Stock Market Update: Benchmark Indices Closed in Red, Sensex at 57,315, Nifty at 17,070

The benchmark indices ended in the negative territory on Wednesday. The Benchmark BSE Sensex closed at 57,315, down 236.44 points, or 0.41 per cent. However, the broader Nifty closed at 17,070, down 61.55 points, or 0.36 per cent. On NSE, 26 shares advanced and 24 declined, while on BSE, 12 scrips advanced, 18 declined. At close, Power India was the top gainer on BSE, its share rose by 13.26 per cent. Following Power India was Oberoi Realty with 11.58 per cent gain. However, Auto Axles, Rane Holdings were among the laggards on the BSE. Sectorally, BSE MidCap rose by 0.88 per cent, BSE SmallCap rose by 0.20 per cent.

On NSE, Asian Paint with 3.05 per cent gain emerged as the top performer today. Followed by Tata Motors with 2.71 per cent gain. On the flip side, Mahindra and Mahindra, Cipla, Tata Steels were the losers. Sectorally, Nifty Metal was top loser down 1.87 per cent, followed by Nifty Bank, Nifty IT, Nifty Pharma, Nifty Financial Services. However, Nifty Realty was the top performer with 5.38 per cent. Indian volatility gauge also cooled off to 2.41 per cent at close.

“Domestic benchmark indices contracted moderately today amid volatility. Heavy selling pressure in metals and IT was the prime reason for moderation in Nifty. Additionally, Nifty Bank and Pharma witnessed moderate correction. Notably, real estate stocks were in focus today as ongoing traction in sales volume attracted investors towards this space. Strong buying was seen in midcap counters today with Nifty midcap recording gain of ~1% today, ” Binod Modi, head strategies at Reliance Securities said.

In today’s trade session, the BSE Sensex touched a high of 57,918.71 and a low of 57,263.90 to finally settle at 57,338.21. However, the Nifty opened at 17,185, touched a high of 17,225.75 and low of 17,063. “Despite a strong opening due to favourable GDP data, domestic indices failed to hold onto its early gains due to the profit booking strategy from the recent rally. India’s GDP rose due to the low base effect and was powered by private consumption expenditure & investment. The auto sector showed a flattish trend as sales for August saw a decline following supply constraints” Vinod Nair, head of research at Geojit Financial Services said. In early trade, taking mixed cues from the global markets, the benchmark Indices opened in green and marched upward so much so that both Sensex and Nifty touched an all-time high. The Nifty was trading above 17,150 while at 0917 hours, the BSE Sensex was up 129.78 points or 0.23 per cent at 57,682.17, and the Nifty was up 36.60 points or 0.21 per cent at 17,168.80.

The double digit GDP number that came yesterday and the GST collection numbers that came out today drove the market up. Also, Powell’s speech with no clear timeline for tapering the easy money policies of the Biden regime is said to have bolstered up the markets across the globe. The market is maintaining upward momentum because of the clarity factored in from the global markets and also from the domestic markets.

“On a day of high volatility, Indices gave up gains as profit booking was seen across IT & Metal names. The pace of vaccinations during the last couple of days enthused market participants even as the street took stock of GDP and GST numbers today the focus now shifts to few high-frequency consumption indicators,” S Ranganathan, head of research at LKP securities said.

The markets are expected to react to the balance of trade data that is scheduled to come tomorrow on September 2.