However, BSE Sensex touched a fresh record high of 63,601.71 on June 22, while Nifty remained just one point away from its record high of 18,887.60. Last week, The 30-share pack BSE Sensex closed 260 points, or 0.41 per cent, lower at 62,979.37 with 23 stocks in the red and only seven in the green. The Nifty50 closed the day at 18,665.50, down 160 points, or 0.85 per cent.
Mid and smallcaps underperformed the benchmarks on Friday. The BSE Midcap index closed 1.24 per cent lower while the Smallcap index fell 1.17 per cent.
“The domestic market sailed through a rough week, facing unexpected ups and downs as it hovered around its historical peaks and exhibited cautiousness stemming from weak global cues. This volatility was more evident in mid- and small-cap stocks, which witnessed increased selling as investors booked profits following a strong recent rally,” said Vinod Nair, Head of Research at Geojit Financial services.
‘’In the global context, central banks worldwide are currently focused on addressing inflation and have reiterated their commitment to achieving their target levels. This is reflected in the hawkish commentary from the Fed Chair and the rate hikes by the central banks. Conversely, the decision of Chinese central banks to cut rates after a 10-month pause has raised concerns about the health of the Chinese economy,” he said. The analyst does not foresee significant correction in domestic equities over global cues.
‘’Despite these global concerns, the domestic market is not anticipated to undergo a significant correction. This is due to favourable domestic economic indicators and a correction in international commodity prices, which are expected to sustain earnings growth on a QoQ basis,” added Nair.
As many as 40 stocks ended in the red in the Nifty index while the rest 10 settled with gains. All the sectoral indices ended in the red with Nifty Media index shed 3.6 percent, Nifty Metal index fell 3 percent, while Oil & Gas, FMCG and Realty down 2 percent each.
Top midcap gainers last week:
Under Nifty Midcap 100, the top five gainers were Aurobindo Pharma, Aditya Birla Capital, Trent Limited, Zydus Lifesciences, and Crompton Greaves Consumer Electricals.
Under BSE Midcap, the top five gainers were Natco Pharma, ICICI Securities, Gillette India, Aurobindo Pharma, and Aditya Birla Capital.
Top smallcap gainers last week:
Under Nifty Smallcap 100, the top five gainers were Creditaccess Grameen Limited, Kalyan Jewellers, Angel One, Global Health, and Suzlon Energy. Creditaccess and Angelone rose 50-51 per cent.
Under BSE Smallcap, the top five gainers were 63 Moons Technologies, Antony Waste Handling Cell, L.G. Balakrishnan & Bros, Confidence Petroleum India, and Landmark Cars. 63 Moons Tech and Antony Waste Handling rose 19-20 per cent.
‘’Markets failed to build on the last week up move and settled with a cut of nearly a percent. Initially, the tone was positive but profit taking in the US markets not only capped the upside but also triggered a decline in the final sessions,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
‘’Amid all, the Sensex managed to make a new record high but eventually closed in the red at 63,238.89 levels and the Nifty too settled lower at 18,665.50 levels. All sectors, barring financials, witnessed profit taking wherein metal, realty and FMCG were among the top losers. After weeks of outperformance, the broader indices too felt the heat in the final sessions and shed nearly a percent each,” added Mishra.
Where is Nifty50 headed?
‘’We expect volatility to remain high due to the scheduled expiry of June month derivatives contracts next week. As we are closely eyeing the US markets for cues, the recent dip has certainly turned the mood cautious but sustainability above 33,500 in Dow Jones Industrial Average (DJIA) would keep the recovery hopes alive,” said Religare Broking’s Ajit Mishra.
‘’Besides, the performance of their broader indices will also be in focus, after the bout of profit taking. We are now at a critical juncture and eyeing 18,600 in Nifty as a make-or-break level. A decisive close below that level would further deteriorate the mood and Nifty may find the support around 18,350- 18,450 zone,” he said.
‘’Besides, after spending six weeks in a narrow band, the banking index could also see a strong directional move so it is prudent to focus more on risk management and wait for clarity. Traders should keep a check on position size and stay stock-specific as we may see mixed trends within the sector,” added Mishra.
Disclaimer: The views and recommendations given 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 taking any investment decisions.
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Updated: 24 Jun 2023, 08:41 PM IST