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Sensex and Nifty50 recover much of day's losses in a volatile session — LIC hits record low

Sensex and Nifty50 recover much of day's losses in a volatile session — LIC hits record low

Sensex and Nifty50 recover much of day's losses in a volatile session — LIC hits record low
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By Sandeep Singh  Jun 6, 2022 3:51:27 PM IST (Published)

The Sensex and the Nifty50 finished a volatile day marginally lower, as gains in metal stocks and a fag-end rebound in select financial shares were offset by losses in IT counters.

Indian equity benchmarks finished a volatile session marginally lower on Monday — a second straight day of fall — as gains in metal stocks and a fag-end rebound in select financial shares were offset by losses in IT names. Investors on Dalal Street were on the back foot as they awaited the outcome of the RBI's bi-monthly deliberations due this week for cues.

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Both headline indices switched between gains and losses throughout the session, with the Sensex gyrating within in a 536.5-point range around the flatline.
The indices failed to make it to the green by the closing bell, despite recovering much of their intraday losses.
The India VIX — known in market parlance as a gauge of fear — closed 1.1 percent higher at 20.2 after jumping as much as 3.5 percent during the session.
"Volatility is likely to continue in both global and domestic markets as investors await monetary policy decisions from major central banks including the RBI," said Vinod Nair, Head of Research at Geojit Financial Services.
Shree Cement, Bharat Petroleum, Asian Paints, UltraTech, Hero MotoCorp and Dr Reddy's — closing between 1.6 percent and 3.1 percent lower — were the worst hit among the 29 laggards in the Nifty50 basket.
Bajaj Auto, JSW Steel, Tata Consumer and ONGC were among the biggest gainers among the blue-chip counters.
Infosys, ICICI Bank and ITC were among the biggest contributors to the partial intraday recovery in both main indices.
Metal stocks rose on optimism over a decline in global rates.
StockChange (%)
JSWSTEEL2.7
1.9
ADANIENT1.7
VEDL1.3
TATASTEEL1.1
HINDALCO0.9
Dipan Mehta, Director, Elixir Equities said a correction in raw material prices will certainly benefit steel companies in managing their margins considering their realisations are at lower levels.
He is not too optimistic on the space given the current levels and the limited export opportunity on account of export duty changes.
Shares of upstream oil firms rose tracking strength in benchmark crude oil rates. Oil India surged 11.1 percent and ONGC finished the day with a gain of 1.6 percent. Brent futures were last up 0.6 percent at $120.4 a barrel.
The newly-listed LIC stock hit a record closing low of Rs 777.4 apiece on BSE — sliding below the Rs 800 mark for the first time ever. At the current level, LIC shares are available at a discount of 18 percent to the upper end of the price range of its IPO.
Dr Lal Pathlabs and Thyrocare went up two percent and 5.6 percent respectively amid rising daily COVID infections in the country.
Overall market breadth was in favour of the bears, with an advance-decline ratio of 2:3 as 807 stocks rose for the day on NSE and 1,287 fell.
Global markets
European shares jumped amid gains in banking and commodity-linked stocks. The pan-European Stoxx 600 index was up 0.9 percent at the last count. Investors globally kept an eye out for US inflation data and cues from a European Central Bank meeting later this week.
S&P 500 futures were up one percent, suggesting a higher opening ahead on Wall Street.
 
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