Nifty may not be out of the woods yet but may bounce back till 7850
We had mentioned in our last week closing report that Nifty, Sensex is in a downtrend and Nifty may head towards 7,600. Today, although Nifty opened higher it was on a continuous downtrend. It hit its days high at the opening of the session and moved lower. By 10.51 am it was trading close to Friday’s close. After moving sideways upto 12.34 pm it moved into the red and could not revive, making it the fourth consecutive day of loss making session. The trends in the major indices in the course of Monday’s trading are given in the table below:
Heightened prospects of a US rate hike, coupled with slow progress in the Indian Parliament in approving a key economic legislation, subdued Indian equity markets on Monday, leading to a barometer index closing 108 points in the red.
Initially, both the bellwether indices of the Indian equity markets opened higher in sync with their Asian peers which firmed up following Friday's positive close for the US markets.
Furthermore, Friday's recommendations from the chief economic advisor (CEA) for a standard goods and services tax (GST) rate in the range of 17-18% and to eliminate all taxes on inter-state trade buoyed markets.
During Monday's trade, the barometer 30-scrip sensitive index (Sensex) of the BSE shed 108 points or 0.42%. Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE), too, closed in the red. It was marginally lower by 17 points or 0.21% at 7,765.40 points.
The 30-stock Sensex, which opened at 25,746.03 points, closed at 25,530.11 points, down 108 points or 0.42% from the previous day's close at 25,638.11 points. The Sensex touched a high of 25,785.53 points and a low of 25,477.69 points during the intra-day trade. Markets observers pointed out that the parliament's logjam has reduced the chances of GST bill getting passed this session. This has been a major dampener for the markets.
According to data with stock exchanges, FIIs sold stocks worth Rs65.04 crore, while DIIs off-loaded stocks worth Rs54.9 crore.
FMCG, public sector banks, energy and auto stocks came under selling pressure. Pharma, tech and reality stocks outperformed with decent gains.
Sector-wise, healthy buying was observed in healthcare, banking and consumer durables sector, while selling pressure was seen in fast moving consumer goods (FMCG), metal and oil and gas sectors.
The healthcare index rose by 126.40 points, banking index gained by 57.54 points and consumer durables index was higher by 35.27 points, while the FMCG index plunged by 191.68 points, metal index receded by 55.85 points and oil and gas index declined by 42.56 points.
Major Sensex gainers during Monday's trade were Sun Pharma, up 2.81% at Rs.777.35; Hindustan Unilever, up 2.01% at Rs.831.75; Lupin, up 1.41% at Rs.1,831.35, Tata Steel, up 1.39% at Rs.243.55; and HDFC, up 1.20% at Rs.1,186.
The major Sensex losers were ITC, down 6.57% at Rs.313.55 (on fears of higher taxes on account of GST); Coal India, down 2.42% at Rs.327.55; ONGC, down 1.54% at Rs.224.10; Reliance Industries, down 1.25% at Rs.953.70; and Maruti Suzuki, down 0.91% at Rs.4,564.35.
The top gainers and top losers of the major indices are given in the table below:
Both the foreign institutional investors (FIIs) and the domestic institutional investors (DIIs) were net sellers during the day's trade at the stock exchanges.
The closing values of the major Asian indices are given in the table below: