Daily Big Picture – Geopolitical Events Restrict Benchmark Indices; Broader Indices Extend Gains


Today’s Action:

The benchmark indices witnessed a choppy session to end with significant losses. The Nifty Midcap and Smallcap indices pocket decent gains.

Daily Market Review

The benchmark indices consolidated for most of today’s session in view of major global events lined up for the latter part of the day. Investors opted to take a cautious stance ahead of U.K.’s general election and European Central Bank’s (ECB) policy meeting that will begin post the close of the Indian markets. The markets also awaited the former FBI director James Comey’s appearance at the Senate for the much awaited testimony.

Opening at 9,682.40 the Nifty lost 16.65 points or 0.17% to close at 6,647.25. The trading range was 9,641.50-9,688.70.

The Sensex closed at 31,213.36 after losing 57.92 points or 0.19%. After opening at 31,316.91 it traded in the range of 31,193.77-31,354.51.

Today, the Sensex observed higher trading volume, while the Nifty saw a dip in its trading volume, in comparison to previous trading session.

Talking about the broader indices, both the Nifty Midcap and Smallcap indices performed in contrast to the frontline composites to gain 0.27% and 0.21%, respectively.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, gained 0.23% in today’s trading session, outperforming the benchmark.

The sectoral chart depicted a mixed performance with half of the sectors ending in green, while the rest lost momentum. The top three gainers were Nifty Pharma, Metal, and Financial Services indices gaining 2%, 0.88%, and 0.40%, respectively. The top losers were Nifty IT, PSU Bank, and Realty losing 1.41%, 0.86% and 0.20%, respectively.

In news from the European continent, Britain proceeds to vote for the prime minister. This vote comes in less than one year from the historic Brexit referendum, where a majority of the population voted for the U.K.’s exit from the European Union. This snap general election was called by the current British Prime Minister Theresa May in order to secure a higher majority going into the final Brexit talks. However, people’s focus seems to have shifted more towards the recent terror attacks and public security over the Brexit issue.

Another major event in Europe scheduled for today is the ECB’s monetary policy meeting. Street estimates see no change in the interest rate, while it will be interesting to see the future guidance that the committee gives with respect to inflation. ECB’s stand on the easing stimulus to the Eurozone economy is another crucial aspect to look for at the end of the meeting.

The Nifty and the Sensex are currently 0.7% below their all-time highs with a distribution day count of 2.0 and 4.0, respectively. The Indian market condition remains in a Confirmed Uptrend.

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