On Monday, the stock market went through a rollercoaster of ups and downs. The day started with a sharp decline, but the market quickly rebounded, only to end the day with a small loss.
The market’s initial drop was triggered by a report from Hindenburg Research, which mentioned the Adani Group and the Chief of the Securities and Exchange Board of India (SEBI). This report caused some concern, similar to the market reactions seen last year. However, this time, the impact was much more limited. While the Sensex and Nifty saw significant drops immediately after the report was released, the decline didn’t last long and was mostly confined to the early hours of trading.
By 11 AM, both the Sensex and Nifty had started to recover. The Sensex, which measures the performance of 30 large companies on the Bombay Stock Exchange, continued to rise throughout the day. At one point, it even reached a high of 80,106 points, which was about 280 points higher than its opening level. However, by the end of the trading session, these gains had disappeared, and the Sensex closed down by just 56 points at 79,648.92.
Similarly, the NSE Nifty, which tracks the performance of 50 major companies on the National Stock Exchange, followed the Sensex’s pattern. It opened lower, then gained momentum, reaching a high of 24,472 points. But like the Sensex, the Nifty couldn’t hold onto these gains and ended the day down by 20 points, closing at 24,347.
Despite the overall flat closing, the market showed some resilience in the afternoon, partly due to positive trends in global markets. Indian stocks began the day weak but made a strong recovery. However, a late-day sell-off dragged the indices back down. Investors are now eagerly awaiting the release of domestic inflation numbers, which are expected later in the day. Many are hoping that the inflation rate for July will show some easing.
Sectoral Performance and Top Gainers and Losers
Among the various sectors, the NIFTY Realty and Metal indices were the top performers. NIFTY Realty gained 1.32%, driven by expectations of a possible rate cut by the US Federal Reserve, which might also encourage the Reserve Bank of India (RBI) to cut rates. The NIFTY Consumer Durables index also saw an increase of around 0.87%, while the Metal index rose by 0.75%.
On the flip side, the NIFTY Media index suffered the most, dropping over 2%. This decline was led by losses in Sun TV, which plunged more than 10%. Other media companies like Network18, PVR Inox, and Hathway also contributed to the index’s fall. The NIFTY PSU Bank index dropped over 1.1%, and the FMCG index declined by 0.8%.
In terms of individual stocks, Oil and Natural Gas Corporation (ONGC) and HeroMotoCorp were among the major gainers. ONGC rallied over 3% to reach a new 52-week high of Rs 344.7 per share after the government announced that gas prices from new wells would be set at a 20% premium compared to older wells. By the close, ONGC shares were up by 2.5% at Rs 341.15 each.
HeroMotoCorp also gained over 2% ahead of its quarterly results, while private sector lender Axis Bank closed nearly 2% higher. Infosys and JSW Steel were also among the top gainers, with increases of 1.2% and 1.53%, respectively.
On the losing side, Adani Ports was among the biggest decliners, dropping 5% to a low of Rs 1,457.35 per share during the day, before closing down by 2.3% at Rs 1,498 per share. NTPC, a state-owned power company, was the biggest loser, falling by 2.31%. Other major losers included Dr Reddy’s Laboratories, which dropped by 1.76%, Britannia Industries, down by 1.59%, and Adani Enterprises, which lost 1.46%.
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