Markets in a volatile session; Metal, IT stocks outperform; Reliance Industries in focus ahead of Q1; HCL Tech, Ultratech in lead

Except for IT and metal, all other sectoral indices were trading lower with banking, financial and realty stocks underperforming the most.

Jul 23, 2021 09:07 IST India Infoline News Service

Bull and bear market
The Indian market was in a volatile session on Friday. After clocking over 53,000-mark in the early deals, the benchmark Sensex scrapped gains and were on a bearish stance. Similarly, Nifty 50 which was just a little shy of 15,880, has now slipped into the red. Except for IT and metal, all other sectoral indices were trading lower with banking, financial and realty stocks underperforming the most. The volatility in Indian equities also traced mixed Asian cues investors became cautious while monitoring Chinese tech stocks in Hong Kong after regulatory concerns resurfaced.

Benchmarks heavyweight Reliance Industries (RIL) will be in focus ahead of its June 2021 quarterly result scheduled for later today.

Other Q1 results set for today are - Ambuja Cements, JSW Steel, Federal Bank, United Spirits, Yes Bank, Artson Engineering, Atul, Aurionpro Solutions, Cigniti Technologies, Crompton Greaves Consumer Electricals, Dynamatic Technologies, Fineotex Chemical, Majesco, Nectar Lifesciences, Panacea Biotec, ABB Power Products and Systems India, SBI Cards and Payment Services, Seshasayee Paper & Boards, SKF India and Symphony.

The June 2021 quarter will also sway the stock performance of HUL, Biocon, Bajaj Auto and Ultratech Cement among others.

Meanwhile, Zomato will make its market debut today after the initial public offering. In the grey market, the stock is trading at a 25% premium.

Also, steel stocks will be in focus as the Union Cabinet chaired by PM Narendra Modi has approved the Production Linked Incentive (PLI) Scheme for speciality steel with a duration of five years starting from 2023-24 to 2027-28. With a budgetary outlay of Rs6322cr, the scheme is expected to bring in an investment of approximately Rs40,000cr and capacity addition of 25 MT for specialty steel. The scheme will give employment to about 5,25,000 people of which 68,000 will be direct employment.

At around 09.42 am, Sensex was trading at 52,757.07 down by 80.14 points or 0.15%. The index has touched an intraday high and low of 53,008.53 and 52,653.77 respectively in the early deals.

Nifty 50 performed at 15,805.55 lower by 18.50 points or 0.12%. The benchmark has clocked an intraday high and low of 15,876.45 and 15,768.40 respectively.

In terms of sectoral indices, BSE IT and Metal index climbed by nearly 160 points and 105 points respectively. While BSE Bankex and BSE Capital Goods slumped by 170 points and 206 points. BSE Realty and BSE Finance dived between 0.40-0.50%.

Top bulls on Sensex are - HCL Tech surging nearly 2% followed by Ultratech Cement and Tata Steel advancing more than 1% each. Maruti Suzuki and Bajaj Auto jumped by 0.8% and 0.5% respectively.

Top bears on Sensex were - L&T plunging 1.6% followed by Sun Pharma, HDFC, HDFC Bank, Bharti Airtel and NTPC diving marginally.

In Asian markets, Hong Kong's Hang Seng and China's Shanghai Composite nosedived by 1% and 0.7% emerging as the worst hit after the Government imposed strong penalties on ‘Didi’ after its US IPO. Meanwhile, Japan's Nikkei 225 outperformed cues by soaring nearly 160 points. Shares of India, Australia and South Korea saw marginal movements on both upside and downside.

Overnight, on Wall Street, US indices rose for the third day even retracing all last week's losses. Nasdaq also sees a fresh rally towards 14,700. Bond yields close flat at 1.28% while, oil prices logged a best 3-day rally in over a month as growth momentum sees buying interest. Twitter, Snapchat recorded the best results in the aftermarket trade.

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