Informist, Friday, Sep 29, 2023
By Maitri Seth
MUMBAI – Indian equities closed the month on a substantially higher note, as investors opted for bargain buying after benchmark indices witnessed heavy losses in the previous session. Defensive counters such as pharmaceuticals and healthcare witnessed maximum gains, at a time when the market sentiment is still cautious amid global inflationary concerns and ahead of the Reserve Bank of India’s policy meeting next week.
“Today was just a pull-back after yesterday’s (Thursday’s) losses,” said Parag Shah, technical and derivative analyst at Edelweiss Broking. The Nifty 50 closed 0.6% higher at 19638.30 points, while the Sensex ended 0.5% up at 65828.41 points. Although the benchmark indices rose around 1% higher today, they went off-highs in the last one hour of the trade due to profit-booking.
“Both Nifty 50 and Sensex opened Friday’s trade session higher, mirroring moves on the Wall Street, which ended in the green as bond yields dipped, and oil prices softened, thereby helping ease concerns about inflation and further interest rate hikes”, said Avdhut Bagkar, technical and derivatives analyst at StoxBox, suggesting that global sentiment also aided gains in today’s trade.
The Nifty 50 gained 2% in September. This was a volatile month for Indian equities, with the Nifty 50 crossing the historical levels of 20000 points on the back of strong buying in both heavyweights and broader indices. However, mid- and small-cap spaces outperformed the large-caps. Overbuying in the broader market made brokerage Kotak Securities stop its recommendation on mid-cap stocks, which later contributed heavily to the correction in the mid-cap stocks.
Later in the month, hawkish comments from US Federal Reserve officials on interest rates remaining higher for longer, followed by crude oil prices hitting their highest levels since 2007 dented global sentiments, leading to a correction in markets at the end of the month.
However, analysts believe that there is still some concern among investors over high crude oil prices, which is now coupled with caution ahead of the Reserve Bank of India’s monetary policy meeting, due next week.
“After six months of net buying, overseas funds sold about $1.93 bln worth of Indian stocks in September as the surge in oil prices dampened their outlook,” said Bagkar.
Hence, investors switched to buying in defensive sectors such as pharmaceuticals and healthcare today. Both Nifty Pharma and Nifty Healthcare indices rose 2.6% and 2.7%, respectively, today. Both the indices rose 2.2% and 2.5%, respectively, during this month.
Automobile stocks also led the gains on the Nifty 50 index, with shares of constituents Hero MotoCorp and Tata Motors closing 2.9% and 2.6% higher, respectively.
Metal stocks were the other top gainers, which pushed the Nifty Metal index to close 1.9% higher today and gain 2.7% in September. Hindalco Industries was the top gainer in the metal pack, closing 5.5% higher today. Vedanta was also another major gainer, which closed 6.8% higher, snapping its seven-day losing streak today. The sell-off in the stock was intensified after Moody’s had downgraded the corporate family rating on Anil Agarwal-owned and London-based Vedanta Resources Ltd to ‘Caa2’ from ‘Caa1’.
All other sectors closed in the red today, barring information technology stocks. Sentiment for IT stocks was affected after Accenture’s latest quarterly earnings and weak growth guidance hinted at persistent concerns over demand for domestic IT companies, more so for Wipro, Tech Mahindra, and LTIMindtree. This is because of a relatively more challenging environment in the communications, media and technology vertical, and the consulting business of the global IT major. The Nifty IT index was down 0.3% today.
Among stocks, shares of Glenmark Pharmaceuticals rose over 10% today as S&P Global Ratings revised its outlook on the company to ‘positive’ from ‘stable’. Navin Fluoride closed 13.6% lower after the company on Thursday said that its Managing Director Radhesh Welling will resign from his position on Dec 15.
The Indian equity markets will remain closed on Monday on the occasion of Gandhi Jayanti.
* Of the Nifty 50 stocks, 38 rose, and 12 fell, 0 unchanged
* Of the Sensex stocks, 21 rose, and 9 fell
* On the BSE, 2,350 stocks rose, 1,278 fell, and 153 were unchanged
* Nifty Pharma: up 2.66%; Nifty Healthcare: up 2.56%, Nifty IT: down 0.30%
Sensex: 65828.41, up 320.09 pts or 0.49% Nifty 50: 19638.30, up 114.75 pts or 0.59%
S&P BSE Sensitive Index Nifty 50
Lifetime High: 67927.23 (Sep 15, 2023) : Lifetime High: 20222.45 (Sep 15, 2023)
Record Close High: 67838.63 (Sep 15, 2023) : Record Close High: 20192.35 (Sep 15, 2023)
2023 1st day close: 61167.79 (Jan 2) : 2023 1st day close: 18197.45 (Jan 2)
2023 Closing High: 67838.63 (Sep 15, 2023) : 2023 Closing High: 20192.35 (Sep 15)
2023 Closing Low: 59288.35 (Feb 27) : 2023 Closing Low: 17311.80 (Oct 17)
2023 High (intraday): 67927.23 (Sep 15) : 2023 High (intraday): 20222.45 (Sep 15)
2023 Low (intraday): 58699.20 (Jan 30) : 2023 Low (intraday): 17098.55 (Jan 17)
2022 1st day close: 59183.22 (Jan 3) : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 63284.19 (Dec 1) : 2022 Closing High: 18812.50 (Dec 1)
2022 Closing Low: 51360.42 (Jun 17) : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 63583.07 (Dec 1) : 2022 High (intraday): 18887.60 (Dec 1)
2022 Low (intraday): 50921.22 (Jun 17) : 2022 Low (intraday): 15183.40 (Jun 17)
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)
Edited by Tanima Banerjee
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