The Nifty Bank declined 237 points, or over 0.4%, to 56,056, while the Midcap Index rose 558 points to 61,432. Here are 5 reasons why the market ended mixed today:
1. Midcaps outperform, market breadth remains positive
Midcap stocks outperformed the benchmark indices, keeping the market breadth in favour of advances. The National Stock Exchange’s (NSE) advance-decline ratio stood at 2:1. As many as 35 Nifty stocks closed in the green, with insurance names among the top gainers.
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2. Financial stocks underperform
Financial stocks remained under pressure, with the Nifty Bank closing down over 0.4%. Federal Bank slipped 2%, while Jana Small Finance Bank rose 2% on expectations of a corporate announcement. PB Fintech fell 4%, giving up half of Wednesday’s gains.
3. Tata stocks gain on Tata Sons listing prospects
Tata stocks moved higher after news of Chandra’s reappointment. Tata Motors Passenger Vehicles was the top gainer among Tata stocks. Tata Chemicals and Tata Investment Corporation rose up to 7% on the prospect of a Tata Sons listing.
4. Auto, airline and semiconductor stocks rise
Most auto stocks gained ahead of festive sales, with Maruti Suzuki and TVS Motor Company rising around 2% each. Semiconductor-related stocks also surged, with Kaynes Technology, Hitachi Energy India and CG Power and Industrial Solutions gaining more than 3% each.
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Airline stocks advanced as crude prices came off highs, with IndiGo and GMR Airports rising 2-3%.
5. Oil stocks fall as crude prices weigh
Upstream oil companies declined, tracking crude prices. Oil and Natural Gas Corporation (ONGC) was the top Nifty loser, falling 2%. Among other notable moves, SRF gained more than 2% following a positive brokerage note, while Blue Star rose more than 3%.
From the Sensex basket, Tata Motors Passenger Vehicles Ltd, SBI Life Insurance Company Ltd, Tata Steel Ltd, Dr Reddy’s Laboratories Ltd, InterGlobe Aviation Ltd and Jio Financial Services Ltd were the major gainers.
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Oil and Natural Gas Corporation Ltd, Titan Company Ltd, HDFC Bank Ltd, Grasim Industries Ltd, ICICI Bank Ltd and HCL Technologies Ltd were the biggest laggards.
Hetal Dalal, President and COO, IIAS -Institutional Investor Advisory Services on Tata Sons, said, “Given where they were and the material change which happened, as far as the RBI basically pushing for Tata Sons listing, these are very critical changes for Tata Sons.
Now, the selection committee, which would supposedly meet for Chandra’s reappointment, was not able to meet because of the entire sort of regulatory hassle they are going through with the Charity Commissioner. So basically, it’s an impasse. Now, given that it’s an impasse, for them to maybe extend Chandra’s tenure is a practical outcome.
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But to be fair, there are two things – one is that he does reach that 65 years of mandatory retirement age of the Tata Group, if he’s been reappointed for another five years. He’s been, I think, two years away from that. And the other piece is that it also shows that the Tata Sons succession planning.
That’s something that they now need to focus on in terms of having, grooming someone who is ready to take over in circumstances like this. And that’s a lesson that they learned from the Cyrus Mistry episode as well as from this episode.”
