22 May , 2024 By : Debdeep Gupta
Nifty 50 and Sensex were trading marginally higher around noon on May 22 with energy and FMCG stocks leading the gains.
Investors were cautious ahead of the minutes of the Federal Open Market Committee (FOMC) meeting as they will look for details of the deliberations to gauge which way the Fed may be leaning in the coming months.
The broader market saw a mixed trend with BSE Midcap falling 0.2 percent and BSE Smallcap gaining 0.1 percent.
At 12.10 pm, the Sensex was up 132 points or 0.2 percent at 74,085 and the Nifty 50 was up 29 points or 0.1 percent at 22,558. About 1,659 shares advanced, 1,602 declined, and 98 remained unchanged.
India VIX fell 1 percent to 21.6 after having hit a 23-month high in the previous session.
Sectoral Trend
Nifty Realty and Nifty FMCG were the top gainers amongst sectoral indices, gaining 1.5 percent each. Nifty Metal, on the other hand, was the worst hit as it fell nearly 1 percent after having risen nearly 4 percent in the previous session.
Fundamental View
FII selling has been triggered by the outperformance of Chinese stocks and institutional activity does not reflect any election-related jitters, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He expects the market to respond to the election outcome earlier than June 4. "Investors can consider buying stocks before the results. Priority can be given to large-caps, which are fairly valued compared to the broader market where valuations are much higher."
There's a possibility that around election results both FIIs and DIIs will turn into buyers lifting the large caps and the indexes to higher levels, said Vijayakumar.
Technical View
Nifty 50 has to push above 22,570 for the index to rise to 22,720-22,850, said Anand James, Chief Market Strategist at Geojit Financial Services. Nifty 50's inability to clear the same could cause it to fall to 22,417-22,370, he said.
Key Nifty gainers
HUL, Coal India, Cipla, Britannia
Key Nifty losers
Apollo Hospital, BPCL, Hero Motocorp, SBI
Key Sensex gainers
HUL, Reliance, Infosys, Asian Paints
Key Sensex losers
SBI, Sun Pharma, Axis Bank, M&M
Stock moves
Suzlon Energy: Shares hit the upper circuit after securing an order for the development of 402 MW wind energy projects for Juniper Green Energy.
Metropolis Healthcare: Shares surged over 6 percent to hit a 52-week high of Rs 2,023.45 apiece after the company reported healthy earnings for the January-March quarter of FY24.
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