Sensex slips 108 points, Nifty settles at 19,571; Gland Pharma surges 20%; most Adani stocks fall

Domestic equity markets settled lower on Tuesday in a volatile trading session. Bulls and bears had a stiff competition, but failed to move indices much. Traders kept cautious ahead of RBI's monetary policy due later in the week and key economic data from the US.

For the day, the 30-share pack BSE Sensex dropped 106.98 points, or 0.16 per cent, to end the day at 65,846.50, while NSE's Nifty50 shed 26.45 points, or 0.13 per cent, to settle at 19,570.85. Broader markets outperformed the headline peers as BSE midcap and smallcap indices ended with gains. Fear gauge India VIX rose 2 per cent to 11.33-level.

Nifty50 oscillated in a well-defined range and finally ended the session at 19,570.85 with a minor loss of 26.45 points. With hidden bullish divergence in RSI, the PSU Banking sector regained its momentum and ended up being a top performer of the day, said Aditya Gaggar, Director of Progressive Shares.

On a sectoral front, the Nifty PSU Bank index gained more than 3 per cent, while the Nifty media, consumer durables and media indices added about a per cent each. The Nifty metal index dropped more than one per cent, while the FMCG and auto stocks were the other key sectoral laggards.

Caution prevailed in the market ahead of the RBI's monetary policy announcement, while weak European and Asian cues saw the local benchmarks linger in negative territory for the majority of the trading session. Listless trading could be seen till the MPC meeting outcome and global cues will continue to dictate trends in the local market, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
 

"Technically, after a reversal formation, the market has been witnessing a range bound activity near the 20-day SMA. For bulls, a fresh uptrend rally is possible only after the dismissal of 19635, and above the same the index could move till 19,700-19,735. On the flip side, below 19,525 the selling pressure is likely to accelerate and could retest the level of 19,480-19,450," he said.

In the Nifty50 pack, Adani Enterprises plunged about 3 per cent, leading the losers in the pack. Hindalco, Mahindra & Mahindra, Divis Labs and JSW Steel dropped 2 per cent each for the day. Britannia Industries, Coal India, Adani Ports and Sun Pharmaceuticals shed about a per cent each.

Among the gainers, SBI Life Insurance, Cipla and Hero MotoCorp rose 4 per cent each, while Tech Mahindra gained 2 per cent for the day. Wipro, Bajaj Finance and State Bank of India rose more than a per cent each, while Tata Consumer, LTIMindTree and Bajaj Finserv for the other key gainers.

On the global front, investors are adopting a cautious approach even amidst declining bond yields as they await the release of crucial economic data. The significant drop in Chinese exports has also contributed to concerns within the global market, said  Vinod Nair, Head of Research at Geojit Financial Services.

"FIIs remain in a selling mode in the domestic market, yet active buying from DIIs is mitigating downside risks. Among sectors, PSU banks and pharma stocks inched up, while mid- and small-cap stocks have continued to outperform the benchmark, showcasing their resilience," he said.

A total of 3,755 shares were traded on BSE on Tuesday, of which 1,852 settled with gains. 1,752 stocks ended the session with cuts while 151 shares remained unchanged. A total of 228 shares hit their upper circuit, whereas 204 shares tested the lower circuit levels for the day.

In the broader markets, Gland Pharma hit an upper circuit of 20 per cent after a strong Q1 earnings, while OnMobile Global surged on the similar lines. Talbros Automotive surged 16 per cent, while Indian Bank gained about 14 per cent after solid Q1 results. Angel One ended 12 per cent up amid restructuring buzz.

Among the laggards, Navkar Corporation and GIC Housing Finance cracked 12 per cent each, while Monte Carlo India dropped more than 10 per cent for the day. Reliance Infrastructure and Universal Cables dropped 7 per cent each, while HLE Glasscoat tumbled and Graphite India settled 6 per cent down each.

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