The Nifty managed to hold the 24,000 mark, but market breadth remained weak, with 34 Nifty stocks closing lower and the advance-decline ratio at 1:2. Information technology (IT), capital goods and defence stocks remained under pressure, while financials relatively outperformed.
1. IT stocks erase opening gains
Information technology stocks gave up their opening gains after CLSA downgraded most large-cap names, weighing on the sector during the session.
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2. Capital goods stocks fall sharply
Capital goods stocks were among the major losers. Hitachi and CG Power were among the top losers in the segment.
3. Defence stocks among top midcap losers
Defence stocks also remained under pressure, with Bharat Dynamics Limited (BDL) falling 3% and featuring among the top midcap losers.
4. Page Industries extends losing streak
Page Industries continued its decline, falling 3% on Wednesday. The stock is down 12% this month.
5. Gold price fall weighs on Manappuram, Muthoot
A fall in gold prices weighed on gold-financing stocks. Manappuram Finance and Muthoot Finance declined by up to 2%. Financials relatively outperformed, with the Nifty Bank slipping just 23 points to 57,240, ending close to the flatline.
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Select non-banking financial company (NBFC) stocks saw buying, with PNB Housing Finance among the top gainers. PB Fintech gained more than 2%, while Info Edge closed 2% higher.
Sugar stocks extended their gains, with Bajaj Hindusthan Sugar rising more than 10%. Oriental Hotels also saw a strong move, ending 15% higher. The Nifty Midcap index fell 131 points to 63,409. Overall market breadth favoured declines, with the advance-decline ratio at 1:2.
From the Sensex basket, HCL Technologies Ltd, Eternal Ltd, Kotak Mahindra Bank Ltd, Sun Pharmaceutical Industries Ltd, Wipro Ltd and Infosys Ltd were the major gainers.
Power Grid Corporation of India Ltd, Hindustan Aeronautics Ltd, Coal India Ltd, Jio Financial Services Ltd, ITC Ltd and Larsen & Toubro Ltd were the biggest laggards.
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Mayuresh Joshi, Director Research, Marketsmith India, on Welspun Corp, said, “As a disclaimer, I think we are still holding on to Welspun Corp stock. More than 100% gains in our portfolios as we speak. So, I think the stock has given exaggerated moves over the last few months, and for very valid reasons as well.
And again, I think all the pieces are probably coming together for this company. Strong order book; they’re executing well, margins are a bit decent, the overseas order book specifically.
When the West Asian crisis probably comes to some sort of an end over the next few weeks or months, I think the huge transmission layouts that are expected to happen across the MENA region give tremendous opportunities for Welcorp, as well as its US operation, which is working at full capacity as we speak.
The domestic operations also stand on a very, very strong footing. So, yeah, it’s been a stellar show, both from a price-performance and an earnings perspective.”
