Since FIIs turned buyers in the cash market on two days recently, they are unlikely to sell big and may again buy on favourable developments
The benchmark indices deepened their losses in the afternoon trade on November 30 driven by weak global cues. Selling in auto, energy, FMCG, infra and pharma stocks weighed on the markets. Meanwhile, buying in bank and IT counters helped cut some losses.
At 12:53pm, the Sensex was down 138.30 points or 0.21 percent to 65,656.43, and the Nifty was down 35.80 points or 0.18 percent to 19,696.00. About 1,663 shares advanced, 1,604 declined, and 135 traded unchanged. Divi’s Lab, HCL Tech, Wipro, LTIMindtree and Hindalco were the top Nifty gainers, while the laggards included M&M, SBI Life Insurance, Adani Enterprises, Bajaj Finance and Ultratech Cement.
“Clearly, this is a ‘buy on dips’ market. Retail investor exuberance is pushing up the broader market. Investors should not be blinded by the recency bias and chase small caps running away without fundamental support. In spite of recent underperformance, safety is now in largecaps, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Since FIIs turned buyers in the cash market on two days recently, they are unlikely to sell big and may again buy on favourable developments, he said, adding that there is momentum in largecap IT stocks.
“The expectation that the US will not tip into a sharp recession has improved the prospects for IT. Autos, telecom, capital goods and construction-related segments are likely to remain resilient. Banking stocks bouncing back is only a matter of time,” Vijayakumar said.
Stocks and Sectors in focus
Shares of Tata Investment Corporation rallied more than 15 percent to hit a fresh 52-week high, extending its stellar rally for the second consecutive day. In the previous session, the stock had surged up to 20 percent. The sharp rally comes ahead of the Tata Technologies IPO, which will open for public subscription on November 22.
Tata Technologies is a subsidiary of Tata Motors and Tata Investment Corporation is a promoter group entity of the auto major.
Adani Power shares added 1.5 percent in early trade as Ardour Investment Holding and Emerging Market Investment DMCC, two of the company’s promoters, have raised their stakes in the company. The two Adani Power promoters increased their stakes through open market transactions.
The Nifty Pharma index scaled a new all-time high, trading in the green in 14 out of 17 sessions backed by strong earnings for the September quarter. Since October 26 till date, the index has risen nearly 9 percent while the benchmark Sensex and Nifty gained 4.5 percent each.
BSE indices rejig
The S&P BSE 100 index will see a dynamic shift as seven counters, including Yes Bank, TVS Motor, IDFC First Bank and others, will join the index while Bandhan Bank, ACC, Voltas and four other stocks are slated to make their exit.
On the index of the top 50 stocks, BSE Sensex 50, UPL and Dabur India will be removed and replaced with LTIMindtree and Bharat Electronics. The changes will be made effective at the open of Monday, December 18.
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