Benchmark indices, after rising to a record high in early trade, gave up all gains to close in the red on Wednesday. Profit-booking in financial and metal stocks during the afternoon dragged indices from record highs.
The BSE Sensex, which recorded a fresh all-time high of 56,118.57, surpassing the 56,000-mark, closed at 55,629.49, down 162.78 points or 0.29 per cent. It hit an intraday low of 55,514.89. The Nifty 50, which surpassed the 16,700-mark for the first time to hit a high 16,701.85, closed at 16,568.85, down 45.75 points or 0.28 per cent. During the day, it touched a low of 16,535.85.
Market at new peak: M-cap of BSE-listed cos at record high of over ₹242 lakh cr
More stocks decline
The breadth of the market remained in favour of the decliners. As many as 2,083 stocks declined on the BSE, as compared to 1,097 stocks that advanced while 115 remained unchanged. Furthermore, 391 stocks hit the lower circuit as compared to the 236 stocks that were locked in the upper circuit. Besides, 207 stocks touched a 52-week high and 34 touched a 52-week low.
Near-term outlook bullish for Sensex, Nifty
Binod Modi, Head Strategy at Reliance Securities, said, “Domestic benchmark indices, after witnessing record high, gave up all gains and fell to negative territory as selling pressure in heavyweight financials, especially private banks, dragged the market.
“Notably, heavyweight HDFC Bank witnessed a brisk rebound after the RBI allowed it to issue fresh credit cards, while selling pressure in financials dragged it. In addition to financials, metals, auto and realty stocks also remained under pressure.”
HDFC Bank, which had surged nearly 3 per cent during early trade, closed 0.21 per cent lower on the NSE.
According to Dhananjay Sinha, MD and Chief – Strategist, JM Financial Institutional Securities, “The markets have shown some buoyancy since the beginning of August, rising by 4.6 per cent, primarily led by the technology pack, which has continued to outperform, rising by a huge 8.5 per cent. The strength seen in consumers and banking stocks recently has been modest.”
As realty and metals, mid-cap, small-cap and high beta stocks have seen correction or underperformance, the rally has not been broad-based, reflecting a lack of conviction, Sinha said.
The truncated nature of market performance reinforces the point that the pure liquidity-driven rally and multiple expansion are probably behind us, Sinha said and added that global signals such as peaking global growth, US tapering and correction in the commodity price will define the future market direction.
Eicher Motors, Ultratech Cement, Bajaj Finance, Adani Ports and Grasim were the top gainers on the Nifty 50 while Kotak Bank, Hindalco, ICICI Bank, SBI Life and Tata Motors were the top losers.
FMCG, consumer durables in focus
On the sectoral front, FMCG, consumer durables, pharma, oil and gas, and IT stocks gained. However, metals, financials, realty and auto witnessed selling pressure amidst profit booking.
Nifty FMCG was up 0.69. Nifty Consumer Durables was up 0.56 per cent. Nifty Pharma was up 0.21 per cent, Nifty IT was up 0.10 per cent. Nifty Oil and Gas was up 0.25 per cent.
Nifty Metal was down 0.81 per cent. Nifty Bank and Nifty Financial Services were down 0.87 per cent and 0.57 per cent, respectively. Nifty Realty was down 0.77 per cent. Nifty Auto was down 0.20 per cent.
Mid-, small-caps gain
As for broader indices, Nifty Midcap 50 was up 0.03 per cent while Nifty Smallcap 50 was up 0.13 per cent. The S&P BSE Midcap closed 0.26 per cent higher while the S&P BSE Smallcap was down 0.18 per cent.
The volatility index softened 3.78 per cent to 12.91.