Markets

Auto, pharma gain; oil and gas, metal, IT, FMCG under pressure

Benchmark indices closed in the red for the fourth consecutive session on Wednesday. 

Market opened on a weak note, tracking global cues as investors remained cautious ahead of the US Fed meet outcome. Indices extended losses to end marginally lower, witnessing selling pressure across multiple counters. 

The BSE Sensex closed at 52,541.39, down 152.18 points or 0.29 per cent. It recorded an intraday high of 52,867.73 and a low of 52,493.36. The Nifty 50 closed at 15,692.15, down 39.95 points or 0.25 per cent, near the day’s low of 15,678.90. It recorded an intraday high of 15,783.65.

Breadth turns positive

The market breadth turned positive with 1,775 stocks advancing on the BSE as against 1,519 that declined while 148 remained unchanged. Furthermore, nine stocks hit the upper circuit as compared to the one stock that was locked in the lower circuit. Besides, 55 stocks touched a 52-week high and 105 touched a 52-week low.

According to Ajit Mishra, VP-Research, Religare Broking Ltd, “The equity markets traded nervously ahead of the US Fed meet outcome. While strength was seen in the morning, selling pressure in the second half dragged the indices lower. The broader markets outperformed, wherein midcap and smallcap ended with healthy gains.”

“All eyes would be on the US Fed meet outcome. The street seems to be divided over the quantum of rate hike from 50 to 75 bps. Apart from this, commentary from the US Fed would also be actively tracked by the investors. Meanwhile, participants should wait for clarity,” added Mishra. 

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, “Indian markets languished in negative territory for the better part of the trading session and finally extended their losing streak in a trend that was, more or less, similar in other Asian indices. Currently, risk-off sentiment is prevailing in the market and investors traded with caution ahead of the outcome of the FOMC meet, and booked profit in select counters.”

Bajaj Finance, Bajaj Finserv, Tata Motors, Hero Motocorp and Grasim were the top gainers on the Nifty 50 while ONGC, NTPC, Infosys, Reliance and Wipro were the top losers. 

Auto in focus

On the sectoral front, while auto, pharma and consumer durables managed to retain gains, oil and gas, realty, metal, IT, and FMCG dragged.

Nifty Auto was up 0.92 per cent. Nifty Pharma and Nifty Healthcare Index were up 0.35 per cent and 0.38 per cent, respectively. Nifty Consumer Durables was up 0.24 per cent.

Meanwhile, Nifty Oil & gas was down 0.76 per cent while Nifty Realty was down 0.61 per cent. Nifty Metal was down 0.72 per cent. Nifty IT was down 0.50 per cent and Nifty FMCG was down 0.45 per cent. 

Broader indices outperform 

Broader market managed to recover with broader indices closing in the green.

Nifty Midcap 50 was up 0.43 per cent while Nifty Smallcap was up 0.73 per cent. The S&P BSE Midcap was up 0.52 per cent while S&P BSE Smallcap was up 0.49 per cent. 

The volatility index rose 1.18 per cent to 22.15.

Published on June 15, 2022