The Nifty50 index slumped 0.7 per cent, or 104.6 points, to 15,208.9, while Sensex closed at 51,703.8, down 0.8 per cent or 400 points.
The losses in the benchmark indices were led by weakness in shares of private banks and fast-moving consumer goods companies due to likely rotation of funds towards midcaps and smallcaps, said dealers.
In the broader market, the Nifty Midcap 100 and Nifty Smallcap 100 index outperformed their large cap peers as they closed 0.3 per cent and flat, respectively.
Here are the major movers in today’s session:
Happiest Minds soars on Nomura’s views
Shares of the midcap IT company jumped 20 per cent after brokerage firm Nomura Financial Advisory and Securities India initiated coverage on the stock with a buy rating and a price target of Rs 480, which the stock surpassed in today’s session itself.
NCC surges on management’s optimism
Shares of NCC surged 10 per cent after the company’s management suggested that its topline could grow upwards of 30 per cent in the next financial year given its strong order book. The company is also expected to be a major beneficiary of the government’s renewed focus on capital expenditure.
FMCG stocks slump on valuation worries
Shares of fast-moving consumer goods companies slumped with Nestle India leading the pack as concerns over their rich valuations gripped investors. Further, dealers said that some investors moved funds out of the sector for investment in midcap and smallcap stocks where they see higher return potential. Nifty FMCG index fell 0.6 per cent.
hit record high as investors cheer guidance
Shares of the diagnostic company hit their record high during the session before settling 8.7 per cent higher as the company’s commentary on future prospects cheered investors. Dr Lal Pathlabs told analysts at Kotak Institutional Equities that it has now entered growth mode after recovering from COVID-19’s impact.
PSBs rally extends on divestment buzz
Shares of some state-owned lenders continued their gains from Monday as investors were optimistic about the prospects of the government privatising some of these banks in the coming financial years. The prospect of improving earnings and likely open offer from new investors boosted outlook for these banks.
What gave buy signal?
Despite a weakness in the headline indices, as many as 40 stocks on the National Stock Exchange gave buy signal based on MACD indicators including Bank of Baroda, UCO Bank, South Indian Bank, and Rajesh Exports.
What’s ahead for the market?
Aggressive buying in the 15,000 strike price Put option of Nifty50 expiring on Thursday by traders indicated that they expect the index to test that level in the coming sessions. In the Nifty50’s February futures contract, traders added short positions.
“We’re seeing healthy corrections however there’s no shortage of trading opportunities. We thus reiterate our view to focus more on stock selection and using dips to add quality stocks. On the benchmark front, Nifty has next support at 15,050 levels,” said Ajit Mishra, vice president of research at Religare Broking.
