Markets ended lower with Nifty50 slipping below the crucial 8,500 mark as profit booking emerged after benchmark indices hit fresh 2016 highs.
Earlier, markets had surged on hopes of GST Bill getting passed this week while sustained buying by foreign funds and progress of the monsoon further aided sentiment.
Quarterly earnings from blue-chips such as Wipro and HDFC Bank, progress of rains and proceedings of the monsoon session of Parliament will be the key themes for the stock market this week, say experts.
The S&P BSE Sensex dipped 90 points to end at 27,747, after hitting an intra-day high of 28,014. The Nifty50 slipped 33 points to close the session at 8,509 after hitting an intra-day high of 8,587.
In the broader market, the BSE Midcap index hit a record high of 12,079 and the NSE Midcap 100 hit 14,299 mark.
Rohit Gadia, Founder & CEO, CapitalVia Global Research says, “Technically holding above the 8,500 is going to be key for the market.
Break below this level, may see short term correction to fuel due to profit booking. However, mid-term trend rating is still very strong as long as Nifty remains above 8,250.
Overall it seems sentiment is extremely positive and we expect market to move higher after a short term pullback or consolidation.
Key support from medium term perspective is at 8,470 and 8,250. Resistance is at 8,600-8,620 level”.
Meanwhile, ADB on Monday marginally cut economic growth projection for Asia and Pacific region for 2016, though India is likely to meet 7.4% and 7.8% growth forecast for this and the following year.
In overseas markets, most European stocks edged lower as investors digest a number of geopolitical events including the failed coup in Turkey.
Most markets in Asia were trading higher today, ahead of a relatively data-light week in the region, while investors had a muted reaction to the risks surrounding a failed military coup in Turkey.
Oil prices extended their rise in Asia Monday as robust economic data from the United States and China fuelled hopes of a pick-up in demand from the world's top two economies.
Back home, rate-sensitive shares witnessed buying demand on hope of a cut in interest rate by the Reserve Bank of India, above-normal monsoon and benefits accruing from the 7th Pay Commission recommendation.
Bajaj Auto, Hero MotoCorp, Axis Bank, Maruti Suzuki, Tata Motors, ICICI Bank and HDFC Bank surged between 1%-3%.
Axis Bank gained around 1% after the Reserve Bank of India on Friday notified increase in foreign investment ceiling in the bank.
Reliance Industries gained around 1% after the company post market on Friday reported gross refining margin of $11.5 a barrel in the June 2016 quarter, ahead of Street expectations of $9-10 a barrel.
On the losing side, Bharti Airtel lost almost 3% after the company announced reduction in pre-paid data tariffs by increasing data benefits on some of its pre-paid data recharge packs.
Stocks of state-run oil companies Oil India and ONGC declined up to 4% on media reports that the two companies would be required to share additional burden in the form of royalty payments, with respect from February 2014, amounting in excess of $1 billion.
HUL ended lower by upto 1% ahead of first quarter earnings. Wipro will announce the Q1 earnings tomorrow.
The stock slipped over 1%.
Sun Pharma Advanced Research Company surged over 4% on the NSE after the company announced a licensing arrangement with Sun Pharmaceutical Industries for SPARC’s Elespia XR (Levetiracetam extended release tablets).
LT Foods rallied 5% after the company announced that it has acquired iconic brand 817 Elephant rice through its United Kingdom subsidiary LT Foods International Limited.
Top image: The Bombay Stock Exchange. Photograph: Hitesh Harisinghani/Rediff.com
