Sensex ends lower as 'fatigue' catches up. What analysts say2 min read . Updated: 25 Jun 2020, 05:53 PM IST
- ITC was the biggest gainer among Sensex stocks, surging 5.5%
- Some selling pressure was seen in IT stocks
Indian shares closed slightly lower today in a volatile session as downbeat growth outlook from the IMF and a surge in COVID-19 cases weighed on the sentiment. The NSE Nifty 50 index ended down 0.16% to 10,288.90 and the benchmark S&P BSE Sensex slipped 26 points to 34,842.10. The Nifty fast moving consumer goods index rose 2.12%, while the pharma index gained 0.8%. ITC Ltd ended up 5.6% and was the top gainer and boost in the Nifty 50 index. Some selling pressure was seen in IT stocks with HCL, TCS and Infosys falling between 1.5% and 2%.
The Nifty 50 index has surged about 37% after hitting a four-year low in March, as the economy gradually reopened and foreign investor poured money due to massive global liquidity even as coronavirus cases continue to surge across the world.
Here is what stock market analysts said on today's market action:
Vinod Nair, Head of Research at Geojit Financial Services.
"Following the F&O expiry, our markets were also volatile and undecided, finally ending with a negative bias for the day. This was also in sync with generally lacklustre global markets. Cautiousness was visible as the IMF revised their GDP growth outlook for India and the infections continued to rise. Sectoral indices were also mixed with FMCG being the highest gainer. There seems to be some fatigue building into the markets and investors are advised to be cautious. "
Deepak Jasani, Head Retail Research, HDFC Securities
"Volumes on the NSE were slightly above average with banks/NBFCs, auto (two-wheelers and FMCG stocks doing well, while metals, oil & gas, IT, cement shares fell. Technically, the Nifty is trapped between 10205 to 10362 band. A move either way could decide its near term future direction."
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"The markets have been cautiously trading the month-end expiry today with no singular sense of direction. We did not break the lows of the morning and neither did we manage to cross 10350 on the upside on closing basis. This would be the new range for the markets to respect - a movement on either side will determine the next course of action. However, the bias continues to remain on the upside and we would still maintain a target of 10700."
Ajit Mishra, VP - Research, Religare Broking Ltd.
"To start with, weak global cues led to a gap down opening as fears of the second wave of coronavirus cases impacted investors’ sentiments worldwide. We reiterate our consolidation view on the Nifty index and suggest focusing more on stock selection as we’re seeing a decent traction on the broader front. On the sectoral front, FMCG looks best to us followed by pharma and select private banking majors." (With Agency Inputs)