Benchmark equity markets closed the day’s trading session with marginal gains, to end September as the worst month for domestic stock markets since May. S&P BSE Sensex rose 94 points during the day’s trade to close at 38,067 mark. The 50-stock Nifty managed to gain but ended below the 11,300 mark which analysts say is the crucial level that the benchmark needs to breach. Sensex and Nifty managed to end the previous three months with gains but failed to mirror the performance in September which saw erased massive gains during the previous week.
September pulls equities lower: Sensex ended September 2.14% lower while the 50-stock Nifty slipped 1.94% during the month. This makes September the worst monthly performance that the benchmarks have seen since May this year when markets slipped close to 3%.
Investors’ wealth climbs higher: While the stock markets might have experienced their worst month since may, investor wealth between the end of August and end of September jumped. At the end of trading on the last day of August the market capitalization of all BSE listed firms was at Rs 153.76 lakh crore. The same was at Rs 155.17 lakh crore.
Sectoral watch: Nifty Metal, Nifty PSU Bank and Nifty Realty were the worst performing sectors today. “Volumes on the NSE were below recent averages with defensive sectors like Pharma, FMCG and IT doing well while cyclical sectors like Metals, Banks, Realty and Auto underperformed. BPCL lost over 9 percent and was the biggest Nifty50 loser on September 30 after the government extended the deadline for selling a stake in the company the fourth time,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Drags: Bharti Airtel slipped 3.34% during the day, making it the worst Sensex performer, it was followed by Tata Steel, IndusInd Bank and Mahindra & Mahindra. Among midcaps Central Bank slipped 8% followed by SAIL and Future Retail. On BSE Smallcap index Mangalam Organics was down over 9% followed by the troubled Lakshmi Vilas Bank.
Technical outlook: “Index closed a day on a flattish note for the second consecutive day at 11226 and formed a doji candle pattern on the daily chart hinting uncertainty in the markets. index has strong resistance near 11300 zone any break above said level can active good momentum which can push index to next hurdle zone of 11400, good support is coming near 11200-11120 zone overall index may trade in consolidation and range would be 11200-11300 zone. Nifty bank also closed a day on flat note at 21415, supports are placed at 21170-21000 zone and resistance is coming near 21700-22000 zone,” said Rohit Singre, Senior Technical Analyst at LKP Securities.