Sensex snaps 8-day winning run, ends 415 pts lower; IT, Auto stocks weigh

CLOSING BELL: The NSE Nifty shut shop at 18,696, down 117 points. Broader indices - BSE Midcap and Smallcap bucked the trend, and were up 0.8 per cent and 0.7 per cent, respectively, on Friday.

markets, stock market, sensex, correction, nifty, shares, growth, profit, economy, gain

STOCK MARKET HIGHLIGHTS

The frontline indices snapped their eight-day winning streak run as investors preferred to take home some profits ahead of the weekend and upcoming RBI policy next week. Auto and IT shares, in particular, witnessed selling pressure.

The S&P BSE Sensex dropped to a low of 62,680, and ended 415 points lower at 62,869. In the process, the benchmark trimmed its weekly gain to 575 points.

The NSE Nifty 50 settled just a shade below the 18,700-level, down 117 points on Friday.

Also read: Risk-reward favourable for Paytm; may rise more than 100% in 1 yr: Analysts

Among the Sensex 30 shares, auto stocks were the major losers as they reacted to the monthly auto sales numbers. Mahindra & Mahindra slipped over 2 per cent. Maruti was down 1.5 per cent. READ MORE

Hindustan Unilever, Nestle India, HDFC, Asian Paints, Bajaj Finance, PowerGrid Corporation, ICICI Bank, Sun Pharma, TCS and Infosys were the other significant losers, down over a per cent each.

On the positive front, Tata Steel surged to a 3-month high and was up over a per cent. Analysts at ICICI Securities sees removal of export duty as a significant relief and a long term positive for the domestic steel sector. READ MORE

The broader markets bucked the trend. The BSE Midcap and Smallcap indices were up 0.8 per cent and 0.7 per cent, respectively. The overall market breadth too was fairly positive with more than 2,000 shares advancing as against 1,450 declining stocks on the BSE.

Among individual stocks, ONGC and Oil India logged strong gains in intra-day deals after government slashed tax on domestically produced crude oil to Rs 4,900 per tonne from Rs 10,200 per tonne w.e.f December 02, 2022. READ MORE

PB Fintech soared 5 per cent to Rs 485 after around 22.84 million shares representing 5 per cent of total equity of the company worth of Rs 1,042.53 crore changed hands in pre-open deals on the NSE today. READ MORE

Primary Market Update

Uniparts India IPO was subscribed up to 25 times as of 03:40 PM on the final day of the offer period. The IPO has received strong response from QIB investors, with oversubscription up to 66 times. The HNIs segment was subscribed over 17 times, while retail quota saw bids of up to 4.2 times.

4:00 PM

TECH VIEW :: 'Over the near term, sentiment is likely to remain sideways'

Bears remained at the helm throughout the day as the benchmark index couldn't pare the morning loss. However, the correction was limited to 0.62% by the end of the session. Over the near term, sentiment is likely to remain sideways, with 18,500-18,800 to be the crucial range. A decisive breakout from either band may induce a clean directional move in the market.

Views by: Rupak De, Senior Technical Analyst at LKP Securities

3:52 PM

COMMENT :: What all happened in the markets today?

The rally in the domestic market was halted by negative cues from global counterparts and broad-based profit booking in large caps. The correction in the market was led by auto stocks as the sales data came in lower than expected due to weaker exports and sequential de-stocking. Declining manufacturing activity in the US is proof that the central bank’s policy tightening has started to show results, which in turn will encourage the Fed to keep rate hikes at bay.

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

3:51 PM

COMMENT :: 'Despite consolidation, tone would remain positive till Nifty upholds 18,300'

Markets witnessed profit-taking and lost over half a percent, taking a breather after the recent surge. After the flat start, the Nifty index gradually inched lower in the first half, followed by range-bound movement till the end. Consequently, the Nifty index settled at 18,695; down by 0.62%. Meanwhile, sectoral pack traded mixed wherein realty and metal counters were in the limelight while auto and energy traded subdued. Amid all, the buoyancy on the broader front kept the traders busy till the end.

Indications are in the favour of further consolidation in the index but the tone would remain positive till Nifty upholds 18,300. And, since all the sectors are participating in the move, traders should utilize this phase to add quality names on dips.

Views by: Ajit Mishra, VP - Technical Research, Religare Broking

3:50 PM