A1FS Views

Market in a nutshell

• Weighed down by the repo rate hike and weak global cues, markets plunged on opening. Selling was witnessed in the early session but did not last long. Most of the banking stocks had their opening price as the low of the day.
• Sustained buying was witnessed in the banking stocks through out the day which supported the index in its journey back to the green. Nifty recovered from the low of 4392 (down 2.9%) to a positive closing of 4539.35 (up 35 bps).
• The announcement of industrial production growth at 7%, injected optimism in the bourses. Sensex finally closed at 15,250 (up 65 points) while Nifty closed at 4,539.35 (up 16 points).
• Index heavy weights like Reliance, Bharti, Reliance Infra, BHEL and most of the banking stocks witnessed buying throughout the day.
• Nifty June futures continued to trade at a discount with the discount widening to 35 points as against 27 points yesterday. Nifty Futures OI has increased slightly by 1.4% today. All these factors clubbed together indicate that today’s recovery in the Index was on the back of pure cash buying in the heavy weights and beaten down banking stocks. Index futures played a muted role.
• BSE Oil and Gas Index advanced 1.5% to 9,975, with Aban Offshore up 6% to INR 3,633. BSE Capital Goods Index gained 1% to 11,990, with Praj rallying 6% to INR 193.
• Market breadth was almost neutral with an Advance : Decline Ratio of 1.2:1. Rajesh Exports soared 9% to INR 80, while JSW Steel declined 7% to INR 997.
• Cash volumes were at INR 198,464 mn (NSE+BSE) as against a 5 DMA of INR 191,987 mn. F&O volumes were at INR 523,335 mn as against a 5 DMA of INR 503,818 mn.

Eye Catchers

• Pantaloon surged 8.5% to INR 432 with volumes of 640,977 (up 790%).

Market News

• Rupee was stable at INR 42.85 against the dollar.
• Nymex crude rose to trade at $134.78/ bbl. Base metals were trading on a weak note, with lead leading the pack of losers down 4%.
• The industrial production growth in April stood at 7%.

Indices Performance

Bookmark to: