Sensex, Nifty end flat after a volatile session

Our Bureau Mumbai | Updated on July 30, 2021

Metal, financials sectors stocks drag benchmarks

Benchmark indices erased all gains to end flat on Friday after a volatile trading session, dragged by metals and financials.

Market moved in a narrow range during the day, oscillating between losses and gains amid weak global cues.

The BSE Sensex closed at 52,586.84, down 66.23 points or 0.13 per cent. The Sensex moved in a narrow range between 52,910.23 and 52,533.91 during the day. The Nifty 50 closed at 15,763.05, down 15.40 points or 0.1 per cent. It hit an intraday high of 15,862.80 and a low of 15,744.85.

Breadth remains positive

The market breadth remained positive with 1,837 stocks advancing, 1,397 declining, and 133 stocks remaining unchanged on the BSE. While 477 stocks hit an upper circuit, 194 were locked in the lower circuit. As many as 458 stocks touched 52-week high level and 19 touched a 52-week low.

Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities traded in a range bound today, while sharp recovery in auto, pharma and realty stocks supported benchmark indices. Further, better than expected performance reported by Tech Mahindra and Sun Pharma helped stocks to see sharp up-move. However, financials remained soft today.”

“Notably, selling pressure in Asian markets led by mounting regulatory concerns about Chinese tech stocks weighed on sentiments this week. However, persistent soft monetary policy stance of Federal Reserve along with least possibility of any reversal of monthly bond buying in the near to medium term and recent softening of dollar index augur well for emerging markets including India,” added Modi.

Sun Pharma, Tech Mahindra, Cipla, Adani Ports and Shree Cements were the top gainers on the Nifty 50 while Bajaj Finance, Bajaj Finserv, Hindalco, State Bank of India and UPL were the top laggards

According to Vinod Nair, Head of Research at Geojit Financial Services market was also impacted by the global trend as Eurozone inflation in July rose to 2.2 per cent YoY above European Central Bank’s target. This impacted the European market and the Chinese market was fragile as well.

Sun Pharma, Tech Mahindra jump

Sun Pharma gained 10 per cent on the NSE after the company reported its financial results for the quarter ended June 30, 2021. It reported a consolidated net profit of ₹1,444 crore for the quarter as against a consolidated net loss of ₹1,655 crore in the year-ago quarter.

The company’s consolidated revenues in the quarter grew 28 per cent YoY to ₹9,719 crore, sharply above analysts’ expectations.

Tech Mahindra was up 7 per cent at closing on the NSE. The company on Thursday reported a 42.91 per cent growth in consolidated net profit at ₹1,365.7 crore in the June quarter owing to higher revenue and an expansion in profit margins.

Financials, metals under pressure

On the sectoral front, a majority of indices were in the green. Financials and metals came under pressure as pharma stocks rallied in the second half. Auto and IT stocks also gained.

Nifty Bank and Nifty Financial Services were down 0.31 per cent and 0.27 per cent, respectively.

Nifty Private Bank was down 0.17 per cent while Nifty PSU Bank was down 0.32 per cent. Nifty Metal was down 0.70 per cent.

While Nifty Pharma gained 3.63 per cent at closing. Nifty Auto was up 0.92 per cent. Nifty IT gained 0.36 per cent.

Broader indices outperform

Broader indices managed to retain gains, outperforming the benchmarks.

Nifty Midcap 50 was up 1.10 per cent while Nifty Smallcap 50 was up 0.46 per cent. The S&P BSE Midcap was up 0.52 per cent while the S&P BSE Smallcap was up 0.69 per cent.

The VIX, NSE's volatility index fell 1.10 per cent to 12.80.

Published on July 30, 2021

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