Stock Market Today: Sensex, Nifty end flat amid weak global cues; mid, smallcaps outperform
4 min read 06 Jun 2023, 03:32 PM ISTStock market today: Sensex closed with a nominal gain of 5 points at 62,792.88 while the Nifty also ended 5 points higher at 18,599. India's market-capitalisation hit a 7-month high at $3.50 trillion - highest level since December 1, 2022
PremiumWeak global cues weighed on domestic market sentiment as the equity benchmarks the Sensex and the Nifty ended flat on Tuesday (June 6) with shares of IT stocks among the top drags. The market-capitalisation of the Indian market hit a 7-month high at $3.50 trillion - highest level since December 1, 2022.
European markets traded lower, and US stock futures were also struggling even as fresh US economic data signalled the Federal Reserve may pause rate hikes in June.
"A string of economic data along with last week's dovish rhetoric from Fed officials has emboldened bets that the Fed will likely refrain from lifting rates at its June 13-14 meeting," Reported Reuters.
Sensex opened 49 points lower at 62,738.35 against the previous close of 62,787.47 and remained in the negative territory for the most part of the day, falling 233 points in intraday trade. The index, however, see some fag-end buying but that could not help it end with decent gains.
Sensex closed with a nominal gain of 5 points at 62,792.88 while the Nifty, too, ended 5 points higher at 18,599. Shares of IT players, such as Infosys, TCS and Tech Mahindra ended as the top drags on Sensex.
Read more: Nifty IT index falls 2% dragged by Persistent, Mphasis; why are tech stocks falling?
Mid and smallcaps, however, ended higher, outperforming the benchmark index. The BSE Midcap index closed 0.29 per cent higher at 27,452.83 after hitting a fresh all-time high of 27475.78 in intraday trade. The BSE Smallcap index ended with a gain of 0.42 per cent at 31,174.98 after hitting a 52-week high of 31,193.01 in intraday trade. The Smallcap index is inching closer to its all-time high of 31,304.44, hit on January 18, 2022.
Read more: Can the market see a deep correction from peak levels? What should be your strategy?
Even though the benchmark index ended flat, over 200 stocks, including the largecaps Axis Bank, Bajaj Auto, Tata Motors, Tata Motors - DVR, Mahindra and Mahindra, Titan, UltraTech Cement, IndusInd Bank, DLF and Britannia, hit their fresh 52-week highs in intraday trade on BSE.
Meanwhile, crude oil prices fell significantly amid persisting concerns over a cut in demand due to a slowdown in global economic growth. Brent Crude traded nearly two per cent lower near the $75 per barrel market around 4 pm.
The rupee rose 7 paise to close at 82.61 per dollar.
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Top Nifty Gainers and Losers
The Nifty50 index saw 28 stocks ending in the green and 21 in the red. One stock - Power Grid - closed flat.
Shares of UltraTech Cement (up 2.91 per cent), Divi's Labs (up 2.23 per cent) and Kotak Mahindra Bank (up 1.94 per cent) ended as the top gainers in the Nifty index.
On the flip side, shares of Tech Mahindra (down 1.92 per cent), Infosys (down 1.82 per cent), TCS (down 1.60 per cent) and Wipro (down 1.04 per cent) ended as the top losers in the Nifty index.
IT Lose Big, Auto, Realty Shine
Nifty IT fell by 1.88 per cent to end as the top loser among the sectoral indices. Nifty Consumer Durables (down 0.31 per cent), PSU Bank (down 0.20 per cent), Metal (down 0.14 per cent) and Media (down 0.14 per cent) also ended lower.
On the other hand, Nifty Realty rose 1.19 per cent, followed by the Auto index which rose 1.09 per cent. Healthcare and Pharma indices rose 0.6 per cent each.
Expert's Views on Markets
"The domestic market experienced profit booking due to selling pressure in the IT sector. IT stocks witnessed a decline in anticipation of further downward revision in spending. However, a rally in auto and banks helped to recover the losses. Going ahead an important influencer will be the commentary on growth and inflation forecasts by the RBI following its MPC meeting given the general consensus that the rate pause will continue," said Vinod Nair, Head of Research at Geojit Financial Services.
Technical Views on Markets
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities observed that the market is consistently holding a higher bottom formation. He said for traders, 18,550 would be the trend decider level.
Above this level, Chouhan said the index could move up to 18,700-18,750. On the flip side, below 18,550, the uptrend would be vulnerable. Below the same, the market could retest the level of 18,480. Any further correction could drag the index to 18,440.
Rupak De, Senior Technical at LKP Securities said the Nifty exhibited high levels of volatility, but its movement was confined within a narrow range.
"On the daily chart, it formed a doji candle, indicating indecision in the market. As a result, the overall trend is expected to remain sideways, with the index not showing a clear direction in its movement. In terms of levels, there is a support level at 18,500, which suggests a potential floor for the index, while a resistance level is identified at 18,665, indicating a barrier to further upward movement," said De.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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