Sensex Today | Stock Market LIVE Updates: Sensex, Nifty Trade in Red; Realty Index Top Sectoral Loser
On August 21, 2024, the Indian stock market faced a challenging day as both the Sensex and Nifty indices closed in the red, with market sentiment weighed down by a combination of domestic and global factors. The BSE Sensex fell by 56.99 points to close at 79,648.92, while the Nifty 50 index dropped by 20.50 points, ending at 24,347.00. The day’s performance was marked by significant sectoral shifts, with the Realty index emerging as the biggest loser.
Key Market Movements
The trading day began with a cautious sentiment, reflecting concerns over rising inflation and global economic uncertainties. The Sensex opened in the red, influenced by weak cues from Asian markets. Throughout the day, the indices showed volatility, reflecting the market’s struggle to find direction amid mixed economic signals. The Nifty 50, too, followed a similar trajectory, with losses driven by weak performances in key sectors.
Despite a brief recovery attempt during mid-day trading, the indices were unable to sustain positive momentum, and the market closed in negative territory. Analysts noted that the day’s trading was characterized by a lack of strong buying interest, with investors remaining on the sidelines due to uncertainty around inflation and global market trends.
Sectoral Performance
The Realty index was the worst-performing sector of the day, shedding nearly 2% of its value. This decline was attributed to profit-booking activities, as well as concerns over rising interest rates, which could dampen demand in the real estate sector. The Realty index’s poor performance was a significant drag on the overall market, as investors reacted to concerns about the potential impact of rising interest rates on real estate financing and consumer demand.
Other sectors that saw declines included the Auto, Media, and PSU Bank indices. The Auto sector, in particular, was hit hard by below-expectation monthly sales figures, which led to a sharp sell-off in auto stocks. The PSU Bank index also struggled, with several public sector banks reporting weaker-than-expected quarterly results, contributing to the sector’s poor performance.
On the other hand, some sectors managed to hold their ground or even post gains. The FMCG, Pharma, and Oil & Gas sectors were among the few bright spots in an otherwise gloomy market. The FMCG sector benefited from strong consumer demand, while the Pharma sector saw gains due to expectations of robust earnings growth in the upcoming quarters. The Oil & Gas sector also posted gains, driven by rising crude oil prices, which boosted the outlook for companies in this sector.
Top Gainers and Losers
Among the top gainers on the Nifty 50 were Oil and Natural Gas Corporation (ONGC), Hero MotoCorp, and Axis Bank. ONGC saw a 2.59% rise, benefiting from the upward movement in crude oil prices, which improved the outlook for the energy sector. Hero MotoCorp gained 2.15%, supported by positive news on the domestic sales front. Axis Bank was another significant gainer, with a 1.80% increase, driven by strong quarterly earnings and positive investor sentiment towards the banking sector.
Conversely, the biggest losers included Adani Ports and Special Economic Zone, NTPC, and Dr. Reddy’s Laboratories. Adani Ports saw a 2.33% decline, impacted by ongoing regulatory scrutiny and concerns over the company’s financial health. NTPC dropped by 2.16%, with investors reacting negatively to the company’s earnings report, which fell short of market expectations. Dr. Reddy’s Laboratories also saw a 1.76% decline, as the company’s quarterly results failed to meet analyst expectations, leading to a sell-off in the stock.
Technical Analysis
From a technical perspective, the Nifty 50 remained volatile throughout the trading session. Rupak De, Senior Technical Analyst at LKP Securities, noted that the index closed below its 21-day Exponential Moving Average (EMA), indicating weak momentum. The Relative Strength Index (RSI) also showed a bearish crossover, further suggesting that the market might continue to experience selling pressure in the near term. The Nifty 50’s immediate support level was identified at 24,150, with resistance at 24,500.
For the Bank Nifty, the index showed resilience, trading in a range-bound manner. Technical analysts pointed out that the Bank Nifty needs to decisively close above the 51,100 mark to signal further strength. On the downside, the support zone was identified between 50,300 and 49,650. The sector’s performance will be closely watched in the coming days, as a breakout from the current consolidation pattern could set the direction for future movements.
Global Market Influence
The Indian market’s performance on August 21 was not isolated, as it was influenced by global market trends. Asian markets showed mixed results, with some indices closing higher while others struggled with losses. The Shanghai Composite Index fell by 0.1%, while Hong Kong’s Hang Seng Index managed a modest gain of 0.1%. The Kospi in Seoul rose by 1.2%, supported by positive economic data. The mixed performance in Asian markets reflected investor caution ahead of key economic reports from the United States.
In the United States, futures were higher, and oil prices were rising, indicating a positive outlook for the energy sector. However, concerns over the Federal Reserve’s monetary policy and the potential for further interest rate hikes continued to weigh on investor sentiment globally. The anticipation of key reports on the US economy, including inflation data and jobless claims, added to the uncertainty in global markets.
Market Sentiment and Investor Outlook
Investor sentiment in the Indian market remained cautious, with many adopting a wait-and-watch approach. The ongoing Adani-Hindenburg-SEBI saga continued to cast a shadow over the market, with investors concerned about the potential fallout from the regulatory investigation. Additionally, the market was influenced by expectations of easing CPI inflation, which could provide some relief to the economy. However, the upside was capped by concerns over firm oil prices and volatility in food inflation.
Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the domestic market was attempting to ignore the noise from the Adani-Hindenburg issue and focus on broader economic indicators. He noted that the market was looking for signals from international markets, particularly the US, to guide its direction. Nair also pointed out that a good monsoon could support easing inflation, but the risks remain due to rising oil prices.
Looking ahead, the market’s focus is likely to shift to upcoming CPI inflation data and the MSCI India Standard Index rebalancing announcement. The rebalancing, scheduled for August 30, 2024, could see significant changes in the index, with eight firms, including Dixon Technologies and Cochin Shipyard, expected to be added. Investors will be closely monitoring these developments, as they could impact specific stocks and the broader market.
Conclusion
The trading session on August 21, 2024, was marked by volatility and cautious sentiment, with the Sensex and Nifty closing in the red. The Realty index’s significant decline was a key factor in the market’s overall performance, with profit booking and concerns over rising interest rates weighing on the sector. While some sectors managed to post gains, the market’s direction remains uncertain, influenced by both domestic and global factors.
As investors look ahead, key economic indicators, including CPI inflation data and the Federal Reserve’s monetary policy decisions, will play a crucial role in shaping market sentiment. The upcoming MSCI India Standard Index rebalancing is also expected to be a significant event, with potential implications for specific stocks and the broader market. In the near term, the market is likely to remain range-bound, with investors adopting a cautious approach amid ongoing uncertainties.
The market’s ability to break out of this range will depend on how these factors evolve in the coming days, making it a crucial period for investors and traders alike.