Sensex, Nifty Fall For Third Week Despite RBI Rate Hike Rally; FPIs Remain Net Sellers
Live updates from India's equity markets on September 30.
Closing Bell
India's stock benchmarks advanced on Friday, gaining most in a month, but extended losses over the week.
This is the third consecutive weekly decline for Sensex and Nifty as they logged the worst month since June.
Sectorally, Nifty Pharma and Nifty IT were the sole gainers while Metal, Auto and Realty indices declined the most.
On Friday, the stock benchmarks snapped a seven-day losing streak (joint longest in 2022 so far), and gained most in a month after RBI announced its rate decision.
The Sensex gained over 1,000 points to 57,426.92. The 30-stock gauge rose 1,312.67 points to an intraday high of 57,722.63.
The Nifty advanced over 1.64% to 17,094.35. Today 41 of Nifty 50 stocks rose while nine fell. Hindalco, Bharti Airtel, IndusInd Bank, Bajaj Finance, Kotak Mahindra Bank were the top gainers while Asian Paints, Coal India, Dr. Reddy's, Britannia, Adani Enterprises declined.
The broader indices underperformed their larger peers, with MidCap and SmallCap measures gaining 1.4%. Barring Oil & Gas gauge, all the other 18 sectoral indices compiled by BSE advanced with Telecom Index gaining 3.5%.
The market breadth was skewed in the favour of bulls. About 2,334 stocks rose, 1,107 fell and 97 remained unchanged.
What lifted the market sentiment was the RBI's policy rate hike of 50 bps that came in as expected and its comment that India's economy remains on strong footing despite global headwinds. The relief rally was backed by investors' preference for growth-driving stocks from banking, automobile, realty & metal space. However, global macro factors will continue to dictate the domestic market sentiment going ahead as any fresh spell of negative news could once again trigger the downward spiral. Technically, after a sharp selloff the Nifty took support near 16800 and bounced back sharply. On daily charts, the index has formed a long bullish candle, and also formed a promising Hammer candlestick formation on weekly charts which is broadly positive. For the trend following traders the 200- day SMA (Simple moving Average) and 16900 would act as a sacrosanct support zone. Above the same, the reversal wave is likely to continue till 17250. Further upside may also continue which could lift the index till 17400. On the flip side, below 16900, uptrend would be vulnerable and on further decline the index could slip till 16800-16700.Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd
Foreign Investors Remain Net Sellers
Overseas investors remained net sellers for the eighth day in a row, on Friday.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 1,565.31 crore today.
On the contrary, Domestic institutional investors remained net buyers for the ninth straight day and bought equities worth Rs 3,245.45 crore today.
Institutions have net sold Rs 4,343.53 crore worth of equities this month and Rs 37,826.61 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Rises
Yield on the 10-year bond rose 7bps to 7.40%, during the session.
The 10-year bond yield close at 7.39%.
Source: Bloomberg
Rupee Gains Against U.S. Dollar
Indian currency appreciated 71 paise to 81.14 during the session. The Rupee closed 50 paise higher at 81.35.
Source: Bloomberg
Dilip Buildcon Wins Ahmedabad Metro Project Contract
Dilip Buildcon said it has emerged as the lowest bidder for the second phase of Ahmedabad Metro Rail project by Gujarat Metro Rail Corporation Ltd.
The project cost is Rs 723.45 crore and includes construction of 7.5 kms elevated viaduct and seven stations.
Shares of Dilip Buildcon surged over 7.3%, most in nearly two months since August 2.
Trading volume is 2.5 times the 30-day average.
Of the eight analysts tracking the company, three maintain 'buy', three suggest 'hold' and two recommend 'sell'. The return potential of the stock is 37.2%
Source: Bloomberg, Exchange filing
Arvind Smartspaces Gains After Approving Consolidation Of Partnership Interest In Ahmedabad East Infrastructure
Shares of Arvind Smartspaces rose over 4.3%, most since Wednesday. The rise comes after the company approved consolidation of partnership interest in Ahmedabad East Infrastructure, according to an exchange filing post market hours Thursday.
The board of Arvind SmartSpaces on 29 September 2022 approved the consolidation of the partnership interest of the company in Ahmedabad East Infrastructure LLP (AEI LLP) from 51.43% to 55.24%. Arvind Smartspaces also approved profit sharing in AEI LLP from 94.25% to 98% upon acquisition of entire partnership interest of Arvind Infrabuild LLP in AILLP.
Trading volume is 0.3 times the 30-day average.
Source: Bloomberg, Exchange Filing
