The benchmark equity indices ended Friday’s trading session in the mixed territory. The NSE Nifty 50 gained 21.70 points or 0.09% to settle at 24,323.10, while the BSE Sensex dipped 53.07 points or 0.07% to 79,996.60. Bank Nifty index ended lower by 443.35 points or 0.83% to settle at 52,660.35.
The broader indices ended in mixed territory, with gain led by Largecap and Midcap stocks. Energy and Pharma stocks outperformed among the other sectoral indices while Financial Services and Banking stocks shed.
ONGC, Reliance Industries, State Bank Of India, Britannia Industries, and Cipla were the top gainers on the NSE Nifty 50, while the laggards includes HDFC Bank, Titan Company, LTIMindtree, Tata Steel, an IndusInd Bank.
The Indian Volatility Index (India VIX) closed down by 1.49 % at 12.66.
“The domestic market traded with a mixed bias, with the heavy-weight banking sector acting as a laggard. Adding to the worry are the top lending banks, which recorded a sequential decline in deposit growth in the June quarter,” said Vinod Nair, Head of Research at Geojit Financial Services
Nair also said that, While Midcap and Small Cap outperformed and the respective BSE indices hit an all-time high. Globally, investors now await the US non-farm payroll data to be released later today to gauge the trajectory of the US Fed’s potential rate cuts.
Commenting on the Bank Nifty outperformance Rahul Ghose, CEO of Hedged.in said that The Bank nifty Index saw increased writing of the call OI at 52500 levels & the short covering of the put OI at 53000 levels, indicates Bank nifty likely to trade in a narrow range for the week. The Bank nifty PCR opened at 1.06 levels and dropped to 0.69 levels in first half of the session & traded steadily around that throughout the day.
Ghose further added indicating this index has fading momentum at the resistance zone, however at lower levels value buying is emerging. Market participants must exercise extreme caution on the long side especially seeing the price action emerging out of HDFC Bank in the past few days.