Morning market: Sensex, Nifty open lower ahead of RBI’s policy decision

Benchmark indices traded marginally lower on Friday’s morning trade. BSE Sensex traded at 74,063.24, down by 164.39 or 0.22 per cent as of 9.30 am, and Nifty 50 traded at 22,478.55, down 36.10 or 0.16 per cent.

The Reserve Bank of India (RBI) will be announcing its monetary policy decision today.

Commenting on the nifty outlook, Anand James, Chief Market Strategist, Geojit Financial Services, said, “Yesterday’s long tail suggests rejection of bears, but given yesterday’s volatility, we feel that a pivot centric approach may be better than eying range extremes for directional moves. Towards this end, we will begin the day with positive bias, but only as long as above 22530, and will be willing to reverse only if below 22430. Though the 22350 region was briefly penetrated yesterday, we prefer to continue seeing it as a firm support. Alternatively, penetration of the same could expose 22190-22000, but its odds are low.”

Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “Currently, the market is witnessing non-directional activity, taking support near 22350-22300/73500-73300 and facing selling pressure near 22550-22630/74400-74600. For the bulls, 22550/74400 and 22630/74600 would act as key resistance areas. After the dismissal of 22630/74600, the market could rally up to 22730-23000/75000-75500. On the flip side, below 22300/73500, the market could retest the level of 22250-22200/73300-73100.”

Sectoral indices traded in a mix. Nifty pharma, healthcare, realty, consumer durables, FMCG, PSU Bank and financial services traded in green.

The stocks that were top gainers on the NSE were Dr Reddy’s Laboratories (higher by 1.91 per cent), SBI Life (1.22%), HDFC Bank (0.83%), M&M (0.76%), and Cipla (0.63%). Meanwhile, BPCL (-2.31%), Tata Steel (-1.29%), JSW Steel (-1.25%), Hindalco (-1.13%), and L&T (-1%) were the major laggards.

Stocks to watch

Voltas stock hit a 52-week high at ₹1,236, currently trades at ₹1,222.30, up 0.36 per cent as of 9.46 am.

ICICI Prudential Life Insurance Company stock traded higher by 2.86 per cent at ₹623.05. The stock hit a 52-week high today at ₹630.

Puravankara Ltd has recorded annual sales of ₹5,914 crore in FY24, up by 90 per cent compared to ₹3,107 crore in FY23. Stock rose 2.90 per cent to trade at ₹237.55.

Sheela Foam Ltd has received an order from the District Consumer Disputes Redressal Commission, East Delhi, in favor of the company in the matter of an insurance claim. The company has been awarded compensation amounting to ₹21,38,77,055, along with an interest rate of 10% from the date of rejection, i.e., July 27, 2020. Additionally, the company has been granted ₹7,50,000 for mental anguish and losses, and ₹2,50,000 for legal expenses. Shares jumped 6.50 per cent to trade at ₹1,008.55.

Macrotech Developers Ltd, in Q4FY24, recorded pre-sales of ₹42.3 billion, up 40% on y-o-y basis. Lodha stock rose 1.03% on the NSE trading at ₹1,150.

Cipla informed that the Good Manufacturing Practices (cGMP) inspection was conducted by USFDA at the manufacturing facility located in Patalganga, Maharashtra. On conclusion of the inspection, the Company has received six inspectional observations in Form 483. Stock inched up 0.57 per cent to trade at ₹1,467.85.

Zee Entertainment Enterprises Ltd informed that Punit Misra, President – Content & International Markets, has decided to step down as he has expressed his desire to pursue interests outside the organisation.

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