Sensex falls for 4th day, drops 221pts; Nifty nears 19,650; PSBs defy trend

Closing Bell on Friday, September 22: The Nifty PSU Bank jumped the most, rising 3.5 per cent

Stock market highlights: Equity markets swung in trades on Friday as boost from JP Morgan's decision to include Indian bonds in its Emerging Market index weathered weak global sentiment.

The S&P BSE Sensex gyrated 493 points intraday, before settling at 66,008, down 221 points or 0.33 per cent. The Nifty50, on the other hand, closed at 19,674, down 68 points or 0.34 per cent.

Wipro, Ultratech Cement, Dr Reddy's Labs, Cipla, Bajaj Auto, Power Grid, HDFC Bank, Divis Labs, and UPL were among the top large-cap laggards, while Star Health, Glenmark Pharma, Astral, EKI, Jupiter Wagon, and RattanIndia Power were the losers in the broader market space.

Index wise, the BSE MidCap and SmallCap indices settled in-line moxed with a loss of 0.17 per cent and a gain of 0.06 per cent, respectively.

Sectorally, the Nifty PSU Bank jumped the most, rising 3.5 per cent, amid hopes that Indin bonds' inclusion in JPM index would boos ttheir bond portfolios. Besides, the Nifty Auto index was the other notable gainer, up 0.21 per cent. On the downside, the Nifty Pharma fell 1.5 per cent.

4:15 PM

Tech View :: 'Sentiment appears bearish in Nifty'

Nifty50
Nifty experienced consistent selling pressure throughout the week, resulting in a decline of 2.80% from its all-time high. This recent correction has caused it to dip below the critical 21-day Exponential Moving Average (21EMA). The sentiment appears bearish at this point, with a key support level identified at 19,600. A breach below 19,600 could potentially initiate a more significant market correction. On the upside, 19,800 is expected to serve as a resistance level."

Nifty Bank

The BankNifty index witnessed a significant double top breakdown pattern, which often signals a reversal in trend. This bearish pattern was largely influenced by selling pressure in HDFC Bank.The index breached its 20-day moving average (20DMA) located at 45,000. A break above this level could trigger some short-covering, but the overall sentiment remains bearish.The prevailing sentiment in the BankNifty index remains bearish. As a result, it's advisable to maintain a "sell on rise" approach. The next immediate support is seen in the 44,500-44,400 range.

Views by: LKP Securities

3:57 PM

Comment :: 'JPMorgan move is a big positive for Indian fixed income market'

Much awaited India’s inclusion in global bond indices becomes a reality now which will strengthen India’s external fundamental factors. Inclusion in JP Morgan index alone can prompt inflow of more than USD 25 bn over next 2 years thereby lowering market yields and also support currency. It may also open doors for inclusion in other global debt indices. Timing couldn’t have been better as the global backdrop has become more challenging with elevated rates, surge in crude prices and currencies under pressure. Overall, a big positive for Indian fixed income market.

Views by: Vikas Garg – Head of Fixed Income, Invesco Mutual Fund

3:56 PM

Comment :: 'Prudent to restrict aggressive positions'

Feeble global cues combined with pressure on select heavyweights are weighing on the sentiment. Going ahead, recovery in the banking and financial majors would be critical for any meaningful rebound else the corrective tone would continue. We feel it is prudent to restrict aggressive positions until the market stabilizes.

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

3:54 PM

Comment :: 'Risk averse sentiment prevailing in the market'

Domestic markets closed on a sombre note as mixed cues from US and Asian markets weakened domestic investors’ confidence. Nevertheless, PSU bank stocks outperformed as India's inclusion in JP Morgan's Government Bond Index led to a decline in bond yields. A broad basis, cdue to the ongoing ascent of US bond yields and concern over higher rates for a prolonged period."

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

3:53 PM