Nifty fails to hold 10K, Sensex ends volatile session mildly higher; realty shines
It was a lacklustre session for the market on Monday after a 2 percent rally in the passing week. Investors await September quarter earnings season that will be kicked off by TCS on Wednesday.
The 30-share BSE Sensex was up 32.67 points at 31,846.89, partly supported by positive Asian cues and change in GST rates for various sectors.
The 50-share NSE Nifty reclaimed the psychological 10,000-mark intraday but could not hold on to that level due to volatility, closed up 9.05 points at 9,988.75.
Experts feel the next upmove in the market if it happens will largely depend upon September quarter earnings, and macro data due later in the week.
“We expect Q2 to be better than Q1 as mentioned by the uptick in WPI and IIP numbers. This will give a relief to the market as the trend is likely to improve on a QoQ basis,” Vinod Nair, Head of Research at Geojit Financial Services said.
But, on a YoY basis, the economy stance is likely to be subdued hence downgrade in earnings may continue depending on the sector-wise performance, he added.
He continued to have a caution view on the market in the near-term due to a slowdown in economic activities and liquidity from FIIs and non-MF institutions.
Among broader markets, the BSE Midcap index ended flat but Smallcap gained half a percent on positive breadth. About 1,559 shares advanced against 1,165 declining shares on the exchange.
Yes Bank, Kotak Mahindra Bank, HUL, Eicher Motors, Tech Mahindra, Dr Reddy’s Labs and Coal India gained more than 1 percent while Reliance Industries, Vedanta, ONGC, Aurobindo Pharma, BPCL, HPCL and GAIL fell 0.8-2 percent.
Real estate stocks rallied sharply after strong pre-sales data from Sobha that surged 17.4 percent. Brigade Enterprises, Puravankara, Kolte-Patil and HDIL rallied 1-11 percent. Nifty Realty index was up 2 percent.
Jewellery stocks were also in limelight today after the government withdrew its GST notification on gems and jewellery stating that PAN is not needed for jewellery purchases above Rs 50,000. Titan Company, TBZ, PC Jeweller and Gitanjali Gems gained 1-4 percent.
Reliance Capital rose 2.8 percent after its general insurance arm filed DRHP with SEBI for IPO. Reliance Infrastructure gained a percent after the company announced the signing of business transfer agreement with Adani Transmission for transfer of its Western Region System Strengthening Scheme (WRSSS) transmission undertakings that valued Rs 1,000 crore.
Shakti Pumps, Roto Pumps and KSB Pumps gained 3-7 percent as the government has reduced GST rate on water pumps to 18 percent from 28 percent earlier.
Marksans Pharma was up 2.6 percent on establishment inspection report from the US Food and Drug Administration for Goa facility.
Sun Pharma Advanced Research Company fell 6 percent after Baclofen GRS, the muscle relaxer, did not meet primary end point in placebo controlled studies.
Oriental Bank of Commerce dropped 3 percent after the Reserve Bank of India has initiated a ‘prompt corrective action’ against the state-run bank for high bad loans.
On the global front, Asian markets ended higher despite China’s lacklustre Caixin services PMI data. European markets were flat at the time writing this article.
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