India’s equity markets opened marginally higher on Wednesday. Nifty 50 traded at 21,836.30, up by 18.85 pts, or 0.09 per cent, as of 9.32 a.m., while BSE Sensex rose 126.52 pts, or 0.18 per cent, to 72,138.57.
Sectoral indices traded in a mix. Nifty IT recovered from yesterday, rising by 0.26 per cent to 35,906.35. Indices such as media, metal, consumer durables, pharma, healthcare and FMCG traded in red.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “There is a significant trend in the market decline yesterday. Nifty corrected by more than 1 per cent even when institutions were big buyers. DII buying was ₹7449 crore and FII buying was ₹1421 crore. TCS bulk sales by Tata Sons clouds this institutional activity. But the important point is that there has been profit booking by HNIs and retail investors, which pulled the market down. SEBI’s warning about elevated valuations in the broader market has played a role in this profit booking.”
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Commenting on the outlook for Nifty, Anand James, Chief Market Strategist, Geojit Financial Services, said, “Yesterday’s dips stretched a bit more than our comfort zone, but bargain buying was visible on expected lines which was just enough to stage an upswing. The day will take support from a firm opening and will attract follow through buying.”
Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “For the day traders now, 21900/72300 would act as a key resistance zone. Below the same, the correction wave is likely to continue till 21700-21600/71500-71400. On the flip side, above 21900/72300, the market could bounce back till 22000-22050/72500-72600. The current market texture is volatile hence level based trading would be the ideal strategy for the day traders.”
Stocks such as Eicher Motors (higher by 4.42 per cent), Maruti (2.47 per cent), BPCL (2.34 per cent), IndusInd Bank (1.75 per cent), and Bajaj Auto (1.46 per cent) emerged as top gainers, while Hindalco (1.78 per cent), UPL (1.51 per cent), Dr Reddy’s Laboratories (1.40 per cent), Grasim Industries (1.17 per cent), and Tata Steel (1.04 per cent) were major laggards.
Stocks to watch
DCB Bank stock declined by 0.71 per cent to trade at ₹118.20 as of 9.50 a.m., following receipt of order from RBI imposing a monetary penalty of ₹63.60 lakh on the bank for non-compliance with certain directions issued by RBI on ‘interest rate on advances.’
HDFC Credila has ceased to be a subsidiary of HDFC Bank.
Shares of Zomato rose 1.36 per cent to trade at ₹160.10 on the NSE after the launch of ‘pure-veg’ mode on its food delivery app.
Uniparts India has received an audit memo from Central Goods and Service Tax, Audit Commissionerate, Noida, with a tax demand of ₹2,64,044 along with 15 per cent interest and penalty of ₹39,607, tax demand pertaining to GST Audit for the FY 2020-21, FY 2021-22 & FY 2022-23. The shares traded at ₹536.45 on the NSE, up by 0.10 per cent as of 9.36 a.m.
Tata Steel stock declined by 1.31 per cent on the NSE as of 9.46 am to trade at ₹146.80 following the board’s approval to issue NCDs aggregating to ₹2,700 crore.
Univastu India stock rose 1.50 per cent on the NSE trading at ₹145.45 on receipt of order worth ₹57.13 lakh for construction of pavilion on the West Side with Changing Rooms, VIP Dias, Gymnasium along with development works at Assagao, Bardez, Goa.
Ramky Infrastructure Limited has secured two contracts with Greater Chennai Corporation, Chennai, Tamil Nadu, for reclamation of Kodungaiyur dumping ground through biomining. Shares inched up 0.73 per cent on the BSE as of 9.59 am to trade at ₹457.45.
Deccan Gold Mines stock surged 5.86 per cent on the BSE to trade at ₹109.35.