The US Federal Reserve's interest rate decision, quarterly earnings of corporates and domestic macroeconomic data will influence trading in the equity market in a holiday-shortened week ahead, analysts said. Foreign funds' trading activity, monthly automobile sales data and global trends would also guide market movement this week, they added. Markets would remain closed on Monday on account of 'Maharashtra Day'.
Sensex, Nifty end the day in red on unfavourable cues from global markets.
The positive bias was aided by metal, realty and auto indices
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
The Sensex soared 402 points higher to end at 25,720 and the Nifty surged 130 points to close at 7,819.
An aggressive rate hike by the US Fed and the possibility of a recession can trigger a slide in these stocks, which will be a good opportunity to buy from a long-term perspective.
The Nifty and Bank Nifty ended at record closing high of 7,913 and 15,865 respectively.
Two firms belonging to the Adani group - India's most valued conglomerate - are part of the Nifty 50 index. The group, however, has no representation in the Sensex. And it could stay this way if a proposed index qualification rule change gets approved. Recently, Asia Index, a joint venture between S&P Dow Jones Indices and BSE responsible for index composition, floated a consultation paper where it proposed that a stock must have a derivative contract to be eligible for inclusion in the flagship 30-share Sensex index.
The index had risen over 585 points in the previous three sessions.
Among the gainers, Sun Pharma topped by rising 3.03 per cent as the weak rupee tempted buyers to accumulate shares of pharma exporters.
On the BSE, 1,650 shares declined and 1,188 shares rose
From the Sensex firms, Tech Mahindra jumped 5.58 per cent, followed by Nestle, Tata Steel, NTPC, Tata Consultancy Services, Asian Paints, Wipro and Bajaj Finserv. Mahindra & Mahindra, Hindustan Unilever, Axis Bank and Bajaj Finance were among the major laggards.
Traders said falling crude prices in the global market was a big boost for the economy as it lightens the country's import bill burden, eases inflation and current account deficit concerns.
From the Sensex pack, State Bank of India, ICICI Bank, IndusInd Bank, Axis Bank, Kotak Mahindra Bank, HDFC Bank, Reliance Industries were among the major laggards. Bucking the trend, auto stocks Tata Motors and Mahindra & Mahindra closed with gains.
The sentiment got support from better-than-expected earning results by select companies and continuous buying by domestic financial institutions.
'The risk is in not being invested and missing out on an upmove.'
Benchmark equity indices Sensex and Nifty gave up early gains to close down by over 0.8 per cent due to fag-end selling in Axis Bank, Reliance Industries and Infosys. The 30-share BSE benchmark plummeted 460.19 points or 0.80 per cent to end at 57,060.87 despite a firm opening. During the day, it hit a high of 57,975.48 and a low of 56,902.30. The NSE Nifty tanked 142.50 points or 0.83 per cent to 17,102.55.
Investor sentiments remained upbeat tracking global developments as the US, China geared up for trade talks due this week.
On the sectoral map, consumer durables stayed in the lead by surging 2.39 per cent, followed by realty index, oil and gas and infra.
Since infrastructure projects have long gestation periods, investors need to enter them with a long horizon of at least 10 years.
'Such big falls are quite frequent these days, so do not try to time this market.' 'Use big dips to accumulate quality stocks.'
Financial shares were among the top gainers with HDFC leading the gains.
The Sensex closed the day at 27,490, higher by 479 points and the Nifty ended at 8331.95, up 150.45 points.
Stocks of small- and mid-cap companies continued to gain ground in July, notwithstanding analysts sounding caution on these two market segments given the sharp run thus far in calendar year 2023 (CY23). Sanjeev Prasad, co-head of Kotak Institutional Equities, in a note co-authored with Anindya Bhowmik and Sunita Baldawa in June-end, had cautioned against the sharp run in small- and mid-caps. "We do not see any particular reason for the excitement in small- and mid-cap stocks.
Sensex closed over 118 points down on Thursday.
On the BSE, 1,493 shares declined and 1,236 shares rose. A total of 177 shares were unchanged
The law of diminishing returns catches up as one goes up the ladder.
Weak GDP data and unfaouvrable global data has pulled down Sensex, Nifty.
As per BSE website, Infosys is now the top holding in 30-share S&P BSE Sensex, followed by ITC.
Invest only if you wish to go overweight on the sector.
Companies in the small-cap universe are having a dream run - the Nifty Smallcap 100 index has shot up more than 25 per cent on a year-to-date basis, even as the benchmark Nifty is up 7 per cent. This is the best start for the index since 2017 when the Nifty Smallcap 100 index surged 32.3 per cent between January 1 and May 10. However, in terms of outperformance to the Nifty, this year's performance is the best in more than a decade. A combination of sectoral tailwinds and lack of institutional selling pressure has helped small companies escape from the correction triggered by the second wave of Covid-19.
'Very few of small investors stay invested for those three or four or five years.' 'If there's like a six month, one-year period when market is not doing well, you exit.' 'After the market has run up, you get in again.' 'This way you will never make returns.'
Brokerages expect Nifty50 firms to post 11.8% growth in net profit in Q1 but sales may decline
Banking stocks felt the heat due to worries that the lending rate cuts will hit their bottom line
The Nifty has gained 2.6% so far this week, while the Sensex has climbed 2.85%
Top losers in the Sensex pack include Bharti Airtel, Infosys, Asian Paints, RIL, Coal India, HDFC Bank, HDFC, TCS, ONGC and M&M, falling up to 3.09 per cent.
The stock of Divis Laboratories is up 10 per cent over the last couple of trading sessions on expectations that the worst is behind and the company could see a sequential growth in the March quarter of the 2022-23 financial year (Q4FY23). The stock witnessed the highest downgrades among Nifty50 index stocks with earnings cuts over a third after the Q3FY23 results. The company had posted a 32 per cent drop in revenues over the year ago quarter in Q3FY23 and 8 per cent sequentially, which was sharply lower than Street expectations.
"What would be your advice for investors?" 'Keep it simple. Don't panic.'
The BSE Midcap and Smallcap indices have performed better than the front-liners
Major losers include Lupin 1.96 per cent, along with Tata Motors, Coal India and Sun Pharma.
