Stock market today: Sensex, Nifty 50 end flat dragged by HDFC Bank; mid, smallcaps outperform

Stock market today: Heavy losses in HDFC Bank shares dragged down Indian stock benchmarks, the Sensex and the Nifty 50, even as those of select heavyweights such as Reliance Industries, SBI and Larsen & Tounro underpinned them amid largely positive global cues on Friday, July 5.

Global cues were largely positive. Major European markets rose ahead of the US non-farm payrolls report, and rising optimism about the Fed rate cuts kept global markets high.

Shares of HDFC Bank ended with a loss of 4.50 per cent, dragging the key indices most after the company's June-quarter business updates showed a sequential fall in advances and deposits.

Also Read: HDFC Bank’s deposits, advances growth fall in Apr-June

Meanwhile, the stock's weight on the MSCI India Index is set to double as its foreign shareholding dropped below 55 per cent at the end of June.

Experts say the upcoming Union Budget and the bank's June quarter earnings will be crucial factors in deciding the stock's course in the near future.

Also Read: HDFC Bank’s weight on the MSCI India Index is set to double. But does it matter?

The Sensex and the Nifty 50 ended mixed, while the midcap and smallcap segments continued their record-setting march, aggravating concerns over their unsustainable valuations.

Sensex slipped 53 points, or 0.07 per cent, to settle at 79,996.60, while the Nifty 50 ended 22 points, or 0.09 per cent, up at 24,323.85.

The BSE Midcap index hit its fresh all-time high of 47,484.71 during the session. It closed 0.75 per cent higher at 47,437.85. The BSE Smallcap index hit a fresh record high of 54,258.65 before ending 0.70 per cent higher at 54,153.96.

Nearly 380 stocks, including Reliance Industries, ICICI Bank, ICICI Lombard General Insurance Company, Federal Bank, HDFC Asset Management Company, BEL, HAL, Divi's Labs, Dr Reddy's Labs, Lupin, Persistent Systems, Siemens and Trent, hit their fresh 52-week highs in intraday trade on BSE.

Thanks to gains in the mid and smallcap segments, the overall market capitalisation of firms listed on the BSE rose to nearly ₹450 lakh crore from nearly ₹447 lakh crore in the previous session, making investors richer by about ₹3 lakh crore in a day.

On the weekly scale, Nifty 50 extended its gains into the fifth consecutive week, rising 1.3 per cent. On the other hand, Sensex rose 1.2 per cent, while the BSE Midcap and Smallcap indices jumped 3 per cent and 4 per cent, respectively, for the week ended July 5.

Top Nifty 50 gainers today

As many as 34 stocks ended in the green in the Nifty 50 index. Shares of ONGC (up 4.06 per cent), Reliance Industries (up 2.63 per cent) and SBI (up 2.42 per cent) closed as the top gainers in the Nifty 50 index.

Top Nifty 50 losers today

Shares of HDFC Bank (down 4.50 per cent), Titan Company (down 1.90 per cent) and LTIMindtree (down 0.85 per cent) ended as the top losers in the index.

Also Read: Top Gainers and Losers today on 5 July, 2024: Oil & Natural Gas Corporation, State Bank Of India, HDFC Bank, Titan Company among most active stocks; Check full list here

Sectoral indices today

The Nifty Bank index fell 0.83 per cent, and the Nifty Private Bank index fell 0.97 per cent, mostly because of losses in HDFC Bank shares.

On the other hand, the Nifty PSU Bank index clocked a gain of 1.25 per cent.

Nifty Oil & Gas (up 1.89 per cent), Pharma (up 1.29 per cent), Healthcare (up 1.27 per cent), and FMCG (up 1.08 per cent) ended with healthy gains.

Expert views on markets

“Markets were mostly rangebound and traded in the red for almost the entire trading session, as investors traded with caution ahead of the US non-farm payroll data which could give some indication on the interest rate direction going ahead. While the undertone remains bullish, investors are waiting for Budget and the road-map ahead to boost growth,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

"The domestic market traded with a mixed bias, with the heavyweight banking sector acting as a laggard. Adding to the worry are the top lending banks, which recorded a sequential decline in deposit growth in the June quarter. Globally, investors now await the US non-farm payroll data to be released later today to gauge the trajectory of the US Fed’s potential rate cuts," said Vinod Nair, Head of Research, Geojit Financial Services.

Technical views on Nifty 50

Amol Athawale, VP of technical research at Kotak Securities, pointed out that on weekly charts, the Nifty 50 formed a bullish candle. On intraday charts, it is still holding higher high and higher low series formation, which is largely positive.

Athawale said that the larger market texture is still on the positive side, but due to temporary overbought conditions, we could see rangebound activity in the near future.

"For the traders now, 24,100/79,300 and 24,000/79,000 would act as a key support zone, while 24,400-24,500/80,400-80,700 could act as an important resistance. However, below 24,000/79,000, traders may prefer to exit from the trading long positions," said Athawale.

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