Today’s Action:
Benchmark indices record a sharp decline due to weak global cues. Broader indices snap from a three-day winning streak.
Daily Market Review
The benchmark indices started the week on a negative note, weighed down by political developments in Europe. The market breadth remained negative, and losses kept widening as the day progressed. A similar scenario was noticed in other Asian markets as well. Another major global event scheduled for June 13-14 is the U.S. Federal Reserve policy meeting.
After opening at 9,646.70, the Nifty gave up 51.85 points or 0.54% to close the day at 9,616.40. It traded in the range of 9,598.50-9,647.05.
The Sensex closed at 31,095.70, losing 0.53% or 166.36 points. After opening at 31,225.43, it traded in the range of 31,044.28-31,225.43.
Today, the Sensex and the Nifty both saw a dip in its trading volume, in comparison to the previous trading session. Thereby, both the indices escaped from adding another distribution day.
After three back-to-back winning sessions, the Nifty Midcap and Smallcap indices cracked 0.64% and 0.81%, respectively.
The MarketSmith India IND 47 Index, which lists the top 47 stocks in chart and fundamental characteristics, lost 0.14% in today’s trading session.
On the sectoral front, most of the indices ended up in red apart from Nifty Pharma and Nifty IT, they both gained 0.80% and 0.27%, respectively. The top three losers were Nifty PSU bank, Nifty PVT bank and the Nifty bank, each losing 1.96%, 1%, and 0.93%, respectively, in today’s trading session.
Further, strong momentum was seen in jewellery stocks in reaction to the announcement of GST rate cut on jewellery making from 18% to 5% by the GST Council.
Markets remained low in today’s session, tracking weakness from its global peers. Friday’s surprise verdict of U.K. general elections, dragged global markets down. After calling for a snap election, three years ahead of schedule, Conservative Party leader and British Prime Minister, Theresa May, faced an upset as the party lost the overall majority mark. The country now faces the prospects of a hung parliament, making it even more complicated to go ahead with the Brexit plan. Further, the first round of French parliamentary elections will take place later today.
There is no change to the distribution count on the Nifty and the Sensex, which continue to hold 2.0 and 4.0 distribution days, respectively. Market condition remains in a Confirmed Uptrend.
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