FINAL TRADE: Equity indices snap 5-day winning run as drag in financials, banks outweigh

Stock market today: Snapping a 5-day winning streak, Indian equities ended lower on the first session of the July F&O series as losses in banking and financial services outweighed gains in the energy and pharma pack. After hitting fresh-highs in intra-day led by buying action in bluechips, the 30-share BSE Sensex ended weak by 0.27 per cent or 210.45 points at 79,032.73, while Nifty ended lower by 0.14 per cent or 34 points at 24,010.6 points. 

Among the 50 Nifty companies, Dr. Reddy's, ONGC. Reliance Industries, SBI Life Insurance and Tata Motors were the biggest gainers, while laggards during the session were IndusInd Bank, Bharti Airtel, Axis Bank, ICICI Bank and Kotak Mahindra Bank.

Vinod Nair, Head of Research, Geojit Financial Services said India’s optimism about the upcoming budget and upgrade in GDP forecasts continues to provide momentum in the market. Large caps are in favour due to the come back of FIIs. However, profit booking ensued at the end of the week, at higher levels, in financials especially private banks, which dragged the market down after the recent rally, he added.

The domestically focussed Nifty SmallCap100 index ended higher by 0.84 per cent, while Nifty MidCap100 settled 0.56 per cent higher, respectively, outperforming the headline indices by a wide margin.

The high-beta Nifty Bank index, whose 12 constituents include SBI, HDFC Bank, and ICICI Bank finished lower by a significant 0.9 per cent at 52,342.25 points.

On today's performance, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said that the index experienced its first meaningful correction after a nonstop rally in the past week. For the selling pressure to continue, there needs to be follow-up selling; otherwise, the index may get stuck in a consolidation range. The immediate support is at 52000, where the highest open interest is built up on the put side, while the immediate resistance lies in the 52700-53000 zone."

Telecom stocks gained spotlight in today's session as the telecom service providers, including Jio and Bharti Airtel have announced price hikes in their tariff plans.

Global Market

European shares traded mixed ahead of the key US inflation print due to be released later today. While the German DAX index traded with gains of 0.7 per cent, French's CAC index traded with a drawdown of 0.3 per cent.

(With agency inputs)

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(This is a developing story, and will be updated shortly)