Hawkish US Fed tone hits D-Street; Sensex slips 179 pts; IT stocks shine

A mild recovery post a gap-down start quickly dismantled during the last hour of the session as market participants offloaded metal and rate-sensitive counters

5:47 PM

TECH VIEW :: Sumeet Bagadia, Executive Director, Choice Broking

The index has confirmed the Evening Star candlestick pattern at the top of the trend which suggests correction in the counter. Moreover, the index has given closing below 21 SMA & Middle Bollinger Band formations, which indicates further bearishness for the near term. In addition, a momentum indicator RSI (14) & Stochastic witnessed a negative crossover on the daily time frame. At present, nifty has an immediate support at 15550 levels, whereas 15900 may act as a crucial resistance zone.

5:39 PM

Trade set-up for Friday

An important event ended in the market yesterday, but today the market was neutral at the level of 15550/51700. This confirms that the market trend is strong and may reach 15900/52800 or 16000/53100 level once again. Today, Technology stocks and Reliance gave strong support to the index, which allowed the Nifty to close at 15,700.

 

The Nifty/Sensex could reach fresh levels on Friday if the indices don't close below the levels of 15550/51700. On an immediate basis, 15770/52500 and 15850/52700 levels would be major hurdles. Below the levels of 15550/51700, the Nifty/Sensex would gradually fall to 15400/51300 or in the worst-case scenario 15300/51000.

Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

5:20 PM

MARKET VIEW :: Markets may return to normalcy but upside momentum is weak

Nifty fell due to the global event, but contained its losses. Even the Asian markets clawed back post weak openings. However advance decline ratio in India remains severely negative for the second consecutive session. Nifty may fall some more to take support around 15567 and then correct upwards. On rises 15750 may be difficult to breach sustainably in the near term.

The fact that the big Fed announcement has passed by without any large damage to global indices means that there may not be a sharp downmove immediately and global markets may go back to their original trend soon; though the momentum on the upside may be weak till a fresh positive trigger emerges on the horizon.

Views by: Deepak Jasani, Head of Retail Research, HDFC Securities

5:02 PM

TECH VIEW :: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The short term trend of Nifty seems to have reversed down with the short term top reversal at 15901 (15 June). The next downside levels to be watched around 15550 in the next couple of sessions, before showing another round of minor upside bounce. Any upside rally towards 15750-15800 could be a sell on rise opportunity for the coming sessions.

4:50 PM

TECH VIEW :: Levels to watch on Friday

The Nifty index showed a good pull back from 15,600 odd levels which will be immediate support on the downside. Any break below this support can see more pressure. A strong hurdle is formed near 15,750-15,820 zone. 

Views by: Rohit Singre, Senior Technical Analyst at LKP Securities

4:40 PM

MARKET OUTLOOK :: Will the correction continue?

Markets extended Wednesday’s fall and lost half a percent, pressurized by weak global cues. The benchmark opened lower and traded volatile in a range till the end. Finally, the Nifty index settled at 15,691 levels. On the sectoral front, mostly traded in tandem with the benchmark and ended in the red however buying in defensive pack viz. IT and FMCG for the second consecutive session capped the downside. The broader markets remained under pressure as both midcap and small cap lost 1.3% and 0.5% respectively. 

 

The US Fed’s hawkish tone didn’t go well with the equity investors across the globe and we might see the overhang for a session or two. Going ahead, the focus would shift back to fundamentals and domestic factors viz. pace of vaccination drive, reopening by states, etc. Meanwhile, we reiterate our advice of keeping a check on naked leveraged positions and let the markets stabilize. 

Views by:  Ajit Mishra, VP - Research, Religare Broking

4:26 PM

MARKET VIEW :: Is US Fed's commentary really a reason to worry?

Indian equities traded mirroring global peers after the optimistic comments by Fed acknowledging the strengthening of the economy. The rate hike has been advanced by a year to 2023 but is not the key point of issue to the market. While the fast normalization of the economy and strong job market can lead to a taper in bond-buying plan. This can lead to tightening of bonds yields which will impact the pricing of equity asset.

Views by: Vinod Nair, Head of Research at Geojit Financial Services.

4:14 PM

MARKET RECAP :: Gainers and losers in Thursday's trade

Bulls stepped back a bit today following the economic forecast by the US Fed as the Street stayed cautious on the slow economic recovery in emerging markets unlike some of the developed markets. While Metal names saw profit booking, we did witness keen buying interest in Cement & IT well supported by select consumer names during the volatile afternoon session of trade

Views by: S Ranganathan, Head of Research at LKP Securities

4:05 PM

IPO Alert :: Dodla Dairy issue subscribed nearly 3x till 3:45 PM on Day 2

4:04 PM

IPO Alert :: KIMS issue subscribed 51% till 3:45 PM on Day 2

3:58 PM

Sector Watch :: Fag-end buying lifts IT stocks

3:56 PM

Sector Watch :: Metal index ends as top laggard for second straight day

3:53 PM

NSE Snapshot :: Stocks that managed to gain despite overall weakness

3:51 PM

Index contributors :: Losses in financials outweigh gains in TCS, Infy

3:48 PM

Broader market :: BSE SmallCap index skids 0.58%

3:46 PM

Broader market :: BSE MidCap index slips 1.3%, ends near day's low

3:44 PM

Sectoral trends on the NSE :: IT stocks rally on weaker rupee

3:42 PM

Sensex Heatmap

Top gainers: TCS, UltraTech Cement, Infosys

Top losers: IndusInd Bank, NTPC, Dr Reddys

3:36 PM

CLOSING BELL

The frontline S&P BSE Sensex declined 484 points from the day's high and hit a low of 52,040. However, it ended at 52,323 levels, down 179 points or 0.34 per cent.

On the NSE, the Nifty50 index breached below its immediate support of 15,650 and hit a low of 15,616. It recovered marginally to end at 15,691 levels, down 76 points or 0.48 per cent.

3:30 PM

Returned Rs 17,777 cr to investors of shuttered schemes: Franklin Templeton

Franklin Templeton Mutual Fund (MF) on Thursday said it has returned Rs 17,777 crore to unit holders of six shuttered debt schemes till June 15.

 

This amounts to 71 per cent of assets under management (AUM) as on April 23, 2020, when the fund house shut its six debt mutual fund schemes citing redemption pressures and lack of liquidity in the bond market. READ MORE

3:22 PM

Liquor stocks rally; Globus Spirits zooms 20%, Radico Khaitan surges 10%

Among individual stocks, Globus Spirits hit a new high of Rs 531, and shares were locked in the 20 per cent upper circuit on the BSE. In the past four days, the stock has rallied 36 per cent after reporting an over two-fold jump in consolidated profit after tax (PAT) at Rs 50.63 crore in the March quarter (Q4FY21), on the back of strong revenue. It had posted a PAT of Rs 19.35 crore in the year-ago quarter. READ MORE

3:06 PM

US Fed prepping the markets for taper; a correction will be good: Analysts

The US Federal Reserve (US Fed) rejigged its expectations for inflation this year and signaled that it expects two rate increases by the end of 2023 as their Covid-impacted economy stutters back to life. However, the US central bank gave no exact date as to when the rollback of its bond buying program will begin. While the inflation projections confirm that the Federal Open Market Committee (FOMC) still thinks the current surge in inflation is transitory, they no longer feel comfortable waiting for 2024 to start the hiking cycle. READ MORE

2:53 PM

Indian rupee at six-week low; bond yields rise after hawkish Fed signal

The Indian rupee weakened to its lowest level since early May on Thursday while bond yields rose as the U.S. Federal reserve stunned investors by signalling it might raise interest rates as early as 2023, faster than assumed.

 

The partially convertible rupee was trading at 73.79/80 per dollar at 0816 GMT compared with its close of 73.3225, after touching 73.83, its lowest since May 6. READ MORE

2:40 PM

India unlikely to see a V-shaped economic recovery in Q1FY22: Report

Lockdowns imposed by the states in April and May to contain the second wave of the deadly COVID-19 pandemic has likely led to the economy contracting 12 per cent in the June quarter as against 23.9 per cent contraction in the same quarter in 2020, says a brokerage report. READ MORE

 

2:32 PM

NEWS ALERT :: Lupin Receives US FDA Approval for Sevelamer Hydrochloride Tablets

2:25 PM

MARKET UPDATE:: Sensex at day's low

2:15 PM

PNB Housing hits 5% upper circuit after 25% fall from 52-week high

Till 01:42 pm, a combined around 1,90,000 shares of PNB Housing had changed hands and there were pending buy orders for 12,000 shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.22 per cent at 52,384 points. READ MORE

2:04 PM

Heatmap :: Here are the top gainers and losers as Sensex dips 170 pts

1:51 PM

European markets check

(Source: Reuters)

1:42 PM

Cement shares in focus; Ambjua, JK Lakshmi Cement hit record highs

Shares of cement companies were in focus on Thursday as they surged up to 7 per cent on the BSE in intra-day trade in an otherwise subdued market on expectation of demand recovery in the coming quarters. Ambuja Cements and JK Lakshmi Cement each hit their respective record highs in intra-day trade today while Saurashtra Cement, Andhra Cements, KCP, JK Lakshmi Cement and Gujarat Sidhee Cement gained between 4 per cent and 7 per cent. READ MORE