Sensex Drops 307 Points On RBI's Inflation Concerns
Dear Trader…
Benchmark indices closed lower on Thursday, dragged by financials and consumer stocks after the Reserve Bank of India (RBI) delivered a hawkish note on inflation in the short term, despite an anticipated hold on interest rates to reduce excess liquidity.
The 30-share Sensex fell 307 points to settle at 65,688, while the broader Nifty ended at 19,596. About 1,612 stocks gained, 1,994 declined, and 136 remained unchanged on the BSE.
Sectors sensitive to domestic interest rates like banks and financial services stocks were among the top losers as Nifty Bank fell 0.76 per cent. Meanwhile, FMCG index lost 0.91%, followed by Pharma, which was down 0.74 per cent.
From the Sensex pack, IndusInd Bank, JSW Steel and Titan were the top gainers, while on the other hand HDFC Bank, Tata Motors and Nestle India declined the most.
FII and FPIs, on Wednesday, saw a net purchase of Rs.331.22 crore in the cash segment. A total of Rs.11202.21 crore was sales against a total purchase of Rs.11533.43 crore. Domestic institutional investors saw a net purchase of Rs.703.72 crore in the cash segment. A total of Rs 8450.06 crore was sold against a total purchase of Rs. 9153.78 crore.
Meanwhile, The RBI's move to control liquidity through incremental CRR dented the sentiments of the banking sector, although the impact is projected to be limited.
Technically, the important key resistances are placed in August Nifty future are at 19596 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 19676 – 19770 levels. Immediate support is placed at 19505 – 19474 levels.
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