इंट्राडे में 1% की गिरावट के बाद सेंसेक्स, निफ्टी बढ़त के साथ बंद; विश्लेषकों का कहना है 'सावधानी बरतें'

इंट्राडे में 1% की गिरावट के बाद सेंसेक्स, निफ्टी बढ़त के साथ बंद; विश्लेषकों का कहना है 'सावधानी बरतें'

Sensex, Nifty close higher after falling 1% intraday; analysts say 'exercise caution'

Sensex and Nifty 50 rebounded, overcoming morning losses. Market volatility persists amid earnings season and anticipation of election results.

  • Business
  • 43
  • 13, May, 2024
Author Default Profile Image
Sampda Gupta
  • @SampdaGupta

Sensex, Nifty close higher after falling 1% intraday; analysts say 'exercise caution'

On May 13, the Indian stock market witnessed a rollercoaster ride as both the Sensex and Nifty 50 initially plunged nearly 1 percent each during morning trading, only to stage a remarkable recovery later in the day, closing in the green. Ajit Mishra, Senior Vice President of Research at Religare Broking, offered insights into the market's turnaround, cautioning against reading too much into the rebound. Mishra highlighted that despite the bounceback, the India VIX, a measure of market volatility, remained elevated, indicating persistent uncertainty among investors. He suggested that the rebound might be a temporary reprieve, with the market sentiment still leaning towards the negative side. By the end of the trading session, the Sensex gained 145 points, or 0.2 percent, closing at 72,809, while the Nifty 50 rose by 64 points, or 0.3 percent, reaching 22,120. Market breadth reflected a mixed sentiment, with 1,533 stocks advancing, 2,001 declining, and 92 remaining unchanged. SBI Securities noted in a report that a sustained move above the 10-day Exponential Moving Average (EMA) within the 22,250-22,300 zone would signal a potential reversal in the market trend. However, until such confirmation, selling pressure at higher levels could persist. The broader market indices showed a mixed performance, with the BSE Midcap index edging up by 0.3 percent, while the BSE Smallcap index dipped by 0.2 percent. Among sectoral indices, nine out of thirteen ended the day on a positive note. Notably, Nifty Pharma and Nifty Healthcare stood out with gains of nearly 2 percent each. Cipla, a prominent pharmaceutical company, contributed significantly to the uptrend in Nifty Pharma, driven by optimistic growth prospects and expectations of regulatory relief. Cipla's stock surged by close to 6 percent by the session's end.

Conversely, Nifty Auto faced substantial selling pressure, declining by 1.5 percent, primarily dragged down by Tata Motors, which witnessed an 8 percent drop. Despite reporting robust fourth-quarter results, with a more than tripled net profit compared to the previous year, Tata Motors faced skepticism from some quarters regarding the sustainability of its demand momentum. The current market dynamics have been influenced by a combination of factors, including a mixed earnings season, apprehensions surrounding the upcoming general election results, and selling pressure from Foreign Institutional Investors (FIIs). Additionally, investors are closely monitoring key developments such as US and India Consumer Price Index (CPI) data and ongoing corporate earnings announcements, which are likely to sway market sentiment in the coming days.

News Reference

Author Default Profile Image

Sampda Gupta

  • @SampdaGupta