Dalal Street Corner: Markets end lower getting dragged by HDFC, HDFC Bank stocks; what should investors do on Thursday

Benchmark indices Sensex and Nifty50 slumped nearly 1 per cent each at the closing time, dragged by bank and financial stocks.

IT stocks displayed weakness ahead of fourth-quarter financial results which are to begin soon: PTI

Indian markets closed in the red on Tuesday amid high volatility. This is a second straight loss for the domestic markets. Benchmark indices Sensex and Nifty50 slumped nearly 1 per cent each at the closing time, dragged by bank and financial stocks.

The 12-share Bank Nifty slipped over 400 points or 1 per cent to end at 37633 levels with HDFC Bank proving to be the biggest reason for the market.

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Information and Technology stocks displayed weakness ahead of fourth-quarter financial results which are to begin soon. HCL Technologies, Tech Mahindra, and Infosys closed nearly 2 per cent lower.

On individual basis, Marico shares declined 4 per cent after the company indicated low single-digit revenue growth in Q4. Similarly, Rain Industries also plunged over 4 per cent on the partial shutdown of the Vizag Calciner plant.

Weak global cues viz. hawkish commentary from the US Fed and the possibility of fresh sanctions on Russia largely impacted investors’ sentiment, Ajit Mishra, VP - Research, Religare Broking Ltd said in his post-market comment.

The global developments have once again taken centre stage for the markets and the updates on Russia-Ukraine would remain on investors’ radar. On the domestic front, investors would keep a close watch on the Reserve Bank of India’s monetary policy meet the outcome on April 8, 2022.

However, broader markets outperformed for the second day in a row and ended higher. While metals along with power stocks witnessed buying, Coal India and NTPC were the top Nifty gainers.

The public sector banks saw a sharp rise during the last hour of trade, as Nifty PSU Bank closed around 2 per cent higher. While Indian hotels, Tata Power, Vedanta, Bank of Baroda, Delta Corp, JSPL and IDFC touched their respective 52-week highs on Wednesday.

“We expect volatility to remain high, thanks to weekly expiry however we’re still seeing select pockets like power, fertilizers, and OMCs doing well so participants should align their positions accordingly. On the index front, we expect the Nifty to hold 17,700 levels, Mishra also said.

While TradeSwift Director and market analyst Sandeep Jain mentioned that today’s session was gap-up filling and a strong support zone around 17625-17650 is been created. Nifty has resistance at around 18100-18200 on the upside and 17100-17200 on the downside support.

He suggested investors be cautious as profit booking in the market continues for the second day after overbuying on Monday on the back of the HDFC-HDFC Bank merger announcement. Important events such as RBI MPC policy and Q4 earnings season may keep the market volatile going ahead, he said.

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