Sensex slips 372 points, Nifty below 16K; Reliance, HDFC twins sink 2%

The BSE Sensex fell 372 points at close to 53,514. The index had previously risen 325 points to the day's high.

Sensex slips 372 points, Nifty below 16K; Reliance, HDFC twins sink 2%

CLOSING BELL

Stock market highlights: The domestic markets gave up their early gains to close near the day's low on Wednesday as investors turned cautious ahead of the key US retail inflation data due later tonight.

As per global reports, the June headline inflation in the US is expected to rise to 8.8 per cent from the 40-year high of 8.6 per cent recorded in May. This, experts believe, could prompt the US Fed to continue hiking rates pushing the economy in a recession.

The BSE Sensex fell 372 points at close to 53,514. The index had previously risen 325 points to the day's high. The NSE Nifty50 index had gained 92 points earlier in the day before settling 82 points lower at 15,967.

Of the 30-constituents, 16 shares ended higher with the gains led by HUL, Asian Paints, Kotak Bank, NTPC, Sun Pharma, and Nestle, rising up to 2 per cent.

On the flip side, Bharti Airtel, IndusInd Bank, HDFC twins, Reliance, TCS, HCL Tech, ICICI Bank, Tech M, Wipro, Titan were the top drags, closing 1-3 per cent lower.

Meanwhile, the broader markets showed resilience with the BSE MidCap and SmallCap indices ending 0.32 and 0.04 per cent higher, respectively.

Among sectors, banks & financials, and oil & gas pockets on the Nifty were the top laggards, each closing 1 per cent lower. Nifty IT also ended with marginal cuts, while, FMCG and Pharma indices defied overall trend ending with strong gains of 1 per cent each.

Global markets

Ahead of the US inflation data, stock futures linked to the Dow, S&P500 and Nasdaq indices held marginal gains of up to 0.3 per cent.

European markets edged lower in early trade amid nervousness in investors. The pan-European Stoxx 600 index fell by 0.6 per cent.

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4:15 PM

Nifty tech view: Key resistance for index at 15,800

Benchmark indices made a gap opening today amid positive global market cues and in line inflation data which was released yesterday.

Markets continued to trade in green in the morning session as investor sentiments were uplifted on the back of robust growth in industrial production (IIP) for the month of May at 19.6%.

However, Nifty entered into negative terrain in the afternoon session and slipped below 16,000 as rupee hit record low for the third straight day.

Investors will be eyeing the US inflation data that is expected to be released today.

Investor sentiments also got hit after a private report stated that India’s fiscal deficit is likely to touch $105 billion i.e. 3% of GDP.

On the technical front, the key resistance level for Nifty 50 is 15,800 and on the downside, 16,200 can act as strong support. The key support and resistance levels for Bank Nifty are 34,500 and 35,500 respectively.

Views by Mohit Nigam, Head - PMS, Hem Securities

4:12 PM

Closing view: Global markets in bear grip ahead of US inflation data

Strong domestic macro numbers and a fall in crude prices lifted Indian indices to open in positive territory while the gains were restrained by Europe’s negative market trend.

In line with expectations, the Indian CPI numbers eased marginally to 7.01%. Global markets were in a bear grip ahead of the release of the US inflation data which is expected to touch fresh highs of 8.8% owing to surge in gasoline and food costs.

Views by Vinod Nair, Head of Research at Geojit Financial Services.