Sensex sheds 502 pts, Nifty holds 17,300; Adani group stocks rise up to 5%

CLOSING BELL: The broader indices also outperformed, BSE Midcap and Smallcap indices were down up to 0.2 per cent as against the 0.8 per cent decline on the BSE benchmark.

Stock Market Highlights: Domestic markets succumbed to selling pressure on Thursday amid global growth worries and fears of sustained FII outflows. IT, banks and auto stocks were the major draggers. The BSE Sensex shed 502 points to 58,909, while the NSE Nifty ended 129 points lower at 17,322.

Adani Group shares bucked the trend and ended with smart gains even as the Supreme Court directed SEBI to probe into the allegations of share manipulation, violations of the Securities Act, and failure to disclose related party transactions. The apex court has asked the market regulator to submit its report in two months. READ MORE

Among the Group stocks, shares of the flagship firm Adani Enterprises ended over 2.5 per cent higher, having gained as much as 17 per cent in intra-day deals.  Adani Power, Adani Green, Adani Transmission, Adani Wilmar and NDTV were locked at the 5 per cent upper limit. ACC, Ambuja Cements, Adani Ports and Adani Total Gas added 2 - 4 per cent each.

Meanwhile, among the Sensex 30 shares, Maruti and Axis Bank slipped around 2.5 per cent each. With Axis Bank completing the Citibank India business merger, analysts Axis Bank to see merger synergies playing out only by the second half of financial year 2024-25 (H2FY25). READ MORE

TCS, Infosys, Mahindra & Mahindra, Nestle, Tech Mahindra and Bharti Airtel were the other major Sensex losers. On the positive front, Sun Pharma and PowerGrid Corporation were the notable gainers.

Despite holding ground for the major part of the trading day, broader indices ended with nominal losses on Thursday. The BSE Midcap index was down 0.1 per cent, while the Smallcap index declined 0.2 per cent.

Sectorally, the BSE IT index dropped 1.2 per cent. The Bankex and Auto index were down 0.9 per cent each. The Realty index, however, soared 2 per cent, primarirly on account of a 19 per cent rally in Macrotech Developers (Lodha). Analysts expect the realty player to benefit from resilient housing demand, supply consolidation and peaking out of high interest rates. READ MORE

Among other stocks, Sonata Software hit a record high, and so far has rallied 41 per cent this year. Ramco Systems surged over 6 per cent in today’s trade after the company informed BSE, that Etihad Airways Engineering has partnered with it to implement its Aviation Suite V5.9.

Rail Vikas Nigam (RVNL) zoomed over 12 per cent after its A joint venture with Russian firm Transmashholding (TMH) emerged as the lowest bidder for the manufacture and maintenance of 200 lightweight Vande Bharat trains. READ MORE

Primary Market Update

Divgi TorqTransfer Systems IPO was subscription up to 32 per cent as of 03:50 PM on Day 2 of the offer period. The retail quota was fully subscribed (1.3 times). The IPO closes tomorrow.

4:18 PM

Tech View :: Nifty Bank remains in a sell-on-rise mode

The bears came back strong and the index witnessed stiff resistance at 41,000 where fresh call writing was visible. The index remains in a sell-on-rise mode as long it stays below the mentioned resistance zone. The index immediate support on the downside stands at 40,000 and if breached will lead to a further downside towards 39,500 levels.

Views by: Kunal Shah, Senior Technical Analyst at LKP Securities

4:15 PM

Tech View :: Move above 41,000 can result in substantial short covering in Nifty Bank

In a range-bound session, the market reversed Wednesday's gains, with financials and technology stocks leading losses. When we are talking about Thursday’s weekly expiry, the Nifty declined 129 points from the day's high to slip below the 200-DMA. Nifty did not sustain at the 200-DMA moving average, so now the window of 17000 will be open as the next demand level. On the upside, the resistance levels at any short covering move are 17,500 and 17,625.
 

Bank Nifty fell 200 points from the day's high to trade in the red. But we can see a double bottom formation on the Bank Nifty, which indicates a possible short-term bottom. The 20-DMA, around 41,000, is an immediate hurdle. A move above the 20-day moving average can result in substantial short covering. On the downside, 40,150 will be an immediate support level.
 

In the immediate future, volatility will be fueled by global cues, with US bond rates and the dollar index serving as key drivers. It would be interesting to watch how FIIs act once the market begins to recover.

Views by: Pravesh Gour, senior research analyst, Swastika Investmart

4:13 PM

F&O analysis :: 'It is uncommon to see In-the-money put options having an increase in OI in a falling market'

The max pain for Nifty today shifted to the 17,400-mark for the next week's expiry indicating that this is the price, around which the next week's expiry is expected to happen. The monthly options open interest data is suggesting a bounce in the index from this level as the 17,500 PE still has high OI and this was followed up today with addition in open interest at the 17,400 PE strike.

It is not very common to see In-the-money put options having an increase in OI in a falling market. Traders should look for two levels on the downside, day before yesterday's low at 17,250, which when broken makes the trend sideways-to-downward and 16,740, which makes the trend completely downward.
 

Traders are moving into Bank Nifty next week by creating the 40,500 short straddle and 40,000 and 41,000 short strangles, which indicates this to be the broad range for the coming week. But from the monthly expiry perspective, this range will not hold as Bank Nifty has been in a very small range for a long time now.

Views by: Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform

4:11 PM

Tech View :: Nifty is in counter trend pullback mode

The Nifty opened on a weak note today and continued to drift lower throughout the day to close around the lows for the day down ~129 points. After a positive close in the previous trading session, the Nifty did not witness follow through buying interest in fact it has closed below the low (17,345) of the previous trading session which is a sign of weakness.

On the hourly charts, we can observe that the rise from the lows of 17,255 has been impulsive in nature indicating that a short term bottom is in place and this dip is a retracement of that rise. It is trading in the crucial Fibonacci support zone 17,336 – 17,300 which are the 61.82% retracement level (17,336) and 78.6% retracement levels (17,300), respectively, and we expect the Nifty to hold on to this support and resume it next leg of up move. Overall, we believe that the Nifty is a counter trend pullback mode and the pullback is not complete yet.

Views by: Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

4:08 PM

Comment :: Rising bond yields are driving foreign money out of emerging markets

Global markets turned back to selling mode with the US 10-year bond yield crossing 4% as a fresh set of US data suggested that inflation will remain elevated for a longer period. Rising bond yields are driving foreign money out of emerging markets, and as a result, FIIs were net sellers in the domestic market for the sixth consecutive day. Mid- and small-cap stocks continued to show resilience with mild selling compared to their larger peers.

Viewsd by: Vinod Nair, Head of Research at Geojit Financial Services

4:07 PM

Comment :: It won't be unrealistic to expect a spike on the 10-year Gsec yield to 8%

We expect a couple of rate hikes both from the Fed and the RBI and a pause for the rest of the year. With the yield curve flat at the moment, we are positioning at the short end with an opportunist shift to the long end when it spikes. It would not be unrealistic to expect a spike on the 10-year Gsec yield to between 7.8 and 8%. If that happens, duration comes into play and Investors can shift their positions to the long end.

Views by: Ashish Ranawade, Head of Products, Emkay Wealth Management

4:04 PM

Bond market update :: Yields on 10-yr G-Sec hit 7.4%-mark

4:03 PM

Currency check :: Rupee ends higher at 82.59/$ against Wednesday’s close of 82.50/$

4:00 PM

IPO Update :: Divgi Torq's issue subscribed 32% on day 2, retail quota oversubscribed

3:57 PM

BSE Snapshot :: Advance-Decline ratio favours sellers

3:55 PM

Market Check :: Top losers on the BSE today

3:54 PM

Market Check :: Top gainers on the BSE today

3:53 PM

Axis Bank falls over 2% as investors see Citi deal synergies emerging post H2FY25

With a double-digit attrition in Citi's deposits and wealth asset under management (AUM), since the announcement of the merger, analysts expect Axis Bank seeing merger synergies playing out only by the second half of financial year 2024-25 (H2FY25). READ MORE

3:50 PM

Taylormade Renewables freezes at 5% upper circuit

In the past one month, the stock zoomed 131 per cent, as compared to 1.7 per cent decline in the S&P BSE Sensex. In the past three months, it soared 358 per cent as against 6 per cent fall in the benchmark index. Moreover, in the past six months, it skyrocketed nearly 900 per cent, as compared to a marginal 0.17 per cent gain in the Sensex. READ MORE

3:48 PM

RVNL zooms 12% as JV emerges lowest bidder for 200 Vande Bharat trains

A joint venture of Russian firm Transmashholding (TMH) and RVNL emerged as the lowest bidder for the manufacture and maintenance of 200 lightweight Vande Bharat trains. READ MORE