Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty closed in the positive on June 20, breaking a 2 day losing streak. Nifty opened flat, sold off early morning and later showed alternate bouts of buying and selling. At close, Nifty was up 0.37% or 56.7 points at 15350.2. Volumes on the NSE were in line with recent averages. Among sectors FMCG, IT and Consumer Durables rose the most, while Oil & Gas, Metals, Capital Goods and Telecom indices fell the most. BSE Smallcap index fell almost 3% while Midcap index fell 1.4%, both underperforming the Nifty. While Nifty remained in a range, the broader markets saw a selloff as is reflected in a sharply negative advance decline ratio.
Asian markets are largely down as the recessionary fears sweeping the US on Friday, continue to weigh on sentiments in Asia. Latest fall in metal prices added to these concerns. Stocks in Europe steadied Monday after the biggest weekly selloff since March, as investors assessed the outlook for economic growth amid concerns about a wave of monetary tightening.
Fall in crude oil prices has given some positive cues to markets like India and resulted in fall in bond yields.
Nifty seems to have stabilised on a day when the US markets are shut. Having formed a double bottom at 15183-15191, Nifty could head towards 15670, if no new negative developments crop up on the horizon.