Sensex drops 271 points, Nifty below 15,800; metal stocks lose sheen

Our Bureau Mumbai | Updated on June 16, 2021

FMCG, IT retain gains

Benchmark indices closed in the red on Wednesday ahead of the US Federal Reserve's policy outcome.

Market which opened on a weak note on global cues, extended losses through the day, dragged by metals and financials. FMCG stocks remained in focus. 

The BSE Sensex closed at 52,501.98, down 271.07 points or 0.51 per cent. It hit an intra-day high of  52,816.31 and a low of 52,425.57. The Nifty 50 closed at 15,767.55, down 101.70 points or 0.64 per cent. It hit an intra-day high of 15,880.85 and a low of 15,742.60.

Decliners outnumber

The breadth of the market turned in favour of the decliners with 1,790 stocks declining, 1,441 advancing and 124 remaining unchanged on the BSE. As many as 485 securities hit the upper circuit and 210 the lower circuit; 484 hit their 52-week high while 23 touched a 52-week low. 

Binod Modi, Head Strategy at Reliance Securities said, “Domestic equities traded weak today led by selling pressure in financials, auto and metals. Additionally, weak global cues ahead of crucial FOMC meeting outcome today also weighed on sentiments.”

Tata Consumer, Nestle India, ONGC, NTPC and Hindustan Unilever were the top gainers on the Nifty 50 while Adani Ports, Tata Steel, Hindalco, JSW Steel and Powergrid were the top laggards.

Vinod Nair, Head of Research at Geojit Financial Services said, "Indian indices slipped ahead of the Fed policy announcement as global markets turned cautious. Weakening MoM sales data and rising prices in the US are adding concerns to ongoing inflationary trend. But Fed maintaining an accommodative policy and a calm comment on short-term inflationary pressure can drive the markets ahead."

Metals lose shine

On the sectoral front, all indices except Nifty FMCG and Nifty IT closed in the red. Metal,  financials, realty and auto dragged. 

Nifty Metal was down 2.85 per cent. Nifty Bank was down 0.69 per cent while Nifty Financial Services was down 0.60 per cent. Nifty Private Bank was down 0.72 per cent while Nifty PSU Bank was down 1.01 per cent. 

Nifty Auto was down 0.79 per cent. Nifty Realty was down 1.26 per cent at closing.

Nifty FMCG was up 0.58 per cent while Nifty IT was up 0.25 per cent. 

Broader indices 

All broader indices were in the red. Nifty Midcap 50 was down 1.12 per cent while Nifty Smallcap 50 was down 0.49 per cent. The S&P BSE Midcap was down 0.95 per cent while the S&P BSE Smallcap was down 0.68 per cent.

The volatility index rose 1.78 per cent to 14.87.


Published on June 16, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor