Logging its first fall in nine days, the benchmark BSE Sensex today slipped by 75 points to 27,729.67 as market sentiment took a hit in last half hour on news that the creditors have rejected Greece’s new proposal.
Profit-booking ahead of tomorrow’s futures and options (F&O) June contract expiry also weighed to some extent.
After trading in positive zone for most part of the day, the index plunged over 200 from a high of 27,948.24 at the fag-end tracking losses in European stocks.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd
To continue this recent rally, market needs to see positive FII inflows, government spending and lower interest rate. We can hope that as Greek concern is diminished over this month end, FIIs are likely to come back. In the meantime, if monsoon continues to be good, we can also expect rate cut by the next policy meet.
“The news that the creditors rejected Greece’s new proposal for a deal took a toll on the market movements,” said Alex Mathews, Head Research at Geojit BNP Paribas Financial.
Greek Prime Minister Alexis Tsipras said some creditors haven’t accepted the country’s proposals for a deal.
“The insistence of certain institutions of not accepting parametric measures has never happened before — not in Ireland, nor in Portugal,” he wrote in a Twitter post.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services Ltd
The markets remained choppy in the morning but traded mainly with a positive bias on the back improved technical conditions. But the news that the creditors rejected Greece’s new proposal for a deal took a toll on the market movements and finally Nifty closed down by around 20 points.
The market breadth turned to negative from positive as there were seen 1195 stocks advancing against 1519 stocks declining. The Nifty volatility index, India VIX stood at 15.9150 up around 5.80%.
The mid-cap and small cap index closed down around 0.46% and 0.63% respectively.
The major losers in the sectorial front were Metal and Consumer Durables which ended down around 1.79% and 1.15% respectively whereas buying was seen in Healthcare sector which ended up around 0.71%.
In the stocks’ front, the major gainers were BHEL and Zee which closed up around 3.77% and 3.31% respectively whereas the selling was seen in Hindalco and PNB, which closed down around 3.82% and 3.77% respectively.
The FIIs were net sellers in the cash market segment on 23 June 2015, Tuesday, sold shares worth Rs 374.97 crore. The DIIs on the other hand were buyers on 23 June, bought shares worth Rs 404.20 crore in the capital markets segment.
The European markets were little changed as the investors’ focus was shifted towards the Greece. The US index futures were down. But the news of rejection of a new deal made the markets to fall.
Volatile movements are likely to rule the markets tomorrow ahead of the June month F&O expiry.
The BSE Sensex after a positive start, hit a high of 27,948.24 on sustained buying largely in tune with above-normal progress in monsoon.
However, it slipped towards the close on negative global cues and touched day’s low of 27,647.29, before settling 74.70 points or 0.27 per cent down at 27,729.67.
In previous eight sessions, BSE barometer had zoomed by 1,433.39 points or 5.4 per cent as better-than-forecasted monsoon raised hopes of a rate cut by RBI.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
In the last few days, markets have received news that could lead to positive action in banking, aviation, land, black money, capital markets, railways, etc. All of these are among the much awaited reforms that investors have been anticipating. Some of these could still face resistance during the monsoon session of Parliament, but today’s volatility was largely triggered by approaching derivatives expiry. Last month’s Nifty rollover was low, and the same trend is expected this expiry too, as Greece deadline falling on the 30th June gives potential for fresh moves.
The 50-share NSE Nifty after reclaiming the psychological 8,400-mark in early trade touched the session’s high of 8,421.35 succumbed to profit-booking and settled 20.70 points or 0.25 per cent lower at 8,360.85.
Meanwhile, foreign investors sold shares worth Rs 374.97 crore yesterday as per provisional data, while domestic institutional bought shares worth Rs 404.20 crore.
In overseas markets, European stocks were trading lower. Key benchmark indices in France and Germany were lower in the range 0.05 to 0.30 per cent, while the UK’s FTSE index was up by 0.43 per cent.
Market View by Gaurav Jain, Director, Hem Securities
Markets opened on a higher note but sharply fell in late trade; snapping 8-day continued gains on the back of looming Greece debt crisis. International creditors have rejected Greek proposals on the debt issue. Volatility increased on account of penultimate day of June derivates contracts.
Earlier in the day, Asian stocks ended higher. Key indices in China, Hong Kong, Japan, Taiwan, Singapore and South Korea firmed up between 0.21 and 2.48 per cent.
Back home, 24 scrips out of the 30-share Sensex pack ended lower.
Pramit Brahmbhatt, Veracity Group CEO said: “Indices traded higher initially, however, declined at the fag-end due to selling pressure as the news came that the Greece deal with the creditors did not materialised.”
Among the BSE sectoral indices, metal dropped by 1.57 per cent followed by realty 0.93 per cent, oil&gas 0.90 per cent, auto 0.80 per cent, capital goods 0.57 per cent and teck by 0.53 per cent.
The market breadth turned negative as 1,496 stocks ended in the red, 1,222 closed in the green and 134 ruled steady. Total turnover rose to Rs 2,629.33 crore from Rs 2,485.27 crore yesterday.
NEW YORK – US stocks ended with slight gains on Tuesday, with the Nasdaq eking out another record close while investors continued to await clarity on whether Greece could reach a deal to prevent defaulting on its loans.
The day’s action was quiet, with trading volume below average. While energy shares rose alongside a jump in the price of crude oil, a sharp rise in the US dollar capped broader gains.
LONDON – Britain’s top share index edged higher on Tuesday, lagging a Greece-fuelled rally in euro zone shares as weak results from outsourcing company Bunzl dragged on gains. There was also little cheer from the Confederation of British Industry’s (CBI) monthly industrial trends survey, which showed British factory orders grew this month at their weakest pace in almost two years.
TOKYO – Japan’s Nikkei share average vaulted to the highest level since 1996, ramping up the gains to around 20 percent since the start of the year thanks to signs of a pick up in economic growth, earnings optimism and hopes Greece will avoid a debt default. The Nikkei rose 0.5 per cent to 20,922.00, rising above its peak of 20,833.21 hit at the height of the dot-com bubble in 2000.
HONG KONG – Hang Seng Index up 0.4 per cent.