Auto, Financials, Realty in focus; IT, Pharma under pressure

The market broke the six-day losing streak with benchmark indices closing higher amid volatility  on Monday. It had opened on a positive note, tracking global cues and remained volatile through the day, oscillating between gains and losses. Indices closed in the green, led by financials and auto.

The BSE Sensex closed at 52,973.84, up 180.22 points or 0.34 per cent. It recorded an intraday high of 53,428.28 and a low of 52,632.48. The Nifty 50 closed at 15,842.30, up 60.15 points or 0.38 per cent. It recorded an intraday high of 15,977.95 and a low of 15,739.65.

Breadth remains positive

The market breadth remained positive with 2,232 stocks advancing on the BSE as against 1,165 that declined while 180 remained unchanged. Furthermore, 17 stocks hit the upper circuit as compared to the 4 stocks that were locked in the lower circuit. Besides, 67 stocks touched a 52-week high level and 98 touched a 52-week low.

The volatility index rose 4.43 per cent to 24.53 as investors remained cautious.

S Ranganathan, Head of Research at LKP securities said, “Autos & banks helped benchmark indices stay in the green today as rising inflation and its impact on discretionary spending kept investors worried. The broader markets witnessed keen interest in companies likely to post good numbers during the first quarter of the current fiscal. Diagnostic & Pathology firms witnessed profit taking ahead of their Q4 earnings on the back of high competitive intensity”

According to Vinod Nair, Head of Research at Geojit Financial Services,”Continued selling by FIIs as they chase high yield US bonds restricts the Indian market to hold on to its pull-back rally, despite interest from the domestic investors.’

Eicher Motor, Apollo Hospitals, UPL, NTPC and State Bank of India were the top gainers on the Nifty 50 while Shree Cement, Ultratech Cement, Asian Paints, ITC and DIvi’s Lab were the top losers.

IT, FMCG, Pharma under pressure

On the sectoral front, while financials, realty, auto, metals and oil & gas stocks gained, IT, FMCG, consumer durables and pharma dragged. 

Nifty PSU Bank and Nifty Reaty closed nearly 3 per cent higher each. Nifty Auto was up over 2 per cent while Nifty Private Bank was up 1.5 per cent. Nifty Bank and Nifty Financial Services were each up over 1 per cent. Nifty Metal closed 0.88 per cent higher while Nifty Oil & Gas was up 0.45 per cent. 

Meanwhile, Nifty IT was down 0.75 per cent. Nifty FMCG and Nifty Consumer Durables were down 0.35 per cent and 0.16 per cent each. Nifty Pharma was down 0.17 per cent while Nifty Healthcare Index was down 0.11 per cent.

Broader indices

The broader indices closed in the green outperforming the benchmarks with midcaps gaining focus.

MNifty Midcap 50 was up 1.59 per cent at closing while Nifty Smallcap 50 was up 0.87 per cent. The S&P BSE Midcap was up 1.51 per cent while the S&P BSE Smallcap was up 1.15 per cent. 

Published on May 16, 2022