Benchmark indices Nifty and Sensex held steady in positive territory, though gains were trimmed as a dip in bank stocks weighed on the indices. However, strength in auto, pharma, and FMCG stocks kept the market in the green. As the year draws to a close, trading volumes remain thin as investors now look forward to the new year.
At noon, the Sensex was up 263.06 points or 0.34 percent at 78,735.54, and the Nifty was up 83.80 points or 0.35 percent at 23,834.00. About 1720 shares advanced, 1645 shares declined, and 101 shares unchanged.
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"Meanwhile, short-term bumps on the economic growth path will cause corrections and market volatility like what we are witnessing now. The strongest headwind for the market now is the FII selling triggered by strong dollar (dollar index staying above 108) and attractive US bond yields with the 10-year yielding 4.35 percent," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. "A change in FII strategy from selling to buying will happen when macros indicate recovery in growth and corporate earnings," he added.
In the afternoon session, Nifty Auto emerged as the top performer, climbing 1.6 percent, driven by gains in a four-wheeler and two-wheeler stocks. The rally followed DAM Capital's upgrades on several auto stocks, citing recovery prospects despite near-term headwinds. Tata Motors, Escorts Kubota, and Bajaj Auto were all upgraded to "buy," with Bajaj Auto's target set at Rs 9,750. Nifty Pharma also advanced 1 percent, led by heavyweights like Dr Reddy's, Sun Pharma, Cipla, and Lupin. Meanwhile, Nifty Bank and FMCG indices posted modest gains of 0.5 percent each.
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On the downside, Nifty Realty was the biggest drag, slipping 0.6 percent, followed by declines in the metal and consumer durable indices.
The broader market displayed heightened volatility, oscillating between red and the green. While the midcap index traded, the smallcap index rose 0.2 percent. A host of market experts say that action in the broader market is largely stock-specific and investors should exercise caution and choose stocks that have earnings visibility and attractive valuations. The midcap 100 and smallcap 100 indices have fallen just 5 percent in the last three months. Nifty, on the other hand, has tanked nearly 10 percent.
Private lender IndusInd Bank's share price rose over 3 percent to become the top gainer on the Nifty after the bank decided to offload its non-performing microfinance loan pool of 10.6 lakh retail loan accounts amounting to Rs 1,573 crore as the MFI sector continues to see stress.
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Star Cement shares rose 7 percent after UltraTech Cement announced the acquisition of an 8.69 percent stake in the company for Rs 851 crore. The deal involves the purchase of up to 3.7 crore equity shares at a price not exceeding Rs 235 per share, excluding taxes and other levies.
As many as 5 companies debuted on the bourses on December 27. DAM Capital Advisors shares made their stock market debut today, listing at Rs 393 on the NSE, marking a premium of 39 percent over the issue price of Rs 283 per share. The robust listing, though slightly below the unofficial market estimates, comes on the back of strong investor demand during the IPO, which was oversubscribed 81.88 times.
Transrail Lighting shares made their stock market debut today, listing at Rs 590 on the NSE, marking a premium of 37 percent over the issue price of Rs 432 per share. The robust listing was broadly in line with market expectations.
Mamata Machinery shares listed with a high premium of 147 percent on the NSE over its IPO price on December 27, following a whopping subscription of 194.95 times to its Rs 179.39-crore initial public offering (IPO). The packaging machinery manufacturer Mamata Machinery Ltd stock listed at Rs 600 per share on the NSE over its issue price of Rs 243 apiece, a strong premium of 146.91 percent.
Sanathan Textiles shares made a healthy stock market debut to list with a premium of around 32 percent on the NSE on December 27. Yarn manufacturer Sanathan Textiles stock was listed at Rs 422.3 per share on the NSE over the IPO price of Rs 321, a premium of 31.56 percent.
Concord Enviro shares made a healthy stock market debut on December 27 after its shares were listed at a premium of 18 percent over its issue price on the National Stock Exchange (NSE). Concord Enviro Systems Ltd stock listed at Rs 826 per share on the NSE, a premium of 17.83 percent against the IPO price of Rs 701 apiece.
From a technical standpoint, despite swift pullbacks each time the index approached 23,700 this week, the formation of hammer candlestick patterns signals underlying bullish sentiment. This supports the target of 24,165 set earlier in the week. The downside marker remains at 23,600, while a break above 23,900 could prompt an aggressive pursuit of further gains, says Anand James of Geojit Financial Services, said.
IndusInd Bank, DR Reddy's, M&M, Tata Motors, and Bajaj Finance were the top gainers on the Nifty. BEL, ONGC, HCL Tech, Coal India, and Hindalco were the major laggards on the index.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.