Stock market today: Sensex, Nifty 50 snap 3-day winning streak on profit booking; small, mid-caps gain
- Stock market today: The 30-share BSE Sensex declined by 110.64 points or 0.15 per cent to settle at 73,903.91 dragged by profit booking and foreign fund outflows
Stock market today: Domestic equity benchmarks Sensex and Nifty 50 snapped the three-day gaining run on Tuesday, April 2, with the 30-share benchmark dropping by 110 points dragged by profit-taking in select private bank and auto shares amid weak global cues and foreign fund outflows.
India's manufacturing sector growth climbed to a 16-year high in March on the back of the strongest increase in output and new orders since October 2020, amid reports of buoyant demand conditions, a monthly survey said on Tuesday.
Investors will closely monitor the Monetary Policy Committee (MPC) meeting by the Reserve Bank of India (RBI) starting Wednesday, with the first outcome for the new fiscal 2024-25 (FY25) to be pronounced on Friday. According to SBI Research, the central bank might initiate a rate cut cycle in the third quarter of current financial year 2024-25.
The 30-share BSE Sensex declined by 110.64 points or 0.15 per cent to settle at 73,903.91. During the day, the index dropped by 270.78 points or 0.36 per cent to a low of 73,743.77. The benchmarks had hit record highs on Monday, led by metals stocks on strong industrial data from top consumer China, before settling around 0.5 per cent higher.
Also Read: RBI policy meet starts tomorrow: SBI says there could be no rate cut before Q3FY25; here's why
The broader NSE Nifty dipped 8.70 points or 0.04 per cent to 22,453.30. In the broader market, the more domestically-focused BSE smallcap gauge jumped 1.28 per cent and the midcap index climbed 1.14 per cent. Analysts said mid and small-cap stocks continued recovery, yet concerns over high valuations stayed.
In Asian markets, Shanghai settled lower while Tokyo, Seoul and Hong Kong ended in the positive territory. European markets were trading mostly in the green. Wall Street ended mostly lower on Monday.
Global markets are expected to remain volatile ahead of key economic data scheduled to be released within two days. Further, US Fed Chair Powell's speech is also due on Wednesday which will be keenly eyes by investors.
The rupee witnessed a range-bound trading in initial deals against the US dollar on Tuesday, weighed down by a strong American currency and elevated crude oil prices. At the interbank foreign exchange, the rupee opened at 83.37 against the greenback, then touched 83.35, registering a rise of four paise over previous close.
Also Read: India's exchange-traded currency derivates volumes to plunge by 80% over RBI's new hedging rule
Top gainers, losers today
From the Sensex basket, Kotak Mahindra Bank fell the most by 1.84 per cent. ICICI Bank dropped 1.63 per cent, HCL Technologies by 1.82 per cent, and Infosys by 0.84 per cent. Tata Consultancy Services, Wipro, Tech Mahindra and Larsen & Toubro were the major laggards. Mahindra & Mahindra, Nestle, Tata Motors and IndusInd Bank were among the gainers.
US rate-sensitive IT stocks fell 0.71 per cent, after strong manufacturing data added to worries of a delay in rate cuts in the world's largest economy. Mid-cap index stock Aditya Birla Fashion and Retail gained 10.56 per cent on plans to demerge Madura Fashion & Lifestyle into a separate listed entity. Hero MotoCorp shed 2.56 per cent after posting drop in total sales in March.
Secotoral indices today
Among the sectoral indices, tech fell by 0.71 per cent, IT declined 0.54 per cent, telecommunication (0.38 per cent) and bankex (0.19 per cent). Consumer Durables climbed 1.82 per cent, services jumped 1.56 per cent, metal (1.21 per cent), utilities (1.21 per cent) and commodities (1.17 per cent).
Financial services, the highest-weighted sub-index on the Nifty, shed 0.22 per cent following three sessions of gains. The rise was triggered by factors including the central bank easing norms on investments into alternative investment funds. Metals extended gains, adding 1.5 per cent after climbing 3.7 per cent on Monday over strong industrial data from top consumer China.
Expert Views
Vinod Nair, Head of Research, Geojit Financial Services said, "The domestic market took a breather today after achieving a fresh record high yesterday. Factors such as a rising dollar, increasing US bond yields, and a notable uptick in crude oil prices collectively dampened investor sentiment.''
‘’Better-than-expected US manufacturing data raised worries about a potential delay in interest rate cuts. Despite these factors, mid and small-cap stocks continued their recovery, although concerns about high valuations lingered. Investors are eagerly anticipating guidance from the upcoming RBI monetary policy announcement for insight into near-term market direction,'' added Nair.
Ajit Mishra, SVP - Technical Research, Religare Broking Ltd said, ‘’It's a healthy pause around the record high, which may extend for couple of sessions. We needs participation from the heavyweights, especially banking majors to trigger the next leg of upmove in the index. Meanwhile, the buoyancy in the broader market is encouraging but traders should stay selective and maintain a “buy on dips’ approach.''
Technical View:
Rupak De, Senior Technical Analyst, LKP Securities said, ‘’The Nifty traded within a range following a flat start. The index formed back-to-back doji patterns on the daily chart, typically indicating a pause before the next move. However, sentiment remains positive, with the Nifty closing above the important moving average.''
‘’Momentum also remains positive, as indicated by the RSI in bullish crossover. Over the short term, the trend is positive, with potential to reach 22,650-22,700. Support is positioned at 22,350-22,300 on the lower end,'' added De.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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