Sensex drops 440 pts on Thursday; Nifty ends July F&O series 3.6% higher

CLOSING BELL ON JULY 27, 2023: Sectorally, auto and energy shares bore brunt of the selling, while pharma and realty stocks ended with smart gains on Thursday.

Stock Market Highlights: The key benchmark indices witnessed significant volatility on Thursday after the US Federal Reserve Reserve hiked interest rates in-line with the markets' expectations by 25 bps. The monthly F&O expiry for the July series also weighed on the sentiment.

The NSE Nifty 50 touched a high of 19,868, and then reversed course and plunged to a low of 19,604 –down 264 points in intra-day deals. The NSE benchmark finally ended 118 points lower at 19,660. However, the Nifty 50 signed-off the July F&O series with a strong 3.6 per cent gain.

Meanwhile, the S&P BSE Sensex had rallied to a high of 66,984 and was up 277 points at the high point of the day. Thereafter, the BSE index slipped into red and tumbled to a low of 66,061 – down 932 points from the day’s high. The Sensex eventually ended the day with a loss of 440 points at 66,267.

Among the Sensex 30 stocks, Mahindra & Mahindra (M&M) cracked over 6 per cent after the company picked up a 3.53 per cent stake in private sector lender RBL Bank for Rs 417 crore. READ MORE

Tech Mahindra shed 4 per cent post Q1 results. Nestle, Bajaj Finance, Axis Bank, JSW Steel, Kotak Mahindra Bank, ITC and Reliance Industries were down 1 – 2 per cent each. On the positive side, Sun Pharma gained 2 per cent. Tata Motors, Bharti Airtel and Larsen & Toubro were the other visible gainers.

Sectorally, auto and energy shares bore brunt of the selling pressure on Thursday, while pharma and realty stocks bucked the trend. The BSE Auto & Oil & Gas indices were down over a per cent each, while Pharma and Realty indices rallied over 2 per cent each.

The broader market managed to hold gains, the BSE MidCap index added 0.5 per cent, while the SmallCap was up 0.1 per cent.

Debutant Netweb Technologies India ended Day 1 on the bourses with a strong gain of 82 per cent at Rs 911 as against the issue price of Rs 500 per share. READ MORE

4:12 PM

ALERT :: Bharat Forge granted license by the Ministry of Home Affairs Under Arms Rules, 2016

>> Allows company to participate in potential defence programmes in future

4:02 PM

Comment :: 'Normal to see volatility during consolidation phase'

We are in a consolidation phase so it is normal to see volatile swings. The key is to manage risk until the trend resumes. Meanwhile, we feel it is prudent to restrict positions and use intermediate dips to gradually add quality stocks.

Views by: Ajit Mishra, SVP - Technical Research, Religare Broking

4:00 PM

Tech View :: 'Nifty to likely consolidate between 19,500-19,900'

Nifty50

On the daily charts, we can observe that the Nifty has faced resistance from the 61.82% Fibonacci retracement level (19,850) and started the next leg of the fall. The daily as well as hourly charts, momentum indicators have a negative crossover which is a sell signal. Thus, both price and momentum indicators are suggesting that there could be some weakness in the short term.

The daily Bollinger bands are also contracting, which points towards consolidation in the short term and thus we change our short-term stance from positive to sideways and the range of consolidation is likely to be 19,900 - 19,500. In terms of levels, 19,550 – 19,500 shall act as a crucial support zone, and on the upside 19,850 - 19,900 shall act as an immediate hurdle zone.

Bank Nifty

Bank Nifty also witnessed a correction from the resistance zone 46,300 – 46,400 where the previous swing highs were placed. The daily momentum indicator has triggered a fresh negative crossover which is a sell signal. Thus, until the bank Nifty does not manage to sustain above the 46,300 – 46,400 zone, we can expect it to slip down to 45,330 – 45,300 levels where support in the form of the 20-day moving average is placed.

Views by: Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

3:58 PM

COMMENT :: What all happened in the markets today?

The FOMC's decision aligned with market expectations as they implemented a 25bps hike and expressed a data-centric approach for future rate actions. Positive global sentiment prevailed due to the reduced prospects of a US recession. Despite this, the domestic market witnessed sharp corrections led by banks and autos, while pharma stocks performed on a positive start to their earnings season.

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

3:55 PM

Currency check :: Rupee ends higher at 81.94 per $

3:54 PM

Market Check :: Top losers on the BSE today

3:53 PM

Market Check :: Top gainers on the BSE today

3:52 PM

Buzzing stock :: Netweb Technologies ends 82% higher over issue price

>> The stock listed at 89% premium over issue price

3:51 PM

Buzzing stock :: RVNL cracks 6% as govt begins 5% stake sale via OFS

3:50 PM

Buzzing stock :: Nestle India slips 25 post Q1 show

Shares of Nestle India cracked 3 per cent in Thursday's intra-day trade after the company's volume growth in the June quarter (Q2CY23) was 4-5 per cent year-on-year (YoY), lower than the Street estimates of 7-8 per cent. READ MORE

3:48 PM

Buzzing stock :: Tech M drops 4% as Q1 misses estimates on all fronts

Shares of Tech Mahindra tumbled 5 per cent to Rs 1,082 per share in Thursday's intra-day trade after the company's June quarterly result (Q1FY24) disappointed Street. From soft deal wins to weakness observed across all geographies in the Q1, brokerages turned cautious on the counter. READ MORE

3:46 PM

Buzzing stock :: RBL Bank ends near day's low after hitting 52-week high intra-day

3:45 PM

Buzzing stock :: M&M tumbles 6% on stake purchase in RBL Bank

>> Mahindra & Mahindra (M&M) has picked up a 3.53 per cent stake in private sector lender RBL Bank for Rs 417 crore.

>> The company said in an exchange notification on Wednesday that it may consider further investment, subject to pricing, regulatory approvals, and required procedures. However, in no circumstance will it exceed 9.9 per cent.