Sensex drops 352 points to 55,323 in early trade; Nifty at 16,418 pts

Sensex drops 352 points to 55,323 in early trade; Nifty at 16,418 pts
Sensex drops 352 points to 55,323 in early trade; Nifty at 16,418 pts

The gainers on the Sensex pack included Axis Bank, Power Grid and ITC. In contrast, the top drags were Reliance, ITC, SBI, NTPC, Tata Steel, IndusInd Bank, Bharti Airtel, Wipro, Ultra Tech, ICICI Bank, HDFC Bank, HCL Tech, Bajaj Finance, Infosys, Bajaj Finserv, TCS, HDFC, Kotak Bank and Titan.

The BSE Sensex slipped 352.26 points or 0.63 per cent to 55,323.06, while the NSE Nifty dropped 150.80 points or 0.91 per cent to 16,418.75.

The gainers on the Sensex pack included Axis Bank, Power Grid and ITC. In contrast, the top drags were Reliance, ITC, SBI, NTPC, Tata Steel, IndusInd Bank, Bharti Airtel, Wipro, Ultra Tech, ICICI Bank, HDFC Bank, HCL Tech, Bajaj Finance, Infosys, Bajaj Finserv, TCS, HDFC, Kotak Bank and Titan.

Likewise, ONGC, Axis Bank, Coal India, Cipla and Power Grid were the top gainers on the Nifty. While Titan, Hindunilvr, Apollo Hospital, HDFC and Asian Paint were the top drags.

On Monday, domestic markets remained cautious amid rising 10-year bond yields to 7.5% and ahead of RBI policy meet outcome on Wednesday. Nifty opened gap down and consolidated in a range of around 140 points. The indices ended the day with minor loss of 15 points at 16,570 levels. Broader market too ended in red with Nifty Midcap 100 closing flat to negative while Nifty SmallCap 100 was down 1%.

Among sectors Metals were top gainers, followed by Oil & Gas, Auto and Private Bank. While Media, Realty, IT, Consumer Products, FMCG, PSU Bank and Pharma were laggards. Metals stocks were in limelight after China Caixin / Markit Manufacturing PMI for May came in at 48.1 vs. expectation of 47 – indicating improvement in manufacturing.

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Major Global indices were positive after US announced strong Job data and China announced impressive PMI data which lifted investors’ sentiments. Crude Oil prices rose above $120/barrel after Saudi Arabia raised oil prices to Asia.

Markets are likely to continue with its volatility given RBI and ECB policy meeting scheduled this week. Further couple of macro data points like US inflation, China inflation and UK GDP data are also due this week. Nifty continued to move in a broader range and has managed to stay above its key support of 16400 levels, said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

“With result season now over, investors would track global developments as well as Central bank’s commentary for taking fresh cues on markets. We suggest long term investors to gradually accumulate large-caps given the relative valuation comfort in them.” Khemka added.

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