We had mentioned in Friday’s closing report Nifty, Sensex might struggle to go up. The major indices of the Indian stock markets suffered a correction in Monday’s trading and the losses over Friday’s close were more than 0.70%. The trends of the major indices in Monday’s trading are given in the table below:
Bearish global cues, along with disappointing domestic macro-economic data and a weak rupee, dragged the key Indian equity markets lower on Monday. Consequently, the key indices traded in the red during the mid-afternoon session, as heavy selling pressure was witnessed in banking, automobile and capital goods stocks. Initially, on Monday, the key indices opened on a weak note, in sync with their Asian peers and a lower close of the US stock on last Friday. Asian stocks receded as investors were cautious ahead of the US FOMC's (Federal Open Market Committee) rate setting meeting which is slated to start on Tuesday. Further, lower crude oil prices and a weak rupee dented key indices. Besides, the upcoming domestic macro-economic inflation data -- Consumer Price Index (CPI) -- stroked volatility. A rise in CPI inflation may further reduce chances of a future rate cut by the Reserve Bank of India (RBI). In addition, poor data on industrial production which was released after market hours on Friday last week weighed heavy on sentiments.
China's economy held steady as industrial production gathered pace in May, retail sales maintained strong growth and investment cooled with improved structure, official data showed on Monday. During the next few weeks, the global developments that will be watched are Britain's June 23rd referendum if it should leave or remain in the European Union (Brexit), as also the US Federal Reserve meeting on Tuesday and Wednesday. Poor global cues could lead to losses in the Indian stock markets.
With international oil prices climbing back to over $50 levels, driving around on cheap fuel seems to be a thing of the past though there is no danger of "hard times" as yet, Assocham said on Sunday. "While the crude oil prices have shot up by about 20% in the last few months, the auto fuel prices at the filling stations have increased between 12%-18% in different cities, depending on the state levies," said the Associated Chamber of Commerce and Industry of India. "A sharp increase in the retail prices of automobile fuel, particularly diesel, will have a cascading impact on the prices of a large number of consumer items, building the inflationary pressure and making the task of the Reserve Bank of India difficult in moderating the interest rates," it added.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: