Sensex, Nifty End Lower For Second Day As HDFC Bank, Infosys Weigh: Market Wrap
The BSE Sensex ended 0.75%, or 535.88 points, lower at 71,356.60, while the NSE Nifty 50 declined 0.69%, or 148.45 points, to close at 21,517.35.
India's benchmark stock indices ended lower for a second day in a row on Wednesday, weighed by losses in index heavyweights HDFC Bank Ltd., Infosys Ltd., and Reliance Industries Ltd.
The BSE Sensex ended 0.75%, or 535.88 points, lower at 71,356.60, while the NSE Nifty 50 declined 0.69%, or 148.45 points, to close at 21,517.35.
The Sensex had hit an intraday low of 71,303.97 and the Nifty 50 to 21,500.35.
"On Wednesday, the benchmark indices continued profit booking," said Shrikant Chouhan, head of equity research at Kotak Securities. "Technically, post-muted opening, the Nifty/Sensex breached the important support level of 21,600/71,500, and post-breakdown, it intensified selling pressure."
"We are of the view that, as long as the index is trading below 21,600 or 71,500, the weak sentiment is likely to continue. Below the same, the market could slip to 21,450–21,400/71,000–70,900," Chouhan said.
"On the flip side, technical bounceback is possible only after dismissal of 21,600/71,500. Above 21,600/71,500, the market could move up to 21,650–21,680/71,750–71,950. For traders, the current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders," he said.
HDFC Bank Ltd., Infosys Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd., and Hindalco Industries weighed on the Nifty 50.
ITC Ltd., Bajaj Auto Ltd., Bharti Airtel Ltd., Adani Enterprises Ltd., and IndusInd Bank contributed positively to the index.
The broader markets outperformed benchmark indices. The S&P BSE Smallcap Index rose 0.30%, whereas the S&P BSE MidCap Index was 0.20% higher. Around six out of 20 sectors compiled by BSE declined, while 14 sectors advanced. The S&P BSE Metal and IT sectors declined the most among sectoral indices.
Sectoral indices ended on a mixed note on the NSE. Around five sectoral indices declined, with the Nifty IT emerging as the top loser, while six sectors advanced and one remained a little unchanged out of 12 sectors.
The market breadth was skewed in favour of the buyers. About 2,201 stocks advanced, 1,635 stocks declined, and 109 remained unchanged on the BSE.
