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Taking Stock | Market gains on weekly expiry day; Sensex up 437 points, Nifty above 16,600

The broader indices, too, ended higher. The BSE midcap index closed 0.03 percent higher, while the smallcap index gained 0.64 percent

June 02, 2022 / 07:45 PM IST
Stock Market News, share market news, equity market news

Stock Market News, share market news, equity market news


A drop in crude and gas prices saw Indian shares end higher on June 2, with gains in information technology and metal stocks supporting the benchmark indices.

The 30-pack BSE Sensex closed 436.94 points, or 0.79 percent, higher at 55,818.11, while the Nifty ended the day 105.25 points, or 0.64 percent, higher at 16,628.

Though global cues were not encouraging earlier in the day with the US markets ending with losses on June 1 and Asian peers sliding in the morning on recession fears amid rising inflation, the Indian indices gained confidence from the fall in energy prices as crude dropped from $120 a barrel to $113.

The goods and services tax (GST) collections of more than Rs 1.4 trillion for the fourth straight quarter and strong auto sales in May also gave strength to the market, which was jittery in the first half.

“The bounce in the market is showing signs of getting extended further supported by the mid and small-caps as high-frequency data like GST collection and PMI have shown a good start to FY23”, said Vinod Nair, Head of Research at Geojit Financial Services. “Crude prices have declined, providing an edge to the performance of the Indian market’.

Close

In the coming days, a lot will depend on central banks’ policies in India and the US to be announced over the next two weeks, Nair said.

Stocks & sectors

Barring auto and banking, financial service & insurance (BFSI), all sectors made healthy gains.

IndexPricesChangeChange%
Sensex52,939.85-87.12 -0.16%
Nifty 5015,751.00-48.10 -0.30%
Nifty Bank33,370.80100.90 +0.30%
Nifty 50 15,751.00 -48.10 (-0.30%)
Thu, Jun 30, 2022
Biggest GainerPricesChangeChange%
HDFC Life551.4510.20 +1.88%
Biggest LoserPricesChangeChange%
Bajaj Auto3,718.00-149.55 -3.87%
Best SectorPricesChangeChange%
Nifty Bank33373.30103.40 +0.31%
Worst SectorPricesChangeChange%
Nifty Metal4669.85-85.55 -1.80%

IT and metal stocks were the preferred lot and saw strong buying interest from the investors as valuations have become more reasonable now.

The Nifty IT index was up 1.82 percent, while metals gained 1.14 percent. The public sector banks and realty indices gained close to 1 percent each.

The Nifty auto, however, was the biggest laggard, down 0.62 percent.

The broader indices, too, displayed widespread strength. The  BSE midcap index ended 0.03 percent higher, while the smallcap index gained 0.64 percent.

After a volatile session on June 1, the India VIX, which indicates the degree of volatility expected over the next 30 days, fell 2.51 percent from 20.84 to 20.32.

The top Nifty gainers were Reliance Industries, Bajaj Finserv, Sun Pharma, HCL Tech and TCS, which gained between 2.02 and 3.45 percent.

Top losers of the day were Apollo Hospital, Hero Motocorp, Eicher Motors, HDFC and Power Grid Corp, which declined between 1.59 and 5.05 percent.

Among stocks, a long build-up was witnessed in Abbot India, Reliance and L&T Technology Services, while a short build-up was seen in Apollo Hospital, Info Edge (Naukri) and Hero Motocorp.

Of the 3,401 stocks traded on the BSE, 1,885 advanced, 1,384 declined and 132 remained unchanged.

Outlook for June 3

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd

Technically, after a muted opening, the Nifty took support near 16,450 and reversed the trend. A promising reversal formation on intraday charts and a long bullish candle on daily charts are indicating a further uptrend.

For day traders, 16,550 would act as a trend decider level, above which the Nifty could rally to 16,720. In case of a further upside, the index could move to 16,800. On the flip side, the uptrend would be vulnerable below 16,550 and could falter to 16,450.

Mohit Nigam, Head-PMS, Hem Securities

Traders took support after bank credit to NBFCs grew in double digits in FY22, with outstanding bank credit to them rising by 10.4 percent to Rs 10.5 lakh crore on the back of improvement in overall economic activities and banks' renewed focus on non-banking finance companies’ improvement in balance sheets.

Sector-wise, the aviation industry remained in focus, as the price of aviation turbine fuel (ATF) has been reduced by Rs 1,563.97 per kilolitre, or 1.27 percent, to Rs 1,21,475.74 per kl (Rs 121 a litre) in the national capital on softening international crude oil rates. Simultaneously, prices of commercial LPG were reduced by Rs 135 per 19-kg cylinder.

On the technical front, the key resistance level for the Nifty is 16,700 and on the downside, 16,400 can act as strong support. Key resistance and support levels for Bank Nifty are 36,200 and 35,000.

Deepak Jasani, Head of Retail Research, HDFC Securities

SBI Research has projected that the Indian economy would grow at 7.5 percent in 2022-23, an upward revision of 20 basis points from its earlier estimate.

Asian shares mostly declined Thursday, echoing a retreat on Wall Street as investors fretted about higher interest rates and rising coronavirus cases in parts of the region.

European stocks climbed as investors assessed attractive valuations and a drop in oil prices against hawkish messages from central bankers on reining in inflation.

The Nifty has expectedly started to rise after a small correction. The level of 16,696 is the next resistance after which 16,888 could halt the upmove temporarily. A move below 16,506 can result in minor weakness.

Disclaimer: The views and investment tips of experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Disclosure: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Gaurav Sharma
first published: Jun 2, 2022 05:01 pm
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