09 May , 2024 By : Debdeep Gupta
Sensex and Nifty 50 extended losses made from early trade and were down for the fourth session amid nervousness about the general elections.
Larsen & Toubro, the worst-hit Nifty 50 company, pulled the index down. The stock fell nearly 5 percent after the company reduced its future margin guidance to 8.2-8.3 percent for FY25 to bake in supply chain disruptions, an uncertain political environment, and ongoing conflicts across several areas.
The broader market was also under selling pressure with both BSE Midcap and Smallcap falling 1 percent each.
Around noon, the Sensex was down 544 points or 0.7 percent at 72,922.36, and the Nifty 50 was down 170 points or 0.8 percent at 22,132. About 944 shares advanced, 2,151 shares declined, and 107 shares were unchanged.
Sectoral Trend
Financial services and construction companies led the decline while automobile and IT companies emerged as the major gainers.
Fundamental View
In an early market note, Shrey Jain, Founder and CEO of SAS Online said that he expects the Nifty 50 to hover within the broader range of 22,250-22,500 levels ahead of today's weekly expiry. However, Nifty has already breached the psychological support of 22,200.
Jain said that the ongoing results season and union elections have led to increased volatility in the market and he expects this trend to persist in the coming weeks. "Given this scenario, investors are advised to exercise caution in their short-term outlook," Jain said.
Technical View
Prabhudas Lilladher said in a note that it sees 22,100 as a major support for Nifty 50 and 22,500 as the resistance. With a decisive close below 22,300, the Nifty 50 can slide further to 22,100-22,000 levels, the brokerage said.
Key Nifty gainers
Hero MotoCorp, Tata Motors, M&M, Bajaj Auto
Key Nifty losers
L&T, Divi's Laboratories, Coal India, Britannia
Key Sensex gainers
Tata Motors, M&M, HCLTech, Infosys
Key Sensex losers
L&T, ITC, JSW Steel, Bajaj Finance
Stock moves
State Bank of India: Shares rose marginally by 0.8 percent to Rs 817 per share on May 9 ahead of its January-March quarter (Q4FY24) results announcement. The lender is likely to see a sharp fall in Q4 net profit due to one-time wage revisions, while moderate loan growth is expected to restrict any rise in net interest income (NII), said analysts.
BSE: Shares surged over 2 percent after the stock exchanges clocked an 18 percent year-on-year (YoY) rise in net profit at Rs 107 crore in the January-March quarter (Q4FY24).
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