Published: Sun, June 18, 2017
Economy | By Guillermo Lane

Sensex slips 22 points in early trade on global cues

Sensex slips 22 points in early trade on global cues

Intra-day, the Nifty slumped to a low of 9,630.20 before closing at 9,637.15, a steep loss of 37.95 points, or 0.39%.

The Indian equity markets opened on a flat-to-positive note during the early morning session on Thursday, with healthy buying in metal, automobile and capital goods stocks.

The RBI in its second bi-monthly monetary policy review of 2017-18 made a decision to reduce the Statutory Liquidity Ratio (SLR) by 50 basis points to 20 per cent.

The 30-share BSE Sensex settled trade at 31,213.36, down 57.92 points while the 50-share NSE Nifty slipped 16.65 points to 9,647.25 after gyrating in a range of around 50 points.

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On the other hand, Tata Steel (3.34%), Dr Reddy'S Laboratories (2.83%), Sun Pharmaceutical Industries (2.00%), Housing Development Finance Corporation (1.84%), H D F C Bank (0.70%), and Axis Bank (0.69%) were the biggest gainers in the Sensex. Back home, out of the 30-share Sensex pack, 24 scrips ended lower while only six closed higher.

The market sentiment took a short-term reversal in the absence of any meaningful fresh domestic triggers and also concerns of stretched valuation. "Volatility will remain high, as indices are trading at record high and hence, traders should remain cautious and selective in stock picking", Jayant Manglik, President, Retail Distribution, Religare Securities said.

In the sectoral landscape, IT stocks bled the most, plunging almost 2 per cent to settle at 10,178, with TCS (down 3.59 per cent) being the biggest loser. The market breadth turned negative as 1,774 stocks ended lower, 924 closed higher while 160 ruled steady.

Shares of rate-sensitive companies rose marginally after the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged and lowered its inflation target at its second bi-monthly monetary policy review for FY18 on Wednesday.

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