The stock market indices declined on May 11 in a day embroiled in volatile trading. BSE midcap index shed 0.4 percent and smallcap index fell 2.2 percent.
Among sectors, bank and realty indices were up 0.5 percent each, while IT, auto, FMCG, pharma, power and capital goods indices shed 0.5-1 percent.
At close, the Sensex was down 276.46 points or 0.51 percent at 54,088.39, and the Nifty was down 72.90 points or 0.45% at 16167.10. About 787 shares have advanced, 2531 shares declined, and 116 shares are unchanged.
Among top Nifty losers were Shree Cements, Bajaj Finserv, Larsen and Toubro, Bajaj Finance and NTPC. The top Nifty gainers included ONGC, Axis Bank, IndusInd Bank, Cipla and HDFC.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, said, Markets displayed volatility but moved in a range before ending lower, as investors pruned their holding in IT, telecom and automobile stocks. Lack of fresh positive cues is forcing investors to dump equities and switch to safer havens like gold, etc. Although, the larger texture of the market is still on the bearish side, we could see a sharp pullback rally in the near future due to markets being in an oversold territory. For the traders, 16,000 would act as a sacrosanct support level and above the same a pullback rally is likely to continue up to 16,300-16,400 levels. On the flip side, dismissal of 16,000 could increase further weakness up to 15,940-15,900, added Chouhan.
Mohit Nigam, Head - PMS, Hem Securities, said the key Indian benchmark indexes recovered some of their losses in the late afternoon session and came-off the day's lows as private bank giants regained lost ground but the market ended in the red for the fourth consecutive session. The real estate sector remains focused, as Crisil Ratings stated in its most recent research that demand for housing is projected to continue solid, despite increases in property prices and loan interest rates. An improved macroeconomic stability profile, the government's capex push, external sector buffers, and a broadly supportive fiscal and monetary policy environment would all help for a sharp recovery. Investors should exercise caution in these markets and take advantage of any drops in fundamentally sound stocks.
Immediate support and resistance for Nifty are 16,000 and 16,500 respectively. Immediate support and resistance for Bank Nifty are 34000 and 35,000 respectively.
Global markets mixed
On the global front, Asian markets were divided, while European markets were higher ahead of the release of US inflation data, which may provide a clue as to how aggressively the Federal Reserve would hike interest rates.
China stocks end higher
China stocks closed higher on Wednesday as investors took comfort in signs of lower domestic COVID-19 infections, while US President Joe Biden's decision to consider eliminating Trump-era tariffs on Beijing further lifted risk appetite.
The blue-chip CSI300 index ended 1.4 percent higher at 3,976.42, while the Shanghai Composite Index gained 0.8 percent to 3,058.70 points. The Hang Seng index rose 1 percent to 19,824.57, while the China Enterprises Index gained 1.7 percent to 6,769.72 points.
Rupee climbs 10 paise
The Indian Rupee climbed 10 paise to close at 77.24 (provisional) against US dollar on May 11. At the interbank forex market, the domestic unit opened at 77.24 against the US dollar. It moved in a range of 77.17 to 77.31 during the day trade.
The rupee finally closed at 77.24, registering a rise of 10 paise over its previous close. On Tuesday, the rupee had settled at 77.34 against the American currency.
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd
USDINR spot closed 9 paise lower at 77.25 levels. With most currencies trading flat ahead of important US inflation data tonight, USDINR too remained rangebound. Over the near term, USDINR may continue to be range bound between 76.80 and 77.70 levels on spot, due to RBI intervention and IPO related FPI flows.
(With inputs from Reuters)
