25 July 2024 Punjab Khabarnama : Benchmark indices Nifty and Sensex were off to a sluggish start yet again, tumbling for a fifth consecutive trading session as weak US markets coupled with budgetary adjustments induced selling pressure.
At 9:30 pm, the Sensex was down 0.62 percent at 79,655 and the Nifty declined 0.60 percent at 24,267. About 1,490 shares advanced, 1,427 shares declined, and 93 shares unchanged.
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“I think it’s not a big dampener (capital gains tax). With the kind of money investors have made in the market, the increase doesn’t move the needle for the mindset with which the investors are riding,” Aishvarya Dadheech, founder and CIO of Fident Asset Management told Moneycontrol. “I think acclimatization to this two and a half percent could be smooth,” he added, suggesting that the overall positive mood is intact.
Axis Bank shares were buzzing in today’s session. The private lender’s share price took a 6 percent beating, a day after the lender reported its April-June earnings which highlighted its worsening asset quality, thereby souring investor sentiment
As for broader markets, the mid and smallcap indices also tanked, slipping 0.7 and 0.2 percent, respectively. Dadheech says that the valuation comfort is still with large gaps. “Money making should be easier in the largecaps compared to mid and smallcaps.
The volatility index or the VIX rose 2.4 percent to just over 12.
“With markets at new highs, the budget further strengthens India’s macroeconomic position amid a fragile global economy. We anticipate the market to quickly discount the budget and shift its focus to the trajectory of corporate earnings growth, which has remained marginally below our expectations so far in 1QFY25. Thus, we expect the market to consolidate in the near term, “said Motilal Oswal’s Siddhartha Khemka.
All 13 indices were trading in the negative with Nifty Bank and Metal being the worst hit, falling over one percent each. Axis Bank, SBI, and ICICI Bank were pulling the index lower. Energy, Realty and IT followed all slipping nearly a percent each.
“The 24,300-24,250 zone is likely to act as support, below which the panic low of 24,050 from the budget day could be retested. On the flip side, the high of the last two sessions around 24,600 seems a stiff hurdle, whereas the bearish engulfing high of 24,850 remains a daunting task to cross,” Sameet Chavan, head of technical and derivatives at Angel One said.
SBI Life Insurance, Tata Motors, L&T, Nestle India and Kotak Mahindra Bank were the top gainers on the Nifty. Axis Bank, Hindalco, Coal India, ICICI Bank, and Tata Steel lagged the most.