Market Ends Lower after the Three-day Rally; Short-Term trend is Up

Indian equity indices ended lower after the three-day  consecutive upward rally. Nifty opened at 22255.60, a gap up of 37.75 points from Tuesday’s close and made an intraday high of 22297.55 and closed at 22200.55 down 17.30 points or 0.08%. Heavy-weight stocks like Bharti Airtel, Coal India, Larsen and Toubro, ICICI Bank, and Mahindra & Mahindra contributed to the gains in the Nifty 50. While HDFC Bank, Tata Motors, Reliance Industries, Asian Paints, and Sun Pharmaceutical weighed on the index.

The broader market outperformed the benchmark index; The S&P BSE Mid-Cap index rose 0.60% and the S&P BSE Small-Cap index rose by 0.96%. On BSE, 2,214 stocks advanced, 1,577 stocks declined and 144 remained unchanged.

Among the sectoral indices, the Nifty PSU Bank index (up 1.42%), the Nifty Realty index (up 1.02%) and the Nifty Oil & Gas index (up 0.59%) outperformed the Nifty 50 index. Meanwhile, the Nifty FMCG index (down 0.91%), the Nifty Media index (down 0.51%) and the Nifty Auto index (down 0.50%) underperformed the Nifty 50 index.

The index is facing resistance on the 22250-22300 zone, a breakout above this range would lead the index for 22400 levels.

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• Indian markets closed marginally lower on May 15, with Sensex dropping 118 points while Nifty held the 22,200 mark ahead of crucial US inflation data impacting the Fed’s rate decisions. Meanwhile, broader markets BSE MidCap and Smallcap gained 0.6 percent and 1 percent higher. Sensex closed at 72,987 points, down 0.08%, and Nifty at 22,200 points.

• Berger Paints India’s net profit jumped 19.7 percent to Rs 222.62 crore in the March quarter from the year-ago period, the company said on May 15. Sequentially, the profit was down 25.8 percent. The firm’s revenue rose marginally to Rs 2,520.28 crore in the March quarter. For the full year, the revenue was Rs 11,198.9 crore, up 6 percent from the previous year. The paint company also announced a dividend of Rs 3.5 per equity share.

• India’s merchandise trade deficit widened in April as a sequential decline in exports is outpacing the fall in imports. In absolute terms, the trade gap widened to $19.1 billion in April as compared with $15.6 billion, according to a press briefing by the Ministry of Commerce and Industry on Wednesday. Exports rose 1.1% annually to $34.99 billion year-on-year. Imports increased 10.3% annually to $54.1 billion year-on-year.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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