Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped a four day losing streak on June 09 despite unencouraging global cues. Nifty opened gap down and made an intra day low in the first minutes of trade. It later kept rising gradually through the day and closed near the intra day high. At close, Nifty was up 0.74% or 121.9 points at 16478.1. In the process, Nifty was the best performer in the Asian region.
Volumes on the NSE continued to be lower than recent averages, suggesting lower interest from FPIs. Among sectors Oil & Gas and Telecom indices gained the most while Metals lost the most. Midcap and Smallcap indices rose but underperformed the Nifty.
Despite volatility, mutual fund equity schemes registered net inflows of Rs 18,529 crore in May, up from Rs 15,890 crore in April. Monthly contributions into systematic investment plans rose above Rs 12,000 crore after a month at Rs.12286 cr.
Indian rupee on Friday hit a fresh record low against the dollar as foreign institutional investors (FIIs) continued selling in local equity markets. The currency opened at 77.75 and touched a fresh record low of 77.8075 a dollar.
Asian stocks fell, U.S. bond yields edged up and a surging dollar pushed to a two-decade high against the yen on Thursday even as crude oil prices hovered above $120 a barrel, adding to price pressures. European markets traded lower as investors worried about the impact of rate rises ahead of a European Central Bank meeting later in the day. Officials are set to wind down trillions of euros of asset purchases in a prelude to an interest-rate hike expected in July.
Nifty made a lower low on June 09 compared to the previous day but managed to close at the highest in 3 sessions. For the turnaround to sustain, Nifty will have to cross the resistance of 16661 while 16515 could act as a support. Unless the ECB sounds very hawkish in its meet later today, the upmove in the Nifty could continue over the next few sessions.