Nifty closes at record high on Wednesday; Bank Nifty fall 1.19%

The Nifty was up by 4.7 points (0.04%) to close at 13,113.75 while the Sensex was down by 37.4 points (0.08%) to close at 44,618.04.

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Volatility inched up on Monday to cross 22 levels.
The Sensex slipped from record highs to end marginally lower on Wednesday, while the Nifty edged up to a fresh closing high amid profit booking in financial stocks and muted global cues. The Nifty was up by 4.7 points (0.04%) to close at 13,113.75 while the Sensex was down by 37.4 points (0.08%) to close at 44,618.04. The Nifty Bank declined 1.19%.

Banking stocks have witnessed a strong rally since the start of November, with the Nifty Bank rising 18.36% from November 2 till date, outperforming the benchmark in the same period. During this period, the Nifty rose by 12.38%. However, on Wednesday, the Nifty Bank fell 1.19% and its biggest losers were Kotak Mahindra Bank, HDFC Bank, Bandhan Bank, IDFC First Bank and ICICI Bank, down by 3.35%, 1.95%, 1.38%, 1.21%, and 1.16%, respectively.

The banking stocks remained volatile and witnessed selling on account of the Supreme Court hearing on the moratorium case. The volatility was also because of the RBI’s monetary policy meeting that commenced on Wednesday.

Siddhartha Khemka, head – retail research, Motilal Oswal Financial Services, said: “Banking Stocks witnessed profit booking, with Nifty Bank falling by 1.2% as the two-day MPC meeting commenced from Wednesday while the RBI Credit policy will be announced on December 4.”

The markets also took cues from the global markets that witnessed volatility on Wednesday. Asian markets had a mixed trading session with bourses in China and Hong Kong declining by 0.07% and 0.13%. The markets in Taiwan and South Korea were up by 0.75% to 1.58%. European markets were also range bound early in the session. Strong gains in the global markets over the last few sessions on account of the developments around the Covid-19 vaccine were offset by profit taking.

Foreign portfolio investors, after pumping record funds into equities in November, have once again turned buyers in December.

On Tuesday, FPIs bought stocks worth $432.6 million, provisional data on the exchanges shows. Domestic institutional investors sold stocks worth $139 million.

The futures and options segment saw a turnover worth `28.98 lakh crore and the cash market segment witnessed a turnover of Rs 67,215.93 crore.

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