Banking Stocks Drag Market Lower; Marico Q1 Results Beat Estimates on All Fronts

Nifty, -0.6%; Sensex, -0.5%; Nifty Midcap, -1.3%; Nifty Smallcap, -0.6%; Model Portfolio, -0.6%

Market Pulse Confirmed Uptrend

Nifty opened higher but quickly gave up gains and closed 50bps lower. Volume was lower across the board, so distribution day was avoided. The majority of damage to the indices was from a breakdown in large cap banking stocks. HDFC Bank and ICICI Bank closed with a cut of 3.5% and 6%, respectively. On the flip side, leading IT stocks (TCS, INFY, HCL Tech, and Tech Mahindra) closed 2–3% higher, providing crucial support to the indices. In the last four sessions, Nifty traded in a tight range of 11,056–11,240.

On the sectoral front, barring Nifty IT (+2%) and Metal (+0.3%), all the sectoral indices closed in the red. Nifty Bank (-3.6%) declined sharply whereas Nifty Financial Services, Pharma, and Realty closed 1.5–2.5% lower. Market breadth was skewed toward decliners. Of 2,187 stocks traded, 538 advanced, 1,310 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, and it is an environment where outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of leading stocks and keep an open mind as to how it unfolds. We will wait for solid entry points before buying.

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