Benchmark indices Sensex and Nifty continued to trade in negative territory on April 12 afternoon, weighed by weakness in banking and consumer stocks. The firming up of US bond yields due to hotter-than-expected inflation print also eroded investors' risk appetite. Broader markets, however, outperformed benchmarks during the day.
At 01.30 pm, the Sensex was down 613.28 points or 0.82 percent at 74,424.87, and the Nifty 50 was down 177.10 points or 0.78 percent at 22,576.70. About 1,296 shares advanced, 1,927 shares declined, and 80 shares remained unchanged.
Going ahead, Sudeep Shah, DVP and Head of Technical and Derivative Research Desk, SBI Securities said that Nifty's decline below 22,470 could lead to further selling pressure in the index. He projected a decline of up to 22,350-22,310.
On the upside, Shah predicted that any move above 22,780 would lead to an extension of rally towards 22,930-22,970 in the short term.
Sectoral trend
Nifty Pharma and Nifty FMCG indices saw most of the profit-booking as they slipped up to 0.6 percent on April 12 afternoon. On the contrary, Nifty Auto and Nifty Energy indices bucked the trend and gained 0.3 percent each.
IT stocks will watched out ahead of the fourth quarter results season that begins today. The Nifty IT index saw moderate gains led by TCS, LTIMindtree, and Persistent Systems.
TCS will report Q4FY24 results on April 12 after market hours. The IT giant's revenue in rupee terms is expected to rise 1.5 percent quarter-on-quarter to Rs 61,414 crore, according to an average of 10 brokerage estimates. Its net profit for the quarter may rise 5.8 percent sequentially, according to the poll.
Fundamental View
V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, believes that the rising bond yields could impact foreign flows into India, but the overall construct remains bullish as it is driven by domestic liquidity.
"Dips are likely to get bought imparting strength to the market. Therefore, investors may use the dips to buy high quality large caps where the margin of safety is high," he added.
Technical view
Sameet Chavan, Head Research, Technical, and Derivative - Angel One suggested not to overlook global events as they may shape the next phase of the movement. "The key levels to monitor include 22,800 - 22,850 as significant resistance, followed by psychological resistance at 23,000, with immediate support observed around 22,600 - 22,550," he said.
KEY NIFTY GAINERS
TATA MOTORS, EICHER MOTOR, BAJAJ AUTO
Key Nifty losers
Sun Pharma, Titan, Apollo Hospitals
Key Sensex gainers
Tata Motors, NTPC, Nestle India
Key Sensex losers
Sun Pharma, Titan, Maruti Suzuki
Stock moves
Auto ancillary stocks: Shares of Sandhar Tech, Sona Blw Precision surged up to 7 percent on April 12 after Tesla CEO Elon Musk announced his India visit. In a post on X, Musk said that he is looking forward to meeting PM Modi in India. The visit is being seen as a step forward in bringing Tesla to India, causing shares of Indian companies that provide parts to the EV maker, to rise.
Sun Pharma: The drugmaker stock dropped 3.1 percent as the US FDA labeled its Dadra facility as "official action indicated" (OAI), indicating recommended regulatory or administrative actions.
CAMS: Shares of CAMS (Computer Age Management Services Limited) gained nearly 4 percent on April 12, after the company received approval to operate as an online payment aggregator.
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