MARKET WRAP: Sensex ends 115 pts lower, Nifty at 10,741; PSU banks slip

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

Gold prices drop to six-month low on strong dollar, US rate outlook Gold prices posted a six-month low on Thursday, weighed down by a firm dollar and as the US Federal Reserve Chair kept its outlook for higher interest rates. Spot gold fell 0.4 per cent to $1,262.88 an ounce. It hit its lowest since Dec. 20 at $1,261.36 earlier, having lost about 3 per cent over the last five sessions. READ MORE

Manpasand Beverages rebounds from record low; stock tanks 70% in one month   Shares of Manpasand Beverages are locked in upper circuit of 5% at Rs 142 per share, bouncing back 9.5% from their intra-day low on the BSE, after the company said that its board will meet on June 27, to consider audited financial results for the quarter and year ended March 31, 2018 and to recommend dividend.   The stock of the fruit juice maker hit a record low of Rs 129 in intra-day trade earlier today, and has tanked 70% in past one month, as compared to 4.4% rise in the S&P BSE Sensex. The stock hit an all-time high of Rs 512 on September 15, 2017 on the BSE in intra-day deal. READ MORE

Crude Update:    Oil prices dipped as Iran signaled it could be won over to a small rise in OPEC crude output, likely paving the road for the producer cartel to agree on a supply increase during a meeting on June 22.   However, prices were prevented from falling further by record refinery runs in the United States and a large decline in US crude inventories, a sign of strong fuel demand in the world's biggest economy.

Shares in PNB fall after internal probe finds widespread lapses Shares in India's Punjab National Bank fell as much as 3 percent on Thursday, a day after Reuters reported the bank's internal investigation into its $2 billion fraud had found widespread risk-control and monitoring lapses in many areas of the bank. READ MORE

Market Check   S&P BSE Sensex 35,562.21 0.04%   Nifty 50 10,774.05 0.02%   S&P BSE 200 4,651.43 -0.07%   Nifty 500 9,269.15 -0.08%   S&P BSE Mid-Cap 15,822.90 -0.18%   S&P BSE Small-Cap 16,596.01 -0.38%