Small and midcap indices outperformed the benchmarks and closed with gains while India VIX, slipped 6.4%.
SBI was the worst performed, down 4.88% followed by Axis Bank and ICICI Bank. Broader markets again outperformed benchmarks on Thursday.
After surging for eight-days straight, Sensex and Nifty closed in the red on Thursday. S&P BSE Sensex closed down at 43,357 points and NSE Nifty 50 ended at 12,690. Banking and finance sector stocks were pulling the benchmark lower along with index heavyweight Reliance Industries Limited. Even the Finance Minister’s stimulus package could not lift the spirits on Dalal Street. However, small and midcap indices outperformed the benchmarks and closed with gains. The fear gauge of domestic markets, the India VIX, slipped 6.4%.
“Market was hesitant to raise its optimism further as profit booking was triggered across the banking sector post the announcement of the stimulus. The market was waiting for the package, Atmanirbhar Bharat 3.0 was announced today which was good enough and nicely factored in the rising market.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –
“The Nifty was unable to get past yesterday’s high. This could be a signal that the index is taking a breather after a jubilant one-way move! If we cross 12785/12790, the Nifty will resume its uptrend. Traders could consider booking partial profits at these levels and can re-enter if 12790 is crossed for a target of 13000.”
“Markets took a breather after eight consecutive days of gains and ended marginally lower. Participants were in the profit-taking mood from the beginning and the bias remained the same despite the additional stimulus package announced by FM. Also, the news of Moody raising India’s GDP forecast rating upwards failed to trigger any major positive reaction. In the near term, markets would take cues from global peers and the last leg of corporate earnings. In such a scenario, we suggest maintaining focus on the selection of stocks and utilising dips to add quality counters.”
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities –
“The markets took a breather after eight consecutive days of gains. The Nifty 50 remained in a narrow range of 120 points and formed a Doji candle on the daily chart. We can say that this is a consolidation window that the Nifty has opened and is preparing to move to the level of 12950/13000 on the eve of Diwali. As long as the market does not break the 12530 level, we should stick to the strategy of buy on dips. Another round of buying in financial stocks is more likely in the near future.”
“Indian market corrected after its eighth consecutive day of rally by closing down by half percent due to profit booking in the banking space and fresh trigger missing in the FM stimulus package announcement for further rally in the market. Post FM announcement of Rs. 65,000 crore to be provided for the fertilizer sector, there was a rally in the fertilizer space. Package has also positive announcements for the real estate, cement sectors as well. Top gainers of the Nifty were Grasim (3.0%), HUL (2.9%) and Shree cements (2.5%). Top losers of the Nifty were SBI (3.2%), Coal India (3.0%) and Kotak Mahindra (2.9%). Dow Futures and FTSE were down by half percent each whereas Nasdaq Futures was up by 0.6%.”