant in Madhya Pradesh. Following are the observations: unit-2, the Cardiovascular Pril API facilities (4); unit-I, the Cephalosporin API facilities (10); Cephalosporin solid oral dosage (8). The stock was down 3.2%.
Leaders Up on Volume: Newgen Software Techs (+2.6%), Glenmark Pharmaceuticals (+1.1%), and Kennametal India (+0.7%)
Leaders Down on Volume: Adani Enterprises (-3.3%), Hnywell.Automation Ida. (-1.1%), and Nestle India (-0.9%)
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