Today was a disappointing session for the bulls. The market has risen so high that a few days of consolidation or even mild profit-taking is par for the course. For the last few days, the Nifty has not been adding significantly to its gains and today it came well off the highs of the day, says CNBC-TV18 managing editor Udayan Mukherjee.
So, the market could be diagnosed of looking a bit tired and the signs of fatigue were visible –the Bank Nifty, which was one of the pillars of the market’s rise in the last leg, came off a percentage point leading the drop in the Nifty.
All the frontline banks — ICICI Bank, IndusInd Bank, Kotak, State Bank of India (SBI) were down quite a bit from the highs of the day.
Among the side-clusters, pharmaceuticals as a sector saw some profit-taking. In the large-cap space, Ranbaxy and Lupin fell off quite sharply.
Bharti Airtel wasn’t very strong and a few oil stocks like Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation (BPCL) also looked slightly vulnerable.
Offset a bit by autos, which clearly was the star sector of the day in the large cap universe. The performance of midcaps was not great and market breadth finally turned negative. The midcap index was down nearly a percentage point.
Some of these small-cap or small-priced trading stocks like S Kumars and Kingfisher had sharp knocks today.
Infrastructure stocks like Crompton, Voltas, GMR, saw some profit-taking after the rally of the last couple of days - also visible were Indiabulls Realty, in Renuka in Prestige Estates and some of these other high beta midcap names.
On the gaining side, the Adani group stocks did well. Adani Enterprises and Power both were up. Ashok Leyland did quite well and Tata Teleservices (Maharashtra) TTML, though a penny stock, has been quite volatile these last couple of sessions.
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