Benchmark indices end in green as market rebounds at closing hours

Our Bureau Mumbai | Updated on June 14, 2021

Reliance leads recovery, as Sensex edges up 76 pts, Nifty above 15,800

Benchmark indices closed in the green on Monday after rebounding sharply during the closing hours.

Market, after opening on a negative note had extended losses in the first half, dragged by financials and losses in the stocks of Adani Group. Market rebounded sharply in the second half owing to a recovery in PSU bank stocks, IT and FMCG and gains in heavyweights such as Reliance Industries.

The BSE Sensex has recovered from the day's low of 51,936.31 to close at 52,551.53, up 76.77 points or 0.15 per cent. It hit an intraday high of 52,590.92. The Nifty 50 closed at 15,811.85, up 12.50 points or 0.08 per cent. It hit an intra-day high of 15,823.05 and a low of 15,606.50.

The breadth of the market remained neutral with the ratio of stocks declined and advanced being 1:1 with 1,655 stocks advancing, 1,663 declining and 163 remaining unchanged on the BSE. As many as 548 securities hit the upper circuit and 246 the lower circuit; 481 hit their 52-week high while 29 touched a 52-week low.

Binod Modi, Head Strategy at Reliance Securities said, “Domestic equities witnessed U-turn today after witnessing steep gap-down opening. Sharp recovery in PSU banks, IT, FMCG and Reliance Industries supported market rebound.”

Divi’s Labs, Tata Motors, Reliance, Wipro and Bajaj Finance were the top gainers on the Nifty 50 while Adani Ports, Coal India, Kotak Bank, HDFC and NTPC were the top laggards.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Though the domestic market opened on a negative note due to lack of positive cues, it recovered in the afternoon, led by heavyweights following positive global markets. WPI inflation for May rose to 12.94 per cent reflecting a higher price of fuel and manufactured products along with a lower base.”

“Fed policy meeting to be held on June 15-16 is expected to dominate investor behaviour in the coming days. Though the Fed is expected to keep its rates unchanged, the key focus of the market will be on its comment on inflation," added Nair.

Adani Group under pressure

Adani Group stocks were under significant selling pressure following the news reports of depository player National Securities and Depository Limited (NSDL) freezing accounts of three foreign portfolio investors (FPIs) that together held shares worth ₹43,500 crore of four of the Adani Group firms including AEL, AGEL, ATL and ATGL.

Adani Ports, the top loser on the Nifty 50 fell over 9 per cent at closing. Adani Enterprises Ltd fell nearly 6 per cent. The other listed entities of the Group - Adani Green Energy, Adani Transmission, Adani Total Gas and Adani Power hit lower circuits at 5 per cent. However, some of them recovered sharply from day's low after the company issued a clarification that the accounts were not frozen by NSDL.

Overall the stocks of Adani Group erased m-cap of over ₹1 lakh crore during the day.

FMCG, PSU Banks recover

On the sectoral front, all indices except Nifty IT, Nifty FMCG and Nifty PSU Bank closed in the red.

Realty stocks suffered the highest losses as Nifty Realty closed 1.52 per cent lower. Metal stocks also came under pressure with Nifty Metal down 0.65 per cent.

Meanwhile Nifty PSU Bank rebounded sharply to end 0.58 per cent higher. Nifty IT was up 0.34 per cent at closing.

Broader indices

Broder indices closed in the red as market witnessed across the board selling.

Nifty Midcap 50 was down 0.43 per cent while Nifty Smallcap 50 was down 0.15 per cent. The S&P BSE Midcap was down 0.68 per cent while the S&P BSE Smallcap was down 0.16 per cent.

The volatility index was up 3.95 per cent to 14.66.

Published on June 14, 2021

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