NIFTY falls for third straight day at 22,300, FMCG & IT stocks gain in weak market
Upstox
3 min read • Updated: May 7, 2024, 5:48 PM
Summary
Benchmark Indices – NIFTY 50 (-0.62%) and SENSEX (-0.52%) ended the trading session in red on Tuesday. The Nifty bulls managed to defend the 50-DMA on a closing basis
On Tuesday, the 30-share BSE SENSEX closed in red with a loss of 0.52% to settle at 73,511.85. NSE NIFTY 50 closed lower by 140.20 points or 0.62% to close at 22,302.50. On an intraday basis, the NSE Nifty 50 index slipped below the 50-DMA, however, on a closing basis the index managed to defend it on a closing basis.
In the NIFTY50 space, 16 stocks advanced. Hindustan Unilever (+5.20%), Tech Mahindra (+2.52%), Nestle India (+2.06%), Britannia Industries (+2.05%) and ITC (+1.44%) were the major gainers. Laggards included Bajaj Auto (-3.98%), Power Grid Corporation of India (-3.65%), ONGC (-3.07%), IndusInd Bank (-2.90%) and Hindalco Industries (-2.86%).
Recent selloff in the domestic market is mainly due to selloff by foreign institutional investors (FIIs). So far in May, FIIs have been net sellers with sell-off worth over ₹5,525 crore. In previous month, FIIs sold equities worth ₹35,692 crore
As per experts, continued sell-off by FIIs has made domestic retail investors nervous. Also, investors are making cautious moves ahead of the general election outcome. Besides this, the mixed Q4 earning season so far without any big positive surprise has also impacted market sentiments.
The broader market also mirrored a negative performance with the Nifty Midcap 100 plummeting by 1.95% and the Nifty Smallcap 100 dropping 1.89% on Tuesday.
Among the sectoral indices, most of the indices ended lower and only two sectors ended in green. The NIFTY FMCG (+2.02%) and NIFTY IT (+0.77%) closed in green. On the other hand, the top two losers were NIFTY Realty (-3.49%) and Nifty Metal (-2.39%).
In the Asian equity markets, the Kospi added 2.16%, the Shanghai index gained 0.22% and the Nikkei 225 climbed by 1.57%.
At 4:00 PM: Dow Jones Futures were seen trading at 39,069, up by 0.18%.
On Tuesday, shares of SRF Limited plunged 7.25% on the NSE. The company announced its fourth-quarter results for FY24. Revenue took a hit by 6% in Q4FY24 and stood at ₹3,570 crore. PAT declined by 25% to ₹422 crore.
The stock price of Shyam Metalics & Energy ended lower by 1.13%. Despite the announcement of the commencement of operations at the recently acquired Ramsarup plant. The stock has corrected almost 12% from the recent highs and finished lower for the eighth straight trading session.
Jindal Stainless Limited finished the session in red, down by 2.69%. The company announced that it has developed and supplied 3 mm special alloy steel sheets for structural application in the Supersonic Missile-Assisted Release of Torpedo (SMART) system.