The indices ended with a 0.3% cut each after corporate action settlement (CAS) adjustments, while broader markets outperformed the benchmarks.
The Nifty Bank recovered from its lows to close 7 points higher at 57,498, supported by gains in financial stocks. The Midcap Index also ended in the green, rising 35 points to 63,817, although overall market breadth favoured declines.
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Following CAS adjustments, the Sensex adjusted lower by 116 points, the Nifty by 54 points and the Nifty Bank by more than 200 points.
Why did the stock market fall today?
IT stocks were among the biggest drags on the Nifty, with three of the five top Nifty losers coming from the sector. Metal stocks, meanwhile, saw buying interest tracking global prices.
Hindalco Industries and Tata Steel were among the top gainers. Reliance Industries recovered from its intraday lows to end nearly 1% higher, lifting the Nifty by around 20 points.
Stocks in focus
Voltas slipped 4% after its first-quarter results, with margin recovery seen from the third quarter. BSE was among the top midcap losers after Jefferies downgraded the stock.
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Renewable energy stocks gained after the Central Electricity Regulatory Commission (CERC) allowed renewable energy projects to retain grid connectivity despite missing deadlines. Inox Wind gained 6%.
Realty stocks surged in the second half of the session, with Oberoi Realty and Godrej Properties among the top gainers. Select capital market stocks also moved higher, with Motilal Oswal and Nuvama among the top gainers.
Zee Entertainment Enterprises rose nearly 3% amid reports suggesting the Securities and Exchange Board of India (SEBI) is unlikely to move the Supreme Court against the Securities Appellate Tribunal (SAT) order. Turtlemint reversed its opening losses and closed with a gain of more than 10%.
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From the Sensex basket, Hindalco Industries Ltd, Tata Steel Ltd, JSW Steel Ltd, Axis Bank Ltd, Oil and Natural Gas Corporation Ltd and TVS Motor Company Ltd were the major gainers.
HCL Technologies Ltd, Sun Pharmaceutical Industries Ltd, Tata Consultancy Services Ltd, Tech Mahindra Ltd, Nestle India Ltd and UltraTech Cement Ltd were the biggest laggards.
Dipan Mehta, Director, Elixir Equities, on Belrise Industries, said, “I don’t have much knowledge about Belrise Industries, so I won’t want to comment. But I was just checking up while you were speaking. It appears to be quite expensive because, with a PE multiple of 45-46 times for an auto ancillary, that is on the higher side.
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In my view, I think a lot of auto ancillaries, good-quality companies, are available at similar valuations, with better strategies, better positioning, multi-product, well-diversified operations as well. So, would prefer those companies, like, say, Sona BLW or, for that matter, Samvardhana Motherson, or even Minda Corp, I think.
Those would be preferred over Belrise, given their dynamics, their product profile, and how well-diversified they are, not being dependent on any single product. So, I would prefer those companies over Belrise.”
Gaurang Shah, Senior Vice President, Geojit Financial Services, on Linde India, said, “It’s a great company, strong fundamentals, earning visibility. Unfortunately, since we don’t have coverage, I won’t be able to give you specific buy, sell, and hold.
But the good part about this investment is that it’s at around ₹5,000 levels; that’s a pretty decent level. I won’t go into specifics since we don’t have coverage, but it’s a strong player.”
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