Sensex, Nifty end flat amid profit booking; realty stocks outperform
The market breadth was also positive as 1,179 stocks advanced on the BSE, while 797 declined and 341 remained unchanged
After a firm opening, domestic equity benchmarks succumbed to the fag-end sell-off to end flat on Monday due to profit booking across IT, metal and pharma stocks. Sensex closed at 52,372.69, down 13.50 points or 0.03%. Nifty, on the other hand closed at 15,692.60, up 2.80 points or 0.02%.
“Domestic indices started with mild gains hovering around the flat line, however, it trimmed early gains tracking cues from its European peers ahead of the release of key inflation data later today. Shares of small finance banks were in focus today as the RBI allowed the reverse merger with their respective promoter entities. The realty stocks rallied as hopes of demand revival boosted the sector’s outlook,” said Vinod Nair, Head Of Research at Geojit Financial Services.
Gainers & losers
Top gainers & losers on Sensex for June 12, 2021
Realty stocks were buzzing in today’s trade with Indiabulls Real Estate surging almost 15%, followed by Sunteck Realty, Hemisphere Property, Oberoi Realty, DLF & Sobha Developers rallying anywhere between 3-5%. Select banking & financials also rallied after RBI allowed the merging of small finance banks with its holding entities.
Sectoral strand
On the sectoral front, the Nifty Realty index continued its bull run and ended with gains of over 3.6%. Whereas Nifty Bank, Nifty Auto and Nifty Pharma indices rose anywhere between 0.08-0.40%.
On the other hand, the Nifty IT index lost 0.45%, the Nifty Metal index was down 0.21% and the Nifty FMCG index was marginally down by 0.02%.
Broader market
The broader market continued its outperformance to benchmark indices as the BSE MidCap index ended at 22,904 advancing 0.40% and the BSE SmallCap index rose 0.75% to close at 26,068.
The market breadth was also positive as 1,179 stocks advanced on the BSE, while 797 declined and 341 remained unchanged.
Global markets
European shares fell across the board while Asian stocks rallied on Monday, 12 July 2021, after their U.S. peers chalked fresh records Friday in a broad-based rebound.
In economic news, China’s central bank on Friday announced 50 basis points cut in its reserve requirement ratio for all banks, effective from July. The RRR represents the amount of money that banks must hold in their coffers as a proportion of their total deposits. A lowering of that required amount will increase the supply of money that banks can lend to businesses and individuals.
The three major US stock indexes rallied to record closing highs on Friday as financials and other economically focused sectors rebounded after a selloff sparked by growth worries earlier in the week.
Meanwhile, the G20 Finance Ministers on July 10 approved a global corporate tax of at least 15% to be imposed on multinational companies (MNCs) with an aim to end tax havens. In a two-day virtual meet headquartered from Venice (Italy), the Group also endorsed a broad agreement plan introducing new rules for taxation of cross-border businesses, as per reports. Details and negotiations of the rules are likely to be finalised during the next G20 meet scheduled in October 2021.
Investors continued to watch the coronavirus situation in Asia-Pacific on Monday. Japan’s government is set to put Tokyo under a new COVID state of emergency on Monday while stricter social distancing restrictions are set to kick in for the greater Seoul area in South Korea, as per reports. Elsewhere in Southeast Asia, several countries including Indonesia and Malaysia continue to struggle with a recent surge in infections, reports added.