The stock markets started the week on Monday on a negative note, with the S&P BSE Sensex dipping 56.31 points or 0.16 per cent to trade at 35,633.29 in early morning trade. The Nifty50 index fell 20.60 points or 0.19 per cent to trade at 10,807 mark. The domestic indices were down due to passive global cues. At 1:10 pm, Sensex was 123 points down and traded at 35,566.59. NSE Nifty, at the same time traded at 10,792.25. Asian shares also started today on a cautious note on escalating trade tensions between the United States and major economies. Oil prices gave up some of their hefty gains made after major producers agreed to a modest increase in production.
Major gainers in the Sensex pack in morning trade were Infosys, Vedanta Limited, Larsen & Toubro, Mahindra & Mahindra, Asian Paints and ONGC. Top laggards on the index were HeroMotoCorp, Tata Motors, Axis Bank, ICICI Bank, Yes Bank and Reliance Industries.
Infosys, Sun Pharma, Bajaj Finance, IDBI Bank, Reliance Communications and JP Associates were leading the pack of Nifty gainers while main losers on the index in the morning session were Dr Reddy’s and HDFC.
Sectoral indices led by oil and gas, auto, banking, PSU banks, power and infrastructure stocks fell by up to 0.53 per cent. The rupee weakened by 29 paise to 68.13 against the US dollar in early trade today as demand for the American unit from importers and banks picked up.
According to market analysts, global factors such as concerns over trade wars and further developments on tariffs, along with the decision of the Organisation of Petroleum Exporting Countries(OPEC) to marginally increase oil production, would drive the domestic equity market throughout this week. Progress in the monsoon rains and macro-economic data due later in the week would also give the market cues.
“In the absence of any major trigger, global clues will continue to dominate market sentiments… However, trading could be volatile as traders roll over positions in the F&O segment from the near month June 2018 series to July 2018 series. Tracking the technicals, Nifty managed to form a bullish engulfing candlestick pattern on the daily chart, indicating a positive bias for the index going into the June expiry week”, said Gaurav Jain, Director, Hem Securities.