Informist, Tuesday, Oct 19, 2021
By Vivek Kumar and Vaibhavi
MUMBAI – Benchmark indices snapped a seven-day winning streak today as Hindustan Unilever’s weaker-than-expected Jul-Sep numbers weighed on the market sentiment and triggered some profit booking.
After gaining more than 4% in the last seven sessions, the Nifty 50 fell 0.3% today to close at 18418.75 points, while the Sensex ended 0.1% lower at 61716.05 points. Intraday, the indices hit lifetime highs of 18604.45 points and 62245.43 points.
The indices witnessed volatile movement throughout the day, oscillating between gains and losses, which indicated some profit booking tendency among investors after the sharp gains.
The volatility today was because of the sharp gains seen lately, said Rajesh Palviya, vice president–research (head–technical and derivatives) at Axis Securities. Further, the stock-specific action amid earnings season is also playing out in the market.
The Nifty 50 may fall further to 18300 points in the near term and one should look to buy around that level, Palviya added.
Following Hindustan Unilever’s Jul-Sep earnings, its shares erased the day’s gains and hit their lowest level in two months. The fast-moving consumer goods major reported lower-than-expected net profit and volume growth for the quarter. The stock closed 4% lower at 2,546.80 rupees.
It is clear that a pick-up in the discretionary segment is not along expected lines, said Varun Singh, an FMCG analyst at IDBI Capital Markets. But at the same time, HUL has a different basket of discretionary portfolio compared to others and that needs to be taken with a pinch of a salt, he said.
The volume growth was also impacted by a squeeze in personal disposable income if one looks at inflation in petrol, diesel and liquefied petroleum gas prices, Singh added.
Another major stock hit in the fast-moving consumer goods space was ITC. It fell more than 6% today as concerns around tax hike on tobacco products resurfaced after the government set up an expert panel for tax policy on tobacco.
The stock had seen a sharp rise recently amid a strong outlook for the cigarette business. Further, the GST Council leaving the cess unchanged on tobacco products in its September meeting had also strengthened the momentum in the stock.
Shares of automobile and metal companies also fell today after the recent gains. Meanwhile, several banks succumbed to profit-booking and weighed on the indices.
Among automobile companies, Tata Motors and Eicher Motors fell 5.4% and 4.3%, respectively, while in the metal pack Tata Steel and JSW Steel fell 3% each.
However, continued buying in the information technology space, along with a rise in index heavyweights HDFC Bank and Reliance Industries’ shares helped mitigate losses to an extent.
Among other stocks, Larsen & Toubro Infotech and Sonata Software rose amid strong Jul-Sep earnings, while Jubilant Ingrevia fell sharply after disappointing earnings.
With profit booking across the market, shares of Indian Energy Exchange closed sharply off their day’s highs. The stock soared 20% intraday on the board’s decision to consider issuing bonus shares on Thursday, but closed just 6% higher.
Indian Railway Catering and Tourism Corp also erased its day’s and ended over 7% lower after reports that the government may appoint a railway regulator.
Both the stocks had risen sharply recently and analysts recommended investors to be cautious while dealing with these stocks.
With the market breadth turning sharply negative, the mid-cap and small-cap indices on National Stock Exchange fell 1.5-2.5%.
* Among Nifty 50 stocks, 16 rose and 34 fell
* Among Sensex stocks, 14 rose and 16 fell
* On the NSE, 429 stocks rose, 1,569 fell and 56 were unchanged
* On the BSE, 979 stocks rose, 2,382 fell and 128 were unchanged
* Nifty Bank: Down 0.3%; Nifty Metals: Down 2.4%; Nifty IT: Up 2.2%
BSE National Stock Exchange
Sensex: 61716.05, down 49.54 pts (0.1%) Nifty 50: 18418.75, down 58.30 pts (0.3%)
S&P BSE Sensitive Index Nifty 50
Lifetime High:62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61765.59 (Oct 18) : 2021 Closing High: 18477.05 (Oct 18)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 62245.43 (Oct 19) : 2021 High (intraday): 18604.45 (Oct 19)
2021 Low (intraday): 46160.46 (Jan 29) : 2021 Low (intraday): 13596.75 (Jan 29)
2020 Closing High: 47751.33 (Dec 31) : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23) : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31) : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24) : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20) : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19) : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28)) : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23) : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26) : 2017 High(intraday): 10515.10 (Dec 26)
Edited by Patricia Hou
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