Sensex slips for 4th day, Nifty manages to hold 9100 amid global fall
The 50-share NSE Nifty touched an intraday high of 9,217.90 and low of 9,095.45, before closing tad above psychological 9100-mark.
The market continued its southward journey for fourth consecutive session Tuesday, with the Sensex losing 382 points from day's high, weighed by weakness in global peers after unexpected UK election announcement. Investors were also worried after prediction of monsoon at lower band of normal monsoon and on higher probability of El Nino.
The 30-share BSE Sensex rallied 282 points in morning on the World Bank report but erased all its gains as the day progressed. The index was down 94.56 points at 29,319.10.
The 50-share NSE Nifty touched an intraday high of 9,217.90 and low of 9,095.45, before closing tad above psychological 9100-mark. The index fell 34.15 points to 9,105.15.
"Nifty has reached to its immediate support zone of 9100 and is likely to witness a pause in the next trade," said Jayant Manglik of Religare Securities.
He reiterated his positive yet cautious approach and suggests keeping hedged positions.
Vinod Nair of Geojit Financial Services feels the outlook of monsoon will impact RBI's future measure which will limit the chance for further reduction in cost of funds. The correction may be limited depending upon the outcome of quarter results & the prospects of GST, he said.
Met department today said the June-September monsoon is likely to be 96 percent of the long-period average. According to the Met's classification, the monsoon is considered normal if rains are between 96-104 percent of the 50-year average rainfall of 89 cms. It also sees an increased probability of El Nino from August 2017.
On the global front, European markets moved lower as UK Prime Minister Theresa May announced plans to call a snap general election on June 8. Rising tensions between North Korea and the US also dented the market sentiment. France's CAC, Germany's DAX and Britain's FTSE were down 0.6-1.6 percent, at the time of writing this article.
Back home, A World Bank report has projected India's economic growth at 7.2 percent in FY18, saying the effects of demonetisation has waned. It also projected growth to gather momentum by 2019 when the Indian economy is expected to expand by 7.7 percent.
United Spirits, United Breweries and United Breweries Holdings were down 2-3 percent in late trade after liquor baron Vjay Mallya arrested in London.
Nifty Realty index fell the most among sectoral indices, down more than 3 percent on profit booking. These stocks had rallied sharply in previous session, with the Indiabulls Real Estate surged 40 percent.
Metal stocks lost shine after correction in global metals share prices. The Nifty Metal index slipped 1.8 percent as JSW Steel, Tata Steel, Coal India, Vedanta and Hindustan Zinc were down 2-4 percent.
Index heavyweight Reliance Industries closed down 1.5 percent on profit booking. The stock had gained 1.4 percent intraday and surpassed TCS to become India's most valuable company in terms of market capitalisation.
HDFC Bank (up 0.7 percent), ICICI Bank (up 0.46 percent) and SBI (up 0.17 percent) helped the Bank Nifty close moderately higher. The index hit fresh record high of 21,947 in intraday trade. However, Axis Bank was down 0.9 percent.
IT major TCS was down half a percent ahead of quarterly earnings due later today. Asian Paints, Tata Motors, Sun Pharma, ONGC, Bajaj Auto and Dr Reddy's Labs among others were down 1-2 percent.The broader markets underperformed benchmarks, with the Nifty Midcap and Smallcap indices down around 0.6 percent on weak breadth.