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Profit booking in financials, IT drag Sensex lower, cement stocks provide support

NEW DELHI: Profit booking at higher levels continued on Monday as benchmark indices wiped off morning gains to end flat. IT and select metal stocks were among the rags while cement stocks provided support.

Analysts said profit-booking was expected given the outperformance of the midcap and smallcap indices. Some NBFC stocks were also in demand due to favourable news.

The 30-share pack Sensex dropped 13.50 points or 0.03 per cent to close at 52,372.69. Its broader peer NSE Nifty rose 2.80 points or 0.02 per cent to 15,692.60.

“Shares of small finance banks were in focus today as the RBI allowed the reverse merger with their respective promoter entities. The realty stocks rallied as hopes of demand revival boosted the sector’s outlook,” said Vinod Nair, Head of Research at Geojit Financial Services.

Market at a glance:

  • Kitex surges further 20 per cent as company moves to Telangana
  • Ashish Kacholia adds Ador Welding in his portfolio, stock surges 5 per cent
  • Equitas Holdings surges 20 per cent after RBI nod to merge with SFB arm
  • Broader market indices continue to outperform, defying the trend
  • Realty sector emerge as the largest gainer riding on superb Q1 update

Among the blue-chip names, UltraTech Cement was the top gainer, rising 2.47 per cent. Grasim, Shree Cement, JSW Steel, SBI Life Insurance, Tata Consumer and ICICI Bank were other gainers.

Adani Ports was the top loser in the Nifty pack, falling 1.45 per cent. BPCL, Bharti Airtel, Tata Steel, Infosys, HDFC Bank, Bajaj Auto, Hindalco, and HDFC were others that ended in the red.

Broader market indices ended higher outperforming their headline peers. Nifty Smallcap gained 0.60 per cent and Nifty Midcap rose 0.44 per cent. Nifty 500, the broadest index on NSE, ended up 0.16 per cent.

“The tussle over the next directional move in the index is still on and upcoming earnings may result in the probable breakout. Meanwhile, we suggest continuing with a selective trading approach while keeping a check on leveraged positions.”

— Ajit Mishra, Religare Broking

Edelweiss Financial Services, Shilpa Medicare, Welspun India, Page Industries, Federal Bank, and Godrej Industries were top gainers from mid and smallcap indices, climbing in the range of 4-10 per cent.

Dhani Services, Oil India, ICICI Securities, Just Dial, APL Apollo and SpiceJet were major losers from broader market space, falling in the range of 1-4 per cent.

The sectoral matrix on the NSE was mixed. Nifty IT was the top loser, down 0.45 per cent. Nifty Media and Nifty Metal were other losers. Nifty Realty was the top gainer, up 3.61 per cent. Nifty Private Bank advanced 0.42 per cent.

Market breadth was in favour of gainers as 2,062 stocks ended in the green, while 1,262 names settled with cuts. As many as 510 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 30 names hit 52-week lows, mostly from the microcap space. About 620 stocks hit upper circuit limits and 230 lower circuit limits.

European markets were trading lower. London-based FTSE was down 0.74 per cent while Paris and Frankfurt declined 0.59 per cent and 0.31 per cent, respectively. In Asia, barring Thailand that fell 0.14 per cent, all markets ended in the green.

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