The Indian market ended lower in a choppy session on June 8 after the Reserve Bank of India left rates unchanged but said that the inflation battle was far from over, pointing to a policy tightrope walk.
The 30-pack Sensex closed 294.32 points or 0.47% down at 62,848.64, and the Nifty closed 91.90 points or 0.49% lower at 18,634.50.
After a flat start, the market moved higher but selling in the afternoon session erased the gains and it closed half a percent lower.
As expected, the Reserve Bank of India's Monetary Policy Committee (MPC) retained the repo rate, the key short-term lending rate, at 6.5 percent and also stuck to the “withdrawal-of-accommodation” stance.
The central bank maintained its GDP growth projection for the fiscal year 2023-24 at 6.5 percent, while made a slight downward revision to its inflation forecast for 2023-24, lowering it by 10 basis points to 5.1 percent but still above its target of 4 percent.
Stocks and sectors
Grasim Industries, Kotak Mahindra Bank, Sun Pharma, Tech Mahindra and Apollo Hospitals were among the top losers on the Nifty, while gainers were NTPC, JSW Steel, ONGC, Power Grid Corp and Larsen and Toubro.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 62,848.64 | -294.32 | -0.47% | |
| Nifty 50 | 18,634.55 | -91.85 | -0.49% |
| Nifty Bank | 43,995.25 | -280.05 | -0.63% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| NTPC | 182.05 | 4.70 | +2.65% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Grasim | 1,711.95 | -57.10 | -3.23% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Energy | 24215.00 | 89.80 | +0.37% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 28591.10 | -322.60 | -1.12% |
Except power and capital goods, all sectoral indices ended in the red.
The BSE midcap and smallcap indices fell 0.5 percent each.
A long build-up was seen in Dixon Technologies, NTPC and JSW Steel, while a short build-up was seen in Indian Energy Exchange, Vodafone Idea and HPCL.
Among individual stocks, a volume spike of more than 300 percent was seen in Container Corporation of India, Indian Energy Exchange and Kotak Mahindra Bank.
Titan, Aurobindo Pharma, Zomato, Bajaj Auto, Anant Raj, Patel Engineering, KEI Industries, IndusInd Bank among the stocks that touched their 52-week high on the BSE.
Outlook for June 9
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
Sharp correction in the last hour trade pulled down the Sensex below the 63000 mark, as realty shares faltered sharply after the recent upsurge. While rate hike pause by the MPC was on expected lines, subdued commentary by the RBI on inflation for this fiscal year dampened the sentiment.
Technically, on daily charts, the Nifty has formed a long bearish candle, which indicates further weakness from the current levels. However, the medium term formation of the index is still in to the bullish side.
For traders, as long as the index is trading below 18725, the technical correction is likely to continue. Below which, the market could slip till 18600-18550. Contra traders can take a long bet near 18550 with a strict stop loss at 18520.
Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed lower after a volatile session on June 08, dragged down by weak global cues. At close, Nifty was down 0.49% or 91.9 points at 18634.6. Volumes on the NSE continued to be on the higher side. Midcap index fell more than the Nifty even as the advance decline ratio fell to 0.55:1.
Global markets were mixed on Thursday as negative sentiments arising out of expectations of further interest rate hikes by major central banks and the fact that Eurozone has entered recession after its Jan-Mar GDP fell 0.1% was offset by optimism over more Chinese stimulus measures.
India’s southwest monsoon, which waters more than half of India's farmland, has arrived over Kerala on June 8, Thursday, according to the Indian Meteorological Department after a one-week delay.
Nifty formed a near Engulfing Bear pattern on daily charts. It could now face resistance from 18778, while 18531 could act as a support. In case the Nifty closes below this support on Friday, it could result in Engulfing Bear pattern on weekly charts and the downtrend could gather momentum.
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