The broader market indices, BSE Midcap & Smallcap, underperformed the benchmark, to close with losses of 0.4 percent and 0.5 percent, respectively.
The S&P BSE Sensex recouped losses of over 200 points in trade on Friday and closed in green after two straight days of losses. The Nifty50 held on to its crucial support placed at 10,800 for the fourth straight day in a row.
IT and pharma stocks led from front while PSU, metal, and realty stocks weighed on sentiment.
For the week, the Nifty50, and Sensex rose 0.5 percent. The rally in the index was led by pharma stocks in Nifty50 with Dr Reddy’s Laboratories gaining 14 percent, followed by Lupin which rose 13 percent, and Cipla closed with gains of 9 percent for the week ended 15 June.
On the losing front, Tata Steel slipped 6 percent, followed by ONGC which dropped 5 percent, and Vedanta lost 3 percent for the week.
The broader market indices, BSE Midcap & Smallcap, underperformed the benchmark, to close with losses of 0.4 percent and 0.5 percent, respectively.
Analysts are still advising a cautious stance on markets and a close above 10,900-10,930 could eventually lead to a breakout on the index. The right strategy would be to remain stock specific.
“We continue to remain cautious on the markets in the coming sessions. With lack of any fresh positive domestic triggers in the near term, volatility is likely to remain high with stock specific movement,” Jayant Manglik, President, Religare Broking Ltd told Moneycontrol.
“Market participants will closely monitor global developments, especially in US, Europe and China. Any further correction should be considered as a good buying opportunity for investors in quality counters,” he said.
Top Sensex gainers include stocks like Dr Reddy’s Laboratories (up 3.6 percent), Infosys (up 3.6 percent), TCS which rose (up 2.7 percent), and Sun Pharma rallied (up 2.04 percent).
Top Sensex losers include companies like Yes Bank (down 3.6 percent), SBI (down 1.8 percent), ONGC (down 1.8 percent), Coal India (down 1.5 percent), and NTPC (down 1.4 percent).
Stocks in news:
The board of directors of Tata Consultancy Services (TCS) has approved a proposal to buyback up to 7,61,90,476 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore being 1.99% of the total paid up equity share capital, at Rs 2,100 per equity share.
The stock hit a fresh 52-week high of Rs 1849 and finally closed 2.7 percent higher at Rs 1841.45.
Shares of UPL gained 2 percent after Deutsche Bank reiterated its buy call on the stock with a target of Rs 890 apiece. The global investment bank is betting on cross currency movements being favourable for the company so far.
Fitch Ratings has downgraded the Viability Rating of Bank of Baroda from bb+ to bb; however, it has affirmed the (1) short term issuer default rating of BOB at F3, long term issuer default rating at BBB- (3) support rating at 2 and (4) support rating floor at BBB-. The stock closed 2.9 percent lower.
Shares of Transcorp International rallied up to 5 percent as investors could be betting on the firm’s bonus issue plans. The company’s Board will be meeting June 21, 2018 for the purpose of allotment of 6356549 Equity shares of the company as bonus shares at par in proportion of 1 (one) such new Equity share for every 4 (four) existing equity share, the company said in a filing to the exchanges.
Dr Reddy’s Labs’ shares gained 3.6 percent in the opening minutes as investors cheered a regulatory approval to its drug. The company announced an approval from US FDA and is launching Buprenorphine and Naloxone Sublingual Film, a therapeutic equivalent generic version of Suboxone.
In other news/Global Update:
India’s trade deficit widened to four month high of $14.62 billion in May as imports surged nearly 15 percent, the government said on Friday.
On the global front, European shares were mixed as investors paused for breath after a stellar rally in the previous session fueled by the European Central Bank (ECB). Britain’s FTSE was down 0.7 percent and France’s CAC gained 0.3 percent at the time of writing this article.
Asian markets closed cautiously mixed as investors awaited trade developments ahead of likely US tariffs on some Chinese goods. China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s Kospi ended down 0.4-0.8 percent whereas Japan’s Nikkei gained half a percent and Australia’s ASX 200 rose 1.3 percent.
Brent crude futures fell 1.2 percent to $75.01 a barrel on likely increase in oil output.
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