Mid-day Mood | Nifty hovers near 19,800 in range-bound trade, Sensex flat; Tata Tech IPO booked 2x

The uptrend in the market is intact with global support coming from the easing US bond yields, said analysts.

Frontline equity indices traded flat in a range-bound movement while small-cap stocks shed gains. The markets echoed the lacklustre sentiment from Wall Street, which snapped its five-day winning streak overnight.

At 11:45 am, the Sensex was down 8.05 points or 0.02 percent at 65,923.26, and the Nifty was up 11.95 points or 0.07 percent at 19,796.45.

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As the markets traded sideways, V K Vijayakumar, chief investment strategist at Geojit Financial Services said, “The uptrend in the market is intact with global support coming from the easing US bond yields. The US 10-year bond yield at 4 percent is a strong pillar of support for equity markets. Resilience in large-caps like RIL, Bharti and HDFC Bank can continue to support the uptrend. An important market technique is that the daily market range is getting narrower. This may preclude sharp moves in the market.”

He added that the market will focus on the opening of the four IPOs. “ A lot of money is likely to go into the high-quality Tata Technology IPO. Investors can continue to accumulate high-quality large-caps, particularly in banking and autos where the margin of safety is high,” said Vijayakumar.

Tata Motors subsidiary Tata Technologies IPO opened for subscription on November 22. This is the first initial public offering by a Tata Group company in almost two decades after Tata Consultancy Services went public in 2004. Within hours, the offer had been subscribed 1.88 times, with investors buying 8.44 crore equity shares against an offer size of 4.5 crore.

Stocks and sectors

Shares of GMR Power and Urban Infrastructure rallied 5 percent to Rs 42 after the company acquired an additional 29.2 percent stake in its subsidiary - GMR Energy. Wipro stock rose nearly 1 percent on forging a partnership with NVIDIA for artificial intelligence in healthcare.

Shares of Interglobe Aviation gained a percent after global brokerage firm Morgan Stanley’s "overweight" call on the counter with a target price of Rs 3,217.

Among the laggards, Shares of Suzlon Energy tanked 5 percent and were locked in a lower circuit at Rs 37.35 after witnessing selling pressure for the third consecutive session.

Tata Consultancy Services stock fell 0.3 percent, extending the previous session’s fall, after the company said it would make a provision of $125 million as an exceptional item in the third quarter as the US Supreme Court rejected its challenge to a penalty in a dispute with Epic Systems.

The broader markets traded mixed. While the frontline indices held onto minor gains, the smallcap scrips slipped sharply, with the Nifty Smallcap 100 index tanking 0.7 percent.

Sectorally, Nifty Pharma, Nifty IT and Nifty Oil & Gas gained the most, rising up to 0.95 percent while Nifty Realty slid 1.22 percent, as Bank Nifty and Nifty Metal traded in the red as well. On the 30-share Sensex, Infosys and Reliance Industries contributed the most gains.

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