FINAL TRADE: Sensex down over 300 pts, Nifty settles at 18,534; Torrent Pharma surges over 6%

Stock Market on May 31, 2023: Indian benchmark indices Sensex and Nifty declined snapping the four days winning streak on Wednesday, May 31, 2023. BSE Sensex ended 0.55 per cent or 346.89 points lower at 62,622.24 and NSE Nifty slipped over half a per cent or 99.45 points to 18,534.40. 

“Profit-taking was overdue for some time and investors offloaded their holdings in metals, realty, and energy stocks on the back of weak Asian and European market cues. Traders also decided to keep a low profile ahead of the likely decision on the US debt agreement over raising the debt ceiling, as the outcome would provide some hint to the markets over the near-term direction. Technically, on daily charts, the Nifty has formed a reversal formation that is largely negative. However, after an intraday sell off the index took support near 18480 and bounced back sharply. As long as the market is holding 18480, the positive sentiment is likely to continue and above the same, the market could move up till 18600-18650. On the flip side, a fresh sell-off is likely only after the dismissal of 18480. Below which, the index could slip till 18400-18375,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

In the border market, mainly Nifty Midcap 100 and Nifty Smallcap settled higher by 0.37 per cent and 1.03 per cent respectively. In the sectoral indices, Nifty Bank slipped 308.2 points and closed at 44,128.15. Among 12 banks, six stocks ended in red where Axis Bank, HDFC Bank, and State Bank of India (SBI) were the top losers. 

"Nifty midcap / smallcap 100 up 0.8 per cent and 1 per cent respectively. Sectorially, it was a mixed bag with consumer durables and Realty being top gainers," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Among the stocks that moved on the back of positive news was Sun Pharma which settled nearly 2 per cent higher after the China regulator gave nod for Tildrakizumab injection, Dixon Tech was up over 5 per cent on a proposal to partner w/Xiaomi to manufacture and export mobile phones, Tega Industries touched the upper circuit and closed 10 per cent higher. Torrent Pharma also surged nearly 6 per cent on the back of strong Q4 results along with Suzlon Energy and Welspun Corp. Sona BLW Precision Forgings Ltd ended in the green after 3.7 per cent equity changed hands via block deal. Adani Ports recovered 2 per cent from lows and ended near flatline following Q4 results.

Conversely, Vedanta fell more than 2 per cent as investors track Vedanta-Foxconn deal updates.

Global Market 

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended lower. European equity markets were trading in the negative territory. The US markets ended on a mixed note on Tuesday. Meanwhile, global oil benchmark Brent crude declined 1.33 per cent to USD 72.53 a barrel.

Investors will also keep an eye on the Q4 GDP numbers to be announced later on Wednesday, which will provide some sense on where the economy is headed in the near to medium term, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said.

Foreign Institutional Investors (FIIs) were net buyers on Tuesday as they bought equities worth Rs 2,085.62 crore, according to exchange data.

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