Sensex, Nifty end flat as margin rules kick in; India VIX jumps 3%

Stock market updates: A volatile session on the bourses culminated near flat line on Tuesday as investor preferred to book profits after seven straight sessions of gains. That apart, a cut in GDP growth forecast by global agency Moody's and a downtick in manufacturing activity kept market participants on the sidelines.

Earlier today, Moody's said it expects the damage to the economy from the second wave of Covid-19 and the ensuing lockdowns to be restricted to the April-June 2021 quarter. Taking the slowdown into account, it now expects India's GDP in the fiscal year ending March 2022 to grow at 9.3 per cent and at 7.9 per cent in FY23.   

Moreover, data released by IHS Markit showed that domestic factory orders and production slowed to a 10-month low in May as most states restricted businesses amid localised lockdowns. The Manufacturing PMI slipped to 50.8 in May against 55.5 in April, making it one of the steepest fall. 

Add to it, volumes remained thin as the 75 per cent peak margins norms come into effect from today. 

Against this backdrop, the benchmark S&P BSE Sensex settled at 51,934 levels, down 2.5 points. The NSE's Nifty50, on the other hand, ended at 15,575 levels, down 8 points or 0.05 per cent. Earlier in the day, the 50-share index hit a fresh record peak of 15,660.75.

ONGC, Adani Ports, Bajaj Finance, SBI, Bajaj Auto, HUL, Tech M, and HDFC were the top gainers on the index today, up between 1 per cent and 4 per cent while JSW Steel, Tata Steel, ICICI Bank, Grasim, UltraTech Cement, SBI Life, Hero MotoCorp, and Infosys were the top laggards, down up to 2.3 per cent.

Participation in the broader market space also remained muted on Tuesday. The S&P BSE MidCap closed 0.01 per cent higher while the SmallCap index slipped 0.3 per cent.

Sectorally, barring the Nifty Media, Pharma, and IT indices, all other indices settled the day in the red. The Nifty Private Bank index was the top loser, down 1 per cent, while the Nifty IT index gained 0.11 per cent.

Global markets

European stocks hit fresh record highs on Tuesday, as strong metal and oil prices boosted shares of big commodity companies, while data showed euro zone manufacturing activity expanded at a record pace of 63.1 levels in May.

The pan-European STOXX 600 index gained 0.9 per cent in the first trading session of June, with the UK's blue-chip index rising 1.1 per cent. The German DAX jumped 1.3 per cent to a new record high, while France's CAC 40 added 0.7 per cent.

That apart, MSCI's index of EM stocks rose 0.7 per cent, while those in Turkey, South Africa and Russia gained between 0.2 per cent and 1.3 per cent. 

In Asia, Japan's Nikkei slipped 0.2 per cent, South Korea's Kospi gained 0.5 per cent, China's Shanghai Composite added 0.26 per cent, and Australia's ASX200 fell 0.3 per cent.

In the commodities market, Brent Crude futures advanced over 2 per cent on Tuesday, nearing $71 per barrel-mark, ahead of the OPEC+ meeting scheduled later in the day. 

(With inputs from Reuters)

5:05 PM

MARKET OUTLOOK :: Sensex may hit 52,800 if it breaches 52,300

The market took a breather after rising for 9  consecutive days with the Nifty 50/ BSE Sensex 30 index closing below 15600/5200 levels.

 

However, it was a great day for the Adani group of stocks that ended with gains anywhere between  3 to 5 per cent.

 

Meanwhile  the move of the Nifty IT Index is encouraging and we suggest to accumulate technology stocks for this month.

 

We expect the Nifty/Sensex to visit the levels of 15,510/51,750 to 15,450/51,500. However,  if Nifty goes above 15,700/52,300 levels we could immediately reach 15,770/52,500 or 15,850/52,800 levels.

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

 

 

4:51 PM

MARKET CLOSING COMMENT :: Volumes on Tuesday were nearly 10% lower than recent average

Indian markets had a lackluster session on 1st June, Tuesday.  As US markets were closed yesterday for the Memorial day – Nifty did not had any strong cues to begin with. After opening marginally higher, profit booking set in and finally it closed near yesterday’s levels.  At close, the Nifty was down 8 points at 15574.

 

Crude oil prices were sharply higher, with the international benchmark Brent topping $70 a barrel, amid optimism over the outlook for demand growth as the global economy recovers ahead of a meeting of major producers. The Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, is due to meet later in the day. The cartel is widely expected to continue to gradually ease fuel supply curbs as planned over the next two months.

 

Most market in Europe and Asia advanced on Tuesday as China's factory activity expanded at the fastest pace this year in May. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April's 51.9.

 

The 75% peak trading margin norm by the Securities and Exchange Board came into effect from today. This is the third phase of implementing higher margin on day trading. It had its impact on volumes which were about 10% lower than recent averages.

 

Overall declining stocks outnumbered advancing and broader market were also subdued. 15700 is a key resistance for Nifty while support is at 15374.

Views by: Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities

4:38 PM

TECH VIEW :: Nifty forms Doji pattern; indecision in the markets may continue

The Nifty index witnessed small profit booking from higher levels and closed the day at 15,572. It has formed a doji sort of candle pattern on daily chart which suggests indecision in the markets. Going forward, 15,500 will be the first and strong support and any close below the said levels can hamper structure as we may witness rising trend line breakdown on hourly charts. Holding the above said levels, on the other hand, may see sustained positive momentum. Resistance is coming near 15,620-15,700 zone

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

4:24 PM

MARKET CLOSING COMMENT :: Benchmarks may see further consolidation

Markets ended almost unchanged in a choppy session, taking a breather after the recent surge. After the initial uptick, the benchmark drifted lower and remained in a narrow range till the end. A mixed trend was witnessed on the sectoral front wherein oil & gas, consumer durables and FMCG ended with decent gains while metal, banking and auto closed in the red. Amid all this, the Nifty index managed to settle flat at 15,575 levels.

 

It’s a healthy pause and we may see further consolidation in the benchmark in the following session. However, there’ll be no shortage of trading opportunities on the stock-specific front so traders should maintain their focus on identifying the sectors/stocks and accumulate them on dips. With the earnings season largely behind us, the markets would focus on global markets and upcoming monetary policy review meet for cues.

4:10 PM

MARKET RECAP :: Vinod Nair, Head of Research at Geojit Financial Services

Despite positive global cues and optimism from declining fresh covid cases, domestic bourses erased its early gains and traded flat owing to weak economic data. While upcoming RBI policy and likely delay in the start of monsoon season bought cautiousness to the momentum

4:00 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Indices traded in a range and closed flat even as Corporate India has been announcing capital expenditure plans since the start of the fiscal. Weak PMI data released today did not help sentiments as we saw profit-taking across the Metal space today. In the broader market, we saw keen interest in select pockets of Textiles & Pharma names

3:55 PM

BSE Snapshot

3:54 PM

NSE Snapshot :: Top Nifty50 gainers of the day

3:51 PM

Index contributors :: Financials, RIL, HUL trim Sensex's losses

3:48 PM

Broader market :: S&P BSE SmallCap dips 0.3%; Rupa & Co, PNB Hsg, PNB Gilts up 20% each

3:46 PM

Broader market :: BSE MidCap index ends at 21,7601 levels, up 0.01%

3:44 PM

Sectoral trends on the NSE

3:42 PM

Sensex Heatmap at Close

Top gainers: ONGC, Bajaj Finance, SBI

Top losers: ICICI Bank, UltraTech Cement, Asian Paints

3:36 PM

CLOSING BELL

The benchmark S&P BSE Sensex settled at 51,934 levels, down 2.5 points. The NSE's Nifty50, on the other hand, ended at 15,575 levels, down 8 points or 0.05 per cent. Earlier in the day, the 50-share index hit a fresh record peak of 15,660.75.

3:30 PM

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