Nifty gave up morning Gains; Financial and Realty sectors led the decline

The Nifty’s attempt at a follow-up rally failed, as the index fell 97 points to close at 24487. After an initial rise in the first hour of trade to 24702, the Nifty reversed direction and fell over 200 points from its high, settling near the day’s low.

Tech Mahindra, Maruti, and Hero MotoCorp led the charge among the Nifty’s top performers. Conversely, it proved to be a tough session for heavyweights like Bajaj Finance, Trent, and Hindustan Unilever, which ended as the major losers within the Nifty pack. Trading volumes in the NSE cash market were slightly lower today, down 3% compared to yesterday.

Indian rupee depreciated 5 paise against the greenback to close at 87.71 levels. This weakness in the Rupee is primarily attributed to a rise in global crude oil prices and the fall in the domestic equity markets.

Amongst the sectoral indices, Pharma, Media, healthcare and Auto emerged as major gainers, indicating pockets of resilience and investor interest in these segments. However, the day’s decline was largely driven by Nifty Financial Services, Private Banks, and Realty, which ended the day as major losers, weighing down the benchmark index.

The Nifty Midcap Index fell alongside the benchmark by 0.27%, while the Nifty Smallcap 100 Index managed to end the day marginally in the green. Despite the mixed performance in the broader indices, market breadth remained marginally positive, with advancing shares outnumbering declining ones, as indicated by an advance-decline ratio on BSE of 1.05.

The 24340 level, where recent swing lows were registered, continues to be the support for the Nifty. On the upside, today’s high of 24702 will now act as a short-term resistance level.

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Source: HDFC Securities Prime Research