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Sensex, Nifty recover from Brexit hangover, end flat

Analysts warned the Brexit vote would still weigh on domestic markets, even though some sectors were expected to benefit. Shares of oil marketing companies, for example, rallied.

BT Online | June 28, 2016 | Updated 09:15 IST
Photo: Reuters

In a volatile trading day, the S&P BSE Sensex on Monday settled the day flat, while the broader Nifty50 ended below its key 8,100-mark.

The headline indices swung between gains and losses, as investors continued to digest the fallout of Britain's decision to leave the European Union and as cement makers and agriculture-related firms rose on forecast of an extended monsoon season.

The 30-share index ended the day at 26,402, up 5.25 points, while broad-based 50-share index quoted 8,094, up 6.10 points at close.

The chief of the weather office IMD told Reuters on Friday that monsoon rains were likely to end later than usual this year, with plentiful showers towards the latter stages of the season, helping farmers recover from two straight droughts.

Analysts warned the Brexit vote would still weigh on domestic markets, even though some sectors were expected to benefit. Shares of oil marketing companies, for example, rallied on Monday after crude prices slumped.

Brexit still remains a concern across the globe, said Saurabh Jain, assistant vice president-research at SMC Global Securities.

"It (Brexit) is an event which you can say is low probability, high impact. Market participants had never expected this to happen. So, this is a kind of breather which markets are taking before taking their new direction after the event (Brexit) has happened."

Shares of software services companies led declines, given their hefty exposure to Europe. Tata Consultancy Services dropped as much as 3.55 per cent, while Infosys  and HCL Technologies fell about 2.80 per cent each.

Meanwhile, shares of consumer giants Hindustan Unilever and ITC gained 1.72 and 2.06 per cent, respectively. Monsanto India jumped 8.21 per cent.

Cement makers were also among the top gainers, with UltraTech Cement up 2.93 and ACC 3.49 per cent higher.

Oil marketing companies Hindustan Petroleum Corp, Bharat Petroleum Corp and Indian Oil Corp gained between 2.20 and 5.21 per cent, supported by continued declines in global crude prices.

(With inputs from Reuters)

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