Mid-day Mood | Caution keeps investors on sidelines, Bajaj Finance shines in lacklustre market

Subdued global sentiment seeped into the domestic market, keeping trade listless.

The benchmark indices started the day on a flat note on September 25 and remained lacklustre, swinging between gains and losses, as of afternoon trade as investors chose to stay on the sidelines amid prevailing headwinds. Rising crude prices, a spike in bond yields, and subdued global cues were factors that kept the gains under check.

At 12.53pm, the Sensex was up 176.07 points, or 0.27 percent, at 66,185.22, and the Nifty was up 47.50 points or 0.24 percent at 19,721.80. About 1,695 shares advanced, 1,449 declined, and 137 were unchanged.

"Recent market conditions have been quite challenging. The benchmark indices have struggled to maintain their upward trajectory and closed in the red for the fourth consecutive session on Friday. Market volatility has been a prominent feature, with fluctuations between gains and losses," said Deven Mehata, Equity Research Analyst at Choice Broking.

"A key support level to watch is at 19,600, and if the Nifty breaches this level, it could potentially lead to a more substantial market correction. On the flip side, 19,800 is expected to act as a resistance level, indicating potential hurdles for any upward movements," he said.

He also advised investors to exercise caution and adopt a more selective, stock-specific approach to their investments.

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Stocks and sectors

Bajaj Finance was the stock in the limelight, leading gains on the Nifty 50 as it surged 4.5 percent following plans of raising $800 million to $1 billion. The fundraise will be discussed in detail at the company's board meeting on October 5.

Buoyed by the gains in its subsidiary, shares of Bajaj Finserv rallied over 2 percent.

Among the laggards was Delta Corp, which hit its 20 percent lower circuit after investors dumped the stock as the casino operator received a massive tax notice of Rs 16,822 crore. The claim by the tax department is 3.5 times Delta Corp’s last closing market cap and more than double the company’s last decade’s revenue.

On the sectoral front, the Nifty PSU Bank index was down 0.7 percent, as it slipped into profit-booking following sharp gains in the previous session. Other sectors like energy, infra, and information technology also struggled with losses, while others were mostly flat.

The broader market fared better as smallcap and midcap indices posted marginal gains.

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