The Indian equity benchmarks ended lower in yet another volatile session on May 10 amid mixed global cues and selling across sectors, barring FMCG and bank.
At close, the Sensex was down 105.82 points, or 0.19 percent, at 54,364.85, and the Nifty was down 61.90 points, or 0.38 percent, at 16,240.
"A weakening rupee despite forex swaps by the central bank failed to lift IT stocks even after good deal wins and management commentary post-earnings. FMCG stocks saw investor interest today as culls attempted to halt the famous adage—‘Sell in May & Go Away’, said S Ranganathan, Head of Research at LKP securities.
The metal index, however, played spoilsport and dropped over 5 percent in afternoon trade led by aluminium and steel.
"The indices in no way represented the damage done today in the broader markets, with the advance-decline ratio describing the weak undertone," Ranganathan added.
Coal India, Tata Steel, ONGC, Hindalco Industries and JSW Steel were among the top Nifty losers, while gainers were HUL, Eicher Motors, Asian Paints, UltraTech Cement and IndusInd Bank.
On the sectoral front, Nifty energy, IT, metal and pharma indices were down 1-5 percent. On the other hand, the Nifty Bank added 0.6 percent.
Stocks and sectors
On the BSE, except bank and FMCG, all sectoral indices ended in the red, with metal, power, oil & gas, healthcare, IT and realty indices down 1-5 percent.
Broader indices underperformed the benchmarks, with BSE midcap and smallcap indices falling 2 percent each.
A long build-up was seen in GNFC, PVR and HUL, while a short build-up was seen in Coal India, Jindal Steel and Tata Steel.
More than 100 stocks, including SAIL India, Rallies India, Dabur India, Nestle India and Granules India, touched their 52-week low on the BSE.
Among individual stocks, a volume spike of more than 200 percent was seen in Polycab India, Alkem Laboratories and GNFC.
Outlook for May 11
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Investors dumped metal, power and oil & gas stocks amid concerns of fragile global economic growth prospects that led to a fall in key benchmark indices. Traders are concerned that central banks of key developed economies could resort to more rate hikes to temper rising inflation, which could hurt growth and trigger more foreign fund outflows from emerging markets, including India.
Technically, after a muted opening, the Nifty witnessed intraday recovery but one more time it found resistance near 16,400 and corrected sharply thereafter.
On intraday charts, the index is still holding a lower top formation, which is broadly negative for the market.
For the traders, 16,200 will be the level to watch for and below it, the index can see an intraday correct to 16,100-16,050. Above 16,300, a fresh pullback rally is not ruled out and above it, the index can retest 16,400-16,450.
Ajit Mishra, VP-Research, Religare Broking
A mixed trend was witnessed among sectoral indices, wherein metal, energy and realty were the top losers. The broader markets, midcap and smallcap, continued to underperform to end lower in the range of 1.3-1.7 percent.
We reiterate our bearish stance on the markets in the absence of any positive trigger. Participants shouldn’t read much into a single-day rebound and wait for some decisive reversal signal.
Besides, stability on the global front is equally critical for any sustained move. Meanwhile, since most of the sectors are trading under pressure, focus should be on stock selection and using intermediate rebound to create shorts.
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