Market Movers: Grasim painted green on charts as RIL tumbles after profits
Big losses in the index heavyweight Reliance Industries, some banks and information technology (IT) companies were the main reasons for the drop in benchmarks.
Global market indices were also mixed, as Asian stocks showed strength, while European stocks were largely flat in the early hours of trading.
The Nifty 50 Index finished down 0.9%, or 133 points, at 14,238.90, while the Sensex closed at 48,347.59, down 1.1% or 530.95 points.
Here are the main players in commerce today:
One of the main contributors to the market downturn today was RIL shares, which fell more than 5% as analysts raised concerns over weak operating performance and lack of disclosure in the company’s income statement on Friday.
NBFCs rally to standards proposed by RBI
Shares of some non-bank lenders rose sharply as investors were relieved that the central bank failed to come up with measures such as the cash reserve ratio and statutory liquidity ratio that could have limited the growth prospects of these. companies.
Kotak Mahindra Bank falls on profit reservation
Shares of one of the largest publicly traded private banks fell sharply on accounting for profit, despite the bank reporting stable asset quality and impressive sequential loan growth for the quarter ended in December.
Grasim takes off on a foray of paintings
Investors approved Grasim’s plan to pay Rs 5,000 crore for a foray into the paint industry as the business is seen as more lucrative and a better use of the company’s capital than investing it in the weak telecommunications sector of Vodafone Idea.
Paint stocks fall on Grasim news
Shares of Asian Paints and other smaller paint companies fell sharply in response to news of Grasim’s foray into the industry as it will increase the competitive intensity of the industry and cause investors to reconsider valuations. high of certain stocks.
Who gave the sell signal?
No less than 55 stocks listed on the NSE gave a “sell” signal based on the MACD indicators. The list included Tata Motors, Vodafone Idea, DLF and Lupine. At the same time, around 16 stocks gave a ‘buy’ signal, the main ones being Grasim, Century Plyboards and Godrej Industries.
What awaits the market?
Traders have sold both Nifty50 off-the-money calls and puts on Nifty50, suggesting they remain undecided on the direction of the market over the next few sessions.
On the technical side, Ajit Mishra, vice president of research at Religare Broking, said a decisive close below 14,200 by the Nifty50 would derail the current momentum, so participants would have to align their positions in result. The Indian stock exchange will remain closed on Tuesday due to Republic Day.