Equity benchmarks witnessed a relief rally today on the back of short covering and sharp recovery in Shanghai and strong European markets, but they failed to sustain gains in the late trade and erased more than half of gains on profit booking.
Midcaps were worst hit with BSE Midcaps index losing nearly 1 percent. Below is the verbatim transcript CNBC-TV18's managing editor Udayan Mukherjee's analysis on today's trade.
Today was disappointing because the scene was set for a pullback. In the morning, we had weakness because of the Chinese fall of five percent. At one point, the Shanghai index was down more than five percent then that started recovering.
We had a pullback of our own. We went to 5,660 thereabouts, looked like it was one of those short covering rallies. But as these rallies tend to do they fizzled out or it fizzled out during the end of the session.
So, the Nifty lost about 50 points from the top of the day and just about managed to close above 5,600. So, the end outcome has not been good.
Infact it was worse for the midcaps, while the Nifty closed in the green, the midcap index was down nearly one percent, so for the broader market there has not been too much of a respite today.
Some of the largecap names like Oil and Natural Gas Corporation (ONGC), Bharti, private banks like IndusInd, Kotak Bank and Hindalco did quite well.
The public sector undertakings (PSU) lot is coming under a lot of pressure. So, National Thermal Power Corporation (NTPC) continued its losing streak today. National Mineral Development Corporation (NMDC) is down to Rs 100 now.
State Bank was very weak. Bharat Heavy Electricals (BHEL) went down most to Rs 160 kind of levels. So that part of the market still looks very vulnerable.
On the midcaps, we had some big accidents today. Stocks like IRB Infra plummeting about 10-12 percent. Gitanjali Gems remained frozen in circuit 20 percent down.
IVRCL has virtually been reduced to a penny stock.
The JP Group, JP Power particularly remained under intense pressure. Stocks like UCO, Hexaware, and Apollo Tyres all looked quite vulnerable.
On the winning side, Crompton Greaves had a late rally after the company said that it would take up a buyback decision on June 28, in a board meeting.
Reliance Communications and Renuka also did not do too badly. Overall, disappointing session for the midcaps as it was for the market at large.
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