Benchmark indices closed lower for the second consecutive session on Wednesday. The market remained volatile through the day amid mixed global cues. Indices extended losses during closing hours, dragged primarily by healthcare, pharma, IT and FMCG stocks.
The BSE Sensex closed at 55,381.17, down 185.24 points or 0.33 per cent. It recorded an intraday high of 55,791.49 and a low of 55,091.43. The Nifty 50 closed at 16,522.75, down 61.80 points or 0.37 per cent. It recorded an intraday high of 16,649.20 and a low of 16,438.85.
Breadth remains positive
The market breadth, however remained positive with 1,844 stocks advancing on the BSE against 1,487 that declined while 131 remained unchanged. Furthermore, 11 stocks hit the upper circuit as compared to the six stocks that were locked in the lower circuit. Besides, 69 stocks touched a 52-week high level and 38 touched a 52-week low.
Investors remained concerned amid rising oil prices. On a positive note, India’s Purchasing Managers’ Index (PMI) for manufacturing sector changed a tad to 54.7 in May against 54.6 registered in April. As per the latest report, the labour market has improved in the manufacturing sector and is strongest since January last year.
Vinod Nair, Head of Research at Geojit Financial Services said, “Continuous rise in crude oil prices due to EU’s decision to partially ban Russian oil hindered global market. Indian economy registered a growth of 8.7 per cent in FY22 but is expected to slow down in FY23 to 7.2 per cent, as per the latest RBI forecast.”
“Auto sales data, posted by major manufacturers, witnessed growth in passenger and commercial vehicle segments due to pick up in the construction sector however two-wheeler and tractor segments continued to remain under pressure,” Nair added.
According to S Hariharan, Head Sales Trading, Emkay Global Financial Services, “In the very near-term, a rebound in crude oil prices poses a risk to the current account deficit and therefore, to expectations of INR depreciation. Hence, foreign investor flows would remain a headwind to the market, capping any meaningful upside in absolute terms in headline indices.”
JSW Steel, HDFC Life, Coal India, Kotak Bank and Mahindra & Mahindra were the top gainers on the Nifty 50 while Bajaj Auto, Apollo Hospitals, Hindalco, Tech Mahindra and Bajaj Finserv were the top losers.
Bank stocks in focus
On the sectoral front, while pharma, healthcare realty, IT and FMCG faced increased pressure, bank stocks gained focus
Nifty Healthcare Index was down 1.5 per cent at closing. Nifty Pharma, Nifty IT and Nifty Realty were down over 1 per cent each. Nifty FMCG closed nearly 1 per cent lower.
Meanwhile, Nifty PSU Bank closed 0.70 per cent higher. Nifty Bank and Nifty Private Bank were up 0.38 per cent and 0.32 per cent, respectively.
Broader indices
Broader market also faced pressure. Nifty Midcap 50 was up 0.18 per cent at closing while Nifty Smallcap 50 was down 0.23 per cent. The S&P BSE Midcap was down 0.10 per cent while the S&P BSE Smallcap was up 0.62 per cent.
The volatility index rose 1.79 per cent to 20.85.