Market surrenders all gains to end flat amid sell-off in FMCG, financial stocks

Our Bureau Mumbai | Updated on June 22, 2021

Sensex hits record high breaching 53,000 mark

Benchmark indices erased early gains to end flat on Tuesday, dragged by FMCG and financials.

Market, after opening on a positive note, rallied further in the first half with the BS

E Sensex scaling a new peak as vaccination ramp up and declining Covid cases lifted investor sentiments. Indices lost momentum during closing hours, surrendering all the gains. According to analysts, market turned volatile, ahead of monthly F&O expiry (On NSE) on Thursday, as some traders booked profits.

The BSE Sensex which recorded a fresh all-time high of 53,057.11, closed at 52,588.71, up 14.25 points or 0.03 per cent. It hit an intraday low of 52,520.55.

The Nifty 50 closed at 15,772.75, up 26.25 points or 0.17 per cent. It hit an intraday high of 15,895.75 and a low of 15,752.10.

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The breadth of the market remained positive with 2,026 stocks advancing, 1,212 declining and 125 remaining unchanged on the BSE. As many as 546 securities hit the upper circuit and 210 the lower circuit; 452 hit their 52-week high while 18 touched a 52-week low.

Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities extended gains today mainly led by sharp recovery in Auto, Metals and PSU Banks. Further, favourable global cues also supported sentiments. Notably, indication of price hike by Maruti and expectations of volume revival aided Auto index to surge over 1.5 per cent today.”

“Further, PSU Banks remained in focus for the second consecutive day as news flows pertaining to privatisation and attractive valuations brought investors’ interest to PSU Banks,” said Modi.

Maruti, UPL, Shree Cements, Wipro and SBI Life were the top gainers on the Nifty 50 while Asian Paints, Bajaj Finance, Nestle India, Hindustan Unilever and IndusInd Bank were the top laggards.

Vinod Nair, Head of Research at Geojit Financial Services said, "During early hours, Indian market traded strongly following yesterday’s rebound in western markets which focused on economic recovery partially offsetting concerns over a possible change in Fed policy in the future.”

“ Volatility returned after main indices tested near all-time high levels, recurring weak closing of Asian & European markets and feeble futures. Falling covid infection rate along with ramping up of vaccination in India, added colours to the broad market in hopes of faster economic recovery," added Nair.

Auto in focus

On the sectoral front, Auto and It stocks gained as financials, FMCG and realty dragged behind. Nifty Auto was up 1.34 per cent at closing while Nifty IT was up 0.55 per cent.

Meanwhile, Nifty Bank was down 0.36 per cent while Nifty Financial Services was down 0.15 per cent. Nifty PSU Bank was up 0.06 per cent while Nifty Private Bank was down 0.35 per cent.

Nifty FMCG and Nifty Realty were down 0.21 per cent and 0.68 per cent, respectively.

Broader indices

As for broader indices, Nifty Midcap 50 was down 0.22 per cent while Nifty Smallcap 50 was up 0.52 per cent. The S&P BSE Midcap was up 0.33 per cent while the S&P BSE Smallcap was up 0.83 per cent.

The volatility index rose 2.14 per cent to 14.74.

Published on June 22, 2021

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