The new week started with big ups and downs for the domestic markets. Markets started off weak in the morning, but then climbed back up throughout the day’s trading. The markets closed with a good recovery. Sensex closed at 83,277, up 650 points. Nifty closed at 25,683, up 212 points. Nifty Bank closed at 60,949, up 762 points. Rupee weakened by 2 paise and closed at 90.65/$.
Amid the recovery, mid- and small-cap indices closed unchanged. Nifty Mid Select closed 13 points higher at 13,641 and Nifty Smallcap closed 18 points higher at 17,050. However, capital markets and brokerage stocks remained under pressure due to RBI’s draft regulations, while PSU and banking stocks supported the market.
Pressure on market infrastructure shares due to RBI draft
Broking and market infrastructure shares fell on RBI’s draft of new funding rules. Shares of BSE Ltd fell 6.8%, while shares of Angel One Ltd fell 4.2% and Share India Securities Ltd fell 4.1%. Nuvama Wealth Management Ltd also closed down 1.7%. The new regulations are expected to make funding expensive and difficult for brokers, which will put pressure on the sector.
PSU and banking stocks performed well in Nifty 50. Power Grid Corporation of India Ltd became the top gainer, rising 4.5%. Coal India Ltd gained 3.4%, HDFC Bank Ltd gained 2.5% and Adani Enterprises Ltd gained 2.2%. The market got support from buying in these shares.
Weakness in IT and auto stocks
On the other hand, selling pressure was seen in IT and auto stocks. Tech Mahindra Ltd was the top loser, falling 1.9%. Bajaj Finance Ltd, Maruti Suzuki India Ltd and Mahindra & Mahindra Ltd also closed with weakness. At 1:30 pm, the Sensex was trading 289 points higher at 82,915. Nifty was up by about 100 points at 25,568. A strong rally was seen in Bank Nifty, which increased by 525 points to reach 60,710. Nifty Midcap and Smallcap indices were also slightly up.
Big action in stocks due to news and results
Tremendous movement was seen in many stocks on the basis of news. Natco Pharma Ltd closed with a gain of 7% and GMR Airports Ltd gained 6.5%. Recently listed Fractal Analytics Ltd fell 4.9%, while Kwality Walls (India) Ltd closed slightly weaker. Stocks reacted quickly after quarterly results. Shares of Brainbees Solutions Ltd fell 11%, while Jamna Auto Industries Ltd rose 7.8%. Also, Ola Electric Mobility Ltd fell 6.1%, while Torrent Pharmaceuticals Ltd gained 4.2%. Today’s top gainers were Engineers India Ltd. up 10.2%, Rallis India Ltd. up 8%, Cartrade Tech Ltd. up 6.1% and DCX Systems Ltd. up 4.9%. On the other hand, Ahluwalia Contracts (India) Ltd was down 11.9%, Blue Jet Healthcare Ltd was down 10%, Shoppers Stop Ltd was down 6.2% and Avanti Feeds Ltd was down 5.3%.
