Markets will take cues from the PM speech on further unlocking of the economic activities amid the rising cases and we’ll see the reaction in the early trade on Wednesday.
BSE Sensex and Nifty 50 ended in the negative territory on the last trading session of June, erasing all the morning gains ahead of Prime Minister Narendra Modi’s address to the nation scheduled at 4 PM today. Sensex fell below its crucial 35,000-mark to close at 34,916, down 46 points or 0.13 per cent. While the broader Nifty 50 index settled just above its psychological level of 10,300-mark. “The markets were impacted by the uncertainties surrounding PM’s address to the nation. Irrespective of this, many Indian cities, are extending their lockdowns in the face of unabated growth in virus infections, which has added to the uncertainty surrounding economic recovery. The market direction for tomorrow may also largely be guided by the content of the PM’s address and global cues,” said Vinod Nair, Head of Research at Geojit Financial Services.
Mixed nifty sectoral trend: Nifty PSU Bank index declined nearly 2 per cent followed by Nifty Pharma, Nifty Realty and Nifty IT. On the flip side, Nifty Auto index was top sectoral gainer, up 1.10 per cent. Nifty Financial Services, Nifty FMCG, Nifty Bank and Nifty Private Bank closed into the green.
Broader market: The broader market, mid-caps and small-caps, performed the in line with benchmarks, as their sectoral indices on BSE closed 0.14 per cent and 0.75 per cent lower.
India VIX: India VIX, the volatility index, gained more than half a per cent to close just above 29. VIX is calculated on the basis of the order book of Nifty options and it helps traders gauge the movement of the market for the next 30 days. Under usual circumstances, India VIX is typically between 10 to 15.
Market outlook for Wednesday: “Markets will take cues from the PM speech on further unlocking of the economic activities amid the rising cases and we’ll see the reaction in the early trade on Wednesday i.e. July 1. Besides, the auto sales data will also be closely watched by the participants to access the pace of recovery in the economy,” said Ajit Mishra, VP – Research, Religare Broking Ltd
Nifty PSU Bank index declined nearly 2 per cent followed by Nifty Pharma, Nifty Realty and Nifty IT
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