Domestic benchmark indices, S&P BSE Sensex and NSE Nifty-50, danced between gains and losses on Wednesday. After opening slightly higher than yesterday’s closing levels, S&P BSE Sensex swung into the red, down 270 points only to recover later. On the 50-stock Nifty, the financial sector kept the index below the 9,000 mark with HDFC Bank, ICICI Bank, Axis Bank and IndusInd Bank all trading in the red. “We had opened the week with a reversal view, aiming 8600, while adding the volatility expectations yesterday. The downside expectations remain, with intraday support seen at 8780. Between 8780 & 8600, a symmetrical triangle formation, as a bullish continuation pattern will be put to test, with an assurance of range expansion, even before directional clarity emerges,” analysts at Geojit Financial Services said.
Banks continue to face heat: Another day when lenders started their day in the red. Nifty Bank index was down 1.65% in the initial hour of trade while Nifty Private Bank was down 1.68%. It was Nifty PSU Bank index that suffered major losses, down by 2.43% helped by J&K Bank which was down over 8% and Central Bank, down 5%. Marquee names like HDFC Bank, ICICI Bank, Axis Bank, SBI, Kotak Mahindra Bank and IndusInd Bank were all trading in the negative territory with IndusInd Bank down over 3%.
Facebook picks 9.99% stake in Reliance Jio: Mark Zuckerberg’s social media behemoth has joined hands with India’s richest man Mukesh Ambani. In a Rs 43,574 crore deal, Facebook became a minority shareholder in Ambani’s Relaince Jio. The two companies now plan to leverage their joint reach with RIL’s pet project JioMart and Facebook-owned Whatsapp to help connect kirana stores with consumers. “In the very near future, JioMart — Jio’s digital new commerce platform — and WhatsApp will empower nearly 3 crore small Indian kirana shops to digitally transact with every customer in their neighborhood,” RIL chairman Mukesh Ambani said in a video statement
Gold prices edge higher: Investors urge to rush towards safer havens has increased the price of the yellow metal yet again. Gold futures were up 0.97% to Rs 45,763 per 10 grams. The story was opposite for Silver, slipping 0.31% or Rs 128 to sit at Rs 41,620 per KG.
Global Markets: MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.8% while Japan’s Nikkei slumped 1.3%. Wall Street too traded in the red with Dow Jones falling 2.67% and S&P 500 going down over 3%.
Oil prices continue southward march: The WTI crude June futures traded at $12.78 per barrel while the international benchmark, Brent crude slipped below the $20 per barrel mark. Brent crude has fallen over 30% this week. The fall in crude oil prices will continue to have an impact on domestic upstream companies.