IT, PSU banks, realty, consumer durables drag; metals, oil & gas stocks gain 

Benchmark indices closed flat amid volatility on Monday. Market started off on a weak note as investors turned cautious amid mixed global cues. Indices closed lower at the end of a subdued trading session with IT, PSU Bank and consumer durables witnessing increased pressure. 

The BSE Sensex closed at 55,675.32, down 93.91 points or 0.17 per cent. It recorded an intraday high of 55,832.28 and a low of 55,295.74. The Nifty 50 closed at 16,569.55, down 14.75 points or 0.09 per cent. It recorded an intraday high of 16,610.95 and a low of 16,444.55.

Market breadth

The market breadth remained in favour of decliners with 1,970 stocks declining on the BSE as against 1,429 that advanced while 158 remained unchanged. Furthermore, 12 stocks hit the upper circuit as compared to the seven stocks that were locked in the lower circuit. Besides, 72 stocks touched 52-week high and 75 touched 52-week low

Investors are keenly for RBI monetary policy announcement on Wednesday.

Narendra Solanki-Head-Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said, “Indian markets opened in negative following mixed Asian market cues. The broader indices, the BSE Mid cap index and Small cap index were also trading weak. During the afternoon session, markets trimmed their losses and traded in neutral to marginally in green. The markets continued to trade indecisively ahead of RBI’s monetary policy meet this week.”

Vinod Nair, Head of Research at Geojit Financial Services said, “Domestic market moved in tandem with the global peers to open weak and gradually recovered its losses following a positive start in the Europe.”

“Oil prices rose after Saudi Arabia selling price adding to the current global inflationary pressure. Better than expected US job data triggered worries on Wall Street as it gives the Fed more room to hike rates. This volatility is likely to continue in both global and domestic markets as investors await monetary policy decisions from major central banks, including RBI,” added Nair. 

Bajaj Auto, JSW Steel, Tata Consumer, ONGC and Apollo Hospitals were the top gainers on the Nifty 50, while Shree Cement, BPCL, Asian Paints, Ultratech Cement and Hero Motocorp were the top losers. 

Metals shine

On the sectoral front, while metals and oil & gas  stocks gained, IT, realty, PSU Bank and consumer durables faced increased pressure.

Nifty Metal was up over 1 per cent at closing, while Nifty Oil & Gas closed 0.55 per cent higher. 

Nifty IT was down 0.28 per cent, while Nifty PSU Bank was down 0.31 per cent. Nifty Realty and Nifty Consumer Durables closed 0.82 per cent and 0.58 per cent lower, respectively. 

Broader indices

Broader market faced increased pressure, with indices underperforming in comparison with the benchmarks indices.

The Nifty Midcap 50 was down 0.47 per cent, while the Nifty Smallcap 50 was down 1.13 per cent. The S&P BSE Midcap was down 0.15 per cent while the S&P BSE Smallcap was down 0.54 per cent.

The volatility index rose 1.13 per cent to 20.20.

Published on June 06, 2022