Taking Stock: First hint of consolidation but bulls help Nifty climb above 12,300
The broader market outperformed as the S&P BSE Small-cap index rose over 1 percent while the S&P BSE Mid-cap index closed with gains of 0.6 percent.
Amit Shah, Technical Research Analyst with Indiabulls Ventures:
Bulls came back sharply in the second half of session after gap down in first half. Market breadth was comfortably in the positive territory as mid & small caps performed. Nifty auto was the top-performing index. Immediate support on the downside is placed at 12,200 zone. Undertone continues to remain positive for the markets and markets are likely to head higher going forward towards our target zone of 12,400-12,450. We continue to have a positive view on the markets and especially mid & smallcap sectors along with metal sector.
Ajit Mishra, VP - Research, Religare Broking:
Markets traded volatile and finally settled marginally lower, taking a pause after the recent surge. The bias negative from the beginning, citing pressure in the Asian peers ahead of the US-China trade deal. Also, the decline in the banking pack further dragged the index lower. It remained range-bound for the most part of the session but a sharp recovery in the select index majors trimmed the losses significantly in the last hour. Amid all, movement on the stock-specific front kept the traders busy.
We’re seeing buying interest emerging on every dip and it’s indeed a positive sign. Besides, traction in the broader markets is further strengthening the trend. We advise focusing more on stock selection and using intermediate corrective moves to accumulate quality stocks.
Santosh Meena, Senior Analyst, TradingBells:
IndusInd Bank was the key culprit for the market which led some selling pressure in overall banking space while the realty and auto sector did very well today. The bull trend with buy on dip texture is intact in the market where after a selling pressure throughout the day, Nifty and Sensex witnessed a smart recovery in late trade on the back of buying in the auto sector. The rural related theme mainly fertilizer, auto, and FMCG stocks did well today after the comment from India fertilizer ministry that they are discussing revamping fertilizer subsidy system, to directly pay the farmer. The gas sector was the sector of the day after a positive outlook by some institutional brokerage houses.
Technically, Nifty respected 12,300 level on a closing basis which is a very good sign from bulls perspective whereas Bank Nifty witnessed recovery from near the 50-DMA. We can expect the market to continue its rally till Nifty manages to hold 12,300 mark where midcap and smallcap spaces will continue their outperformance.
Vinod Nair, Head of Research, Geojit Financial Services:
After the solid pre-budget rally, market is getting a bit skeptical post higher than expected NPA numbers in the recent Q3 banks results and very high consumer inflation which may stay for another month or two. Market would watch the Q3 results & actual budget, for further direction.
Market Close: The final hour recovery helped the Indian indices to close near the day's high level. However, the market broke the fourth consecutive day winning streak and end with a moderate loss.
At close, the Sensex was down 79.90 points at 41,872.73, while Nifty was down 19 points at 12,343.30. About 1471 shares have advanced, 1023 shares declined, and 182 shares are unchanged.
Yes Bank, Hero MotoCorp, Tata Motors, Titan Company and Gail were among major gainers on the Nifty, while losers were IndusInd Bank, Wipro, BPCL, SBI and Infosys.
Among sectors, buying witnessed in auto, metal, pharma and FMCG stocks, while Nifty Bank and energy index ended lower.
D-Street Buzz: Auto stocks gain led by Tata Motors, Hero MotoCorp; IndusInd Bank most active
The Indian stock market is of the low point of the day but still trading in the red with Sensex down 142.59 points or 0.34 percent at 41810.04, and the Nifty shed 38.60 points at 12323.70.
Fertiliser stocks in focus: Fertiliser stocks were seeing buying on January 15 after a report said that the government was looking to revamp the subsidy system.
The government is planning to de-control urea prices, which could push up the price of a 45-kg bag to Rs 400-445 from Rs 242.