Today’s Action:
The benchmark indices opened on a positive note in today’s session. The indices, however, slipped during the course of the day, before finally closing flat with minuscule losses.
Daily Market Review
The benchmark indices opened on a strong footing in today’s trade, helped by positive global cues and continued optimism from yesterday’s session. The market, however, failed to advance much further from the opening price, and later slipped as global markets headed south. Both the benchmark indices finally closed flat for the day, with minuscule losses.
The Nifty opened higher today at 9,645.90, and reached an intraday high of 9,650.65. The index later started slipping, touching an intraday low of 9,595.50 before finally settling at 9,613.30, down 1.70 points or 0.02% from yesterday’s closing price. The BSE Sensex, after opening higher at 31,331.21, touched an intraday high of 31,353.46. However, the index failed to hold its gains and declined, reaching an intraday low of 31,166.37. The Sensex almost clawed back to its intraday high in the second half of trade, before a mild sell-off in the final hour of trading led the index to close at 31,209.79, down 11.83 points or 0.04% from yesterday’s close.
The breadth, indicating the overall health of the market, was almost equally split between gainers and losers, with 1,346 stocks gaining on the BSE, compared with 1,313 stocks declining, and 134 stocks remaining unchanged.
The broader markets underperformed the headline indices in today’s session. The Nifty Midcap and Smallcap indices lost 0.21% and 0.32%, respectively, in today’s trading session.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart on fundamental characteristics, gained 0.06% in today’s trading session, outperforming the headline indices and the broader markets.
Among the sectoral indices, losers outnumbered the gainers. The Nifty Energy, IT, and Metal indices led the gainers, advancing 1.34%, 0.23%, and 0.13% respectively, while the Nifty Pharma, PSU Bank, and FMCG indices led on the way down, posting losses of 1.02%, 0.95%, and 0.86%, respectively.
Reports have come out during the day, which pegged the additional recapitalization funds required by public sector lenders on account of the RBI’s directive on higher provisioning, at INR 25,000 crore. The government is likely to provide up to INR 10,000 crore, while the rest will have to be raised by the banks themselves. After the success of SBI’s Qualified Institutional Placement (QIP), banks like Bank of Baroda and Canara Bank are planning to raise INR 5,000 crore each from the market.
According to the Ministry of Urban Development, over INR 50,000 crore of municipal bonds may be on offer over the next three years. As many as 26 cities with A+ and above credit rating are planning to hit the market, following the Pune Municipal Corporation’s successful INR 200 crore bond offering in June.
The National Stock Exchange (NSE) will auction investment limits for foreign investors to purchase government debt securities worth INR 16,758 crore tomorrow. The debt auction quota gives overseas investors the right to invest in the debt up to the limit purchased. The total investment in government debt has reached INR 1,68,143 crore till yesterday, which is 90.9% of the total permitted limit of INR 1,84,901 crore, according to the latest data available with depositories.
Trading volume in the Nifty was lower today, while the Sensex witnessed higher trading volume compared with yesterday’s session. The distribution day count for both the indices currently stands at 2.0, and the Indian market remains in a Confirmed Uptrend.
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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