Informist, Monday, Dec 13, 2021
By Ankika Biswas and Abhishek Saini
MUMBAI – Selling pressure in banks, automobiles, consumer goods, and in index-heavyweight Reliance Industries saw the benchmark indices give up initial gains and close lower for the second day today. Both the indices fell nearly 1% intraday, and breached multiple support zones during the day.
The Nifty 50 index closed below the 17400-point mark as selling pressure intensified in the final hour of trade. Earlier in the day, the index briefly topped the 17600 point mark for the first time in 13 sessions amid positive global cues.
The Nifty 50 closed 0.8% lower at 17368.25 points, after testing a high of 17639.50 points and then falling to a low of 17355.95 points during the day. Similarly, the Sensex ended 0.9% lower at 58283.42 points, after moving between the day's low and high of 58242.80 points and 59203.37 points, respectively.
Given the selling pressure at higher levels, it will be imperative to watch if the Nifty 50 closes above its key hurdle of 17600 points for a fresh leg of upmove to kick in, said an analyst at a domestic brokerage firm. However, failing to do so may spur further profit booking, the analyst added.
The index had last closed above the 17600 mark on Nov 18.
The anxiety among investors was reflected in the volatility gauge India VIX closing 3% higher at 16.57 points, snapping a four-day fall.
However, on a day when the market sentiment was pretty weak, Tega Industries bucked the trend and the stock listed at a premium of 68% to its issue price of 453 rupees on the National Stock Exchange.
In view of today's gains, analysts recommend that new investors wait for a dip to buy the stock and long-term investors hold it. Those who have received the allotment should keep a stop loss of 690 rupees, they added.
While the losses were most prominent in banks, consumer goods, and energy, information technology stocks held their ground but came sharply off the day's high. Snapping a two-day losing streak, the Nifty IT index closed 0.3% up at 36050.55 points, off the intra-day high of 36507.30 points.
Shares of most media companies also fell prey to profit booking after four days of sharp gains, which saw the Nifty Media close 2% lower. The index had gained more than 10% in the past four sessions.
Selling pressure was also seen in the broader market with major small-cap and mid-cap indices on the NSE ending 0.1-0.3% lower.
Among specific stocks, Reliance Industries weighed down the benchmark indices, as the stock snapped its four-day gaining streak because of profit booking and closed 2% lower at 2,409.65 rupees.
Bajaj Finance fell more than 3% to close at 7,218.75 rupees and was the worst hit on the Nifty 50 after CLSA Asia Pacific Markets reportedly initiated coverage on it with a 'sell' rating and a target price of 6,000 rupees, implying a downside of over 17% from current price.
Consequently, shares of parent Bajaj Finserv also fell more than 2%.
On the other hand, Axis Bank was the biggest gainer on the Nifty 50 and the stock ended 2% higher as Goldman Sachs reportedly upgraded its rating to 'buy' from 'neutral'.
Minda Industries ended over 10% higher after the company announced an investment of 710 mln rupees in a joint venture with German company FRIWO AG to develop electronic vehicle components.
Shriram City Union Finance surged 10% intraday after merger of the company with Shriram Transport Finance Co was approved by the latter's board.
* Among Nifty 50 stocks, 15 rose and 35 fell
* Among Sensex stocks, 7 rose and 23 fell
* On the NSE, 1,007 stocks rose, 1,037 fell and 66 were unchanged
* On the BSE, 1,912 stocks rose, 1,554 fell and 171 were unchanged
* Nifty Metal: Down 0.3%; Nifty Bank: Down 0.5%; Nifty IT: Up 0.3%
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BSE National Stock Exchange
Sensex: 58283.42, down 503.25 pts (0.9%) Nifty 50: 17368.25, down 143.05 pts (0.8%)
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S&P BSE Sensitive Index Nifty 50
Lifetime High:62245.43 (Oct 19) : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18) : Record Close High: 18477.05 (Oct 18)
2021 1st day close: 47868.98 (Jan 1) : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 61765.59 (Oct 18) : 2021 Closing High: 18477.05 (Oct 18)
2021 Closing Low: 46285.77 (Jan 29) : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 62245.43 (Oct 19) : 2021 High (intraday): 18604.45 (Oct 19)
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)
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US$1 = 75.77 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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