Domestic equity benchmarks the Sensex and the Nifty ended lower for the third consecutive session as investors shift focus to the US FOMC outcome on June 15.
The concerns over inflation have been keeping the sentiment subdued. India's wholesale price-based inflation increased to a record high of 15.88 percent in May on rising prices of food items and crude oil. In April, the Wholesale Price Index was 15.08 percent.
Market barometer the Sensex opened lower but rose soon on bargain hunting by investors. However, it failed to hold gains and ended in the negative territory.
Sensex ended the day 153 points, or 0.29 percent, lower at 52,693.57 while the Nifty closed the day 42 points, or 0.27 percent, lower at 15,732.10.
"Domestic market restrained from heavy sell-off as CPI data moderated on an MoM basis and this had a calm down effect amidst global volatility. However, elevated WPI data continued to dominate the broad market, which is cautious awaiting tomorrow’s outcome of Fed policy. Earlier the global market was anticipating a 50bps hike but now is worried about a higher rate hike due to persistent US inflation," said Vinod Nair, Head of Research at Geojit Financial Services.
In the Sensex index, 15 stocks ended in the green and 15 in the red. Shares of Bharti Airtel, NTPC, UltraTech Cement, Mahindra & Mahindra and Infosys ended as the top gainers while those of IndusInd Bank, Tech Mahindra, Reliance Industries, Maruti Suzuki and HDFC ended as the top laggards.
BSE Midcap and smallcap indices ended 0.16 percent and 0.40 percent lower, respectively. Among the sectoral indices, BSE Energy and Oil & Gas indices fell 1.22 percent and 1.14 percent lower, respectively.
Nearly 200 stocks, including Asian Paints, Bajaj Finserv, Bajaj Finance, Tata Steel, Tech Mahindra, UltraTech Cement and Wipro, hit their 52-week lows in intraday trade on BSE.
Crude oil prices rose due to tight supply. The benchmark Brent Crude traded near the $125 dollar a barrel mark. The rupee ended 4 paise higher at 78 per dollar.
On an intraday basis, the Nifty made a lower low compared to the previous session and closed lower.
Deepak Jasani, Head of Retail Research, HDFC Securities highlighted that the Nifty has closed at the lowest in 11 months, forming a near 'Inverted Hammer' pattern which has bullish implications. 15431-15513 band could provide support while 16173 could offer resistance over the next few sessions.
Mazhar Mohammad, Founder & Chief Market Strategist, Chartviewindia.in pointed out that even though Nifty50 remained choppy and volatile throughout the session, it managed to defend its intraday low of 15,659 hit in the early part of the session. Moreover, this intraday volatility, with a long upper shadow depicted an 'Inverted Hammer' kind of formation which yet times form around bottoms as traders will remain sceptical about the initial pullback attempts.
"Sustaining above 15650, there can be a chance of some short-covering led rally in the next session. Contrary to this, a close below 15,650 can initially extend the downswing towards 15,300. For the time being, traders will be better off by remaining mute spectators as global markets may remain highly volatile ahead of the Federal Reserve event," said Mohammad.
Disclaimer: The views and recommendations made above are those of individual analysts and not of MintGenie.