Markets Wrap: Sensex Nifty end marginally lower in volatile trade; energy, auto stocks drag : Podcast: Business Today
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Markets Wrap: Sensex Nifty end marginally lower in volatile trade; energy, auto stocks drag

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BusinessToday.In | June 24, 2019

After a choppy trading session, key equity indices closed lower on Monday owing to weak cues from other Asian markets and rising crude prices.  

The NSE Nifty50 index closed at 11,699, down 24 points, while the 30 share BSE Sensex ended lower by 71 points at 39,122.

According to experts, volatility in crude oil prices due to global political uncertainty has dampened investor sentiment. Going ahead, the upcoming Union budget will remain the key event in the market.

"Consolidation is continuing as investors are waiting to hear concrete measures from the government to support the weakening economy. Lack of triggers and premium valuation is impacting new investment while delay in monsoon and F&O expiry may add volatility," commented Mr. Vinod Nair, Head of Research, Geojit Financial Services Ltd.

Sectorally, Energy index was down by 1.27%, followed by 1% fall in Metal. Other sectors that ended in the red were Auto, Realty and private banks.

Industry wise, Energy shares were down today on the back of rising crude prices, while auto shares were declining in today's trade as NITI Aayog gave the automaker industry a deadline of two weeks to come up with a plan to switch to electric vehicles.

In major stock news, initial public offering (IPO) of IndiaMart was launched today, which has been subscribed 0.16 times, Jet Airways announced today that Corporate Insolvency Resolution Process (CIRP) has been initiated for the debt-ridden airline, Bandhan Bank received approval from (NCLT) for the merger with the housing finance company, GRUH Finance, RITES board approved and recommended the issuance of fully paid up bonus shares in the ratio of 1:4 issue.

In another domestic event, today the RBI deputy governor Viral Acharya quit six months before the scheduled end of his term, which added volatility to the market, as per market participants.

On the currency front, Indian Rupee, opened flat at 69.58 against the US dollar today amid rising crude oil prices and foreign fund outflows, but later rose to 69.45 against the falling dollar.

Globally markets were subdued today after Trump declared additional sanctions on Iran. This comes after Trump aborted a military strike following the downing of a US spy drone last week.

Oil prices also rose on Monday, with a barrel of Brent crude up 0.6% to $65.58, near Friday's three-week high of $65.76.

On the global stock market front, while the European shares slipped, Asian markets climbed after Chinese media confirmed that President Xi would be heading for G20 summit, that is scheduled later this week.

On the Wall Street, although the markets ended in the red on Friday, US futures rose today amid bullish optimism emerging for U.S.-China trade talks