An evening walk down Dalal Street: Sensex recoups losses; Nifty holds 10,800 for 4th day

Moneycontrol News

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).