Markets give up early gains! Nifty ends below 23,600, Sensex down almost 200 points

The RBI’s decision to cut the policy rates failed to excite the equity markets. It was a volatile session on the D-Street. The domestic key equity indices ended Friday’s session on a lower note. The NSE Nifty 50 declined 43.40 points or 0.18% to settle at 23,559.95, while the BSE Sensex fell 197.97 points or 0.25% to end the day at 77,860.19 

The Nifty FMCG and PSU Bank traded in the negative. The Nifty FMCG closed the session at 1.30% lower while the Nifty PSU Bank ended at 1.38% lower. 

The banking index, Nifty Bank closed the session 223.25 points or 0.44% at 50,158.85. The broader indices bucked the overall trend to close higher on Friday, the Nifty Midcap 100 finished 108.30 points, or 0.20%, higher at 53,609.15.  

Sectoral Index

In the broader markets, small- and mid-cap stocks closed the day on a positive note. The volatility index India VIX cooled down 3.45% to 13.69 level. 

Tata Steel (4.24%) was the top gainer in the Nifty 50, followed by ITC Hotels (3.73%), Bharti Airtel (3.60%), JSW Steel (3.35%), and Trent (3.09%). Meanwhile, ITC, SBI, Britannia, Adani Ports, and TCS were the five major losers in the Nifty 50.

On the technical front, Rupak De, Senior Technical Analyst at LKP Securities said, “the Nifty remained volatile as the RBI Governor announced the monetary policy. However, the volatility did not push the index below the 21 EMA on the daily timeframe, signifying a positive short-term trend. The trend is likely to remain positive as long as the index stays above 23,450.”

“With major events now behind us, the focus will shift back to earnings for further cues. On the benchmark front, Nifty held its crucial short-term support at the 20 DEMA, and sustaining this level will be key for a potential rebound towards 23,900. Otherwise, the bias may turn sideways. Meanwhile, traders should maintain a stock-specific approach with a strong emphasis on risk management,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.

This is a developing story, more details are being added. Please watch the space for updates