On the BSE, the metal index added 2.3 percent, the realty index rose 0.7 percent and the bank index gained 0.46 percent.
The Indian benchmark indices ended Monday’s volatile session (December 5) on a flat note as investors awaited RBI’s policy meeting outcome due on December 7.
At Close, the Sensex was down 33.90 points or 0.05% at 62,834.60, and the Nifty was up 4.90 points or 0.03% at 18,701.
The market began the week on a flat note with a negative bias and extended the losses as the day progressed. However, it remained volatile and saw a recovery in the second half amid buying in the metal, realty and PSU banking names. Besides, strong November Services PMI data, too, lent support to the bulls.
India’s services sector output growth touched a three-month high in November as the seasonally adjusted S&P Global India Services PMI Business Activity Index rose from 55.1 in October to 56.4 in November.
“Market continued its profit booking trend from the record high as they exercised prudence ahead of the RBI policy announcement on 7th December,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Partially, it was also due to increase in crude prices due to OPEC decision not to cut output target, and ease in China’s covid policy.”
“The IT sector witnessed the highest profit booking, while bank and metals outperformed. Market expects a 35bps rate hike compared to 50bps in the previous three meets in anticipation of a fall in inflation forecast,” he added.
Stocks and sectors
Apollo Hospitals, Tata Motors, Reliance Industries, Tech Mahindra and SBI Life Insurance were among the top Nifty losers. The gainers were Hindalco Industries, Tata Steel, UPL, ONGC and Coal India.
Among sectors, selling was seen in the Nifty auto, energy, information technology, and pharma, while PSU bank and metal indices rose more than 1 percent each.
The BSE midcap and smallcap indices performed in line with the main indices and ended on a flat note.
On the BSE, the metal index added 2.3 percent, the realty index rose 0.7 percent and the bank index gained 0.46 percent. However, selling was seen in the auto, healthcare and information technology stocks.
Among individual stocks, a volume spike of more than 200 percent was seen in Navin Fluorine International, Can Fin Homes and Piramal Enterprises.
A long build-up was seen in Mahindra & Mahindra Financial Services, Piramal Enterprises and Aditya Birla Capital, while a short build-up was seen in BHEL, Dalmia Bharat and TVS Motor Company.
More than 150 stocks touched their 52-week high on the BSE, including Dhanlaxmi Bank, Exide Industries, IDFC, IDFC First Bank, DCB Bank, ITD Cementation India, JK Lakshmi Cement, JK Tyre & Industries, Karnataka Bank, SJVN, Aditya Birla Capital and Cummins India.
Outlook for December 6
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Markets were extremely range-bound with a negative bias with most of the Asian indices too closing on a sluggish note. Investors are keeping a low profile ahead of RBI’s credit policy meeting this week, while the lack of fresh triggers from global markets, too, has been a dampener.
Another factor could be the recent rally was too fast-paced and hence nobody wants to risk taking long-only bets.
Technically, after the early morning selloff, the Nifty took support near 18,600 and reversed sharply. However, the short-term texture of the market is still non-directional.
We are of the view that 18,600 could act as a sacrosanct support zone for the market. If the index trades above the same, it could retest 18,800-18,850 in the near future. On the flip side, below 18,600, the index could slip to 18,500-18,450.
Ajit Mishra, VP – Technical Research, Religare Broking
Markets made a muted start to the week and ended almost unchanged. After the flat start, the Nifty index oscillated in a narrow range and finally settled at the 18,701 level. Meanwhile, a mixed trend on the sectoral front kept the participants busy wherein buying in metal, banking and realty space capped the downside.
Amid all this, the positive bias on the broader front pushed the market breadth to the advancing side.
We’re seeing consolidation on the expected lines, which is healthy after the recent surge. We expect the resumption of the trend soon. Meanwhile, focus on sectors that are attracting buying interest on every dip and select the stocks accordingly.
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