Both Nifty and Sensex lacked momentum today even as their Asian counterparts ended their week’s trading activity a notch above. In India, the respective stock markets, on the other hand, indicated a sideway trend. Nifty 50 paired a gain for 4th consecutive day and was up 0.22% during the closing bell. Sensex, on the other hand, was down 0.44% today.
Banks drive value following RBI’s MonetaryPolicy
The reliefs offered in RBI’s Monetary Policy, including 3-month Moratorium period, gave the market a good support as the market sentiment appeared to be bearish. Nifty bank inched closer to the 20,000 level today by closing at 19,969 points. In it, Bandhan Bank was the day’s top performer with an advance of 15.75%. Federal Bank grew by 6.34%, Axis Bank by 5.37%, and IDFC First Bank by 2.99% today. IndusInd Bank corrected by 5.69% after surging around 46% yesterday. RBL and Bank of Baroda also took a beating of around 3%.
BSE’s benchmark index Sensex saw 13 advances and 17 declines. Axis Bank, ITC, NTPC, and Mahindra & Mahindra were amongst the top performers. Axis Bank saw a rally of 4.98%, ITC of 3.63%, and NTPC of 3.17% at BSE. Power segment also retained the investor confidence as NTPC surged by 3.17% and PowerGrid was up 0.88%. On the other hand, at NSE, Coal India also grew by 6.86% today.
Massive selloff was seen in the automobile sector today. BSE saw Hero MotoCorp falling by 8.04% while Maruti Suzuki and Bajaj Auto also reeled under the pressure. IT stocks such as HCL Tech and Tech Mahindra also fell by 4.37% and 2.36% respectively. At Nifty, Bajaj Finance fell by 9% today. Hero MotoCorp also closed 7.81% lower and Bajaj Finserv by 4.99%.
Pull back seems to be fading out
The market continues to remain jittery on the back of the coronavirus issue and it will take time, before the efforts by central banks take effect. Further, higher levels could witness selling pressure. The best approach at the moment would be to stick with consumer staples and pharmaceutical stocks.
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