1 week Ago By Moneycontrol
Benchmark indices Nifty and Sensex slipped into the red, weighed down by sharp declines in private banking heavyweights and IT stocks on January 3. While gains in PSU banks and metal stocks offered some respite, they fell short of lifting the broader market. The decline follows a stellar rally in the previous session, where the indices notched their best performance in six weeks.
Adding to the pressure were weak global cues, with major U.S. stock indices ending lower, erasing earlier gains.
At noon, the Sensex was down 482.64 points or 0.60 percent at 79,461.
07, and the Nifty was down 119.65 points or 0.49 percent at 24,069.
00. About 2,010 shares advanced, 1,358 shares declined, and 98 shares unchanged. Follow our LIVE blog for all the latest market updates "The outperformance of largecaps over smallcaps is a positive indicator and could continue.
However, it's premature to assume that FII buying will persist. With the dollar index at 109.25 and the U.
S. 10-year yield at 4.56 percent, the macroeconomic environment doesn't favour sustained FII inflows," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
The small and midcap indices showed volatility. While the midcap index traded marginally lower, the smallcap index traded 0.5 percent in the green.
Experts say that as valuations appear rich, it is advised to adopt a stock-specific approach within this space. In 2024, the broader market--housing the small and midcaps, outperformed yet again. The Nifty Smallcap 100 and Nifty Midcap 100 indices surged over 20 percent each.
Also read: ITC Hotels Demerger: Final boarding call to hop on before the D-day, here's all you need to know In the afternoon, Nifty IT and Pharma sectors traded in the red, each falling around 1 percent, after strong gains in the previous session, where they had risen by 2 and 1 percent, respectively. Nifty Bank also slipped 1 percent, with heavyweights like HDFC Bank, ICICI Bank, and Axis Bank pulling the index lower. Auto stocks were back in the positive, higher by 0.
5 percent amid strong December sales data. India's largest EV player Tata Motors was up almost 5 percent to become the top gainer on the Nifty. On the positive side, the Nifty PSU Bank index stood out, rising over 1 percent, driven by strong performances from SBI, Union Bank, and Bank of Baroda.
The Nifty Metal, Consumer Durables, and Oil & Gas sectors each rose by 0.8 percent, contributing to the day's overall market action. Tata Motors was buzzing in trade, rallying nearly 5 percent to become the top gainer on the Nifty.
This comes after the company is set to receive incentives worth Rs 246 crore for FY24, likely to be paid during Q4FY25, as claimed under the PLI scheme. Tata Motors reportedly submitted an incentive claim of Rs 142.13 crore, based on FY24 sales.
The world's largest two-wheeler company Hero MotoCorp shares fell over 2 percent after it reported total sales of 3,24,906 units, a decline of 17.5 percent compared to the same month last year. It reported a 7.
5 percent rise in total sales for 2024, with volumes reaching 59,11,065 units, up from 54,99,524 units in 2023. Shares of Avenue Supermarts jumped 15 percent in the morning deals on January 3, after the DMart operator shared its business update for the October-December period for FY2024-25. DMart reported a standalone revenue from operations at Rs 15,565.
23 crore, higher by 17.5 percent on-year compared to Rs 13,247 crore in the same period a year ago. Sigility India shares were locked at a 5 percent upper circuit after Axis Capital initiated coverage with a "Buy" call setting a target price of Rs 60 per share, implying a 20 percent upside from the current market price.
This follows Jefferies’ December coverage, which also assigned a "Buy" rating with a target price of Rs 52 per share. Akshay Chinchalkar, Head of Research at Axis Securities said "for the second consecutive instance, the mid-December breach of the 200-day moving average has proven to be a bear trap. However, sustaining the momentum is crucial, with immediate resistance levels pegged at 24,250 and a key barrier at 24,306.
On the downside, support is positioned at 24,000, extending further to 23,830." ONGC, Tata Motors, IndusInd Bank, Titan Company and SBI life Insurance were the top gainers on the Nifty. Laggards included Wipro, Hero MotoCorp, HDFC Bank, Tech Mahindra and Cipla.
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