Sensex, Nifty Slip From Record; Adani Stocks Slide For A Third Day
India’s key stock benchmarks retreated from record highs, with the region-beating rally pausing amid ongoing optimism over an economic rebound as Covid-19 cases ebb.
The S&P BSE Sensex fell 0.5% to 52,501.98, while the NSE Nifty 50 Index lost 0.6%. Both gauges have risen for the previous four sessions, a rally that took their relative strength indexes to levels that signal declines to some investors.
All except three of 19 sector sub-indexes compiled by BSE Ltd. dropped, led by a measure of the metal companies.
“Nifty has been trading in an uptrend channel on the intraday chart and currently hovering around the upper band of the same,” Ajit Mishra, vice president research at Religare Broking Ltd. wrote in a note.
Stocks have risen to new highs even in the face of near-record valuations and a mixed earnings season. The benchmark index has advanced 10% this year compared to a gain of 5% in the MSCI AC Asia Pacific Index. Its 1-year forward price-to-earnings ratio has increased since April to 22 times, close to record valuations of about 23.4 times reached in January, according to data compiled by Bloomberg.
“Markets have run up so some room for consolidation is surely likely and pause before Fed as well,” said Sumeet Rohra, a fund manager at Smartsun Capital Pte. “Nifty may pause and pockets of undervaluation will catch up now.”
Sagar Cements Jumps To Record As Company Mulls Stock Split
Sagar Cements rose to a record high, extending its rally for a second consecutive session, after the company said its board will meet on July 1 to consider stock split.
Stock jumped as much as 16%, adding to Tuesday’s 20% gain
Chambal Fertilisers Soars On Heavy Volume
Chambal Fertilizers & Chemicals Ltd. rose 8.9%. Trading volume was eight times the average for this time of day.
Trading volume was 9.37 million shares, eight times the 20-day average of 1.14 million shares for this time of day.
The stock was the best performer among its peers.
The relative strength index on the stock was above 70, indicating it may be overbought.
Analysts have five buy, no hold, and no sell recommendations on the stock.
The price target of Rs 363.25 represents a 15% increase from the last price
Suprajit Engineering Falls After Large Trade
Suprajit Engineering falls as much as 13.7%, most intraday since March 25 last year, after about 5.56 million shares (or 4% equity) changed hands on NSE, according to data compiled by Bloomberg.
Trading volume >84x three-month full-day average
Buyers, sellers not immediately known
Market Update: Sensex, Nifty Stay Lower; FMCG Index Outperforms
Indian equity benchmarks remained lower slide after fluctuating between gains and losses in opening trade.
The S&P BSE Sensex is trading down 0.43% at 52,548.09, while the NSE Nifty 50 Index also fell by a similar magnitude to trade at 15,793.35.
The broader market too was more or less inline with its larger peer. The S&P BSE MidCap fell 0.59% and S&P BSE SmallCap declined 0.41%, as compared to the S&P BSE LargeCap’s 0.44% slump. Four of the 19 sector sub-indices compiled by BSE Ltd. advanced, led by FMCG stocks. The S&P BSE Metal was the worst performer, down 2.19%.
The market breadth was slightly skewed in favour of the bears. About 1,419 stocks gained, 1,713 declined and 129 remained unchanged.