Nifty, Sensex Off Fresh Record High As HUL, NTPC, Power Grid Drag: Midday Market Update
As of 12:22 p.m., the Nifty 50 was 0.31% higher at 23,395.25 after hitting a record high of 23,481.05. While the Sensex gained 0.33% to trade at 76,861.08 after hitting an all-time high of 77,145.56.
Indian benchmark indices pared gains through midday on Thursday after hitting a fresh record high as shares of Hindustan Unilever Ltd., NTPC Ltd., and Power Grid Corp. of India dragged.
As of 12:22 p.m., the NSE Nifty 50 was 72.30 points, or 0.31%, higher at 23,395.25 after hitting a record high of 23,481.05. While the S&P BSE Sensex gained 254.51 points, or 0.33%, to trade at 76,861.08 after hitting an all-time high of 77,145.56.
After hitting an all-time high, there is some profit-taking. That indicates markets are cautious at higher levels, said Nilesh Jain, head vice president, technical and derivatives research, Centrum Broking Ltd. The reason is that there's no participation from the NSE Nifty Bank. Markets need strong participation from NSE Nifty Bank for these moves to be sustainable, he said.
Still, the structure continued to remain on the positive side, looking at the volatility index, where a sharp sell-off was seen in seven consecutive sessions, he noted. Centrum Broking expects the NSE Nifty 50 to inch towards the 23,500 mark at the spot level. Any dip can be taken as a buying opportunity, and one can keep a stop loss below 23,000. From the expiry point of view, the range for the NSE Nifty 50 could be 223,350–23,450 Jain told NDTV Profit in an interview.
On the domestic front, India's CPI inflation fell to 4.75% on year in May, the lowest level in a year, compared to 4.83% in the preceding month, which boosted investors' sentiment.
The risk sentiment improved after US inflation came softer than expected and the Federal Reserve held its benchmark federal funds target range at 5.24–5.50%, which also supported the markets' record rally.
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Shares of HDFC Bank Ltd., HDFC Life Insurance Co., Infosys Ltd., Larsen & Toubro Ltd. and Tata Consultancy Services Ltd. were positively contributing to gains in the Nifty.
Shares of Hindustan Unilever Ltd., NTPC Ltd., Power Grid Corp. of India, Coal India Ltd., and Tata Steel Ltd. were weighing on the index.
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Of the 12 sectors on NSE, six sectors advanced, two remained flat, and four declined. The NSE Nifty Media was the worst performing sector, and the NSE Nifty Realty rose the most.
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Broader markets outperformed benchmark indices. The S&P BSE Midcap and Smallcap was trading 0.65% and 0.59% higher, respectively.
On BSE, 16 out of 20 sectors advanced, and four declined. The S&P BSE Realty rose the most, while S&P BSE Utilities was the worst performing sector so far in the day.
Market breadth was skewed in the favour of buyers. Around 2,187 stocks rose, 1,522 stocks declined and 125 stocks remained unchanged on BSE.
