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Sensex, Nifty fall from record highs, investors eye US Fed meet

Sensex, Nifty fall from record highs, investors eye US Fed meet

Published:16 June 2021

Key benchmark indices Sensex and Nifty retreated from record-high levels on Wednesday following intense selling in Reliance and HDFC twins as investors turned cautious ahead of the outcome of the US Federal Reserve's policy meeting.

Mumbai | Key benchmark indices Sensex and Nifty retreated from record-high levels on Wednesday following intense selling in Reliance and HDFC twins as investors turned cautious ahead of the outcome of the US Federal Reserve's policy meeting.
The 30-share BSE index ended 271.07 points or 0.51 per cent lower at 52,501.98. It had closed at an all-time high of 52,773.05 on Tuesday. The broader NSE Nifty retreated from a record and declined 101.70 points or 0.64 per cent to 15,767.55.
PowerGrid was the top laggard in the Sensex pack, shedding around 2 per cent, followed by IndusInd Bank, Reliance, L&T, UltraTech Cement and Bajaj Finance.
On the other hand, Nestle, NTPC, ONGC, Bajaj Finserv Hindustan Unilever and Infosys were among the gainers.
"Indian indices slipped ahead of the Fed policy announcement as global markets turned cautious. Weakening MoM sales data and rising prices in the US are adding concerns to ongoing inflationary trend. But, Fed maintaining an accommodative policy and a calm comment on short-term inflationary pressure can drive the markets ahead," Vinod Nair, Head of Research at Geojit Financial Services, said.
Chice Broking in a note said that the domestic market took cues from the weak global market ahead of the US Fed's decision.
The broader Nifty declined due to broad-based selling across counters, especially metals and financials stocks. Reliance, Adani Ports and HDFC were among the top contributors to index losses. All sectoral indices closed on a weak note except Nifty IT and FMCG. Nifty Metal was the worst performer with 2.9 per cent losses.
Benchmark equity indices broke a four-day winning streak and retreated from record highs following weak Asian cues and ahead of the US Fed meet outcome, Deepak Jasani, Head of Retail Research, HDFC Securities,said.
The market might be reluctant to push higher ahead of the Fed meeting beyond a point. While economists don't expect US Fed to alter rates or cut bond buying immediately, any indication of an earlier than expected roll back of stimulus may dampen sentiments, Jasani added.
Among sectoral indices, BSE Metal dropped the most by 2.58 per cent, followed by BSE Industrials by 1.62 per cent, BSE Energy by 1.43 per cent, BSE Power by 1.33 per cent and BSE Basic Materials by 1.32 per cent.
FMCG, IT and Teck indices ended in green.
BSE Midcap dropped by 0.95 per cent while the smallcap index declined by 0.68 per cent.
"Metal stocks are witnessing profit booking from the intra-day high after the news came that China will soon release some base metals from state stockpiles. As per the recent media report the activity is picking up in the passenger vehicle market after several weeks as states have started unwinding restrictions," Mohit Nigam, Head, PMS - Hem Securities, said.
Lack of fresh trigger from overseas markets also weighed on the local stocks as Asian markets closed mixed. Bourses in Shanghai, Hong Kong and Tokyo ended on a negative note, while Seoul settled with gains.
Equities in Europe were trading mixed in mid-session deals.
International oil benchmark Brent crude was trading 0.14 per cent higher at USD 74.09 per barrel.
Meanwhile, the rupee slips 1 paisa to close at 73.32 against the US dollar, logging its seventh straight day of losses.
Foreign institutional investors (FIIs) emerged as net buyers in the capital market as they bought shares worth Rs 633.69 crore on Tuesday, as per provisional exchange data.


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