Nifty, +0.5%; Sensex, +0.4%; Nifty Midcap, +1.2%; Nifty Smallcap, +0.7%; and Model Portfolio, +0.3%.
Daily Market Review
Market Status: Rally Attempt
The benchmark indices, after opening lower, made a strong comeback amid positive cues from the global market. This helped NIfty retake its 21-DMA and closed above 11,000, albeit on low volume. On Friday, China’s central bank said that it would slash the reserve requirement ratio (RRR) for financial institutions by 50bps to revive an economy that has slowed down due to the U.S.-China trade conflict. The broader market was even stronger, with Nifty Midcap and Smallcap closing 1.2% and 0.7% higher, respectively.
On the sectoral front, barring Nifty IT (-0.7%), all other indices closed in the green. Nifty Bank (+0.9%) was the top performer, followed by Auto (+0.9%) and Financial services (+0.9%). The advance-decline ratio was skewed towards advancers. Of the 2,133 stocks traded on the NSE, 1,167 advanced, 608 declined, and the rest remained unchanged.
Looking forward, we would like to see a follow-through day before shifting the market back to a Confirmed Uptrend. On the flip side, if Nifty breaches its correction low of 10,637, we will change the market status to a Downtrend.
State Bank Of India shares gained 1.5% after it slashed lending rate by 10bps across tenors, effective from September 10.
Lupin announced that it received U.S. FDA’s approval for its Ethacrynic Acid tablets, the generic version of Edecrin tablets of Bausch Health Americas. The stock closed 0.8% lower.
Quess Corp gained 0.7% today after the Competition Commission of India (CCI) approved Amazon.com NV Investment Holdings LLC’s acquisition of 0.5% of Quess Corporation’s equity share capital.