Seven Sensex stocks- Asian Paints, Bajaj Finserv, Bajaj Finance, Tata Steel, Tech Mahindra, UltraTech Cement and Wipro - hit their 52-week lows in intraday trade on BSE on June 14 as the market benchmark Sensex remained volatile.
Sensex opened in the red and traded subdued for some time but saw some gains after some time as investors embarked on bargain hunting.
However, the market failed to end in the green. Sensex fell 153 points, or 0.29 percent, to end at 52,693.57 while the Nifty closed the day 42 points, or 0.27 percent, lower at 15,732.10.
The concerns over inflation and aggressive rate hikes is expected to keep the market low in the near term. The focus now is the US FOMC outcome on June 15 as the US inflation last month hit the fresh 40-year high level, stoking fears that the US Fed will hike rates more aggressively than previously anticipated.
India's retail inflation, or the CPI inflation, in May dropped to 7.04 percent compared to 7.79 percent in April led by a favourable base effect and moderation in sequential momentum.
The moderation in May CPI inflation was led primarily by a favourable base and sequential slowdown in core
inflation, said Kotak Securities. The brokerage firm expects inflation to have peaked in April, however, the persistence of geopolitical tensions and elevated global commodity prices are likely to keep the decline in inflation slow.
"We maintain our FY2023E average CPI inflation estimate at 6.5 percent in FY23E. We continue to expect the RBI to frontload its rate actions. We pencil in further repo rate hikes of 85 bps in the rest of FY23 (including 35 bps hike in the August policy) and a CRR hike of 50 bps by end-FY23," said Kotak Securities.
Deepak Jasani, Head of Retail Research, HDFC securities said investors who are under-invested in equities can start to deploy money in a staggered manner while those who are fully invested can sell some stocks and raise cash on rises.
"Nifty needs to stay above 15,671 level to prevent further damage. 15,336-15,431 band could be good support for Nifty from where we could witness a short-term bounce," he said.
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