Nifty, Sensex fall as FMCG, public sector banks tumble; IT stocks rise
Nifty, Sensex fall as FMCG, public sector banks tumble; IT stocks rise
After hitting record highs during the week, the Nifty and Sensex ended the week in the red on June 21 in a rather choppy trading session, bogged down by public sector banks and FMCG stocks. IT index, on the other hand, ended one percent higher.
At close, the Sensex was down 0.35 percent at 77,209 and the Nifty fell 0.28 percent at 23,501. About 1,595 shares advanced, 1,761 shares declined, and 93 shares were unchanged.
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The fear gauge, India VIX, cooled off by one percent to settle at the 13.2 level on June 21, dropping around 60 percent from last week's high as anxiety around the election results settled down.
"There is a strong tug of war going between the bulls and the bears at this point and we are witnessing some kind of profit booking," Kranthi Bathini, director of equity research at WealthMills Securities, said. "But at the same point of time, this is a buy-on-dips market," he added. Bathini also added that this is a momentary blip in the market and the sentiment continues to remain positive.
IT index performed well, rising nearly one percent. The surge comes after Accenture forecasted annual revenue growth above expectations on the back of surging demand for its artificial intelligence tools. Accenture stock soared over seven percent in the overnight US trading.
"IT is a sector which has not seen the kind of returns that overall market has and now a catch-up rally has begun where shares start performing, " Ruchin Jain, lead research analyst at 5Paisa, told Moneycontrol. He also said this could be a buying opportunity as price-wise correction is largely over in the sector.
While the midcap index ended 0.3 percent lower, the smallcap was largely flat, up a marginal 0.06 percent. Of the 13 indices, about 11 ended lower with FMCG, PSU Banks, Realty and Auto being the worst hit. IT and metal rose 0.8 and 0.4 percent, respectively.
"We are of the view that the current market texture is non-directional perhaps traders are waiting for either side breakout. On the higher side, 23,680 and 77,800 (Nifty and Sensex) would be the immediate breakout level while below 23,450 and 77,100, the selling pressure is likely to accelerate," Shrikant Chouhan, Head of equity Research at Kotak Securities said.
Airtel, LTIMindtree, Hindalco, Infosys and Adani Ports were the top gainers on Nifty. UltraTech Cement, Adani Ports, BPCL, Tata Motors, and Tata Consumer Products were the laggards.
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