Sensex closes 135 points lower, Nifty below 15,300; Pharma, Consumer Durables, Oil & Gas, IT drag

The benchmark indices closed the week on a negative note, recoding a fresh year lows on Friday. 

Market extended losses for the sixth consecutive session amid weak global cues as investors remained concerned about surging inflation and aggressive policy tightening. Indices closed in the red, witnessing selling pressure across multiple counters. 

The BSE Sensex closed at 51,360.42, down 135.37 points or 0.26 per cent, after recording a fresh 52-week low of 50,921.22. It recorded an intraday high of 51,652.83. The Nifty 50 which slipped below the 15,200-mark during the day to record a new 52-week low of 15,183.40, closed at 15,293.50, down 67.10 points or 0.44 per cent. It recorded an intraday high of 15,400.40. 

Breadth favours decliners

The market breadth remained in favour of the decliners with 2,252 stocks declining on the BSE against 1,076 that advanced while 93 remained unchanged. Further, 11 stocks hit the upper circuit compared to the one locked in the lower circuit. Besides, 448 stocks touched 52-week lows and 50 touched 52-week highs

Ajit Mishra, VP – Research, Religare Broking Ltd said, “Markets ended lower in a volatile trading session, in continuation of the prevailing trend. After the tepid start, the benchmark continued to hover in a range till the end. Meanwhile, mostly sectoral indices traded with a negative bias and the broader indices too lost nearly a percent each.”

“Markets are largely taking cues from the global markets, in absence of any major domestic event. And, going ahead, the US Fed chairman’s speech and China’s interest rate decision would be important triggers for the markets. On the domestic front, the Covid trend and the progress of the monsoon will also be in focus,” added Mishra. 

Deepak Jasani, Head of Retail Research, HDFC Securities said, “Asian stock markets were mostly lower Friday after Wall Street fell on fears interest rate hikes will depress global economic activity. European stocks edged higher on Friday, but were set for sharp weekly losses as a slew of interest rate hikes from major central banks fuelled worries about a sharp economic slowdown. Global indices are headed for their worst week since March 2020.”

Bajaj Finserv, Bajaj Finance, Coal India, JSW Steel and Reliance were the top gainers on the Nifty 50 while Titan, Wipro, Shree Cement, HDFC Life and BPCL were the top losers.

Sectoral indices 

On the sectoral front, a majority of indices closed in the red. Among financials, barring PSU Bank managed to retain gains.

Nifty Pharma, Nifty Consumer Durables and Nifty Oil & Gas were down over 2 per cent each at closing. Nifty Pharma was down nearly 2 per cent. Nifty Healthcare Index was down nearly 2 per cent while Nifty IT was down 1.5 per cent. Nifty Auto closed over 1 per cent lower.

Meanwhile, Nifty Bank and Nifty Private Bank were up 0.41 per cent and 0.39 per cent, respectively. Nifty Financial Services was up 0.38 per cent. 

Broader indices 

Broader indices too ended in the red. 

The Nifty Midcap 50 was down 0.53 per cent while the Nifty Smallcap 50 was down 0.66 per cent. The S&P BSE Midcap was down 0.68 per cent when the S&P BSE Smallcap was down 0.88 per cent.

The volatility index softened 0.48 per cent to 22.76.

Published on June 17, 2022