F&O Expiry Week: Nifty slips below 10,700, Smallcap index down 1%; GDP rises at 7.7%

The Nifty ended on strong note but fell to hold 10,700 during the week ended June 1 as market remained volatile amid mixed global cues, Q4 GDP data and F&O expiry.

The Nifty has formed a Spinning Candle with long shadows followed by a Dragon Fly Doji on the weekly scale which indicates a tough fight between bulls and bear,” said Chandan Taparia of Motilal Oswal Securities.

Public sector banks (PSBs) continued to be bogged down by deteriorating asset quality. The non-performing assets of the government-owned banks soared beyond Rs 6 lakh crore at the end of Q4, 2018, a year on year increase of Rs 2.5 lakh crore.

India's GDP rose at 7.7 percent in the fourth quarter of 2017-18 compared with 6.1 percent in the same period last year, and a revised 7 percent in the quarter ended December. For the full financial year, GDP grew at 6.7 percent compared with 7.1 percent in the previous year.

Nifty may remain volatile as we have monetary policy next week. Trading for next week is going to be lacklustre, experts said.

There are expectations that with the inflation inching up and growth getting firmer, the RBI Monetary Policy Committee (MPC) would turn hawkish and give guidance on hike in interest rates, they feel.

"RBI policy and its outcome on rates is eyed closely due to the impact of higher fuel prices, expected an increase in MSP on inflation and improved growth prospects for the economy," Teena Virmani, Vice President – Research at Kotak Securities Ltd told Moneycontrol.

Foreign investors stayed net sellers as they sold equities worth Rs 2,707 crore in last week, while domestic institutions were buyers in the last week as they bought equities worth Rs 2,160 crore.

India's volatility index (India VIX) gained over 7 percent last week. BSE Midcap index was down 0.3 percent and Smallcap down 1 percent while Largecap index rose o.7 percent.

Oil & gas index has outperform the other sectorial indices with a gain of 3 percent during the week.

HDFC Bank added most to its market value on the BSE, followed by Coal India, Maruti Suzuki and M&M.

80 stocks has touched the 52-week high, while 500 stocks has touched 52-week low in the week ended June 1, 2018.