Share Market Today: Nifty fails to hold above 19400, Sensex ends flat; broader markets outperform

Market Closing Bell: Domestic indices NSE Nifty 50 and BSE Sensex gave up their gains on Tuesday to end flat, continuing the range-bound trend. Nifty concluded just below 19,400, unable to breach the strong resistance level, landing at 19,396.45 with a marginal 0.01% gain. Sensex wrapped up with a slight increase of 4 points, standing at 65,220.03. Nifty Midcap 100 rose over 1.1%, while the smallcap index added around 0.8%. Fear gauge India VIX settled lower, around 11.75. In the broader markets, Bank Nifty settled marginally lower, falling for eight of the nine sessions. Nifty PSU Bank shares dragged the index, while metal, media and FMCG stocks outperformed. Jio Financial Services close 5% lower for the second consecutive session.

Technical Outlook

“Markets traded range bound and ended almost unchanged amid mixed cues.  After the marginal uptick, the Nifty oscillated in a narrow band and finally settled around the day’s low to close at 19,396.45 levels. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein metal, FMCG and auto attracted buying while Bank Nifty and IT ended subdued. Amid all, buoyancy on the broader front was the key highlight as both midcap and smallcap edged higher and gained nearly a percent each.

IT, pharma face challenges on global dependency

“Despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties. Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid- and small-caps, exhibited resilience and gained traction,” said Vinod Nair, Head of Research at Geojit Financial Services.

Heating equipment maker JNK India files draft papers with Sebi to float IPO

Heating equipment maker JNK India Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).The IPO comprises a fresh issue of equity shares worth up to Rs 300 crore and an Offer for Sale (OFS) of up to 84.21 lakh equity shares by promoters and an existing shareholder, according to the Draft Red Herring Prospectus (DRHP) filed on Tuesday.

Those offloading shares in the OFS are of promoters — Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co. Ltd. and Mascot Capital and Marketing Pvt Ltd. — and shareholder Milind Joshi.The Mumbai-based company may consider an issue of equity shares aggregating up to Rs 60 crore in the pre-IPO placement round. If such placement is completed, the fresh issue size will be reduced.

As of March 2023, it had an order book of about Rs 868 crore, way higher than the over Rs 143 crore order book in March 2021.In terms of financials, the company’s consolidated revenue from operations surged by 37.42 per cent to Rs 407.30 crore for the fiscal year 2023 from Rs 296.40 crore a year earlier and net profit increased by 29 per cent to Rs 46.36 crore in fiscal 2023 from Rs 35.98 crore in fiscal 2022.IIFL Securities and ICICI Securities are the book-running lead managers of the public issue. The equity shares are proposed to be listed on BSE and NSE.