A day after the RBI kept rates unchanged with an unexpected slightly hawkish message on inflation, India’s equity indices ended in the red for the second straight day after swinging between gains and losses on Friday.
The 30-share BSE benchmark Sensex ended 223 points or 0.35% lower to settle at 60,625. The broader NSE Nifty dropped 71 points or 0.38% to end at 18,563.
Among Sensex stocks, Tata Steel, SBI, HUL, HCL Tech, Infosys, and Asian Paints closed with losses, while IndusInd Bank, Axis Bank, Power Grid, L&T, UltraTech Cement, and Tata Motors closed with gains.
Sectorally, Nifty PSU Bank declined 1.21% and Nifty FMCG fell 0.92%. Nifty IT and Nifty Auto also closed lower. In the broader market, Nifty Midcap100 dropped 0.14%, while Smallcap100 declined 0.12%.
The market capitalisation of all listed companies on BSE declined by Rs 73,059 crore to Rs 286.72 lakh crore. The market breadth was skewed in the favour of the bears. About 1,796 stocks declined, 1,739 gained, and 113 remained unchanged on the BSE.
Global Markets –
Asian shares mostly rose on Friday, led by a jump on the Tokyo Stock Exchange where share prices got a boost of optimism from a new bull market on Wall Street. Japan’s benchmark Nikkei 225 surged 1.8%. South Korea’s Kospi added 1.1%, while Hong Kong’s Hang Seng advanced 0.8%.
European shares dipped on Friday, rounding off a lacklustre week that saw investors step to the sidelines ahead of crucial updates from the US Federal Reserve and the European Central Bank(ECB), while Croda slid on a tepid profit outlook. The pan-European STOXX 600 index remained at 460.51 points and was set to dip 0.4% for the week.
Oil price gains – Oil prices rose on Friday and were broadly flat on the week as concern over oil demand growth was balanced by Saudi output cuts. Brent crude futures rose 36 cents, or 0.5%, to $76.32 a barrel, while US West Texas Intermediate crude was up 34 cents, or 0.5%, at $71.63.
Rupee strengthens –The Indian rupee strengthened 0.12% versus the US dollar and quoted at 82.47 per dollar, tracking strength in most of the Asian currencies. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.19% to 103.53 level.
Nifty futures opened at 18709.95 points against the previous close of 18724.95 and opened at a low of 18618.35 points. Nifty Future closed with an average movement of 121.60 points and a rise of around 78.40 points and 18631.55 points…!!
On the NSE, the midcap 100 index will down 0.14% and small cap 100 index is closing down 0.12%.
At the start of intra-day trading, August gold opened at Rs.59934 fell from a high of Rs.60116 points to a low of Rs. 59729 with a decline of 141 points, a trend of around Rs.59750 and JULY Silver opened at Rs.73860, fell from a high of Rs.74130 points to a low of Rs.73530 with a decline of 46 points, a trend of around Rs.73624.
Meanwhile, The domestic market witnessed extended selling pressure as investors eagerly awaited the domestic inflation data due on Monday as the RBI refrained from an aggressive cut in their inflation forecast
The market is hopeful that the CPI inflation for May will further moderate from its current level of 4.7%. In addition to the domestic factors, global cues also failed to provide support, as the US reported high unemployment claims ahead of the release of the inflation figures and the Fed meeting.
Technically, the important key resistances are placed in Nifty future are at 18631 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18676 – 18808 levels. Immediate support is placed at 18474 – 18303 levels.