In recent sessions, investors have shown a bias for midcaps and smallcaps likely because of the relatively cheaper valuations of these segments compared to their largecap peers and optimism for recovery in the domestic economy, said dealers.
The Nifty50 index ended 0.6 per cent, or 89.95 points, lower at 15,118.95, while the BSE-Sensex closed at 51,324.69 points, down 0.7 per cent or 379.1 points.
In the broader market, Nifty Midcap 100 index and Nifty Smallcap 100 index closed 0.5 per cent and 1.0 per cent higher, respectively.
The breadth of the market remained strong with advancing stocks outnumbering declining ones on the National Stock Exchange.
Here are the major movers in today’s session:
Natural gas stocks skyrocket
Shares of natural gas companies and city gas distributors soared after Prime Minister Narendra Modi pitched for higher usage of the commodity in the country’s energy needs and hinted at likely inclusion of natural gas into the goods and services tax ambit.
Alembic Pharma slumps on US FDA issues
Shares of the drugmaker fell 1.3 per cent after ETMarkets.som reported that the US Food and Drug Administration found issues related to quality control, equipment and sample collection at the company’s new unit in Gujarat.
GIC Re pops on privatisation buzz
Shares of the general insurer soared 20 per cent after The Economic Times reported that the company and United India Insurance are being considered for privatisation by the government.
IndiaMART soars on QIP issue
Shares of the internet platform company jumped 6 per cent after its qualified institutional placement issue opened for subscribers on Wednesday evening. Investors were also optimistic on the company’s prospects going ahead given the rising adoption of internet platform for business-to-business transactions.
Surge in PSBs continue
Shares of state-owned lenders like Central Bank of India, Bank of India and Bank of Maharashtra continued amid optimism for their likely divestment in the coming financial year. The Nifty PSU Bank index closed 5.6 per cent higher.
What gave buy signal?
As many as 63 stocks listed on the NSE gave buy signals based on MACD indicators including GAIL India, NBCC India, Tech Mahindra, and Asian Paints.
What’s ahead for the market?
Traders continued to add short positions in the February futures of the Nifty50 index suggesting that they remain negative on the index. Traders continued to buy out-of-money put options of the benchmark, hinting at likely weakness going ahead.
“I will be cautious if the Nifty50 goes below 15,000 points and one can then take short positions,” said Bhavin Mehta of Dolat Capital Market.