Closing Bell: Nifty below 18,650, Sensex falls 294 pts; IT, realty, auto worst hit

Taking Stock: Sensex down 294 points, Nifty below 18,650; power, capital goods shine

BSE midcap and smallcap indices fall 0.5 percent each... Read More

Markets traded volatile on the weekly expiry day and shed nearly half a percent. The beginning was upbeat but profit taking in heavyweights across sectors pared all the gains and pushed the index into the red. Consequently, Nifty settled at 18,634.55 levels; down by 0.49%. Most sectors traded in sync and ended lower wherein realty, IT and FMCG were the top losers. The broader indices too witnessed profit taking and lost in the range of 0.5%-0.9%.

Markets have been gradually inching higher but mixed global cues combined with continued underperformance from the banking pack capping the momentum. Amid all, we suggest keeping a positive tone while maintaining focus on trade management.

Nifty closed lower after a volatile session on June 08, dragged down by weak global cues. At close, Nifty was down 0.49% or 91.9 points at 18634.6. Volumes on the NSE continued to be on the higher side. Midcap index fell more than the Nifty even as the advance decline ratio fell to 0.55:1.

Global markets were mixed on Thursday as negative sentiments arising out of expectations of further interest rate hikes by major central banks and the fact that Eurozone has entered recession after its Jan-Mar GDP fell 0.1% was offset by optimism over more Chinese stimulus measures.

India’s southwest monsoon, which waters more than half of India's farmland, has arrived over Kerala on June 8, Thursday, according to the Indian Meteorological Department after a one-week delay.

Nifty formed a near Engulfing Bear pattern on daily charts. It could now face resistance from 18778, while 18531 could act as a support. In case the Nifty closes below this support on Friday, it could result in Engulfing Bear pattern on weekly charts and the downtrend could gather momentum.

Following the RBI policy, the Bank Nifty index experienced persistent selling pressure around the 44500 level. In terms of support levels, the index has a support level positioned at 43700. This level is crucial as a breach below it could intensify the selling pressure in the market. A breach below this support level might indicate a further downside potential and could attract additional selling interest from traders and investors. The index is stuck in a range and a break on either side will have directional move.

The Nifty index experienced periods of selling pressure throughout the day. Despite this, the Put writers were successful in preventing the index from falling below the 18600 level. If the Nifty manages to stay above this level, the trend is likely to remain sideways to positive. However, there is resistance observed at the 18800-18900 levels on the higher end.

Sharp correction in the last hour trade pulled down the Sensex below the 63000 mark, as realty shares faltered sharply after the recent upsurge. While rate hike pause by the MPC was on expected lines, subdued commentary by the RBI on inflation for this fiscal year dampened the sentiment.

Technically, on daily charts, the Nifty has formed a long bearish candle, which indicates further weakness from the current levels. However, the medium term formation of the index is still in to the bullish side.

For traders, as long as the index is trading below 18725, the technical correction is likely to continue. Below which, the market could slip till 18600-18550. Contra traders can take a long bet near 18550 with a strict stop loss at 18520.

Investor sentiment took a downturn following the in-line monetary policy announcement by the RBI, as the market had higher expectations for a more optimistic revision in the inflation outlook, taking into account the recent easing of inflation data.

The RBI's decision to lower the inflation rate by only 10 bps suggests a cautious stance due to geopolitical uncertainties, potential impact of El Nino and increase in Minimum Support Price.

Indian rupee closed marginally lower at 82.57 per dollar against previous close of 82.54.

: Benchmark indices ended lower in the volatile session on June 8.

At close, the Sensex was down 294.32 points or 0.47% at 62,848.64, and the Nifty was down 91.90 points or 0.49% at 18,634.50. About 1457 shares advanced, 1994 shares declined, and 106 shares unchanged.

Grasim Industries, Kotak Mahindra Bank, Sun Pharma, Tech Mahindra and Apollo Hospitals were among the top losers on the Nifty, while gainers were NTPC, JSW Steel, ONGC, Power Grid Corp and Larsen and Toubro.

Except power and capital goods, all other sectoral indices ended in the red.

The BSE midcap and smallcap indices fell 0.5 percent each.

Overall, an in-line policy verdict with status quo in policy rate, given the backdrop of El-Nino fears coming to the fore, hawkish global central banks actions and global financial stability risks. While the nudging of Inflation forecast is indeed marginally positive for the markets, the upside risks to Inflation characterized by MPC, continue to exemplify wait and watch and cautious stance of RBI and reflect the probability of an extended pause by RBI. While RBI refrained from giving cues on future course of policy pivot, it continues to reemphasize the goldilocks domestic macros, which give some elbow room to remain dovish and eventually change the policy stance towards the end of the year.

Gujarat Pipavav Port Ltd was trading 2 percent higher in the afternoon trade on June 8, after the company said it had resumed operations after a storm knocked out the power supply on May 29.

Gujarat Pipavav said port operations resumed on June 7 evening with the help of diesel generators after the power supply was knocked out by strong winds and heavy rain that accompanied the storm.

The company had then declared force majeure, a clause that frees up both parties from contractual obligations in the face of extraordinary events which are beyond control such as a natural disaster. A French term, it means great force.

The maiden public issue of IKIO Lighting has received overwhelming response from all type of investors as they bought 44.83 times the offer size on the final day of bidding on June 8.

We have seen bid for 68.25 crore equity shares, so far from investors, against an IPO size of 1.52 crore shares, according to data available on exchanges.

High net-worth individuals, who will get 15 percent of the IPO pie, were in the forefront for providing healthy support to the offer, buying shares 55.59 times the allotted quota, while retail investors have bid for 12.67 times the reserved portion.

Qualified institutional buyers, who have 50 percent reservation in the public issue, have bought 94.76 times the portion.