At the time when the benchmark equity indices BSE Sensex and NSE Nifty declined for the third straight session on Thursday, 12 stocks in the Business Today top 50 list managed to settle the day in the green.
With a rally of 3.42 per cent, Adani Transmission emerged as the top gainer in the list. It was followed by Adani Green Energy (up 2.32 per cent) and State Bank of India (up 1.04 per cent). Pidilite Industries, Adani Total Gas, Indian Oil Corporation, HDF Bank, Power Grid, Reliance Industries, HUL, Divi's Laboratories and Dabur India gained up to 1 per cent.
Adani Green Energy on Wednesday informed bourses that it has scored 66 points in the Corporate Sustainability Assessment (CSA) survey 2021 conducted by DJSI - S&P Global. This is significantly higher than the average world electric utility sector score of 38.
BT50 stocks are the top players from the BT500 universe. These players are ranked based on the gain in their 12-month average market capitalisation between October 2020 and September 2021 against the same period a year ago.
On the other hand, the 30-share BSE Sensex settled 372.32 points, or 0.62 per cent, down at 59,636.01. Likewise, the 50-share Nifty50 index closed 133.85 points, or 0.75 per cent, lower at 17,764.80.
Commenting on the factors which dragged the domestic equity markets down, Vinod Nair, head of research, Geojit Financial Services said, "Weak listing of India's largest IPO Paytm and soft global market amid rising inflation woes impacted sentiment." Shares of Paytm settled 27.25 per cent down at Rs 1,564 against the issue price of Rs 2,150 on the stock market debut on Thursday.
Yesha Shah, head of equity research, Samco Securities said, "Since the FED announced that the bond tapering will be initiated later in this month, our benchmark indices have been lacking vitality."
Meanwhile, auto majors including Tata Motors, Mahindra and Mahindra and Eicher Motors declined 3.81 per cent, 3.50 per cent and 2.85 per cent, respectively, in the BT50 list. Tech Mahindra (down 3.31 per cent), HCL Technologies (down 2.99 per cent), Larsen & Toubro (down 2.91 per cent) and Tata Steel (down 2.64 per cent) stood among other major losers in the list.
Sector wise, the BSE Metal index declined the most 2.476 per cent. It was followed by BSE Auto (down 2.32 per cent), Capital Goods (down 1.89 per cent) and BSE Realty (down 1.57 per cent). Other sectoral indices on the exchange also ended in the red.
"The auto sector was under pressure as the industry reported weak festive sales numbers owing to poor demand for two-wheelers and supply shortage in semiconductors," Nair said.
Shah of Samco Securities further added that the indecisiveness in the markets can more so be chalked to profit booking, since the probability of there being a prominent fall in the equity markets due to the tapering is low. India has been one of the best performing emerging markets in this year and multiple international brokerages have also been citing that the domestic equities are overvalued, leading to higher prudence among investors.
"This combined with better opportunities available in the primary markets and inflation worries appear to be the driving forces of hesitation in the secondary space," Shah said.
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