After two days of gains, the stock market opened lower on Thursday, but buying resumed later in the day after the Economic Survey was presented in Parliament. The market closed in the green for the third consecutive day. Nifty closed 76 points higher at 25,419, while Sensex closed 222 points higher at 82,566. Bank Nifty closed 359 points higher at 59,958. In the currency market, the rupee weakened by 17 paise against the dollar and closed at 91.96/$.
Meanwhile, light buying was seen in mid-cap and small-cap indices. Nifty Mid Select closed 42 points higher at 13,424, while Nifty Smallcap index closed 34 points higher at 16,825. Selective buying was seen throughout the day amid market volatility, but some sectoral indices, such as IT and FMCG, also saw sharp selling.
Who benefited, who suffered loss?
Among blue-chip stocks, L&T, Tata Steel, Coal India and Axis Bank shone the brightest. L&T rose by about 3.9%, Tata Steel by 3.8%, Coal India by 3.7% and Axis Bank by 3.3%, making them the top gainers in Nifty 50. The index got support from buying in these shares. On the other hand, some large-cap stocks remained under pressure. Asian Paints fell by about 3.7%, SBI Life by 3%, InterGlobe Aviation by 2.8% and Maruti Suzuki by 2.5%.
There was a strong reaction among the stocks whose results were out. Sharda Cropchem gained nearly 14%, while Gland Pharma gained 7%. In contrast, Canara Bank fell by about 5% and KPIT Technologies fell by about 4.8% after weak results.
How was the mood of the market throughout the day?
Sensex and Nifty were trading well above their day’s lows amid strong GDP growth estimates. Before the close, Sensex recovered over 800 points from its intraday low, while Nifty was also up around 260 points. The index was trading above 25,400. Bank Nifty gained 300 points. IT and FMCG indices also managed to recover from their intraday lows. At around 1 pm, the Sensex was trading 103 points lower at 82,241. Nifty was down 35 points at 25,307, having earlier touched a low of 25,159. Bank Nifty was up 176 points and the index stood at 59,779.
Initially, all three benchmark indices – Sensex, Nifty and Bank Nifty – opened in the red. The Sensex was down 250 points, and the Nifty was down 70 points. Bank Nifty also saw a fall of 170 points. However, in early trade, the market showed signs of recovery from its intraday low but traded in the red. India VIX rose 1.23%. Meanwhile, small-cap stocks witnessed good gains today.
If we look at sectoral indices, buying trend was seen in Metal, Realty and Oil and Gas indices. All other indices were in the red. Decline was seen in IT, Auto, FMCG, Private Bank, Healthcare, Pharma and NBFCs. On Nifty 50, L&T, Hindalco, Tata Steel, Power Grid, JSW Steel, NTPC and Coal India were the top gainers. The biggest declines were seen in Maruti, Dr Reddy’s, Asian Paints, Titan, HUL, TCS and Tata Consumer.
Some uncertainties remain on both the global and domestic fronts. Record breaking gains in gold and silver, rising crude oil prices due to Middle East tension, and the stance of the US Fed are giving mixed signals to the global markets. Meanwhile, GIFT Nifty is showing weakness, which may lead to volatility at the opening.
Fed kept interest rates unchanged
After reducing rates three times in a row, the US Federal Reserve has kept interest rates unchanged this time. Fed Chairman Powell said that the growth outlook is strong, but caution is needed regarding inflation. Looking at the market impact, the S&P 500 closed flat after hitting lifetime highs intraday. The Nasdaq rose nearly 40 points to a three-month high. However, the Dow closed near the day’s low, up just 12 points.
GIFT Nifty and futures signals
This morning, GIFT Nifty is trading below 25,400, down almost 80 points. Dow futures are also down about 150 points. This suggests that the domestic market may open under some pressure.
Historic rise in gold and silver
In the domestic market, gold hit a record high and hit a new all-time high of ₹1,66,500. Silver has also jumped to a new all-time high near ₹3,88,000. In the international market, gold made a record jump of almost $400 to hit a life time high above $5,625. Silver also gained 11%, reaching above $119 for the first time. Safe-haven demand and geopolitical tensions are providing strong support to metals.
