Sensex, Nifty Snap Six-Day Rally; Banking Stocks Underperform
Markets At Close
- Benchmark indices snap six-day gaining streak
- Nifty ends 0.3% lower at 10,029
- Sensex ends 0.4% lower at 33,980
- Nifty Bank ends 2.6% lower at 20,390
- Both Nifty Midcap and Nifty Smallcap Index end little changed
- India Volatility Index ends 1.7% lower at 29.51
- Nifty Realty Index was the other sectoral laggard; down 1.7%
- Nifty Media ends as the top sectoral gainer; up 4.1%
- Nifty I.T. (up 1.8%), Nifty Metal (up 1%), Nifty Pharma (up 2.1%) and Nifty PSU Bank (up 1%) were the other sectoral gainers
- Vedanta ends as the top Nifty gainer; up 7.7%
- Asian Paints ends as the top Nifty laggard; down 4.6%
- 953 stocks on the NSE end with gains while 834 decline
What Contributed To Nifty's Losses
BREAKING: Amazon In Early Talks For $2 Billion Stake In Bharti Airtel
Amazon is in early-stage talks to buy a stake worth at least $2 billion in Bharti Airtel, according to a Reuters report quoted by Bloomberg News. Reuters has cited three unidentified people with knowledge of the matter.
Based on the current market value of Bharti, Amazon would buy a 5% stake if the proposed investment takes shape.
Shares spiked to end the session 3.7% higher at Rs 573.15 post the newsbreak.
Closing Bell: Taking A Pause
Indian equity markets ended their best gaining run in seven months after posting modest losses on the weekly options expiry day.
Both benchmark indices had gained 11.5% each during their six-day rally.
European markets continue to trade with losses while futures on the Dow Jones are now down 150 points.
The S&P BSE Sensex ended 0.4% lower at 33,980 while the NSE Nifty 50 managed to close above the 10,000 mark for the second straight day, rebounding from the bear-market level of 9,944. The index closed at 10,029, down 0.3%.
Private banks were the primary laggards in today's trading session. The Nifty Bank index ended as the worst sectoral performer with losses of 2.7%.
I.T., Media, Pharma and PSU Banks were the outperforming sectors with gains ranging between 1.2-4.5%.
Market breadth returned to favour the advances with 953 stocks ending higher on the NSE while 834 posted losses.
Covid-19 Update: L&T Infotech
- Expect mid-single digit decline in dollar revenue growth in Q1FY21
- Revenue growth likely to recover in H2FY21
- Expect a slight increase in receivables for a temporary period
- Expect near-term margin pressure which cannot be quantified currently
- Not issued margin guidance for FY21
- Manufacturing, Energy & Utilities verticals shall see the highest negative impact
- Expect demand pressure in the short-term
- Deferred salary hikes and annual incentive payouts to staff
- Well positioned to fulfill our obligations.
Shares trade 0.8% higher at Rs 1,862.
Stock Reaction: State Bank Of India
India's largest lender has informed the exchanges that its executive committee of the central board will meet on June 11 to consider long-term fund raising.
The lender looks to raise $1.5 billion in long-term funds in single or multiple tranches through a public offer or private placement in senior unsecured notes in U.S. Dollars or any other convertible currency during FY21.
Shares trade 0.5% lower at Rs 173.95, snapping a four-day gaining streak.