Sensex tanks 219 points, Nifty dips below 10,800; Tata Motors top loser
Vinod Nair, Head of Research, Geojit Financial Services
Global trade war concern and F&O expiry led volatility impacted the market sentiment. Drop in oil prices on account of increase in production will provide some relief to Indian markets in the near term. However, any escalation in trade tensions and outflow of foreign funds is likely to add pressure on INR and fiscal path.
The Indian share market on June 22, 2018, Friday, closed in the green. The S&P BSE Sensex closed higher by 257.21 points or 0.73 per cent to close at 35,689.60. While Nifty 50 and BankNifty settled higher by 80.75 points or 0.75 per cent at 10,821.85 and 269.90 points or 1.02 per cent at 26,766.85 respectively.
However, the positive trend of the domestic institutional investors (DIIs), neutral global outlook, Futures and Options (F&O) and foreign institutional investors (FII) cues suggest that the short-term trend of the Indian market is going to stay positive on June 25, 2018 (Monday).
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Selan Exploration (Buy)
Target: Rs 196
Stoploss: Rs 188
- OPEC countries agreed on increasing oil output by 10 lakh per barrel
- Brent prices rallied 3.5% to cross $75 on Friday
- WTI rose 4.6% to cross $68.5
- Crude jumped most on Friday since Nov 2016
Asian shares got the week off to a cautious start on Monday amid lingering concerns about escalating trade frictions while U.S. oil prices maintained hefty gains made after major oil producers had agreed on a modest increase in production. S&P500 mini futures fell as much as 0.5 percent in early trade while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2 percent. Japan's Nikkei .N225 lost 0.4 percent.
The benchmark indices fell for a second straight session on Tuesday, as fears of a global trade war intensified after US President Donald Trump threatened to impose a 10 per cent tariff on $200 billion worth of Chinese goods. The broader Nifty ended 0.83 per cent lower at 10,710.45, while the benchmark BSE Sensex closed 0.74 per cent lower at 35,286.74. The BSE Midcap and the BSE Smallcap indices shed 1 per cent and 1.3 per cent, respectively.