Mumbai: A decline in bank stocks and Infosys weighed on benchmark equity indices on Wednesday, while a bounce in RIL shares limited the losses, in a session that saw Nifty form a small bullish candle on the daily chart.
Analysts said while Nifty’s bias remains negative, Thursday’s weekly derivatives expiry may lead to a short-covering bounce.
Going ahead, volatility was likely to continue to rule the market. “Indian markets are expected to be in sync with global markets and react to the ongoing border tensions with China. There are currently no fresh triggers for the market and we can expect volatility to rise,” said Vinod Nair, Head of Research at Geojit Financial Services
Here is a lowdown on what happened in Wednesday’s trade:
RIL gets deal boost
RIL rallied 2.57 per cent to Rs 2,161.25 after reports that US private equity firm Silver Lake will invest Rs 7,500 crore in Reliance Retail for around 1.75 per cent stake. This marks the second billion dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year.
Solid response to IPOs
On the back of huge interest from retail and high-net-worth (HNI) investors, the Rs 702-crore initial public offer (IPO) by Happiest Minds witnessed robust subscription and was subscribed 150 times on Day 3 so far. Meanwhile, Route Mobile’s Rs 600 crore IPO was subscribed 82% on the first day of the bid till 4.15 pm.
Astrazeneca shares tumble
Drug maker AstraZeneca Pharma India fell 3.34 per cent to Rs 4,074.15 after late-stage studies of the parent’s Covid-19 vaccine candidate, a frontrunner in the race, was put on temporary hold due to a serious adverse reaction in a participant in the UK. The stock had recorded a new high of Rs 4,970 on Tuesday. The Covid-19 vaccine is being developed by AstraZeneca PLC and University of Oxford.
Promoter actions: Emami, Adani Power
Promoter groups Diwakar Viniyog and Suntrack Commerce revoked the pledge on a total of 46,80,564 shares of Emami. The FMCG company climbed 3.19 per cent to Rs 364.30. Promoter group Adani Tradeline revoked the pledge on 1,00,30,000 shares of Adani Power. The power producer edged up 0.13 per cent to Rs 37.25.
Stocks that hit 52-week highs
A total of 94 companies logged 52-week highs on the BSE. These included Adani Green Energy, Alembic, Pooja Entertainment and Praveg Communications, among others.
Stocks that hit lower circuits
More companies hit their lower circuit, compared to those who rose by their upper limit on the BSE. The 281 companies that fell by their lower limit included Sadbhav Engineering, Repco Home Finance, Future Lifestyle Fashions, Future Retail and Edelweiss Financial Services, among others.
Stocks that turned oversold
Continuous selling in the last few days sent some names below the 30-mark on RSI indicator, signifying an oversold zone. These included Indian Oil Corp, Ruchi Soya Industries, GE Power India and 3M India, among others.
Where is Nifty headed?
Sahaj Agrawal, Head of Research for derivatives at Kotak Securities, said trend support for Nifty is seen at 11,175 spot levels. “As long as 11,175 is held upside remains open for 11,700/11,900. A breach of 11,175 can invite selling pressure. Momentum indicators are negatively tilted and hence recovery is also expected to be gradual,” he said.