Nifty50 fails to hold 11,900; down 0.4% for the week

Indian market witnessed volatile swings on either side throughout the week. Both Sensex and Nifty50 fell by about 0.4 percent each for the week ended June 14.

The Nifty50 which formed a “Bearish Belt Hold’ kind of pattern on the daily charts recorded a bearish candle on the weekly chart for the second consecutive week in a row.

The final tally on D-St for June 14– the S&P BSE Sensex fell 289 points to 39,452 while the Nifty50 closed 90 points lower at 11,823. On the daily scale, the index closed around its 20-days exponential moving average which acted as a support for index throughout June.

Weak global cues, upcoming US Federal Reserve policy meeting on June 18-19, the progress of monsoon, high valuations, progress of US-China trade talks and retaliatory tariff from India on US goods are some of the factors which weighed on sentiment.

The international trade war is all set to intensify as sources told CNBC-TV18 that India is set to impose its own retaliatory tariffs on 29 products against the US.

“Ripple effect from a weak global market while premium valuation and slow economy are hurting the market. A continuous exchange of words between US and Tehran regarding the oil tanker attack, progress of US-China trade-war, fed policy outcome on June 19 and progress of monsoon will be closely watched by the investors,” Vinod Nair, Head of Research, Geojit Financial Services Ltd told Moneycontrol.

“The market is cautious today awaiting these important events while companies highly leveraged are most impacted,” he said.

In terms of sectors, the S&P BSE Realty index plunged by over 2 percent, followed by the S&P BSE Telecom index which was down 1.6 percent, and the S&P BSE Banking index plunged 1.3 percent on June 14.

Top Sensex gainers include names like L&T, Vedanta, Sun Pharma, and Power Grid. In terms of losers, Tata Motors DVR lost nearly 3 percent, followed by Bharti Airtel which was down 2.7 percent, and Axis Bank which closed 2.3 percent lower.

Stocks in news:

Shares of Smartlink Holdings touched 52-week high, gained 11 percent after the company approved buyback of shares.

Shares of Jet Airways plummeted 10 percent after the National Company Law Tribunal (NCLT) adjourned an insolvency plea against the carrier, giving it a fresh lease of life.

Aurobindo Pharma shares fell 3 percent after the US health regulator pointed out data integrity lapses at finished dosages plant in Bachupally, Telangana.

Gruh Finance shares fell 5 percent after multiple block deals. HDFC informed exchanges it sold 4.22 percent stake in the company ahead of Bandhan Bank merger.

Global Update:

Asian markets ended mostly lower on Friday with Shanghai composite down 0.99 percent at 2,881.97, Kospi shed 0.37 percent at 2,095.41, while Nikkei added 0.4 percent at 21,116.89.

European markets are trading lower on the back tensions between the US and Iran following attacks on two oil tankers in the Gulf of Oman.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.