Nifty holds above 9,500 ahead of F&O expiry; broader markets outperform

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices slipped 0.1% each

The benchmark indices were trading flat on Wednesday ahead of the derivatives expiry of the June series scheduled for tommorow, while negative trend in Asian markets after Wall Street was knocked hard in the wake of a delay to a US healthcare reform vote, also impacted the sentiment. 

At 11:56 am, the S&P BSE Sensex was trading at 30,964, up 6 points, while the broader Nifty50 was ruling at 9,517, up 6 points. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices outperformed to gain 0.4% each.

"Tuesday’s sharp fall did unsettle 9,500 mark, but the pull back in the closing hour was suggestive that the falls may be overdone.To this end, a pull back is expected, but should such retracements be challenged at 9,540, then the downside objectives of 9,370 or 9,280 will be firmly in play," said brokerage Geojit Financial Services in a technical note.

Buzzing stocks

Asian paints was the worst-performing stock on the Sensex and shed over 2% to Rs 1,106 on the BSE. 

Public sector banks extended losses with Nifty PSU Bank index being the leading sectoral loser. Punjab National Bank, State Bank of India, Syndicate Bank and Canara Bank slipped in the range of 1% to 2%.

Rollovers

Nifty rollovers came in at 48% on D-2 as compared to the average rollover of 43% seen in last three series, while market-wide rollovers stood at 38%, which were lower than the average of 40% seen during the comparable period of last three series. Rollover activity saw pick up in IT (43%/18%) and FMCG (36%/13%) on the D-2. Counters where rolls have picked up are TCS (49%/15%), Ultratech Cement(42%/11%) and Tata Motors (47%/16%).

Yellen backs rate hikes

In her first public appearance since the US Federal Reserve hiked rates on June 14, Fed Chair Janet Yellen reiterated that the US central bank would continue to raise interest rates only gradually.

"We think it will be appropriate for the attainment of our goals to raise interest rates very gradually to levels that are likely to remain quite low, although there is uncertainty about this, to remain low by historical standards for a long time," she said.

She also said that she does not believe that there will be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.

Global markets

Asian markets slumped. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2%, while Japan's Nikkei share average also slipped 0.3%. China's Shanghai Composite and Hong Kong's Hang Seng indices was down 0.1% and 0.6%, respectively. 

Overnight, on Wall Street, the benchmark S&P 500 posted its biggest one-day drop in about six weeks and closed at its lowest point since May 31, after the US Senate's move to delay voting on a healthcare reform bill rekindled worries on the timeline for President Donald Trump's business-friendly policies.

(With inputs from Reuters)