India Stocks Review: Indices end lower on fall in IT cos

Informist, Tuesday, May 24, 2022

By Joe Milton

MUMBAI – The benchmark indices ended a lacklustre day in the red, weighed down by selling pressure in shares of information technology companies. The indices were rangebound during the day due to lack of any major triggers.

The Nifty 50 index had opened on a muted note and struggled for direction. The index fell sharply and touched an intraday low of 16078.60 points but managed to recover slightly and close at 16125.15 points, down 0.6% from Monday.

Analysts expect 16400 points to continue to act as a stiff resistance for the index.

Ajit Mishra, vice president-research at Religare Broking, said indications are in the favour of further consolidation in the headline index, and suggests that investors take a stock-specific approach.

The Sensex ended 0.4% lower at 54052.61 points, after recovering from the day’s low of 53886.28 points.

All the information technology stocks that are part of the Nifty IT index closed lower by 1-4%. But, buying in a few heavyweight bank stocks cushioned the fall of the benchmark indices.

Shares of Kotak Mahindra Bank, HDFC Bank, and State Bank of India ended 0.2-2% higher, which helped the Nifty Bank index end on a positive note.

Follow-up buying was seen in the automobile space as recent tax cuts on fuels, likely fall in metal prices following imposition of export tariff on steel products, and prediction of a good monsoon have improved sentiment for the sector.

Shares of Ashok Leyland, Tata Motors, TVS Motor Co, and MRF ended 1-4% higher.

Shares of Balrampur Chini Mills, Jyothy Labs, Poly Medicure, and Ipca Laboratories fell as they reported weak Jan-Mar numbers.

On the other hand, Bank of India recovered and closed about 2% higher as its net profit more than doubled on year in Jan-Mat on fall in provisions.

Shares of Divi’s Laboratories suffered an intense sell-off for the second day as the management did not provide earnings growth guidance for 2022-23 (Apr-Mar). Unwinding of long positions in the futures segment added fuel to fire and the stock closed 6.1% lower at 3,661.70 rupees.

Delhivery and Venus Pipes & Tubes debuted at a slight premium and buying interest gathered pace as the day progressed. Shares of Delhivery closed about 10% higher at 536.35 rupees, and Venus Pipes & Tubes closed nearly 9% higher at 354.35 rupees.

The broader market was also lacklustre with selling pressure more pronounced in the small-cap space. All the small-cap indices on the National Stock Exchange ended more than 1% lower and mid-cap indices closed about 0.5% lower.

* Among Nifty 50 stocks, 15 rose and 35 fell

* Among Sensex stocks, 10 rose and 20 fell

* On the NSE, 549 stocks rose, 1,528 fell and 50 were unchanged

* On the BSE, 1,036 stocks rose, 2,270 fell and 124 were unchanged

* Nifty Media: Down 2.57%; Nifty Metal: Down 1.17%; Nifty Pharma: Down 1.53%

BSE                                                  National Stock Exchange
Sensex: 54052.61 points, down 236 pts (0.43%)        Nifty 50: 16125.15 points, down 89.55 pts (0.55%)

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)

2022 1st day close: 59183.22 (Jan 3)             : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17)             : 2022 Closing High: 18308.10 (Jan 17) 
2022 Closing Low: 52792.23 (May 19)              : 2022 Closing Low: 15782.15 (May 13)
2022 High (intraday): 61385.48 (Jan 17)          : 2022 High (intraday): 18321.55 (Jan 17)

2022 Low (intraday): 52260.82 (Mar 8)            : 2022 Low (intraday): 15671.45 (Mar 8)
2021 Closing High: 61305.95 (Oct 14)             : 2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)              : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)          : 2021 High (intraday): 18350.75 (Oct 14)
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 Ashish Shirke

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Source: Cogencis