Closing Bell: Nifty ends above 9,900, Sensex up 376 pts amid volatility; HDFC twins gain 4% each

Taking Stock: India-China clash halts D-St rally; Nifty closes below 10K

On the broader markets front, the S&P BSE Midcap index rose 0.37 percent while the S&P BSE Smallcap index was up 0.04 percent.... Read More

The border dispute between India and China resulted in volatility in the stock markets, on tensions of further escalation of dispute. This was in spite of steady global markets following the announcement of the US Fed reserve’s expanded bond-buying program. Investors seem to have set aside the news emerging from the border and are still hoping on the fact that liquidity will keep propping the markets, for the time being. India can ill-afford another battlefront, since it is still battling the virus pandemic and will need to be watched out for.

Dalal Street witnessed significant volatility amidst India-China tension in Ladakh. The markets finally managed to recover lost ground helped largely by the HDFC twins & ICICI Bank in late afternoon trade.

The index started its day with gap up opening with more than 200 points on back of global cues, however, the early gain couldn’t sustain long and we witnessed a healthy fall in the Index due to the news of India China Face off. However, with the passing of 2nd half, the Index started to recover from its day low and finally settled at 9914 level with the gain of 100 points. Overall it was a highly volatile trading session with roller-coaster ride. At present level, downside support comes at 9700 while upside resistance comes at 10000 level.

We had a rangebound day where we almost triggered both ends of the range. We were unable to cross 10050 or break 9700. Until the month end expiry, both levels are very crucial for the market as we could expect a one sided decisive move if either levels are taken out.

Markets are witnessing wild swings and it may continue as we’re mirroring the global markets. Besides, the stand-off between India and China at LAC will also be on investors' radar and any further escalation could negatively impact the markets. On the index front, a decisive breakout above 10,050 in Nifty can only trigger a fresh up move else consolidation will continue. We reiterate our view preferring hedged bets in the present.

Technically, with the Nifty bouncing back strongly from the supports of 9720, the bulls are trying to make a comeback. The 9720 levels has been tested twice in the last two sessions and has held, suggesting it is a strong support. Markets could rally higher if these supports hold in the near term.

: Indices witnessed a volatile trade but ended in positive territory on June 16 amid positive global cues and escalating tensions between India and China.

At close, the Sensex was up 376.42 points or 1.13% at 33605.22, and the Nifty was up 100.30 points or 1.02% at 9914. About 1191 shares have advanced, 1350 shares declined, and 150 shares are unchanged.

HDFC Bank, HDFC, ICICI Bank, JSW Steel and Hindalco Industries were among major gainers on the Nifty, while losers were Tata Motors, Bharti Infratel, Tech Mahindra, GAIL and Axis Bank.

On the sectoral front, IT and Metal indices ended higher, while selling pressure seen in the pharma, energy, FMCG and infra sectors.

Shares of Shilpa Medicare fell 8.8 percent on June 16 despite company has registered a 45 percent year-on-year growth in March quarter profit at Rs 34.57 crore on strong revenue as well as operating income. Revenue from operations during the quarter grew by 10 percent to Rs 220 crore compared to corresponding period last year.

Ind-Swift Laboratories shares were locked in 10 percent upper circuit on June 16 ahead of antihistamine drug launch in the US markets.

"We are set to commercially launch key API - Fexofenadine, an antihistamine drug used for the treatment of seasonal allergic rhinitis and Urticaria in US market," Ind-Swift Laboratories in its BSE filing on June 15 said.

Shares of Jump Networks gained 14 percent on June 16 as US-based technology investment group will infuse substantial equity funds in company.

The technology company informed exchanges that it has received a letter from Jump Networks Inc, USA (an entity controlled by Harshawardhan Sabale, the Managing Director of Jump Networks Limited) that it has entered into a conditional Letter of Intent with a California, USA based technology investment group listed on the New York Stock Exchange to infuse substantial equity funds in the company.

: Kotak Mahindra Bank has cut base rate and prime lending rate by 30 bps each, reported CNBC-TV18.

Shilpa Medicare in its board meeting approved to acquire FTF Pharma Private Limited subject to agreed terms and conditions and to acquire Auxilla Pharmaceuticals And Research LLP through Shilpa Corporate Holdings Private Limited a Wholly Subsidiary of the Company.