Despite another lacklustre session, analysts do not expect a significant fall until the benchmark Nifty holds above 19,600. It was a lackluster afternoon trade for the Indian market on September 26, dampened by a surge in US bond yields, a 10-month high in the dollar index, and weak Asian cues. The downside was limited, however, by strong buying in automobiles and metals.
Keep up with the rollercoaster ride of US bond yields and their impact on global markets. From autos to metals, find out which sectors are shining amidst this market trends.
At noon, the Sensex was down 6.38 points or 0.01 percent at 66,017.31, and the Nifty was up 11.50 points or 0.06 percent at 19,686.00.
A total of 1,777 shares advanced, 1220 declined, and 106 remained unchanged.
According to Shrikant Chouhan, Head of Research (Retail), Kotak Securities, the recent increase in US Treasury yields is making investors nervous.
Nifty has formed a Doji candlestick formation on daily charts, which indicates incisiveness between bulls and bears. However, a quick pullback rally cannot be ruled out from the current levels.”
A key support zone for bulls is the 50-day simple moving average (SMA) at 19,600. If the Nifty breaks below 19,600, analysts anticipate a fresh sell off till 19,525-19,500. If the Nifty breaks below 19,600, analysts predict a fresh sell off till 19,525-19,500.
Sectors and stocks-US bond yields
Among the Nifty50 gainers, Eicher Motors was the talk of the market, soaring over 3 percent in trade after Jefferies raised its target price for the stock, factoring in a 22.5 percent upside potential.
Eicher Motors’ robust growth prospects are supported by Jefferies analysts alleviating competitive concerns, as well as tailwinds from two-wheeler demand recovery, industry premiumisation, and exports. Bajaj Auto, which rose around 2 percent, also benefited from the gains in the two-wheeler company.
Keep up with all the market action -US bond yields
Another major gainer was Tata Steel, which rose around 2 percent after Moody’s Investors Service upgraded its long-term rating and revised the company’s outlook to “stable.”
After strong gains in the previous session, Bajaj Finserv shares fell 1.5 percent due to profit booking.
Following a block deal worth Rs 603 crore, Voltamp Transformers plunged around 6 percent.
The company announced plans to spin off its CDMO (Contract Development and Manufacturing Organisation) and soft gelatin businesses into a new entity, likely to be listed in the next 12-15 months, and fell 3 percent from its 52-week high reached in the previous session.
At an average price of Rs 4,650 a share, about 13 lakh shares or 12.9 percent equity changed hands. However, CNBC Awaaz reported a day earlier that the company’s promoters are looking to sell a combined 10 percent stake, or 12 lakh shares.
Sector-wise, FMCG, metals, automobiles, energy, infrastructure, PSU banks and pharma posted gains, while banks and IT remained under pressure.
Nifty Smallcap 100 rose 0.7 percent, and Nifty Midcap 100 rose 0.3 percent.