MARKET COMMENT Mustafa Nadeem, CEO, Epic Research Indecisiveness, Bank Nifty expiry along with negative global cues saw Nifty drift below 10,800 and lose marginal points to make a 'Bearish belt hold' pattern. A bearish belt hold is a one candle bearish formation which has a Shaven head; The high and Open for the day is identical while the close is just a tad higher from the days low. A shaven head indicates the selling pressure on the upside which persists as it was heavy since the open of the day. A close near to the day low indicates the further bearish sentiment. It has been the sixth consecutive day where we have seen Nifty trading between the range of 10850. It was bank Nifty weekly expiry that called in writers to take advantage. We expect the market to remain positive while the time may further test the patience of bulls. We maintain the 'buy on a dip' strategy though all eyes will be on the OPEC meet and price of crude oil. COMMENT Indranil Sen Gupta, economist, AsiaPac, India, Bank of America Merrill Lynch Dovish Reserve Bank of India (RBI) minutes support our call that the RBI Monetary policy committee (MPC) will be on hold if rains are normal. We would have preferred that the RBI MPC wait out growth/inflation base effects rather than hike rates on 6 June at this stage of recovery. Still, this puts policy uncertainty out of the way. That said, markets do need to calm down and stop wishing rate hikes on itself (and the RBI). In fact, the retention of neutral stance should indicate that this is not a tightening cycle. Nifty sectoral losers of the day BSE Sensex: ICICI Bank, Reliance among top gainers of the day, M&M, ONGC top losers Market at close The S&P BSE Sensex ended at 35,432, down 115 points while the broader Nifty50 index settled at 10,741, down 31 points. Jubilant FoodWorks, Emami turn ex-bonus in ratio of 1:1 Shares of restaurant company Jubilant FoodWorks and personal products firm Emami have turned ex-bonus in the ratio of 1:1 today. The board of directors of Jubilant FoodWorks and Emami at their respective board meetings, have announced issue of bonus shares in the ratio of 1:1 i.e. 1 equity share for every 1 equity share held as on the record date. READ MORE
Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Syndicate Bank, Union Bank of India and Punjab National Bank.
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Shares of Bank of Maharashtra hit a record low of Rs 12.50 per share, falling 7% on the BSE in intraday trade, after a media report suggested that the Economic Offences Wing (EOW) arrested Ravindra P. Marathe, the Chairman and Managing Director (CMD) of the bank, in a case of Rs 30 billion fraudulent loans extended to Pune's DSK Group.
Shares crept higher in most major markets on Thursday as a lull in the Sino-US trade tussle and talk of more stimulus in China helped calm nerves, though the nagging trade tensions caused Chinese shares to slip, dragging other Asian markets lower.
MSCI’s broadest index of Asia-Pacific shares outside Japan had gained as much as 0.5 per cent before falls led by Chinese shares pushed it down 0.4 per cent. The CSI300 index of Shanghai and Shenzen shares dropped 0.4 per cent, while Japan's Nikkei added 0.6 per cent.
RBI REVIEW MEETING
(with Reuters inputs)