On Friday, the domestic bourses ended the session on a lackluster note as the benchmark indices closed on a downbeat note after trading range-bound for the majority of the session. Soon after opening on the higher side, the benchmark indices were seen surging higher. However, the benchmark Nifty faced resistance near the 5,630 mark and was pulled back thereon. It was dragged near the 5,560 mark as the Metal and Auto space faced selling pressure. As the day progressed the market entered a narrow range and was seen trading sideways for the rest of the session. The outstanding results from tech major TCS failed to uphold the market sentiment. However, the stock closed with more than 2% gains. Further, the lower than average monsoon figures further weighed on the domestic sentiment. The participants were looking forward to the European Banks" stress test results.
The BSE Sensex closed at 18,561.92 down by 56.28 points or by 0.30% and NSE Nifty closed at 5,581.10, lower by 18.70 points or by 0.33%. The BSE Midcap was at 7,006.75 lower by 7.83 points or by 0.11%, whereas the BSE SmallCap closed at 8,363.22, increasing by 6.83 points or by 0.08%. The BSE Sensex touched intraday high of 19,619.65 and intraday low of 18,513.22.
On Friday, the U.S. markets closed on a positive note after hovering around the baseline for the majority of the session. The warnings from Moody and Standard & Poor to downgrade U.S. credit rating in case they fail to increase debt ceiling on time, has maintained pressure on the sentiment. The stress test results had limited impact on the market sentiment as it seemed to be already discounted as it is perceived to use unrealistically favorable loss assumptions. The stress tests showed 82 out of 90 banks passed. The results showed five Spanish banks, two Greek banks and one Austrian bank failing the test. While the test did show some failures, many are already discounting the tests as using unrealistically favorable loss assumptions. Among the economic data released, the Empire Manufacturing Survey disappointed the market, reading of -3.8 for July as compared the consensus among economists of 1.0. Further, the overall CPI for June decreased by 0.2%, which exceeded street estimates of 0.1% decrease. Core CPI increased by 0.3%, which is also higher than the consensus of 0.2% increase. Energy (+2.6%) and Tech (+1.0%) were the major gainers during the session.
In the major indices, the Dow Jones Industrial Average (DJIA) closed with a gain of 42.61 or 0.34% at 12,479.73 while NASDAQ index finished up by 27.13 points or 0.98% to 2,789.80. The S&P 500 (SPX) closed higher by 7.27 points or 0.56% to 1,316.14.
The FIIs on Friday stood as net buyer in both equity and debt. Gross equity purchased stood at Rs. 2405.10 crore and gross debt purchased stood at Rs. 1685.80 crore, while the gross equity sold stood at Rs. 2067.50 crore and gross debt sold stood at Rs. 1489.70 crore. Therefore, the net investment of equity and debt reported were Rs. 337.60 crore and Rs. 196.20 crore, respectively.
Top traded volumes on NSE Nifty – IDFC 7500481, Power Grid 4636585, TCS 3639850 and Reliance Industries 2495602.
On BSE, total number of shares traded was 21.41 crore and total turnover stood at Rs. 2,098.74 crore. On NSE, total number of shares traded was 47.20 crore and total turnover stood at Rs. 8815.95 crore. In the NSE Futures and Options segment, total number of contracts traded in index futures was 435152 with a total turnover of Rs. 11385.21 crore. Along with this total number of contracts traded in stock futures were 383952 with a total turnover of Rs. 11176.99 crore. Total numbers of contracts for index options were 2750631 with a total turnover of Rs. 77735.98 crore and total number of contracts for stock options was 117817 with a total turnover of Rs. 3459.33 crore.
Today, Nifty will face a resistance near 5,650 level and will have a support near the 5,540 mark.