The benchmark indices ended Monday’s choppy session on a flat note. The S&P BSE Sensex recouped 379 points from the day’s low to close at 55,675, down 94 points or 0.17 per cent. The NSE Nifty50, on the other hand, ended at 16,570, down 15 points or 0.09 per cent.
Infosys, ICICI Bank, Kotak Bank, ITC, and Tata Steel were the large-caps that helped the 30-pack index bounce back from lows, even as Asian Paints, Reliance Industries, Bajaj Finserv, HDFC, L&T, HUL, Ultratech Cement, and Axis Bank exerted pressure.
Meanwhile, in the broader market, the BSE MidCap index dipped 0.15 per cent, while the BSE SmallCap shed 0.54 per cent.
Vinod Nair, head of research at Geojit Financial Services, said: “Domestic market moved in tandem with the global peers to open weak and gradually recovered its losses following a positive start in Europe. Oil prices rose after Saudi Arabia raised their selling price adding to the current global inflationary pressure. Better than expected US job data triggered worries on Wall Street as it gives the Fed more room to hike rates. This volatility is likely to continue in both global and domestic markets as investors await monetary policy decisions from major central banks including RBI.”
Nifty’s volatility index, which indicates the degree of volatility traders expect over the next 30 days in the Nifty50 index, ended 1.13 per cent up, to close above 20.20 levels. Nifty Bank too ended in green, rising 0.10 per cent.
Shrikant Chouhan, head of equity research (Retail), Kotak Securities, said: “Basically, the market has been exercising caution ahead of the credit policy announcement this week, and hence investors trimmed their position in rate-sensitive sectors such as realty. Technically, the Nifty found support near 16,450 but failed to capitalise on it. The texture of the chart is indicating that a range bound activity is likely to continue in the near future. For day traders, 16,500 would be the key support level to watch out, and above which the index could move up to 16,650-16,750. On the flip side, a fresh round of selling pressure is possible if the index trades below 16500. Any further decline could see the index retest the level of 16,400-16,350.”
Global Cues
Wall Street’s three major stock indexes ended lower on Friday after a solid jobs report ate into hopes for a pause in the Federal Reserve’s aggressive policy-tightening which is needed to cool decades-high inflation. The Dow Jones Industrial Average fell 348.58 points, or 1.05 per cent, to 32,899.7, the S&P 500 lost 68.28 points, or 1.63 per cent, to 4,108.54 and the Nasdaq Composite dropped 304.16 points, or 2.47 per cent, to 12,012.73.
Asian shares made a muted start on Monday as caution gripped ahead of a critical reading on US inflation, while the euro gained on the yen amid wagers the European Central Bank will take a major step toward policy tightening this week.
Read all the Latest Business News here
Comments
0 comment