Nifty respected 12300 level on a closing basis which is a very good sign from bulls perspective whereas Banknifty witnessed recovery from near the 50-DMA.
Benchmark stock market indices Sensex and Nifty pared most of losses but ended in red at the end of a volatile session on Wednesday amid reports that US would likely maintain tariffs on Chinese goods ahead of the signing of an initial trade deal. “After the solid pre-budget rally, market is getting a bit sceptical post higher than expected NPA numbers in the recent Q3 banks results and very high consumer inflation which may stay for another month or two. Market would watch the Q3 results and actual budget, for further direction,” Vinod Nair, Head of Research, Geojit Financial Services said.
The S&P BSE Sensex fell 80 points or 0.19 per cent to close at 41,873 points, while broader Nifty 50 index ended at 12,343.30 points, down 19 points or 0.15 per cent. IndusInd Bank, dipped over 5.50 per cent to end at Rs 1,398, was the top laggard in the Sensex pack. “IndusInd Bank was the key culprit for the market which led some selling pressure in overall banking space while the realty and auto sector did very well today,” Santosh Meena, Senior Analyst, TradingBells said. However, State Bank of India (SBI) and Infosys were among the other top losers, each down over 1 per cent.
“The bull trend with buy on dip texture is intact in the market where after a selling pressure throughout the day, Nifty and Sensex witnessed a smart recovery in late trade on the back of buying in the auto sector. The rural related theme mainly fertilizer, auto, and FMCG stocks did well today after the comment from India fertilizer ministry that they are discussing revamping fertilizer subsidy system, to directly pay the farmer. Technically, Nifty respected 12300 level on a closing basis which is a very good sign from bulls perspective whereas Banknifty witnessed recovery from near the 50-DMA. We can expect the market to continue its rally till Nifty manages to hold 12300 mark where midcap and smallcap spaces will continue their outperformance,” Santosh Meena said.
The sectoral indices traded mixed, with Nifty Bank index slipped nearly 250 points to close at 31,825 points dragged by IndusInd Bank, RBL Bank and State Bank of India. While Nifty Auto (up 1.16 per cent), Nifty FMCG (up 0.29 per cent), Nifty Metal ( up 0.72 per cent), Nifty Pharma ( up 0.61 per cent), Nifty PSU Bank (up 0.04 per cent) and Nifty Realty (up 1.31 per cent) ended in green.
The broader markets outperformed the equity benchmarks. “Headline indices Sensex and Nifty ended with minor losses after five days of a bull run but it was a good session for midcap and smallcap stocks,” Santosh Meena said. The S&P BSE MidCap index ended 98 points, or 0.64 per cent higher at 15,503.69 points, and the S&P BSE SmallCap index settled at 14,528.25 points, up 144.54 points, or 1 per cent.