The Nifty50 index ended 0.2 per cent lower at 18,017.2 points, while the BSE-Sensex closed at 60,352.8 points, down 0.1 per cent.
While benchmark indices were lackluster throughout the sessions, investors of newly-listed company
were overjoyed. The stock was listed with over 80 per cent premium to its issue price earlier today as it became another successful startup to list on the bourses.
That said, Paytm saw its initial public offering finally clear the 100 per cent mark with a late push from foreign portfolio investors. The issue, the largest in India’s history, had struggled to generate the sort of buzz that Nykaa or Zomato had done.
Cues from the global market were a mixed bag with most other Asian markets closing in the red, while European equities started in the green.
“I would say that even if there’s a slight correction going forward, in the long term it’s probably a good thing for the market. I would be content if the markets were to stop rallying and remain range-bound in a 10-15% range over the next 12 months. We should look forward to some normalcy now,” said Nikhil Kamath, co-founder at alternate investment fund True Beacon.
The dour sentiment percolated even to the broader market, which has recently outperformed the largecap indices. The Nifty Midcap 100 and Nifty Smallcap 100 index closed 0.4 per cent and 0.1 per cent lower, respectively.
The losses in the market were largely led by shares of financial services companies with the Nifty Bank index shedding 0.9 per cent and the Nifty PSU Bank index falling over 2.3 per cent in the session. Despite strong September quarter earnings, the sector is unable to drive the same enthusiasm as the IT sector has for its prospects.
That said, only pharmaceutical stocks caught investors’ attention in the session as investors sought some defensive stocks to add to their portfolio. The Nifty Pharma index closed the day with gains of 0.2 per cent.
Shares of India Cements plummeted more than 5 per cent after the company reported weak earnings for the quarter ended September.
Bank of Baroda’s stock also fell over 5 per cent as investors were unimpressed by the company’s September quarter earnings, which analysts said were a mixed bag.
Overall the breadth of the market was bearish as declining stocks outnumbered advancing ones on the National Stock Exchange.
