Sensex slips 114 points in early trade, Nifty below 15,800; banks, realty stocks drag
Sensex lost 114 points or 0.22% at 52,665, while the Nifty 50 declined 41 points or 0.26% to at 15,770
Domestic equity benchmark indices opened lower on Wednesday tracking a negative trend in the Asian markets. In early deals, Sensex lost 114 points or 0.22% at 52,665, while the Nifty 50 declined 41 points or 0.26% to at 15,770.
“Raging bull markets normally end with some clear signs such as too many media stories of huge wealth creation in markets, hyper retail trading activity, froth in mid-small-caps and even average IPOs getting hugely over-subscribed. Discerning investors can find all these features in the market now. This calls for caution and a conservative approach to investment, going forward,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
A sharp correction may happen, or the bull run may continue. Whatever the outcome, safety is in quality large-caps which are moving only slowly now and not in smallcaps that are flying away. There is a bubble in smallcaps which will end badly for the newbie retail investors chasing these stocks. Investors may book some profits and move the money to fixed income and remain invested in quality large-caps in IT, metals, pharma, cement and FMCG,” he added.
Gainers & losers
Top gainers & losers in opening trades of June 14, 2021
Sectoral strand
Sectoral indices were mixed with the Nifty IT leading the pack followed by the Nifty Metal and Nifty Pharma. On the other hand, Nifty Bank slipped 0.49%, Nifty Realty lost 0.3l7% and Nifty FMCG opened with a marginal loss of 0.09%.
Broader market
The broader markets bucked the trend, the BSE MidCap index rose 0.24% to 22,961; while the BSE SmallCap index was trading at 26,298, up 0.42% after hitting a lifetime high of 26,318.
Market breadth was positive as 1,058 shares advanced on the BSE, while 714 stocks declined and 489 remained unchanged.
Earnings today
Infosys, 5paisa Capital, Craftsman Automation, Dodla Dairy, Essar Securities, Hatsun Agro Product, L&T Technology Services, Mishtann Foods, Tasty Dairy Specialities, Tinplate Company of India, and others will release their quarterly earnings on July 14.
Global markets
Overseas, Asian stocks mostly slipped on Wednesday following a hotter-than-expected U.S. inflation report for June overnight.
Singapore’s economy grew 14.3% year-on-year in the second quarter, official advanced estimates showed Wednesday. Still, the economy contracted by 2% as compared with the previous quarter, Singapore’s ministry of trade and industry said.
US stocks slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors. Inflation rose at its fastest pace in nearly 13 years, the labor department reported on Tuesday. The consumer price index increased 5.4% in June from a year ago. Core CPI, excluding food and energy, jumped 4.5%, the sharpest move for that measure since September 1991.
Federal Reserve Chairman Jerome Powell is scheduled to appear in front of Congress Wednesday and Thursday to provide an update on monetary policy.
Investors are also monitoring the spread of the more contagious delta variant of Covid-19, which is hampering the recovery from the pandemic in some parts of the world. The unfolding earnings season is key too, with global stocks close to record highs on optimism over the bounce back from the health crisis.