Wipro, Reliance Slump Pulls Nifty Down Ahead Of Budget

On Monday, Nifty 50 fell 0.08% to 24,509.25 weakened by underwhelming Q1 results of index majors like Reliance. Grasim Industries was the top gainer while Wipro was the top loser.

Leading the pack of gainers was Grasim Industries, with a significant 2.50% increase from its last close, trading at ₹2,811.55.

Stock	Current Price	Last Close	% Change
Grasim Industries	₹2811.55	₹2743.0	2.5%
NTPC	₹373.5	₹364.65	2.43%
Ultratech Cement	₹11515.7	₹11258.3	2.29%
HDFC Bank	₹1642.55	₹1607.3	2.19%
Dr Reddys’s Laboratories	₹6770.9	₹6636.0	2.03%

Following closely was NTPC, which saw a 2.43% rise, with its current price standing at ₹373.5.

Ultratech Cement also had a good run, with a 2.29% increase, trading at ₹11,515.70.

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HDFC Bank and Dr Reddy’s Laboratories rounded off the top five gainers list, with increases of 2.19% and 2.03% respectively, trading at ₹1,642.55 and ₹6,770.90. HDFC Bank gained after it posted better-than-expected Q1 numbers.

On the flip side, the biggest loser of the day was Wipro, with a significant drop of 9.22%, trading at ₹505.80. Wipro’s shares fell after its Q1 results disappointed the street.

Stock	Current Price	Last Close	% Change
Wipro	₹505.8	₹557.2	-9.22%
Kotak Mahindra Bank	₹1757.55	₹1821.6	-3.52%
Reliance Industries	₹3001.35	₹3110.3	-3.5%
ITC	₹466.55	₹474.55	-1.69%
SBI Life Insurance	₹1621.15	₹1647.7	-1.61%

Kotak Mahindra Bank and Reliance Industries also faced the heat, with decreases of 3.52% and 3.50% respectively, trading at ₹1,757.55 and ₹3,001.35. Kotak Mahindra Bank’s weak Q1 numbers dragged its shares to their lowest point in the last 3 months. Reliance’s shares also faced pressure after reporting muted Q1 numbers.

ITC and SBI Life Insurance completed the list of top five losers, with declines of 1.69% and 1.61% respectively, trading at ₹466.55 and ₹1,621.15.

Vinod Nair, head of research, Geojit Financial Services said, “The conservative economic growth forecast for FY25, presented in the economic survey, has introduced some spikes in volatility ahead of the budget. Further, the below-estimated Q1 results from certain index heavyweights like RIL added to apprehensions of a slowdown in earnings growth in FY25. Although the budget is anticipated to be favourable, investors will closely monitor whether it continues to tickle traction, given high valuations and the risk of a downgrade in earnings.”

Ajit Mishra – SVP, research, Religare Broking said, “The markets began the week on a subdued note and ended nearly unchanged, reflecting caution ahead of the Union Budget. The Nifty index opened lower and fluctuated within a range before closing at the 24,509.25 level. Initially, weak global cues and pressure on index heavyweights like Reliance and Kotak Bank following their earnings reports weighed on sentiment. However, the strength in banking major HDFC Bank, in reaction to its results, and continued buoyancy in IT heavyweight Infosys Ltd offset the negativity. Sector-wise, auto, metal, and pharma edged higher, while realty and IT were among the top losers.
With all eyes on the Union Budget, volatility is expected to remain high on Tuesday. We thus maintain a cautious stance and recommend a hedged approach. Traders should seek buying opportunities in low-beta counters, especially in the defensive sectors, and remain selective in other areas.”

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