India Stocks Review
Profit booking in final hours pulls indices lower
This story was originally published at 18:58 IST on 11 September 2024
Register to read our real-time news.Informist, Wednesday, Sep 11, 2024
By Anshul Choudhary
MUMBAI – Investors took out profits in the final two hours of today's session on caution ahead of the US CPI data, due later today. The inflation metric is extremely important to get a sense of what the US Federal Reserve may decide about interest rates next week, analysts said.
The previous two days of gains had given hopes that the Nifty 50 may begin to rise again after witnessing a decline last week. However, high valuations pushed investors to book some profits ahead of the inflation data, which may lead to volatility on Thursday.
The Nifty 50 lost a major part of the gains it accumulated in the previous two sessions and ended at 24918.45 rupees, down 0.5%. "The index rose (in previous two sessions), but still failed to cross resistance levels several times and that became negative sentimentally," Kapil Shah, technical analyst at Emkay Global Financial Services said.
For this week, analysts had been iterating 25100–25150 points as resistance and the index has largely failed to surpass these levels so far. Even today, profit booking intensified after the Nifty 50 rose to 25113.70 points and the selling led to the index closing nearly 200 points lower from the intraday high.
Selling was seen across most sectors, including automobile, financials, energy, and information technology. Further, losses were seen across large-cap, mid-cap, small-cap stocks, with the number of losers higher than gainers. Today, 1,798 stocks declined on the National Stock Exchange, as against 1,019 advances.
Earlier in the day, benchmark indices opened largely flat as global markets failed to provide significant cues. Reactions in the morning were mostly stock-specific, with the overnight fall in crude oil prices leading to initial gains in oil marketing companies and paint makers, and losses in oil exploration companies. As the day moved forward, profit booking intensified and losses turned more broad-based.
On Tuesday, the Brent crude futures fell below $70 per barrel, their lowest level since December 2021. Today, prices bounced back slightly and at 1622 IST, the November futures of the Brent crude traded at $70.83 per bbl, up 2.2%.
Shares of Asian Paints, which uses crude oil as a key raw material, rose 2.2%. The stock was up for the ninth straight session and these gains have coincided with the fall in crude prices recently. Since the start of this month, Asian Paints has risen 7.7% and crude futures have declined nearly 9%. At the same time, lower crude oil prices are seen as negative for Oil And Natural Gas Corp, which declined 3.5% today, taking its overall losses to nearly 14% this month.
Lower crude oil prices are seen as a positive for fast-moving consumer goods companies, which can help control cost as prices of other raw materials such as cocoa have risen. Shares of Britannia Industries ended 0.7% higher and those of Hindustan Unilever gained 0.2%.
Information technology stocks saw profit booking ahead of the US CPI data. It is widely expected the Fed will cut rates next week, which will help boost demand for IT services. But there is no consensus over the quantum of rate cut. Uncertainty over interest rates in the US stems from worries of recession in the country, which may hurt IT companies' business. Today, shares of Wipro fell 2% and those of LTIMindtree closed 0.7% down.
Shares of Tata Motors declined to 976.30 rupees, down nearly 6%. The stock fell after UBS Securities raised concerns over increasing discounts for Jaguar Land Rover models and predicted more discounts on Range Rover soon. The brokerage maintained its "sell" rating on the stock with an unchanged target price of 825 rupees, as per media reports.
Even Tata Motors is facing issues with demand slowing down for its passenger vehicle business. To clear inventories, the company had to announce discounts earlier this week. "The current inventory level, at 75 days of sales, is high while a few OEMs (Maruti Suzuki and Mahindra & Mahindra) kept their inventory level at 40 days of sales, but in the case of Tata Motors and others it is very high," InCred equities said in a note today.
* Of the Nifty 50 stocks, 16 rose and 34 fell
* Of the Sensex stocks, 6 rose and 24 fell
* On the NSE, 1,019 stocks rose, 1,728 fell, and 88 were unchanged
* On the BSE, 1,603 stocks rose, 2,368 fell, and 99 were unchanged
* Nifty Oil & Gas: down 1.9%; Nifty PSU Bank: up 1.8%; Nifty FMCG: up 0.3%
BSE NSE
Sensex: 81523.16, down 398.13 points, or 0.5% Nifty 50: 24918.45, down 122.65 points, or 0.5%
| S&P BSE Sensitive Index | Nifty 50 |
| Lifetime High: 82732.95 (Sep 2, 2024) | : Lifetime High: 25333.65 (Sep 2, 2024) |
| Record Close High: 82559.84 (Sep 2, 2024) | : Record Close High: 25279.85 (Sep 3, 2024) |
| 2024 1st day close: 72271.94 (Jan 1) | : 2024 1st day close: 21741.90 (Jan 1) |
| 2024 Closing High: 82559.84 (Sep 2) | : 2024 Closing High: 25279.85 (Sep 3) |
| 2024 Closing Low: 70370.55 (Jan 23) | : 2024 Closing Low: 21238.80 (Jan 23) |
| 2024 High (intraday): 82732.95 (Sep 2) | : 2024 High (intraday): 25333.65 (Sep 2) |
| 2024 Low (intraday): 70001.60 (Jan 24) | : 2024 Low (intraday): 21137.20 (Jan 24) |
| 2023 1st day close: 61167.79 (Jan 2) | : 2023 1st day close: 18197.45 (Jan 2) |
| 2023 Closing High: 72410.38 (Dec 28) | : 2023 Closing High: 21778.70 (Dec 28) |
| 2023 Closing Low: 59288.35 (Feb 27) | : 2023 Closing Low: 17311.80 (Oct 17) |
| 2023 High (intraday): 72484.34 (Dec 28) | : 2023 High (intraday): 21801.45 (Dec 28) |
| 2023 Low (intraday): 58699.20 (Jan 30) | : 2023 Low (intraday): 17098.55 (Jan 17) |
| 2022 1st day close: 59183.22 (Jan 3) | : 2022 1st day close: 17625.70 (Jan 3) |
| 2022 Closing High: 63284.19 (Dec 1) | : 2022 Closing High: 18812.50 (Dec 1) |
| 2022 Closing Low: 51360.42 (Jun 17) | : 2022 Closing Low: 15293.50 (Jun 17) |
| 2022 High (intraday): 63583.07 (Dec 1) | : 2022 High (intraday): 18887.60 (Dec 1) |
| 2022 Low (intraday): 50921.22 (Jun 17) | : 2022 Low (intraday): 15183.40 (Jun 17) |
| 2021 Closing High: 61305.95 (Oct 14) | : 2021 Closing High: 18338.55 (Oct 14) |
| 2021 Closing Low: 46285.77 (Jan 29) | : 2021 Closing Low: 13634.60 (Jan 29) |
| 2021 High (intraday): 61353.25 (Oct 14) | : 2021 High (intraday): 18350.75 (Oct 14) |
| 2021 Low (intraday): 46160.46 (Jan 29) | : 2021 Low (intraday): 13596.75 (Jan 29) |
| 2020 Closing High: 47751.33 (Dec 31) | : 2020 Closing High: 13981.95 (Dec 30) |
| 2020 Closing Low: 25981.24 (Mar 23) | : 2020 Closing Low: 7610.25 (Mar 23) |
| 2020 High (intraday): 47896.97 (Dec 31) | : 2020 High (intraday): 14024.85 (Dec 31) |
| 2020 Low (intraday): 25638.90 (Mar 24) | : 2020 Low (intraday): 7511.10 (Mar 24) |
| 2019 High (intraday): 41809.96 (Dec 20) | : 2019 High (intraday): 12293.90 (Dec 20) |
| 2019 Low (intraday): 35287.16 (Feb 19) | : 2019 Low (intraday): 10583.65 (Jan 29) |
| 2018 High (intraday): 38938.91(Aug 28)) | : 2018 High(intraday): 11760.20 (Aug 28) |
| 2018 Low (intraday): 32483.8 (Mar 23) | : 2018 Low (intraday): 9951.9 (Mar 23) |
| 2017 High (intraday): 34005.37 (Dec 26) | : 2017 High(intraday): 10515.10 (Dec 26) |
End
US$1 = 83.98 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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