Sensex, Nifty stage smart recovery in second half, end with minor cuts; what kept investors on edge

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May 12, 2020 4:18 PM

Nifty 50 made an attempt to move up in today's session, but could not close with gains. The index finished trade at 9,196

Sensex, NiftyNTPC was the top Sensex gainer with a growth of 5.71 per cent. Bharti Airtel, ITC, Power Grid were among other gainers on the index.

Headline indices BSE Sensex and Nifty 50 staged a smart recovery in the last of the trade on Tuesday. The 30- share Sensex rose 526 points from day’s low to settle at 31,371, down just 190 points. During the trade, Nifty50 hit the day’s low of 9,044 and settled at 9,196. On the back of the profit booking, Reliance Industries was the top Sensex loser and ended the session down over 6%. “Markets traded weak for the most part of the day on concerns of Justice BN Srikrishna red-flagging the JIO-FB deal but HDFC & Bharti Airtel led an afternoon charge to help the Dalal Street,” S Ranganathan, Head of Research at LKP Securities, said.

Top BSE Sensex gainers and losers: RIL was the top Sensex laggard, followed by Asian Paints, Kotak Mahindra Bank and HUL. The selling pressure in Reliance Industries shares intensified ahead of its rights issue on Thursday. On the flip side, NTPC was the top Sensex gainer with a growth of 5.71 per cent. Bharti Airtel, ITC, Power Grid were among other gainers on the index.

Nifty Pharma index fell the most: Most of the sectoral indices traded in green. Nifty Pharma index fell 0.65 per cent weighed down by Piramal Enterprises, Cipla and Biocon. Conversely, Nifty Metal gained over a per cent led by Vedanta, JSW Steel and Hindalco Industries.

PM Modi to address at 8 PM: Prime Minister Narendra Modi will address the nation at 8 PM today. PM Modi already hinted that nationwide lockdown may be extended beyond May 17, however with some more relaxations. Indian Railways has also resumed partial passenger train operations. “Hopes of announcement of a fiscal package in or after the 8 Pm address by the PM today, raised hopes among market participants,” Deepak Jasani, Head Retail Research, HDFC Securities, said.

Global markets: Asian stock markets fell on the back of concerns over fresh outbreaks of coronavirus cases which overshadowed hopes over reopening economies. “European stocks edged higher in today’s session amid data showing new coronavirus cases slowed. The worldwide new-virus growth rate slowed down to 1.8% from 2.9%, according to Deutsche Bank-compiled data,” Jasani added.

Technical observation: Nifty 50 made an attempt to move up in today’s session, but could not close with gains. “A reasonable negative candle was formed today after opening higher, which indicates a formation of counter attack type candle pattern. Today’s pattern indicates sell on rise action in the market. This is not a good sign for bulls to make a comeback. The bearish island reversal pattern of 4th May is still intact,” technical analyst Nagaraj Shetti, HDFC Securities, said.

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