On Monday, domestic equities had a subdued performance with profit booking after a recent strong rally, per Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services. Both Nifty and Sensex closed lower—Nifty down 0.18% at 21,418.70 and Sensex down 0.24% at 71,315.09. Yet, Midcap100 and Smallcap100 showed resilience, gaining by 0.2% and 0.6%, respectively.
Global markets traded cautiously ahead of the Bank of Japan's meeting, potentially signaling changes in its ultra-loose monetary policy.
Sector-wise, gains were seen in pharma, auto, metals, and infra, while banking and IT sectors faced pressure due to hints about potential rate adjustments by Fed officials next year.
Unique sectors like sugar, shipping, and defence stood out. Sugar stocks rebounded on ethanol source permissions, and defence surged on robust domestic orders.
Deepak Jasani of HDFC Securities noted a doji pattern on Nifty, suggesting potential consolidation within the 21,287-21,492 range. Despite concerns, market dips continued to attract buying interest.
Key Points:
1. Siddhartha Khemka from Motilal Oswal Financial Services noted a lackluster trading session in domestic equities on Monday, marked by profit booking following a recent sharp rally spanning three sessions.
2. The benchmark indices, Nifty and Sensex, closed in the red; Nifty declined by 0.18% to 21,418.70, and Sensex by 0.24% to 71,315.09.
3. Contrarily, the broader market showed gains, with Midcap100 and Smallcap100 rising by 0.2% and 0.6%, respectively.
4. Global markets exhibited caution, particularly ahead of the Bank of Japan's meeting, where discussions regarding the potential end to the ultra-loose monetary policy were anticipated.
5. Sector-wise performance was mixed, with pharma, auto, metals, and infra sectors slightly gaining. However, banking and IT stocks paused, influenced by indications from several Fed officials hinting at a lack of rate cuts next year.
6. Niche sectors like sugar, shipping, and defence stocks gained attention. Sugar stocks rebounded following government approval for sugar mills to use sugarcane juice and B-heavy molasses for ethanol production. Defence stocks saw a surge due to robust domestic orders.
7. Deepak Jasani from HDFC Securities observed that Nifty formed a doji pattern after a sideways movement and an inside day, potentially leading to Nifty remaining within the 21,287-21,492 band in the near term.
8. Concerns about the elevated levels of broader indices linger among investors, although there is a trend of buying during market dips.
9. Overall, the trading session exhibited mixed sentiments, marked by profit booking in benchmark indices but gains in the broader market segments.
10. Market participants remain watchful amid global market caution and sector-specific movements, with an eye on potential monetary policy shifts and broader index levels impacting sentiment.
(With Agency Inputs)
