Today’s Action:
Benchmark indices end flat in a sudden turn of events. Broader indices follow key composites.
Daily Market Review
The benchmark indices ended flat today, giving up all the gains that it had gathered in the first half of the session. The Nifty and the Sensex could not hold on to a solid opening and sharply dropped from the day’s highs in the final trading hours. While the Sensex ended marginally higher in the positive quadrant, the Nifty dunked into the negative zone to close at the day’s low.
The Nifty saw a subdued performance as it declined 0.10%, or 9.50 points today, to close at 9,606.90. The index opened at 9,615.55 and traded in the range of 9,595.40- 9,654.15.
The Sensex ended flat at 31,103.49, after gaining 0.03% or 7.79 points. After opening at 31,019.10, it traded in the range of 31,062.34-31,260.77.
Today, the Sensex saw a surge in trading volume, while the Nifty observed a lower trading volume, in comparison to the previous trading session.
A similar scene was evident in the broader markets, where the Nifty Midcap and Smallcap indices erased significant gains in the final trading hours. The Nifty Midcap index closed flat at 0.01%, while the Smallcap index added 0.35%.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 0.43% in today’s trading session.
The Sectoral chart displayed a mixed picture, with the Nifty Realty gaining 0.73%, while the Nifty Financial Services and FMCG indices gained 0.30% each. The top three sectors to fall were the Nifty IT, Metal, and Auto losing 1.26%, 0.77%, and 0.49%, respectively.
In the economic data released on Monday, India’s Consumer Price Index for the month of May dipped to 2.18%, a five-year low. This was mainly attributed to lower food prices. Further, industrial production increased at a slower pace for the month of April. The latest data calls for a probable rate cut by the RBI in its next bi-monthly monetary policy meeting.
From the news across the continent, the two-day monetary policy review meeting by the U.S. Federal Reserve is scheduled to start later today. The global markets expect the central bank to hike key interest rates amidst low inflation.
In the stock talk, the Sun Pharma received approval from the USFDA for its new drug, a generic version of Zetia. Even Cadila Healthcare received a nod from the USDFA for its drug, Ezetimibe.
Despite a strong opening, the Benchmark indices failed to hold gains, reflecting the volatility in today’s session. The distribution day count for the Nifty and the Sensex remain at 2.0 and 4.0, respectively. The Indian market condition stays put in a Confirmed Uptrend.
To Read Detailed Reports including Stock Recommendations, Idea Lists, Evaluate Stocks etc. Subscribe to MarketSmith India.
Disclaimer: William O’Neil India Investment Adviser division, is one of the divisions of William O’Neil India Private Limited, which is a company incorporated under the Companies Act 1956. William O’Neil India Investment Adviser division is a registered investment advisor with the Securities and Exchange Board of India and through its online product, MarketSmith Indiaintends to provide quality equity research material and information to its customers. The investments discussed or recommended through MarketSmith India may not be suitable for all investors and hence, you must rely on your own examination and judgement of the stock and company before making investment decisions. Data provided through MarketSmith India is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Information and discussions made available through MarketSmith India contain forward looking statements that involve risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. William O’Neil India Investment Adviser division or its employees / directors or any of its affiliates are not responsible for any losses that may arise to any person who has made investments based on the contents of this document. Past performance never guarantees future results. Investment in equities are subject to market risks and despite the best efforts to provide market leading research, William O’Neil India would like to exhort its users to acknowledge and fully understand the risks involved which might include but not limited to loss of both principal and income. Data and content provided through MarketSmith India is to be consumed only by the intended recipient and must not be redistributed any further.
Registered office address: William O’Neil India, Technomark Building, A-4, NGEF Ancillary Industrial Estate, Graphite India Road, Mahadevapura, Whitefield, Bangalore 560048, Phone: + 91 80 67453802, Fax: + 91 80 6745381, Website: http://www.williamoneil.com/india/, For investor queries:queries@marketsmithindia.com; For grievances: grievances@marketsmithindia.com; For compliance officer:compliance@marketsmithindia.com, Corporate Identity Number: U74999KA2012FTC066881, Investment Adviser SEBI Regn. Nos: INA200005125 valid till 11 July 2021.