Benchmark Indices The Nifty and Sensex extended losses for the second trading session in a row, as investors entered a wait-and-see mode only one day before the Union Budget 2024.
At 9:30 a.m., the Sensex was down 0.26 percent at 80,395, while the Nifty was down 0.23 percent at 24,473. Approximately 1,324 shares gained, 1,704 shares dropped, and 170 shares were unchanged.
"The market is consolidating since the indexes have recovered significantly from their lows following the election results. If there are any negative shocks, the market may see lengthy consolidation and trade around the 24,000 level," says Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. He stated that if the budget delivers as predicted, the market would attempt to reach 25,000 in the next few days.
Wipro shares fell the most on the Nifty after its net profit increased 4.6 percent year on year to Rs 3,003 crore. The IT company's consolidated sales for April-June declined 3.8 percent to Rs 21,964 crore.
Banks were in the spotlight today, as HDFC Bank and Kotak Mahindra Bank announced Q1 earnings over the weekend. The Bank Nifty was down 0.6 percent at 51,976. HDFC's net profit increased 35.3 percent to Rs 16,174.75 crore, while Kotak's net profit increased by 81 percent. Shares of HDFC rose 0.3 percent, while Kotak fell more than 2%.
The midcap and smallcap indexes, often known as the wider markets, continued their losses and underperformed the headline indices. Both traded 0.6 and 0.8 percent down, respectively. According to industry analysts, the wider market saw full-fledged profit booking last week.
The VIX, popularly known as the fear index, surged by 4.2 percent to about 16. The VIX has risen over 17% in the previous three months.
Energy and real estate were the most heavily impacted industries ahead of the budget. The auto, infra, and metal indexes also fell by roughly one percent apiece. FMCG was the only index that increased, with ITC, Nestle India, and Britannia Industries leading the way.
"The 24,400 level provides immediate support; if broken, it may correct to 24,200 and 24,000 in the next days. On the other hand, 24,700 and 24,800 serve as resistance levels. Due to the budget week, market volatility is projected to stay high," Mandar Bhojane, research analyst at Choice Borking, stated.
"The Bank Nifty is trading in a sideways range of 52,000 to 52,800 levels. If the price falls below 52,000, it may correct further to 51,600 and 51,200. On the contrary, 52,800 and 53,000 serve as immediate resistance levels," he explained.
Grasim, ITC, Britannia, Apollo Hospitals, and Infosys were the Nifty's biggest gainers. Wipro, Kotak Mahindra Bank, Reliance Industries, Eicher Motors, and IndusInd Bank were the laggards.
