Sensex ends 138 points higher after CAS adjustment: 6 things that shaped today’s market

The equity benchmark indices snapped its three-day losing streak on Thursday (September 10) after a CAS adjustment pushed the Nifty and Sensex higher, with the Nifty holding above 23,400 and the Sensex above 74,900 at the close.

The Nifty saw an adjustment of nearly 100 points, while the Sensex adjusted by nearly 300 points. After the adjustment, the Nifty ended 46 points higher at 23,478, and the Sensex gained 138 points to 74,903.

But the recovery was not broad-based. The Midcap index fell 235 points to 62,357, keeping market breadth in favour of declines, while the Nifty Bank index rose 176 points to 56,472.

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So, what drove the market today?

1. CAS adjustment lifts headline indices

The CAS adjustment resulted in an adjustment of nearly 100 points in the Nifty and nearly 300 points in the Sensex. The benchmarks consequently ended higher, snapping a three-day losing streak.

2. Midcaps remain under pressure

The broader market underperformed the headline indices. The Midcap index declined 235 points to 62,357, leaving overall market breadth tilted towards declines.

3. IT, metals among the top losers

Information technology and metal stocks were among the biggest drags on the Nifty. The healthcare index fell 2%, while Hindalco declined 1%.

4. Crude-related stocks decline

Crude-related stocks fell, tracking the move in crude prices. IndiGo ended 1% lower.

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5. Insurance stocks recover, defence names fall

Insurance stocks regained some of Wednesday’s losses, with SBI Life Insurance and HDFC Life Insurance rising 1-2%. Defence stocks, however, closed largely lower, with Cochin Shipyard and Bharat Dynamics Ltd among the top losers.

6. Stock-specific moves remain mixed

Vodafone Idea fell 4% as investors booked profits despite a positive brokerage note. Ather Energy gained 5% after a positive note from Nomura.

Force Motors rose 5% as auto registration of the company remained healthy. Gold financiers also gained, with Manappuram Finance rising 3% and Muthoot Finance 1%.

Public sector banks saw buying, with Bank of Baroda and Punjab National Bank among the biggest gainers. Welspun Corp surged 6% following positive management commentary.

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From the Sensex basket, Power Grid Corporation of India Ltd, Oil and Natural Gas Corporation Ltd, Tech Mahindra Ltd, Bharti Airtel Ltd, Axis Bank Ltd and UltraTech Cement Ltd were the major gainers.

HCL Technologies Ltd, Tata Steel Ltd, Hindalco Industries Ltd, Eicher Motors Ltd, Reliance Industries Ltd and Mahindra & Mahindra Ltd were the biggest laggards.