Benchmark indices snapped two-week rally on account of profit booking and weak global cues. The 30-share Sensex plunged 207.28 points, or 0.77 per cent, to 26,635.75 on June 10 from 26,843.03 on June 3. Likewise, the 50-share Nifty index lost 50.75 points to 8170.05 from 8220.80 during the same period.
Among the 51 components in the Nifty pack, 29 stocks ended the week in red with Infosys decling the most — 6.78 per cent, followed by Aurobindo Pharma (down 5.88 per cent), Bosch (down 3.54 per cent), Asian Paints (down 3.11 per cent) and Dr Reddy’s Labs (down 2.95 per cent). On the other hand, Hindalco, UltraTech Cement, State Bank of India and Bharat Heavy Electricals gained 9.52 per cent, 6.29 per cent, 4.83 per cent and 4.75 per cent, respectively, and remained among top losers on the Nifty 50 chart for the week ended June 10, 2016.
Sectorwise, the BSE IT index, TECk, Telecom, Healthcare slid 3.48 per cent, 3.21 per cent, 1.73 per cent and 0.97 per cent during the week. However, the BSE Power index, Metal and Capital Goods gained 3.32 per cent, 2.73 per cent and 2.40 per cent, respectively.
Vinod Nair, head of research, Geojit BNP Paribas said, “Domestic market gave up positive momentum this week post RBI policy meet and after World Bank lowered India’s GDP forecast to 7.6 per cent from 7.7 per cent. Fear of inflationary pressures in India owing to spike in crude and food prices, weak European cues and selling across global market led to profit booking.”
During the week, crude price rose to a high of $52 per barrel led by fall in US crude oil inventories over two consecutive weeks. The global market across the world were under weakness but US market witnessed a weekly gain of 1 per cent due to improvement over consumer spending.
RBI Governor Raghuram Rajan on June 7 kept interest rates intact but said his monetary policy remains “accommodative” and hinted at a cut later this year if good monsoon helps ease inflation.
On a month-to-date basis, foreign institutional investors remained net buyers as they bought shares worth of Rs 3,990.18 crore till June 10 against net investment of Rs 2542.89 crore in May. However, rupee slid marginally by 45 paise, or 0.66 per cent to 66.79 on June 10 from 67.24 on June 3.
For upcoming trading sessions, Mustafa Nadeem, chief executive officer, Epic Research said, “Nifty is having stiff resistance at 8250 – 8300 levels where supply continues to be higher while on the downside we may witness lower levels of 8120, 8070 and 8029 in coming trading sessions. Since we have been in intermediate uptrend so sell on rise strategy should be used for traders to take benefit of risk reward ratio.”