Sensex, Nifty close in the red amid volatility; banks, financials drag
In today’s session fresh buying was seen across IT and telecom stocks while selling was witnessed in metals, banks and financial stocks
Indian benchmark equity indices ended a volatile session in the red as investors turned uneasy about high valuations and rising global inflation. In today’s session fresh buying was seen across IT and telecom stocks while selling was witnessed in metals, banks and financial stocks. Sensex ended 53 points, or 0.10% lower at 52,275 while the Nifty 50 settled at 15,740 with a nominal loss of 12 points, or 0.07%.
Gainers & losers
Rallying around 2.3% TechMahindra was the top gainer on the Sensex. Bharti Airtel (up 2.08%); Infosys (up 1.80%), HCL Tech (up 1.78%) & Titan (up 1.40%) were among the top gainers. Whereas SBI, HDFC, Kotak Mahindra Bank, HDFC Bank & PowerGrid slipped up to 1.2%.
Buzzing sectors
Nifty IT index leads the sectoral indices pack with gains of over 1.2% while Nifty Realty, Nifty FMCG and Nifty Pharma indices rose about 0.85% each. On the downside, Nifty Metal and Nifty Bank indices slipped 1.06% & 1.01% respectively.
Broader market
In today’s volatile session all action was seen in the broader markets as the BSE MidCap index surged 0.38% to end at fresh record highs of 22,773 after hitting a new peak of 22,822 on an intraday basis.
Likewise, the BSE SmallCap index continued its outperformance as it touched a fresh high of 24,868 and ended marginally below at 24,826 advancing 0.93%.
Bulls had an upper hand in the market as 1,051 shares advanced versus 880 stocks declining while 323 scrips remained unchanged.
“Today’s trade quite clearly belonged to the midcap bulls as we saw both high-quality midcaps across sectors together with Smallcaps rallying on sustained buying interest. Advance-Declines too was encouraging today with buying seen across a wide array of stocks. The power stocks saw high activity with all Three entities recording gains with high volumes,” said S Ranganathan, Head of Research at LKP Securities.
Economy
Rating agency CRISIL has lowered India’s gross domestic product (GDP) growth forecast to 9.5% for the current fiscal compared to 11% projected earlier. The downward revision reflects the major hit the two engines of growth – private consumption and investment – have taken due to the second COVID-19 wave.
Meanwhile, the World Bank has said it has approved a $500 million program to support MSMEs in India to increase liquidity access for viable small businesses impacted by COVID-19. The World Bank’s Board of Executive Directors has approved a $500 million program to support the Government of India’s nationwide initiative to revitalize the MSME sector, which has been heavily impacted by the COVID-19 crisis.
Global markets
Most European shares advanced while Asian stocks declined on Tuesday, 8 June 2021.
Revised government data released Tuesday showed Japan’s economy shrank 3.9% in the first quarter, an improvement from the initial estimate of a 5.1% contraction.
US stocks clawed back much of their early losses and ended mixed on Monday. Investors are focused on inflation data in the week ahead, with May’s Consumer Price Index (CPI) scheduled to be released Thursday.