Closing Bell: Nifty below 22,900, Sensex falls 220 pts; mid, smallcaps drag

Indian benchmark indices ended lower in the volatile session on May 28 with Nifty below 22,900. The Sensex was down 220.05 points or 0.29 percent at 75,170.45, and the Nifty was down 44.30 points or 0.19 percent at 22,888.20.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

Nifty witnessed yet another day of consolidation. It opened on a positive note however as the day progressed it witnessed some profit booking at higher levels and closed the day on a negative note down ~44 points.

On the daily charts we can observe that the Nifty has been consolidating in a narrow range since last three trading sessions around the 23000 mark. We expect this consolidation to continue till the expiry of the May series. During this phase the Nifty can retest the breakout zone of 22800 – 22750 and thereafter resume its upmove. On the downside 22800 also coincides with 40 hour moving average which can provide support incase of a dip.

Bank Nifty witnessed some profit booking at higher levels and closed down ~140 points. After outperforming for three days, the Bank Nifty has shown some amount of exhaustion at higher levels. We believe that it is a routine profit booking and not a trend reversal. Hence, we shall continue to maintain our positive outlook on the Index. In terms of levels, 49000 – 48800 is the crucial support zone while 49350 – 49500 is the immediate hurdle zone from short term perspective.

The Indian market exhibited mild consolidation post the recent sharp surge. The uncertainty-led volatility is likely to continue as the market approaches the election outcome.

Conversely, the underlying earnings growth for the March quarter results so far was largely above expectations, which would likely support the valuation, which is currently moderately above the long-term average. Mid- & small-caps underperformed today, while defensive sectors like Pharma and FMCG were optimistic.

It was a subdued session as expected, with the Nifty fluctuating within a narrow range and closing slightly lower. Most sectors experienced pressure, with realty and energy being the top losers. The broader indices followed a similar pattern, with both midcap and smallcap indices losing nearly a percent each.

Indications suggest that the ongoing consolidation will persist, keeping the Nifty within the 22,700-23,100 range. Given the overall bullish trend, traders should use dips toward the lower end of this range to accumulate quality largecap and large midcap stocks. Sector-wise, traders should closely monitor IT and FMCG for cues, as other sectors have already performed well.

The index remained within a range as the lack of a breakout on either side failed to provide any directional movement. Significant Call writing was observed at the 23000 strike price, followed by the 23100 and 22900 strikes.

In comparison to the heavy Call writing, Put writers were less active, leading to a decline in the PCR. The high India VIX suggests that market volatility might remain elevated.

On the higher end, the 22950-23000 zone might act as a strong resistance, and any rise may attract selling pressure. On the lower end, the Nifty might drift down towards 22800/22600.

The Bank Nifty index found strong resistance at 49500-49600 due to visible selling pressure, while 49000 serves as a robust support level. The momentum indicator RSI at 61 and the index maintaining above its 14-day EMA indicate a bullish undertone. A buy-on-dips strategy is recommended, with a stop-loss set at 48700. On the higher end, 49500-600 might continue to remain a strong resistance.

A rangebound activity comes to an end on a negative note at 22,888.15 with a loss of 44.30 points. Pharma was the top performer among the sectors followed by Media while Realty and PSU banking corrected over 1%.

Index up-move was mainly restricted by Broader markets as Mid and Smallcap segments witnessed a sharp profit booking correction.

On the daily time frame, the Index has formed another bearish candle and with this, we hold our view of retesting a strong support of 22,780 while a level of 23,110 will be considered as immediate resistance.

Indian rupee ended lower at 83.18 per dollar on Tuesday against Monday's close of 83.13.

Indian benchmark indices ended lower in the volatile session on May 28 with Nifty below 22,900.

The Sensex was down 220.05 points or 0.29 percent at 75,170.45, and the Nifty was down 44.30 points or 0.19 percent at 22,888.20. About 1079 shares advanced, 2272 shares declined, and 83 shares unchanged.

Biggest Nifty losers included Adani Ports, Power Grid Corp, Coal India, Adani Enterprises and BPCL, while gainers were Divis Laboratories, SBI Life Insurance, HDFC Life, Grasim Industries and Hero MotoCorp.

On the sectoral front, Oil & Gas, Capital Goods, Telecom, PSU Bank, Power and Realty down 1-2 percent.

BSE Midcap index was down 0.5 percent and smallcap index shed 1 percent.

#1 Q4 below estimate, subscriber loss in Kiddopia; ad tech revenue fall
#2 Slowdown in e-sports; Nodwin revenue decline
#3 Cut CL25/26 revenue & EBITDA By 6-13 percent
#4 Stock expensive at 39x CL25 PE
#5 Promoters’ ownership down to low 10 percent

#1 Net profit up 34.9% at Rs 99.7 crore Vs Rs 73.8 crore, YoY

#2 Revenue up 26% at Rs 1,425 crore Vs Rs 1,134 crore, YoY

Indian Rupee declined by 0.03% today on Dollar demand from importer at lower levels. However, positive domestic markets and decline in US Dollar cushioned the downside. US Dollar declined as investors trimmed their positions ahead of inflation data.

We expect Rupee to trade with a slight positive bias as strength in the domestic markets and expectations of fresh foreign inflows may support the Rupee. Softening of US Dollar may also support the local unit. However, a rise in crude oil prices may cap sharp upside.

Traders may take cues from CB consumer confidence data from US. Investors may remain cautious ahead of core PCE price index data later this week. USDINR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50.

#1 Net profit at Rs 5 crore Vs loss of Rs 2.4 crore, YoY
#2 Revenue up 36% at Rs 151.3 crore Vs Rs 111.6 crore, YoY

#1 Net profit up 18.6 percent at Rs 16.6 crore Vs Rs 14 crore, YoY
#2 Revenue up 22.8 percent at Rs 244.2 crore Vs Rs 199 crore, YoY

#1 Net profit rose 27 percent at Rs 173 crore Vs Rs 136 crore, YoY
#2 Revenue up 4.6 percent at Rs 1,094.5 crore Vs Rs 1,046 crore, YoY

#1 Net profit down 1.6 percent at Rs 136.7 crore Vs Rs 138.9 crore, YoY
#2 Revenue down 6.3 percent at Rs 643.2 crore Vs Rs 686.8 crore, YoY

Ramco Industries net profit rose to Rs 4 crore in Q4FY24 versus Rs 3 crore in Q4FY23

Stock Market LIVE Updates | Broader markets underperform benchmark Nifty 50 index

Domestic rating agency Crisil on Tuesday said the banking system's credit growth will drop by 2 percentage points to 14 per cent in financial year 2024-25. The slowdown will be due to lower GDP growth at 6.8 per cent in FY25, as against 7.6 per cent in FY24, RBI measures like higher risk weights on unsecured loans and also a high base, the agency said. READ MORE

#1 Profit jumps 16.6% to Rs 69.6 crore Vs Rs 59.7 crore
#2 Revenue rises 3.2% to Rs 382.3 crore Vs Rs 370.5 crore

#1 Profit rises 116.3% to Rs 51.3 crore Vs Rs 23.7 crore
#2 Revenue increases 53.5% to Rs 757.4 crore Vs Rs 493.3 crore
#3 Board announces final dividend at Rs 5.50 per share

Shares of DOMS Industries rallied over 10 percent to hit an all-time high of Rs 2,035 per share on May 28 after the stationary company reported an upbeat January-March quarter (Q4FY24) performance. With today's upsurge, the stock is up over 150 percent of its issue price of Rs 790 apiece.

DOMS Industries revenue rose 20 percent year-on-year (YoY) to Rs 403 crore in Q4FY24, while earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 22 percent YoY to Rs 76 crore. Read More

Markets@2 | Market trades flat; mid, smallcap drag

The Sensex was down 44.21 points or 0.06 percent at 75,346.29, and the Nifty was down 7.00 points or 0.03 percent at 22,925.50.

Divis Labs, HDFC Life, SBI Life Insurance, Hero MotoCorp and Grasim Industries were among major gainers on the Nifty, while losers included Adani Ports, Coal India, BPCL, NTPC and ONGC.

BSE Midcap and Smallcap indices were down 1 percent each.

Top Sectoral Gainers: Pharma
Top Sectoral Losers: Oil & Gas, Power, realty, Capital Goods, PSU Bank

#1 Company reported overall ROEV of 25 percent in FY24, significantly lower than our assumption
#2 Core EV for FY23 was Rs 2.8 lakh crore
#3 It is difficult to comprehend movement between MTM & Core EV for FY24 & await further clarity

#1 Q4 an all-round miss due to continued weakness in Kiddopia, Datawrkz & RMG segments
#2 Cut FY25/26 estimates by 18-21 percent
#3 Company plans to accelerate M&A given hefty cash balance
#4 Pick-up in organic growth will be key for re-rating
#5 Expect company to deliver 10 percent/27 percent revenue/EBITDA CAGR over FY24-27

Sensex Today | Nifty PSU Bank index shed 1%; IOB, UCO Bank, Punjab & Sind Bank down 4-5%

#1 Net profit down 28.9% at Rs 18 crore Vs Rs 25.3 crore, YoY

#2 Revenue up 9.8% at Rs 281 crore Vs Rs 238 crore, YoY

#1 Q4 EBITDA beat was driven by lower costs
#2 Company delivered a second quarter of Rs 1,000+ unit EBITDA
#3 Company is sharply scaling up capex to Rs 1,200-1,600 crore per year for FY25-27
#4 Higher capex is towards expansion in overcrowded east region & cost saving projects

Sensex Today | BSE Power index falls 1.4%; CG Power, Adani Power down 3% each 

#1 Profit zooms 40% to Rs 386.3 crore Vs Rs 275.8 crore
#2 Revenue grows 19% to Rs 1,068.3 crore Vs Rs 897.9 crore

#1 Q4 slightly ahead, 6 percent beat on EBITDA, margin expansion seems to be peaking out
#2 Q4 EBITDA margin at 22.3 percent, up 50 bps QoQ & company guides for 21-22 percent EBITDA margin in FY25
#3 Jump of 15-20 percent in volumes in US benign generic pricing environment helped report healthy margin in FY24
#4 Softening of the raw material costs have helped report healthy margins in FY24

Sensex Today | Nifty Realty underperform other sectoral indices

#1 Profit plunges 53.1% to Rs 207.1 crore Vs Rs 442.2 crore
#2 Revenue declines 20.8% to Rs 750.7 crore Vs Rs 948.2 crore
#3 Board announces dividend at Rs 9.55 per share

Sterlite Technologies (STL) today announced that it has been chosen by Connexin as a partner to deliver the Nottinghamshire sections of their UK government award.

STL will provide its Smart Fibre Deployment Servicesto Connexin to bring fast and reliable broadband connectivity around Nottinghamshire in the UK. STL’s Smart Fibre Deployment Services offer a technology-led, scalable approach to deploy FTTx, intra city and inter-city optical networks.

Sensex Today | BSE PSU index down 1.5%; Bharat Dynamics, IOB fall 5% each

Power Grid has informed that project under “Jamnagar Oil Refinery of Reliance Industries Limited (RIL) to connect with Jam Khambhaliya ISTS PS” has been commissioned with effect from May 5, 2024 for which Notification for Commercial Operation (DOCO) has been received on May 27, 2024.

#1 Q4 revenue in-line & EBITDA/PAT a beat
#2 FY25 to be marred by no major product launches
#3 Eugia unit III OAI status: potential to delay product launches

Sensex Today | BSE Smallcap index down 2%; Inox Wind plunges 10%

#1 Profit spikes 68.2% to Rs 67.1 crore Vs Rs 39.91 crore
#2 Revenue grows 44.2% to Rs 657.2 crore Vs Rs 455.7 crore

Sensex Today | BSE Auto index down 0.5%; Samvardhana Motherson International, Bosch down 2% each

DroneAcharya Aerial Innovations has signed a Memorandum of Understanding (MoU) with Chennai’s Zuppa Geo Navigation Technologies Pvt. Ltd. This agreement establishes DroneAcharya as a channel partner for Zuppa's drone sales, services, and training across India.

#1 Net profit at Rs 2.4 crore Vs loss of Rs 2.6 crore, YoY

#2 Revenue up 18% at Rs 169 crore Vs Rs 143 crore, YoY

Sensex Today | BSE Midcap index down 0.7%; IOB, SJVN, UCO Bank down 3-4%

The company announced that its board of directors will meet on May 30 to consider a proposal for raising funds.

The company announced that its board has approved raising funds up to Rs 12,500 crore via qualified institutional placement (QIP) or other permissible modes.

#1 Profit surges 128.6% to Rs 39.5 crore Vs Rs 17.3 crore
#2 Revenue rises 34.6% to Rs 383.2 crore Vs Rs 284.7 crore
#3 Exceptional item at Nil Vs loss at Rs 40.2 crore
#4 Board announces final dividend at Rs 24 per share

Sensex Today | Fertilisers Stocks In Focus 

The Sensex was down 5.82 points or 0.01 percent at 75,384.68, and the Nifty was up 6.40 points or 0.03 percent at 22,938.90. The market breadth was negative -about 1,187 shares advanced, 2,070 shares declined, and 96 shares unchanged. Broader markets, meanwhile, undeperformed benchmark indices as BSE Midcap and BSE Smallcap slipped up to 0.8 percent.

Top sectoral gainers: Nifty Pharma, Nifty IT
Top sectoral losers: Nifty Realty, Nifty Energy
Buzzing stocks at this hour:
#1 Marksans Pharma: The stock gained over two percent in trade after the pharma player received the UK health regulator's nod to market its new oral solution
#2 Inox Wind: The stock nosedived 10 percent after promoter offloaded 5 percent stake via block deal
#3 Timken India: The stock surged 8 percent after parent Timken Singapore pares 6.65 percent stake via block deal

Stock Market LIVE Updates | HDFC Bank, Hindalco, Divi's Labs among top active stocks at this hour

Shares of Bharat Dynamics or BDL have been on a roll, extending gains for the massive ten trading sessions until May 28, when shares slipped 4 percent to Rs 1,431 as investors rushed to profits post the stellar rally in the counter. READ MORE

Shriram General Insurance Company, a joint venture between Shriram Capital and Sanlam of South Africa, has no immediate plans to launch an initial public offer, said Anil Aggarwal, managing director and chief executive officer. “We may plan to go public after two or three years and not now,” Aggarwal said. READ MORE

Stock Market LIVE Updates | Nifty Pharma top sectoral performer, while Nifty Realty index worst hit

#1 Q4 revenue in-line & EBITDA/PAT a beat
#2 FY25 to be marred by no major product launches
#3 Eugia unit III OAI status: potential to delay product launches

MMDC has fixed Lump Ore (65.5%, 10-40mm) price at Rs 6,450/- per ton and Fines (64%,-10mm) at Rs 5,610/- per ton.

#1 Profit jumps 128% to Rs 22.2 crore Vs Rs 9.7 crore
#2 Revenue drops 12.5% to Rs 300.3 crore Vs Rs 343.4 crore
#3 Exceptional gains at Rs 13.13 crore Vs Nil

Markets@11 | Sensex, Nifty trade higher

The Sensex was up 111.97 points or 0.15 percent at 75,502.47, and the Nifty was up 48.50 points or 0.21 percent at 22,981.

Top gainers on the Sensex: UltraTech Cement, HUL, Wipro, Tata Steel, Bajaj Finserv
Top losers on the Sensex: Power Grid Corp, Tech Mahindra, Bharti Airtel, NTPC, Axis Bank

Top Sectoral Gainers: FMCG, IT, Healthcare, Metal
Top Sectoral Losers: Oil & gas, Power, Realty, Capital Goods

BSE Midcap index trade flat, while smallcap index down 0.4%

The Reserve Bank of India has imposed a monetary penalty of Rs 91 lakh on Yes Bank for non-compliance with directions on Customer Service in Banks and Unauthorized Operation of Internal/Office Accounts.

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on ICICI Bank for non-compliance with RBI directions on Loans and Advances – Statutory and Other Restrictions.

Promoters Monarch Infraparks and GSEC will be selling 12.86 lakh equity shares, or a 2.44% stake each, in the company via an offer-for-sale on May 28-29. The floor price has been fixed at Rs 855 per share.

#1 Profit sinks 55.2% to Rs 76.2 crore Vs Rs 170.1 crore
#2 Revenue rises 3.6% to Rs 865.9 crore Vs Rs 835.7 crore
#3 Exceptional item at Nil Vs loss at Rs 105.4 crore

Bharat Heavy Electricals Limited (BHEL) has entered into a Technology Transfer Agreement (TTA) with Bhabha Atomic Research Centre (BARC) for 50 kW alkaline electrolyser system for Hydrogen production.

#1 Profit surges 30-fold to Rs 33.4 crore Vs Rs 1.13 crore
#2 Revenue grows 12.8% to Rs 533 crore Vs Rs 472.4 crore
#3 Exceptional item at Nil Vs loss at Rs 21.76 crore

Sensex Today | Nifty Pharma up 0.5%; Divis Labs, Dr Reddy's Lab top gainers

#1 Profit declines 13.2% to Rs 44.1 crore Vs Rs 50.8 crore
#2 Revenue falls 17.5% to Rs 571.5 crore Vs Rs 693 crore
#3 Board recommends final dividend at Rs 32 per share

Sensex Today | BSE Realty index shed 1%; Phoenix Mills falls 4%

Engineers India, Aditya Birla Fashion and Retail, Amara Raja Energy & Mobility, Aster DM Healthcare, Campus Activewear, EIH, Exicom Tele-Systems, General Insurance Corporation of India, Hindware Home Innovation, Indian Railway Catering and Tourism Corporation, Medplus Health Services, MTAR Technologies, NBCC (India), Apeejay Surrendra Park Hotels, Prestige Estates Projects, RITES, R R Kabel, and Wockhardt are among the 440 companies set to announce their March quarter earnings on Tuesday.

#1 Owing to the improved outlook on input cost, broking house increased EBITDA estimate by ~6% for FY25/FY26.

#2 On FY26E, the stock trades at 7.7x on EV/EBITDA and 2x on P/B and appears to be fully pricing in the strong outlook.

#3 Reiterate Neutral rating on the stock with a revised Target Price of Rs 180 per share, valued at 7x on EV/EBITDA of FY26E.

SpiceJet strongly refutes the claims made by KAL Airways and Kalanithi Maran regarding seeking damages of Rs 1323 crore. These assertions are not only legally untenable but also a regurgitation of previously rejected claims by the Arbitral Tribunal and then the Delhi High Court.x

#1 Net loss stands at Rs 53.3 crore Vs profit at Rs 10.5 crore
#2 Revenue falls 8.4% to Rs 283.1 crore Vs Rs 309 crore

estate developer Keystone Realtors successfully raised Rs 800 crore through the qualified institutional placement (QIP) route, said the Rustomjee operator in an exchange filing.

After completing its fundraising, Keystone Realtors closed its QIP issue on May 27. The real estate major approved the issue of 1.21 crore equity shares at Rs 660 per share, which comes as a 7.7 percent discount to the previous session's close.

Quant MF, SBI Life Insurance, and SBI General Insurance each received over 5 percent of the QIP shares.

Additionally, the Abu Dhabi Investment Authority, Morgan Stanley India, and the Quantum-State Investment Fund were among the institutions that were allocated shares through the QIP. Read More

Markets@10 | Sensex, Nifty trade flat amid volatility

The Sensex was up 72.38 points or 0.10 percent at 75,462.88, and the Nifty was up 33.00 points or 0.14 percent at 22,965.50. About 1283 shares advanced, 1762 shares declined, and 107 shares unchanged.

Top gainers on the Nifty: Divis Labs, Hindalco, Dr Reddy's Labs, HDFC Life, UltraTech Cement
Top losers on the Nifty: Adani Ports, Tech Mahindra, Coal India, Bharti Airtel, ITC

Top Sectoral Gainers: Healthcare, Metal
Top Sectoral Losers: Power, Realty, Auto, Capital Goods, Telecom

Yesterday, Nifty tested the 23,100 level but failed to maintain its gains and ended flat. Today, we expect Nifty to consolidate around the 23,000 level, as both the 23,000 Call and Put options have substantial open interest. Specifically, the 23,000 Call strike has significant open interest of approximately 64 lakh shares, while the 23,000 Put strike holds around 71 lakh shares in open interest.

For Bank Nifty, the 49,000 Put strike has notable open interest, which is expected to provide support, whereas the 49,500 level is likely to act as a resistance. The volatility index continues to rise ahead of the election results, reaching 23.61. Until June 3rd, we can expect the market to exhibit rollercoaster-like fluctuations.

Shares of Nazara Technologies Limited rose 4percent intraday on May 28 despite weak fiscal fourth-quarter results met with pessimism.

Nazara Technologies reported a net profit of Rs 0.18 crore, a sharp decline from Rs 9.4 crore in the same quarter last year. This drop was primarily due to a Rs 16.87 crore loss from discontinued operations, resulting from write-offs in several of the company's legacy businesses, including its real-money gaming business, Halaplay. Read More

Sensex Today | SMS Lifesciences, Oriental Aromatics gain on huge volume

As we approach the election results a bit of nervousness is visible in the market. The sharp correction in Nifty in the afternoon yesterday indicates this nervousness. This uncertainty-led nervousness is likely to continue.

A high possibility is the market getting a clue of the election results earlier than June 4th. This can happen any time and can trigger a big move in the market.

Bank Nifty has the potential to move towards 50000 and go past that level in the event of a sharp rally in the market.

Trading may prove to be very risky in the near-term. Investors can buy largecaps on declines.

#1 Net profit stands at Rs 5.4 crore Vs loss at Rs 12.4 crore
#2 Revenue rises 4.5% to Rs 2,426.3 crore Vs Rs 2,321.6 crore

Sensex Today | Nifty Metal index up 0.6%; NALCO, Hindustan Zinc, Hindalco top gainers