Indian stocks on Tuesday closed lower for the third consecutive session on the back of sharp fall in metal and energy stocks. After hovering in a narrow range for most of the session, but selling pressure pushed the markets down in the last hour. The NSE Nifty 50 index ended 0.38% lower at 16,240.05, while the S&P BSE Sensex ended 0.19% lower at 54,364.85.
The broader market, midcap and smallcap, underperformed, falling in the range of 1.3-1.7%.
Nifty’s metals and energy sub-indexes were among the top drags, falling 5.2% and 4%, respectively. Coal India, Tata Steel and Oil and Natural Gas Corp were among the worst performers on the Nifty 50, falling between 6% and 7%. Among individual stocks, Asian Paints closed 2.7% higher, after a 20.6% jump in March-quarter consolidated sales revenue.
Deepak Jasani, Head of Retail Research, HDFC Securities says, “nifty Couldn’t stop the intraday rally after a weak start. Volumes on the NSE were much lower than the recent average, which suggests a lower activity level than FPIs.”
“The fact that Nifty almost closed at intraday lows after attempting a recovery does not portend it well. 16341-16013 could be the band for Nifty in the near term.”
View Net Flow of Equity Mutual Funds 15,890.3 crore in April as compared to the inflow of 28,463.4 crore in March. Monthly contributions to systematic investment plans fell After hitting an all-time high of Rs 11,863.1 crore 12,327.9 crore in March.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The support for DII and retail investors is waning following the heavy sell-off, destabilizing their optimism.”
Nagraj Shetty, Technical Research Analyst, HDFC Securities says, “Short term trend of Nifty remains negative. The attempt to bounce back from the lows in the last two sessions appears to have been completed and the market is positioned for further weakness. The downside target for the near future remains at the 15700 level. On the upside, the 16400-16500 level could act as a strong overhead resistance.”
Breaking its two-day losing streak, the rupee on Tuesday closed higher by 12 paise at 77.32 (provisional) against the US dollar, which supported a rebound in regional currencies and fall in crude oil prices.
Jatin Trivedi, Senior Research Analyst, LKP Securities said: “The rupee traded in a volatile range between 77.20-77.45, after a lag for the rupee, gains started to ease as geopolitical high inflation and FIIs Risk sentiment remains behind the pullback of Rs.100 off from the markets. The rupee has weakened strongly from 76.25 to 77.30 in the last one week as the dollar index showed a strong positive trend. 20-DMA supporting the USD-INR move The fall in crude prices in the last two days has supported the rupee’s fall to some extent. With the rupee weakening, the rupee could be seen in a range of 77.10-77.75 in the coming sessions. can go.