Taking Stock | Market ends lower after volatile session, Adani stocks fall on MSCI move

Adani Enterprises, HCL Technologies, Hindalco Industries, Tata Steel and Coal India were among the biggest Nifty losers. Tata Motors, UPL, Cipla, Hero MotoCorp and L&T were among the stocks that gained the most.

The Indian benchmark indices erased most of the gains of the previous session to end lower in yet another volatile session on February 10. At close, the Sensex was down 123.52 points, or 0.20 percent, at 60,682.70 and the Nifty was down 37 points, or 0.21 percent, at 17,856.50.

For the week, the Sensex lost 159.18 points, or 0.26 percent, while the  Nifty ended flat.

The market opened lower on weak global cues and stayed in negative territory. Metal, power, oil & gas, FMCG and information technology names came under selling pressure. Some final-hour buying, especially in realty names, helped trim intraday losses.

Adani group stocks fall on MSCI rejig

Stock prices of Adani group companies remained under pressure following MSCI announcement that it would reduce the amount of freely tradable shares.

MSCI has announced its plans to alter the free float of Adani Enterprises, Adani Transmission, Adani Total Gas, and ACC. These changes will be put into effect on February 28.

Among group stocks, Adani Power, Adani Transmission, Adani Total Gas and Adani Green Energy each ended 5 percent lower. The flagship Adani Enterprises closed 4 percent down and Adani Wilmar 1 percent lower. Adani Ports was up 0.34 percent.

ACC share price declined nearly 2 percent, while Ambuja Cements closed a percent higher.

Also Read: Moody’s changes Adani Green outlook to negative from stable

Stocks and sectors

Adani Enterprises, HCL Technologies, Hindalco Industries, Tata Steel and Coal India were among the biggest losers on the Nifty, while gainers included Tata Motors, UPL, Cipla, Hero MotoCorp and L&T.

Among sectors, Nifty metal index fell nearly 2 percent, energy index 0.77 percent and FMCG was down 0.4 percent. Some buying was seen in the auto, pharma and PSU Banks.

The BSE midcap index ended flat and the smallcap index rose 0.4 percent.

On the BSE, the metal index was down 1.5 percent, oil & gas index 0.4 percent and the power index 0.8 percent, while the realty index added 1.5 percent and capital goods 0.7 percent.

Read More: M&M Q3 result: Net profit jumps 13.5% to Rs 1,528 crore

On the BSE, Adani Green Energy, Adani Transmission, Ujaas Energy, SMS Lifesciences India, Premier and Tata Teleservices touched their 52-week low.

Britannia Industries, CG Power, Mahindra & Mahindra Financial Services, Mold-Tek Technologies and Ion Exchange rose to their 52-week highs.

Among individual stocks, a volume spike of more than 300 percent was seen in Shriram Finance, HCL Technologies and Alkem Laboratories.

A short build-up was seen in Astral, Lupin and United Breweries, while a long build-up was seen in India Cements, Delta Corp and Escorts.

Outlook for February 13

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty had a rangebound session and closed marginally in the negative. On the daily charts, the Nifty has been consolidating in the 17,740-17,920 range for the past couple of sessions.

On the upside, the key daily moving averages placed in the range 17,870–17,960 are acting as a stiff resistance. On the downside, 17,800–17,744 is providing cushion and has been absorbing the selling pressure.

A breach of this range will lead to trending moves in that particular direction. We expect this range to break on the upside and test the upper end (18,100) of the downward sloping channel from short-term perspective.

Ajit Mishra, VP-Technical Research, Religare Broking

The recent move in the Nifty shows indecisiveness among participants, thus we recommend focusing more on stock selection and trade management.

We’re seeing rotational buying in select index majors across sectors, while others are still sitting on the sidelines. Traders should align their positions accordingly.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.