A volatile Friday! Sensex, Nifty snap 3-week winning streak

It was indeed a roller coaster ride for investors as Nifty moved in a 100-point range with wild swings on either side on June 7.

Benchmark indices closed with minor gains, but for the week, both Sensex and Nifty snapped their 3-week winning streak and closed with losses of 0.25 percent, and 0.44 percent respectively.

The broader market underperformed benchmark indices by a wide margin for the week ended June 7. The S&P BSE Midcap index slipped 1.26 percent, and the S&P BSE Smallcap index was down 1.4 percent in the same period.

Delay in monsoon, the ongoing crisis in the NBFC sector, and muted global cues dented sentiment in the first half of the trading sessions but with news of DHFL ready to pay NCD dues in a week, supported sentiment in banking stocks. DHFL stock closed 11 percent lower at Rs 83.50.

“On-going funding challenges faced by NBFCs prompted investors to focus on to select banking stocks while weak rupee added some impetus to IT stocks. The global central bank is moving to a rate cut cycle to combat weaker growth which supported Asian and European markets but trade war concerns continue to limit gains,” Vinod Nair, Head of Research, Geojit Financial Services Ltd.

“Investors to remain focused on fresh triggers in the upcoming union budget and US job data to get cues on further direction,” he said.

In terms of sectors, the S&P BSE Telecom index rose 0.79 percent, followed by the S&P BSE Finance gained 0.66 percent, and the S&P BSE Consumer Durable index rose 0.64 percent.

In terms of losers, the S&P BSE Realty index dropped 0.53 percent, followed by the S&P BSE Metal index was down 0.51 percent, and the S&P BSE Auto index closed with losses of 0.36 percent.

Top Sensex gainers: IndusInd Bank (up 1.9 percent), Bajaj Finance (up 1.69 percent), and M&M (up 1.49 percent).

Top Sensex losers: Yes Bank (down 2.3 percent), Power Grid (down 2.2 percent), and Coal India (down 1.2 percent)

Stocks in news:

Indiabulls Real Estate ended 3 percent lower after media reports made rounds that Blackstone is eyeing promoters’ stake for an estimated value of about $ 1 billion.

Shares of Simplex Infrastructure fell 5 percent as ICICI Direct maintained reduce call on the stock, citing higher debt levels and likely muted execution in FY20.

Voltas shares gained 5 percent on hopes that scorching summer will boost earnings in Q1FY20.

SpiceJet shares fell 2 percent after global brokerage firm HSBC downgraded the airliner to reduce.

Global Update:

European stocks gained ground on June 7 as hopes that central banks would loosen policy offset trade friction and the threat of global recession, putting indexes on track for their best week in two months, said a Reuters report.

Asian markets ended higher after positive development on US-Mexico trade negotiations. Nikkei added 0.53 percent at 20,884.71 and Kospi gained 0.16 percent at 2,072.33.

Meanwhile, markets in China and Hong Kong were closed due to holiday.