Sensex falls 215 pts post RBI policy; Nifty at 16,238; RIL sheds 2%

Stock market LIVE: The RBI pegged real GDP growth forecast for FY22 at 9.5 per cent and at 17.2 per cent for FY23.

Shares of Reliance Industries single-handedly knocked Sensex and Nifty lower on Friday after the Supreme Court ruled in favour of Amazon, stalling Reliance Retail's Rs 24,000 crore deal with Future Retail. Further, while RBI's policy decision was along expected lines, the 5:1 vote on maintaining accommodative stance and rise in CPI projection for FY22 to 5.7 per cent from 5.1 per cent earlier also concerned markets, indicating that debate on inflation is gaining centre stage. 

The domestic benchmark indices snapped their 4-session winning run. The 30-pack Sensex closed the day at 54,278, down 215 points or 0.39 per cent. Meanwhile, NSE Nifty settled the day 56 points or 0.35 per cent at 16,238.

IndusInd Bank, Tech Mahindra, Bharti Airtel, Maruti were the top gainers in the 30-pack Sensex while Reliance Industries, Ultratech Cement, Tata Steel, HCL Tech were the top losers.   

The broader markets outperformed, with Nifty Midcap index rising 0.06 per cent and Nifty Smallcap 0.04 per cent. Sectorally, Nifty Realty and Nifty Media were the top losers while Nifty IT was the best performer. 

Overall, for the five days ended Friday, Nifty ended the historic week, up 1.97 per cent high, above 16,000 mark for the worst time and also snapped its two-week losing run.

4:26 PM

Any sharp weakness from here is ruled out: Nagaraj Shetti, Technical Research Analyst, HDFC Sec

After the formation of doji type candlestick pattern on the daily chart on Thursday, Nifty slipped into minor weakness amidst a range bound action on Friday and closed the day lower by 56 points. A small negative candle was formed on the daily chart on Friday, after a doji type candlestick pattern of Thursday. Technically, this action indicate a minor reversal pattern at the new highs. But, the overall trend of the market was more of a choppy than any trended decline. Hence, any sharp weakness from here is ruled out.

 

After the technical upside breakout of the important high low range, the underlying showing consolidation or minor weakness from the highs could be a part of the uptrend continuation pattern. After such weakness near to the upside breakout point (around 16100-16200 in Nifty), the underlying more often shows sharp upside bounces from near the support as per the concept of change in polarity. Hence, the present downward correction is likely to be a buying opportunity for the near term.

 

Nifty on the weekly chart has formed a long bull candle, after a narrow range movement of previous 4-5 weeks. This is positive indication and signal a decisive upside breakout of the range movement.

 

Conclusion: The Nifty seems to have started consolidation or minor downward correction from the highs, as anticipated and this consolidation movement is likely to extend towards early part of next week. The important lower supports to be watched for next week around 16200-16100 levels and that is going to be a buy on dips opportunity. We expect sharp upside bounce from the dips by mid to later part of next week. On a decisive move above 16350, Nifty may head towards 16500 levels.

4:24 PM

TECH VIEW :: Sachin Gupta, AVP- Research at Choice Broking

Technically, the benchmark index is trading in a bullish trend with higher highs & higher lows formation. In the recent candle, it has formed a Bearish Candlestick at the top of the trend, which indicates some correction in the index. Moreover, the nifty50 index also slipped below the key level of 16300 & Upper Bollinger Band formation. A momentum indicator RSI is hovering near the overbought zone. However, MACD & Stochastic is still showing further strength with positive crossover. At present, the nifty index has resistance at 16350 levels while support comes at 16100 levels.

4:23 PM

CLOSING COMMENTS :: Vinod Nair, Head Of Research at Geojit Financial Services

Following a flat opening, the domestic market fell into the red as profit booking was witnessed in key sectors like Banking after the announcement of RBI monetary policy. Negative cues from Asian markets also added pressure on the domestic market. The policy was in line with market expectations, RBI continued to advance its super-easy monetary policy keeping its focus on economic recovery. On the side-line, the CPI forecast was increased to 5.7% from 5.1% for FY22. High global inflation has  started to impact other emerging markets’ monetary policy & currencies, some have increased rates while others are planning to increase the rates  in the future.

4:23 PM

Windlas Biotech IPO subscribed 22 times

4:22 PM

Exxaro Tiles IPO subscribed 22 times on Day 3

4:21 PM

Krsnaa Diagnostics receives 64 times bids ahead of close

4:20 PM

Devyani International subscribed over 116 times on Day 3 so far

4:19 PM

Earnings Impact :: Strides Pharma tanks 7%

4:14 PM

Listing Day Action:: Glenmark Life Sciences ends tad below issue price

Glenmark Life Sciences had made a quiet debut on the bourses with the shares of the company getting listed at Rs 751.10, a 4 per cent premium against issue price of Rs 720 per share on the BSE. On the National Stock Exchange (NSE), the stock of pharmaceuticals company opened at Rs 750 per share.

4:12 PM

Earnings Impact :: M&M slips marginally

Mahindra & Mahindra on Friday reported a consolidated net loss after tax from continuing and discontinued operations at Rs 331.74 crore in the first quarter ended June 30. The company had posted a consolidated net profit after tax from continuing and discontinued operations at Rs 54.64 crore in the first quarter last fiscal, M&M said in a regulatory filing.

 

4:09 PM

Future Group stocks tank post SC order on deal with Reliance

COMPANY	% CHANGE	PRICE (Rs)
Future Retail	9.94	52.55
Future Consumer	8.69	7.25
Future Supply Chain Solutions	9.99	74.30
Future Lifestyle Fashions	9.94	60.70
Future Enterprises	9.98	9.20

4:03 PM

BUZZING :: Vodafone Idea stages smart rebound, jumps 20%

4:00 PM

Mid & smallcap indices eke out gain, beat benchmark

3:43 PM

Nifty IT index best sectoral performer

>> Here are the top gainers & losers from the pack

3:41 PM

Sector Watch :: Realty, Media indices top sectoral losers on NSE