In yet another volatile session on June 18, benchmark indices ended lower for a second session in a row, as investors stayed caution ahead of US Federal Reserve's announcement later tonight, and the ongoing tensions in the Middle East.
At close, the Sensex was down 138.64 points or 0.17 percent at 81,444.66, and the Nifty was down 41.35 points or 0.17 percent at 24,812.05. The underperformance of broader market indices continued, with BSE mid and smallcap indices falling 0.3 percent each.
Stocks & Sectors in Action
Top Nifty losers included TCS, Adani Ports, JSW Steel, HUL, Adani Enterprises, while gainers were IndusInd Bank, Trent, Titan Company, Maruti Suzuki and M&M.
On the sectoral front, except auto, private bank, consumer durables, all other indices ended in the red with IT, media, metal, oil & gas, realty down 0.5-1 percent.
BSE shares ended lower after Sebi's nod for Thursday expiry day, IndusInd Bank shares rose 4% on Nomura's target upgrade, Hindustan Zinc shares tumbled 7% as Vedanta offloaded 1.71% stake worth Rs 3,323 crore, and Optiemus Infracom jumped 8 percent on partnership with OnePlus. One MobiKwik Systems' shares fell 8% after the mandatory six-month lock-in period for pre-IPO shareholders ended today.
More than 70 stocks on the BSE touched their 52-week highs, including Authum Investment, Federal-Mogul, AU Small Finance, Axiscades Technologies, Lumax Industries, PSP Projects, Aditya Birla Capital, Redington, Navin Fluorine, Redington, among others. Click to View More
Global Markets
US stocks finished with losses on Tuesday as the Israel-Iran conflict raged on for a fifth day and kept investor anxiety high, with the U.S. military moving fighter jets to the Middle East.
Outlook for June 19
Ajit Mishra – SVP, Research, Religare Broking
Markets traded lackluster and ended marginally in the red, extending the ongoing consolidation phase. After a flat start, the Nifty edged higher initially but failed to sustain the momentum, primarily due to pressure from heavyweight stocks. It then moved within a narrow range and eventually settled at 24,812.05. Sectoral trends mirrored the broader market, with auto and banking ending slightly in the green, while IT, metal, and FMCG slipped lower. The broader indices also declined by nearly half a percent, continuing the profit-taking trend.
Markets will react to the outcome of the US Fed policy meeting during early trades on Thursday. While most expect no change in interest rates, the Fed's commentary—especially in light of the prevailing global uncertainty caused by geopolitical tensions and trade tariff concerns—will be more crucial. We recommend maintaining a cautious approach until there is more clarity. In the meantime, participants can consider selectively accumulating stocks that are showing relative strength amid the volatility, with a preference for large-cap and stronger mid-cap names.
Rupak De, Senior Technical Analyst at LKP Securities
The index remained volatile throughout the day as updates related to the Israel-Iran conflict and the possibility of U.S. kinetic intervention weighed on global sentiment. Additionally, anticipation ahead of the upcoming Fed meeting contributed to the instability in the Indian market.
On the technical front, Nifty closed below the crucial support level of 24,850. However, a positive surprise from the Fed could lift both global and domestic markets, helping them shake off prevailing negativity.
On the upside, a decisive reclaim of 24,850 may trigger a rally towards 25,000 and higher, while a failure to move back above this level could drag Nifty down towards 24,500.
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