Daily Big Picture – Key Indices Recover from Day’s Low to End with Minor Losses

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Today’s Action:

The benchmark indices extended yesterday’s losses, while the broader indices continued to build on gains from yesterday.

Daily Market Review

The benchmark indices started on a weak note today, due to negative sentiment, as the index provider, MSCI, announced the addition of China ‘A’ shares to its global emerging markets index yesterday. However, the market recovered later, as reports emerged during the day that put the outflows from the Indian market due to the MSCI move at just about USD 200 million.

The Nifty opened at its highest level today, at 9,650.05. The index lost ground during the day, reaching an intraday low of 9,608.75. However, the index bounced back in the latter half of the session to close at 9,633.60, down 19.90 points or 0.21% from yesterday’s closing price.

Today, the Sensex opened higher at 31,302.18. After trading in the range of 31,193.61-31,336.44, the index finally closed at 31,283.64, down 13.89 points or 0.04% from the previous day’s close.

Trading volume on the Sensex was higher than yesterday. However, the Nifty witnessed lower trading volume in today’s session, thereby escaping a distribution day.

Gains were observed in the broader markets, as the Nifty Midcap and Smallcap indices added 0.17% and 0.12%, respectively, in today’s trading session.

The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, lost 0.11% in today’s trading session.

The Nifty FMCG, Realty, and PSU Bank indices gained 0.77%, 0.55%, and 0.32%, respectively, to remain on top of the sector chart. On the negative end, the Nifty Metal, IT, and Auto indices weighed down on markets with losses of 1.18%, 0.65%, and 0.60%, respectively.

Ahead of the GST rollout on July 1, the Union government yesterday finalized the anti-profiteering rules. These norms will pave the way for the setting up of a national anti-profiteering authority. The authority will be tasked with determining whether the benefit of reduction in taxes due to the introduction of GST has been passed on to the consumer or not.

Yesterday, the U.S. index provider, MSCI, announced its decision to include China A-shares in its global emerging market index. Against the earlier proposal for including 169 companies, 222 China ‘A’ stocks will be added to the MSCI Emerging Markets Index. As per reports, India’s weight in the index could fall to 8.85%, from 8.92% currently, and will see outflows of roughly USD 200 million.

The distribution day count for the Nifty and the Sensex stands unchanged from yesterday, at 2.0 and 3.0, respectively. Trading near their all-time highs, the Indian markets remain in a Confirmed Uptrend.

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