Cues from global markets were also less supportive as stocks from Tokyo to London were blinking red as investors took some profits after recent gains in global equities.
For the day, the Nifty50 index ended 0.3 per cent, or 39 points, lower at 14,834.9, while the BSE-Sensex closed at 49,591.32, down 155 points or 0.3 per cent.
In the broader market there was more resilience as the Nifty Midcap 100 and Nifty Smallcap 100 index closed 0.2 per cent and 0.5 per cent higher.
Here are the major movers in today’s session:
Defensive stocks have a stellar day
Shares of stocks belonging to defensive sectors like IT, pharmaceuticals and fast-moving consumer goods saw the biggest gains at the expense of more cyclical ones such as metals and banks. The rotation is reflective of market’s concerns that rising uncertainty due to COVID-19 is likely to linger for the time being. Nifty IT, Nifty Pharma and Nifty FMCG index ended 1-3 per cent higher.
Cadila Health-Dr Reddy’s surge on vaccine hopes
Shares of Cadila Health and Dr Reddy’s Laboratories rose today on hopes that the government will soon approve their respective COVID vaccines amid rising shortages in the country. Cadila Health’s in-house vaccine in currently completely phase-III trials, while Dr Reddy’s has applied for a limited use approval of Sputnik V vaccine.
Fertilisers stocks get a shocker
Shares of fertilizer companies fell after the government said it will not allow the recent hike in prices keeping in mind the interests of farmers. On Thursday, shares of fertilizer companies rose after IFFCO raised prices of some chemicals.
PSU banks shrug off weakness
Shares of state-owned banks managed to shrug-off the weakness seen in private sector lenders as investors were enthused by progress on the government’s privatization plans. Media reports that Niti Aayog and finance ministry will meet next week on privatization of some banks raised investor spirit. The Nifty PSU Bank index rose 2.1 per cent.
What gave buy signal?
Despite weakness in headline indices, as many as 112 stocks listed on the NSE gave buy signals based on MACD indicators. The list included PNB, JSW Energy, Zee Entertainment Enterprises, and Kotak Mahindra Bank.
What’s ahead for the market?
Traders sold both the out-of-money call and put options of Nifty50, suggesting that they are indecisive over the direction of the market in the coming days. In the futures segment, traders added short positions in the April contract of the Nifty50 as open interest rose 7.6 per cent.
“It is crucial for this level to be taken out in the coming week as that would signal an up move to 15,300-15,400. If the support of 14,400 is broken, we will revisit the previous lows of 14,200 and can drift further to 13,900,” said Manish Hathiramani, technical analyst at Deen Dayal Investments.
