MID-DAY MOOD | BANK, REALTY STOCKS KEEP NIFTY, SENSEX IN THE RED
Benchmark indices Nifty and Sensex failed to recover from today's open and continued to trade in the red, bogged down by bank, realty and auto stocks. Pharma and healthcare continued with their robust performance.
At about 11:20 am, the Sensex fell 0.27 percent to 79,834 and the Nifty was down 0.10 percent at 24,277. About 1,915 shares advanced, 1,411 shares declined, and 72 shares unchanged.
Follow our live blog for all the market updates
The midcap and smallcap index have been on an impressive run outperforming the Nifty and Sensex post elections. Even today, the broader market outperformed the headline indices, rising 0.4 and 0.6 percent, respectively. Following the election, both the BSE midcap and smallcap indices surged significantly, with gains of 15.4 percent and 19.6 percent respectively, one month after the event.
The VIX, also known as the fear gauge, reversed its morning trends as it came down almost 2 percent to be at around 12.67, data showed. VIX is a real-time market index representing the market's expectations for volatility over the coming 30 days.
Sectoral Trend
Of the total 13 indices, banks were the worst hit, weighed down by India's largest bank, HDFC. Shares tumbled close to 5 percent following a rather weak Q4 update. Realty and auto followed next with both slipping close to 0.2 percent.
Among gainers, the healthcare and pharma index soared, continuing their impressive run. Sun Pharma, Cipla and Divis Labs were the top gainers from the index. "Pharma's could outperform other indices as their dry run seems to be coming to an end, and that's largely due to attractive valuations," 5paisa's Ruchit Jain told Moneycontrol.
Fundamental View
"At 80,000 Sensex there is no valuation comfort in the market. Investors should expect only moderate returns in the medium term at the present levels. Long-term prospects are certainly bright and, therefore, investors can continue with systematic investment. Asset allocation based on risk appetite should be the strategy at this juncture in the market," says V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Technical View
"The psychological near-term support would be at the 24,000 zone below which the bias can turn a little weak. The support for the day would be seen at 79,600 and 24,150 (Sensex and Nifty) levels while the resistance would be at 80,500 and 24,450 levels," Vaishali Parekh, head of technical research at Prabhudas Lilladher said.
For Bank Nifty, down about one percent today, charts indicate that it may get support at 52,800, followed by 52,700 and 52,500. If the index advances further, 53,200 would be the initial key resistance, followed by 53,350 and 53,500, says Deven Mehata, a research analyst at Choice Broking.
Key Nifty gainers
ONGC, Divis Labs, Cipla, L&T and Hindalco
Key Nifty losers
HDFC Bank, Titan Company, M&M, IndusInd Bank, and Tata Steel
Key Sensex gainers
L&T, Reliance, HUL, SBI, and NTPC.
Key Sensex losers
HDFC Bank, Titan Company, M&M, IndusInd Bank, and Tata Steel
Stock Moves
Defence stocks: Shares surged up to 13 percent after Defence Minister Rajnath Singh announced that the country's defence production recorded the highest-ever growth in 2023-24. The value of production has reached Rs 1,26,887 crore in 2023-24, which is 16.8 percent higher than the value of production of previous financial year.
RBL Bank: Shares dropped by over 4 percent to Rs 255 apiece on July 5 after the lender reported a sequential decline in its total deposits and current account savings account (CASA) in the April-June quarter (Q1FY25) business update.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
2024-07-05T06:49:01Z dg43tfdfdgfd