The Indian market ended lower for the second straight session this week in a highly volatile session on May 24. Sensex declined 236 points or 0.43 per cent to end at 54,052.61. During the day, the 30-stock index hit a low of 53,886.28 and a high of 54,524.37. Nifty fell 89.55 points or 0.55 per cent to close at 16,125.15.
Tech Mahindra, Hindustan Unilever, HCL Technologies, Asian Paints, NTPC, Tata Steel, Infosys, Axis Bank, and Bajaj Finserv were the top Sensex losers, falling up to 3.92 percent in the previous session.
Dr Reddy's, HDFC, PowerGrid, Kotak Mahindra Bank, HDFC Bank, and Nestle were the top Sensex gainers, rising up to 1.80 percent. BSE mid-cap and small-cap indices lost 189 points and 298 points, respectively.
Among BSE sectoral indices, IT, pharma, and consumer durables shares were the top losers, with their indices falling 517 points, 306 points, and 339 points, respectively.
The market breadth was negative with 1036 shares ending higher against 2270 stocks falling into the red. 124 shares were unchanged.
Here's a look at what experts said about the outlook of the market in today's session.
Prashanth Tapse, Vice President (Research), Mehta Equities said, "Amid volatility, Nifty ended on a negative note, with India VIX flaring up 9.83% to 25.70 levels. Sectorally, Nifty Pharma and Nifty IT index dropped around 1.5 per cent each ahead of a speech by Fed Chair Jerome Powell scheduled for Tuesday.
The FOMC minutes are expected later on Wednesday, which shall provide cues on the central bank's rate-hike path. The second reading of 1st quarter US GDP will trickle out on Thursday. Some part of the nervousness in today's trade was also due to RBI Governor Shaktikanta Das Monday's statement that the market is 'right in thinking' that the MPC wants to raise rates in the next meeting on June 8th. The technical picture has shifted to neutral following the last two days' uneven session. All eyes will be on Nifty's biggest hurdles at the 16,411-mark. Expect a waterfall of selling only below the 15,971 mark."
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities said, "Daily timeframe of Nifty indicates that index has made a double bottom around the 15,735 levels and rallied sharply last Friday. Nifty has however failed to convincingly cross the recent swing high of 16,400 and has corrected from those levels in the last two sessions. Many stocks are also correcting and failing to hold on to their recent gains. This is a sign of weakness and caution is therefore warranted. Traders should wait for strength to emerge before going aggressively long. While we remain open to further pullback rallies in the very near term, we must remember that the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15,735 is broken."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "Investors are waiting for the minutes of the US FOMC meeting, which will provide cues on the central bank's rate-hike direction going ahead. Also, there is a lot of skepticism amongst the investors over interest rate hikes in the near term and their impact on growth going ahead. On daily charts, the Nifty has formed a bearish candle, which is indicating further weakness in the near future. We are of the view that as long as the index is trading below 16,250, the correction wave is likely to continue. Below the same, it could retest the level of 16,000-15,050. On the flip side, post 16,250 breakout, the index could move up to 16,325-16,375."
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