Indian benchmark indices ended lower on June 15, continuing their losing streak for the fourth consecutive session with market participants waiting for the Federal Open Market Committee (FOMC) meeting decisions expected later in the day.
At close, the Sensex was down 152.18 points, or 0.29 percent, at 52,541.39, and the Nifty was down 39.90 points, or 0.25 percent, at 15,692.20.
After a positive start, the market erased the gains and remained volatile throughout the session, with selling in power, IT, metal, oil & gas, realty and FMCG names.
"Looming fears of stagflation and volatility ahead of the Fed meeting decision forced the market to close flat with a negative bias," Vinod Nair, Head of Research at Geojit Financial Services, said.
An aggressive rate hike of 50-75 bps has been largely factored in by the market but updated economic and interest rate forecasts will control the future trend, he said.
Tata Steel, ONGC, NTPC, Infosys and Wipro were among the top Nifty losers, while gainers were Bajaj Finserv, Bajaj Finance, Tata Motors, Hero MotoCorp and Grasim Industries.
Among sectors, buying was seen in Nifty Auto and Pharma, while Energy, FMCG, IT and metal remained under pressure.
Also Read: FOMC: Here's what experts expect from US Fed announcement today
Stocks and sectors
On BSE buying was seen in the auto, capital goods, healthcare names, while selling was seen in the power, IT, metal, oil & gas, realty and FMCG names.
Broader indices outperformed the benchmarks, with BSE midcap and smallcap indices rising 0.5 percent each.
A long build-up was seen in Strides Pharma Science, Indraprastha Gas and Bajaj Finserv, while a short build-up was witnessed in Tata Communications, ONGC and Tata Chemicals.
Among individual stocks, a volume spike of more than 200 percent was seen in Sun TV Network, Petronet LNG and Tata Communications.
More than 150 stocks hit their 52-week low on the BSE. These included Equitas Holdings, Vakrangee, Power Finance Corporation, IDFC First Bank, Rites, PTC India Financial Services and Tata Steel.
Outlook for June 16
Deepak Jasani, Head of Retail Research, HDFC Securities
After the US Fed meeting outcome, the Nifty would either open gap-down below 15,500 or gap up above 15,886. A downside breakdown could result in follow-through selling, while an upside breakout will have to face selling pressure at highs.
Ajit Mishra, VP-Research, Religare Broking
All eyes will be on the US Fed outcome. The street seems to be divided over the quantum—50bps or 75 bps—rate hike.
Apart from rates, the American central bank’s commentary would also be tracked by investors. Participants should remain light and wait for clarity.
Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities
The Nifty continued to be volatile ahead of the FOMC meeting outcome.
The index’s lower-end support stands at 15,500, where fresh put writing has been observed and if fails to sustain above, it will see more selling pressure. The upper-end resistance stands at 16,000, where the highest open interest is built up on the call side.
The Bank Nifty had a range-bound session and will see sharp movement on either side after the FOMC meeting. The immediate upper-end hurdle is at 34,000 and a breach will lead to fresh short covering. The lower-end support stands at the 33,000-32,500 zone, which earlier acted as the demand zone.
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