Markets ended the weekly expiry session (May 11, 2023) on a flat note with a negative bias amid selling in L&T, Reliance Industries, and ITC. At close, the S&P BSE Sensex stood at 61,904.52, down 36 points, or 0.06 per cent. The NSE's Nifty50 ended the session at 18,306.55, down 8.5 points, or 0.047 per cent. L&T (down over 5 per cent) emerged as the top loser on Sensex, followed by ITC, and Bharti Airtel. On the contrary, Asian Paints (up over 3 per cent) was the biggest gainer on the 30-share index after the paints major reported a solid set of numbers for the March quarter (Q4FY23). In the broader market, both mid and small-cap indices outperformed the benchmarks. 

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"The current market rally has been largely influenced by consistent FII inflows, driven by lower treasury yields and the weakness of the US Dollar. However, the gains in the domestic market were tempered by weak earnings reported by a few heavyweight companies. On the global front, markets remained positive as US inflation eased below 5 per cent, providing reassurance to investors that the Fed's rate hike measures have been effective in managing inflation levels," said Vinod Nair, Head of Research at Geojit Financial Services.

F&O view on Nifty

“The Nifty Index played out perfectly as per the open interest (OI) data yesterday. The 18,300 short straddle almost went to zero as markets expired very close to this level. The trend for the next two weeks for the Index is sideways with a bullish bias. The derivative data currently indicates that the short straddle for this monthly expiry is at the 18,300 level with the highest number of call writers at the 18,500 call, which further corroborates this hypothesis. Momentum indicators are also showing signs of consolidation which is a very healthy sign for an ongoing rally. Expect Nifty to consolidate between 18,180 and 18,400 before it starts its next leg on the upside," said Rahul Ghose, Founder & CEO of Hedged, an algorithm-powered advisory platform.

BUZZING STOCKS

Sanofi India ended nearly 9 per cent higher at Rs 6,210.05 on the BSE, a day after the company announced the demerger of its consumer healthcare business. The entity will be called Sanofi Consumer Healthcare India Limited (SCHIL). Pharma major Dr Reddy's, on the other hand, slumped around 7 per cent after disappointing March quarter numbers. The stock settled at Rs 4,532.40, down 6.89 per cent on the BSE. Paytm parent One97 Communications ended 4 per cent lower at Rs 698.40 on the BSE.

GLOBAL MARKETS

Europe's stock markets, the dollar and oil all had a spring back in their step on Thursday as a deflationary jolt from China made way for broader optimism ahead of what was set to be the Bank of England's 12th straight rate rise later. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan had finished down 0.3 per cent, reversing gains in the morning session, as concerns about weak demand in China weighed on sentiment.