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Stock market today: Sensex, Nifty end flat amid weak global cues; Mid and smallcaps are performing well

Stock market today: Sensex, Nifty end flat amid weak global cues;  Mid and smallcaps are performing well


Nishant Kumar

Sensex closed up 5 points at 62,792.88 and Nifty up 5 points at 18,599.

The Sensex surged over 300 points in intraday trade on June 6.

Weak global cues weighed on domestic market sentiment as equity benchmark Sensex and Nifty closed flat on Tuesday (June 6) with IT stocks among the top drags.

Weak global cues weighed on domestic market sentiment as equity benchmark Sensex and Nifty closed flat on Tuesday (June 6) with IT stocks among the top drags.

European markets traded lower, and US stock futures also struggled, as new US economic data signaled the Federal Reserve may pause a rate hike in June.

European markets traded lower, and US stock futures also struggled, as new US economic data signaled the Federal Reserve may pause a rate hike in June.

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“A string of economic data last week from Fed officials emboldened bets that the Fed will refrain from raising rates at its June 13-14 meeting,” Reuters reported.

The Sensex opened 49 points lower at 62,738.35 at 62,787.47. However, the index sees some fag-end buying, but that doesn’t help it end with a respectable gain.

The Sensex gained 5 points to close at 62,792.88 and the Nifty gained 5 points to close at 18,599. Shares of IT companies such as Infosys, TCS and Tech Mahindra ended as the biggest losers on the Sensex.

However, mid and small caps ended higher, outperforming the benchmark index. The BSE Midcap index rose 0.29 percent to close at 27,452.83. The BSE Smallcap index gained 0.42 per cent to close at 31,174.98. The smallcap index is nearing an all-time high of 31,304.44 reached on January 18, 2022.

While the benchmark index ended flat, over 200 stocks including largecaps Axis Bank, Bajaj Auto, Tata Motors, Tata Motors – DVR, Mahindra & Mahindra, Titan, Ultratech Cement, IndusInd Bank, DLF and Britannia finished at 52. Weekly highs in intraday trade on BSE.

At the same time, crude oil prices have fallen sharply as concerns remain that demand will slow due to a slowdown in global economic growth. Brent crude fell nearly two percent to trade near $75 a barrel by 4 p.m.

The rupee rose 7 paise to 82.61 against the dollar.

Best Nifty Gain and Loss

In the Nifty50 index, 28 stocks ended in the green and 21 in the red. A stock – power grid – closed flat.

Shares of Ultratech Cement (2.91 per cent), Divis Labs (2.23 per cent) and Kotak Mahindra Bank (1.94 per cent) ended as the top gainers on the Nifty index.

Tech Mahindra (down 1.92 per cent), Infosys (down 1.82 per cent), TCS (down 1.60 per cent) and Wipro (down 1.04 per cent) ended as the top losers on the Nifty index.

IT Loss Big, Auto, Realty Shine

Nifty IT fell 1.88 percent to become the biggest loser among the sectoral indices. Nifty consumer durables (down 0.31 per cent), PSU Bank (down 0.20 per cent), metal (down 0.14 per cent) and media (down 0.14 per cent) also ended in losses.

On the other hand, Nifty Realty gained 1.19 percent followed by Auto index which rose 1.09 percent. Healthcare and pharma indices rose 0.6 percent each.

Expert views on the market

“Domestic markets experienced profit booking due to selling pressure in the IT sector. IT stocks declined on expectations of further downward revision in spending. However, gains in auto and banks helped recover losses. A key influencer will continue. RBI’s growth and growth outlook following MPC meeting on rate freeze given general consensus to continue rate freeze Commentary on inflation forecasts too,” said Vinod Nair, head of research. Geojit Financial Services.

Technical views of the market

Shrikant Chauhan, Head of Equity Research (Retail). Kotak Securities It has been observed that the market is maintaining a consistent higher base formation. For traders, he said, 18,550 would be a trend-decider level.

Above this level, Chauhan said the index could rise to 18,700-18,750. On the other hand, below 18,550, upside will be weak. Below this, the market may retest the 18,480 level. Any further correction could drag the index to 18,440.

Rupak Dey, Sr. Technical LKP Securities Nifty showed high volatility but its movement was confined within a narrow range.

On the daily chart, it formed a doji candle, indicating uncertainty in the market. As a result, the overall trend is expected to remain sideways and the index does not show a clear direction in its movement. “In terms of levels, there is a support level at 18,500, which indicates a potential level for the index, while a resistance level was identified at 18,665, which indicates a barrier to further upside,” D said.

Disclaimer: The views and recommendations provided in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making investment decisions.

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Updated: 06 June 2023, 04:28 PM IST

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