Informist, Wednesday, Oct 20, 2021
By Vaibhavi and Vivek Kumar
MUMBAI – Benchmark indices extended their losses for the second session today as a mixed set of earnings from companies prompted investors to book profits. The fall was more prominent in the broader market, with around three stocks falling for every one that rose.
The small-cap and mid-cap indices on the National Stock Exchange fell 1-3%, while the Nifty 50 and Sensex ended nearly 1% lower at 18266.60 points and 61259.96 points, respectively.
Even after taking today’s fall into account, the indices have risen 3.6% in October.
Open interest in the Nifty 50’s October futures declined over 7% today, indicating the unwinding of long positions. ‘Fear gauge’ India VIX too rose over 5%, showing the loss of risk appetite among investors.
Further, Swiss investment firm UBS said in a report that Indian equities look unattractive amid extremely expensive valuations. This is also likely to have fuelled some selling.
Retail investors should be cautious and avoid ‘buying on dips’ kind of strategies as there is selling pressure in the broader market, said Yash Gupta, equity research analyst at Angel One.
STOCKS & SECTORS
Profit booking was witnessed across the market today with most sectoral indices on the NSE ending in the red. Among Nifty 50 companies, the fall was steeper in the shares of consumer goods and metal companies. Index heavyweight Reliance Industries too snapped its five-day winning streak and fell more than 1%.
In the broader market, Indian Railway Catering and Tourism Corp extended losses for the second session as reports of the government considering setting up a regulator for the railway sector triggered aggressive profit booking in the stock after its recent surge. The stock plunged nearly 19%.
Among fast-moving consumer goods companies, shares of Hindustan Unilever extended losses from Tuesday and fell 2.7% today to close at 2,478.65 rupees.
Meanwhile, among the metal pack, Hindalco Industries, National Almunium Co, Vedanta and Hindustan Copper slipped around 4% each due to profit booking after their recent gains. With most of its constituents in the red, the Nifty Metal index ended over 2% lower.
The trend in the financial services space was mixed today with HDFC Bank and Kotak Mahindra Bank falling nearly 1% each and State Bank of India rising over 2%. Consequently, the Nifty Bank index closed slightly lower at 39518.20 points.
Bucking the weak trend in the market, the Nifty PSU Bank and Nifty Media indices ended in the green today. While State Bank of India contributed the most to the PSU Bank index, Zee Entertainment Enterprises led the Nifty Media index.
Shares of the broadcaster ended 3.5% higher amid reports that Life Insurance Corp of India may back the company’s proposed merger deal with Sony Pictures Networks India.
Among other stocks, Jubilant Foodworks, Mastek and Rallis India ended lower following their Jul-Sep earnings, while Snowman Logistics rose due to a strong earnings and growth outlook.
* Among Nifty 50 stocks, 11 rose and 39 fell
* Among Sensex stocks, 07 rose and 23 fell
* On the NSE, 449 stocks rose, 1,542 fell and 58 were unchanged
* On the BSE, 978 stocks rose, 2,322 fell and 125 were unchanged
* Nifty PSU Bank: Up 1.5%; Nifty Pharma: Down 1.4%; Nifty IT: Down 0.7%
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BSE National Stock Exchange
Sensex: 61259.96, down 456.09 pts (0.7%) Nifty 50: 18266.60, down 153.15 pts (0.8%)
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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)
End
Edited by Snigdha Kuttikat
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Source: Cogencis
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