Indices settle marginally low; Nifty IT, pharma, realty top losers
Domestic equity benchmark indices traded in the red for the second straight day and settled marginally lower on Wednesday, led by losses in Nifty IT, pharma, and realty stocks.
New Delhi, June 1 Domestic equity benchmark indices traded in the red for the second straight day and settled marginally lower on Wednesday, led by losses in Nifty IT, pharma, and realty stocks.
Sensex closed at 55,381 points, down 185 points or 0.3 per cent, whereas Nifty at 16,523 points, down 62 points or 0.4 per cent.
"In the very near-term, a rebound in crude oil prices poses a risk to the current account deficit and therefore, to expectations of rupee depreciation. Hence, foreign investor flows would remain a headwind to the market, capping any meaningful upside in absolute terms in headline indices," said S. Hariharan, Head - Sales Trading at Emkay Global Financial Services.
Input cost inflation concerns would keep cement and consumer durable companies under pressure going ahead, said Hariharan.
The conundrum of rising commodity prices, rising inflation, and thereby tight monetary policy may keep volatility intact in equities for some time, said Edelweiss Mutual Fund.
"During such periods, sectoral winners change dramatically, and it is important to keep portfolios well aligned to reality. Hence, it is crucial to position sectoral and stock allocation well during such periods when market returns may not come from a broader group, but select businesses and sectors," it added.