After starting higher on Friday, equity markets had an anti-climatic end today dragged by Bajaj Finance, Bajaj Finserv, Nestle India, IndusInd Bank, M&M, Kotak Mahindra Bank, JSW Steel, Maruti Suzuki, HCL Tech, and SBI.
The markets, thus, snapped their five-day losing streak as these heavyweight stocks tumbled between 1 per cent and 8 per cent.
The S&P BSE Sensex declined 609 points, or 0.28 per cent, to end at 73,730.
The NSE Nifty50, too, ended at 22,420, down 150 points or 0.67 per cent.
The broader markets, on the contrary, outperformed the frontline indices as the BSE MidCap and SmallCap indices ended 0.83 per cent and 0.27 per cent higher, respectively.
Among sectors, the trend was mixed with the Nifty Financial Sevice index settling 0.74 per cent lower, followed by the Nifty Bank index (down 0.41 per cent). On the flipside, the Nifty Pharma index added 0.92 per cent.
Expert View: Dr. V K Vijayakumar, Geojit Financial
The market’s resilience is evident in the 5th straight day of up move supported by massive DII buying of Rs 6167 crores yesterday, completely overwhelming the sustained FII selling. This massive DII buying has forced short covering which is evident from the sharp decline in the short position from 1.24 lakh to 53500 in one day. With the US 10-year bond yield rising above 4.7%, FIIs will continue to sell. Buy on dips strategy has worked well in this bull market and investors can continue to use this strategy.
Global Cues
Elsewhere in Asia, Japan’s Nikkei was up 0.3 per cent ahead of the Bank of Japan’s interest rate decision.
South Korea’s Kospi, Hong Kong’s Hang Seng, and China’s Shanghai Composite, too, added up to 1 per cent.
ASX 200, however, was down 1.15 per cent.
Overnight in the US, stocks tumbled after data showed the US gross domestic product expanded slower than expected at 1.6 per cent in the first quarter.
Additionally, the personal consumption expenditures price index increased at a 3.4 per cent pace, well above the previous quarter’s 1.8 per cent advance.
The Dow Jones Industrial Average slid 0.98 per cent, the S&P 500 dropped 0.46 per cent, and the Nasdaq Composite lost 0.64 per cent.
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