Sensex wipes out gains in second half; Wipro zooms; RIL sees profit-taking

Indian markets started on a positive note, rallied more than 2 percent but pared most of the gains towards the close of the trade on July 15, weighed down by losses in Reliance Industries that held its 43rd AGM in the afternoon. Wipro, however, sparkled and was the top Nifty gainer.

Reliance Industries, which hit a record high of Rs 1,978.50, failed to hold onto gains and witnessed selling pressure in the last 30-minutes of the trade, as investors preferred to book profits. The stock closed 3.7 percent lower on the BSE at Rs 1,845.60.

“The AGM was once again a platform for showcasing the progress made by the company in its various businesses. The way the stock markets see-sawed post- 2 pm (when the AGM began), showed the importance of Reliance stock for the Indian markets,” Deepak Jasani, Head Retail Research, HDFC Securities, said.

“The stock price had moved up around 16.5% in this month anticipating announcements at the AGM. Most of the announcements were in line with the expectations built till Tuesday — the stock price has reacted on the principle of buy on expectation and sell on announcements,” he said.

The S&P BSE Sensex plunged more than 700 points from the day’s high while the Nifty fell more than 200 points to close just above 10,600 levels.

The Sensex closed 18 points higher at 36,051 while the Nifty gained 10 points at 10,618.

Sectorally, selling pressure was seen in telecom, energy, oil & gas, realty, and finance stocks while buying was visible in IT, FMCG, and Healthcare stocks.

On the broader markets front, the S&P BSE Midcap index fell 0.35 percent while the S&P BSE Smallcap index was down 0.05 percent.

Top Nifty gainers included TCS, HCL Tech, Infosys and Wipro.

Top Nifty losers included Bharti Infratel, ZEE Entertainment, and Bharti Airtel.

Stocks & Sectors

Sectorally, action was seen in the S&P BSE IT index which was up 4.8 percent followed by the S&P BSE FMCG index that rose 0.69 percent and the S&P BSE Healthcare index closed with gains of 0.5 percent.

Selling pressure was seen in S&P BSE Telecom index that fell 3.6 percent followed by the S&P BSE Energy index that was down 3.2 percent and the S&P BSE Oil & Gas index was down 2.33 percent.

A volume spike of more than 100 percent was seen in Idea, RIL, NIIT Tech, Wipro, and Glenmark.

Long Buildup was seen in stocks like Wipro, NIIT Tech, and Glenmark.

Short Buildup was seen in stocks like MFSL, Torrent Power and MRF.

More than 100 stocks on the BSE hit a fresh 52-week high. These included Aurobindo Pharma, RIL, Infosys, Mphasis and HCL Technologies.

Stocks in news

Wipro stock surged almost 17 percent after the company reported its June quarter earnings.

Bharti Airtel share price shed over 3 percent with Jio setting a target to connect 500 million customers in the next three years.

Emami stock ended in the red after the company completed the divestment of equity stake in Emami Cement Limited to Nuvoco Corporation Limited for an enterprise value of Rs 5,500 crore.

Indiamart Intermesh stock gained a percent after FPIs increased stake in the company to 15.15 percent in the June quarter from 12.24 percent in the March quarter.

Indiabulls Real Estate stock fell over 4 percent after Sebi imposed Rs 10 lakh penalty on chief financial officer Anil Mittal for insider trading.

Reliance Industries stock price ended in the red following the 43rd AGM wherein CMD Mukesh Ambani announced that Google will invest Rs 33,737 crore for a 7.7 percent stake in Jio Platforms.

Infosys stock jumped over 6 percent ahead of its Q1 results.

Eveready Industries share price jumped over 5 percent on news of the Burman family of Dabur acquiring an 8.48 percent stake in the company.

Technical View

The Nifty formed a bearish candle on daily charts.

IT closed below its 5-Days EMA. The 10,800 zone again acted as a strong hurdle and the index showed profit-booking there.

Going ahead, stiff resistance is still placed in the 10,700-10,800 zone. Investors should consider profit-booking around higher levels and support is placed at 10,560-10,500 zone, experts say.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.