Benchmark indices Nifty and Sensex opened the trading session on a muted note on November 27 after a slip-up in realty, pharma and FMCG stocks dampened the overall mood in the market. This comes just a day after US Fed FOMC Minutes expressed confidence that inflation is easing and the labour market is strong, allowing for further interest rate cuts albeit gradually.
At about 9:30 am, the Sensex was down 52.03 points or 0.07 percent at 79,952.03, and the Nifty was down 19.60 points or 0.08 percent at 24,174.90. About 1,783 shares advanced, 1,073 shares declined, and 128 shares unchanged.
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"FIIs turning net buyers for the second session in a row will likely keep the market in positive territory. If the buying sustains, we could see a gradual recovery in the market", Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities, said. He also added that given the strong US economy and easing inflation, the US Fed's interest rate cut in December would also help bolster sentiment.
Foreign institutional investors (FIIs) bought Rs 1,157 crore in cash markets yesterday. The domestic institutional investors sold Rs 1,910 crore during the previous session.
Also read: NTPC Green Energy forms JV with MAHAGENCO ahead of market debut
"The Maharashtra elections may have set the tone for the current government. Still, the upside remains limited amid a lack of positive triggers in the market," says Aishvarya Dadheech, Founder and CIO of Fident Asset Management.
Nifty FMCG, Infra, Healthcare and Pharma were the top losers, slipping 0.4 percent each. FMCG stocks witnessed profit booking after shares rallied in the previous session. Market experts suggest weakness in consumption and see limited upside for the FMCG space in the near term. Sector heavyweights like HUL, ITC, Britannia, and Tata Consumer dragged the index lower.
Nifty Bank traded slightly in the negative and faced selling pressure after a sharp 4 percent rally in five days. Nifty Realty witnessed profit-taking after the index rallied nearly 8 percent in the past week.
On the contrary, Nifty Auto and IT bucked the overall mood to trade higher. Major names like M&M were among the gainers on the Nifty after launching new SUV models. Newly-listed Hyundai Motor India surged almost 2 percent after JPMorgan initiated coverage with an 'overweight' call.
Dadheech also adds that capex stocks such as defence, infra, railways and realty will likely do well on the back of a landslide victory for the BJP in Maharashtra. "After a decent correction, they've got the much-needed impetus and we could see an uptick in projects and order books," he added.
Private lender Kotak Mahindra Bank was in focus in early trade, trading over a percent higher on the Competition Commission of India's (CCI) approval to acquire the unsecured personal loans portfolio of Standard Chartered Bank's India unit. Kotak Mahindra Bank had initially announced this acquisition in October, agreeing to purchase Standard Chartered's India personal loan book for Rs 4,100 crore.
IT major Wipro edged higher to hit a new 52-week high after it secured a four-year contract extension with Italy-based Marelli, a global leader in automotive solutions, valued at $100 million. The extended partnership aims to drive Marelli’s cloud transformation while enhancing operational efficiency, fostering innovation, and expediting time-to-market for their products and services.
The much-awaited NTPC Green Energy IPO will finally debut today. Its subsidiary, NTPC traded flat ahead of the listing. Grey markets indicate a muted listing as the GMP was just one rupee more than the issue price of Rs 108. Based on the IPO issue price of Rs 108, the company commands a valuation of Rs 91,000 crore, which translates to a price-to-book value (P/BV) of 4.9x.
The broader market performed well, comprising mid and smallcap indices, showcased a mixed performance. While the midcap index fell 0.3 percent, the smallcap index rose 0.2 percent. The two have outperformed the frontline indices posting gains of 21 percent since the start of the year. The NSE Nifty has gained just over 11 percent over the same period. Experts suggest that the small, midcap space has seen a decent fall and now slight buying could emerge although it will be stock-specific.
"The index is facing resistance at 24,300–24,350, indicating a phase of consolidation. A decisive close above 24,500 is essential to confirm a continuation of the upward trend, potentially driving the index towards 24,800 and 25,000 levels in the coming weeks," Mandar Bhojane of Choice Broking said. "On the downside, immediate support is seen at 23,950 and 23,800. If the index retraces to these levels, a minor correction could occur. The 23,300–23,500 zone has established itself as a significant demand area, likely to act as a strong base during any pullback," he added.
Adani Enterprises, Coal India, M&M, Adani Ports, and Kotak Mahindra were the top gainers on the Nifty. Cipla, Bharti Airtel, IndusInd Bank, Axis Bank, and UltraTech Cement were the major laggards.
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