Indian markets, which started with a gap-up opening on June 16, pared most of the gains in the second half of the session and turned negative amid ongoing border dispute between India and China.
The bulls managed to push the market back in the green towards the close of the trade. The S&P BSE Sensex rallied nearly 400 points while the Nifty50 rose 100 points but failed to close above the crucial 10,000-level.
The Sensex closed 376 points higher at 33,605 while the Nifty ended with gains of 100 points at 9,914.
“The border dispute between India and China resulted in volatility in the stock markets on tensions of further escalation of the dispute. This was in spite of steady global markets following the announcement of the US Fed Reserve’s expanded bond-buying programme,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.
“Investors seem to have set aside the news emerging from the border and are still hoping on the fact that liquidity will keep propping the markets, for the time being. India can ill-afford another battlefront since it is still battling the virus pandemic and will need to be watched out for.”
Sectorally, the action was seen in Finance, Bankex, Metals, IT, and Consumer Durable space while selling pressure was visible in telecom, realty, power, public sector, and FMCG space.
On the broader markets front, the S&P BSE Midcap index rose 0.37 percent while the S&P BSE Smallcap index was up 0.04 percent.
Top Nifty gainers included JSW Steel, ICICI Bank, HDFC and HDFC Bank.
Top Nifty losers included GAIL India, Tech Mahindra, Bharti Infratel, and Tata Motors.
Stocks & Sectors
Sectorally, selling pressure was visible in the S&P BSE Telecom index which was down 1.4 percent, followed by the S&P BSE Realty index that fell 0.75 percent, and the S&P BSE Power index was down 0.6 percent.
Action was seen in the S&P BSE Finance index which rose 2.3 percent, followed by the S&P BSE Bankex that was up 1.9 percent and the S&P BSE Metal index closed with gains of 1.4 percent.
A volume spike of more than 100 percent was seen in stocks like Ambuja Cements, Jindal Steel, SAIL, JustDial and PVR.
Long Buildup was seen in stocks like Jindal Steel, Balkrishna Industries and REC Ltd
Short Buildup was seen in stocks like Tata Motors, Apollo Hospitals and Bata India.
Nearly 100 stocks hit their fresh 52-week high. These included Bayer Cropsciences, RIL, PI Industries, AstraZeneca, Ruchi Soya and Alembic Pharma.
Stocks in news
Tata Motors share price fell more than 5 percent after the company posted a consolidated loss of Rs 9,894.25 crore for the quarter ended March 2020.
Shares of HCL Infosystems shed 5 percent after the company’s consolidated loss widened to Rs 70.94 crore for the March 2020 quarter from Rs 43.9 crore in the year-ago period.
Shares of Jubilant Life Sciences fell over 2 percent after ace investor Rakesh Jhunjhunwala raised his stake in the company.
The share price of Bayer CropScience touched 52-week high of Rs 5,721.30, gaining 4 percent after a tie-up with agri-business division of ITC.
Shares of Shilpa Medicare fell 6 percent on June 16 despite the company registering a 45 percent year-on-year growth in March quarter profit at Rs 34.57 crore.
Telecom stocks closed with cuts a day ahead of AGR hearing in the Supreme Court.
Axis Bank falls over 2 percent following the resignation of its retail banking head.
IT stocks gained with rupee weakening to 76.21 against the dollar; TCS and Infosys were up 1-2 percent.
The Nifty formed a bearish candle on the daily charts. It hit an intraday high of 10,046 but selling pressure accelerated after news of a violent clash between Indian and Chinese troops along the line of actual control.
The Nifty fell more than 300 points from its intraday high of 10,046 but recovered about 200 points from lower levels.
The Index formed a small red body candle on the daily chart. Traders should look to buy the dip above 9,800 levels, experts said.
“Going forward, 9,777-9,720 zones would act as immediate support and we may see an up move towards 10,040 and 10,180 zone. Thus, traders are advised to look for buying opportunities on declines in market,” Chandan Taparia of Motilal Oswal Financial Services Limited said.
India VIX moved up by 1.20% at 32.97 levels. A further rise in volatility index may result in a roller-coaster move in the market.
On the monthly options front, maximum Put OI is at 9000 followed by 9500 strikes, while maximum Call OI is at 10000 followed by a 10,500 strike.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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