The Sensex ended the session at 62,625 points, a drop of 223 points or 0.35 per cent while the Nifty50 ended the day at 18,563 points, declining 71 points or 0.4 per cent. Both indices, however, managed to eke out weekly gains of around 0.15 per cent each.
However, the surprise rate hikes by the central banks of Australia and Canada have added to the uncertainty.
Earlier in the week, the Bank of Canada surprised investors by raising its overnight lending rates to 4.7 per cent, the highest since 2001, and said that the economy was running too hot for its comfort.
“So far, the belief was that the rates have peaked, and it is only a matter of time before the Fed cuts rates. The statements by the Fed officials of late have been hawkish, and they keep harping about bringing inflation under the targeted levels. It is in no one’s interest to continuously hike rates, but a 25 bps (basis points) hike is not exactly on the table. And investors are hedging their bets accordingly,” said UR Bhat, co-founder of Alphaniti Fintech.
“Overall structure remains positive, with Nifty gradually moving towards its previous lifetime high. Stock-specific action continues in the broader space, especially in the niche sectors. Next week, the market will focus on global central banks’ rate decisions, where the market expects status quo. Also, investors should keep an eye on US and Indian inflation data,” said Siddhartha Khemka, head of research-retail, Motilal Oswal Financial Services.
Apart from what central banks do, the investors will also have one eye on the monsoon and the other on foreign portfolio investor (FPI) flows in the coming days.
The National Stock Exchange (NSE) on Friday issued caution notice to investors on individuals collecting funds and guaranteeing assured returns and providing unauthorised portfolio management services using names of registered entities like Zerodha and Angel One. The NSE stated that they were operating in the name of ‘Angel One Industry’, ‘Zerodha Industry’, ‘Dream Solution’, etc while having no connection with the original entities. “The investors are cautioned and advised not to subscribe to any such scheme or product offered by any persons or entity offering indicative/ assured/guaranteed returns in the stock market as the same is prohibited by law,” said NSE.
BSE on Friday recorded a turnover of Rs 1.73 trillion for the futures and options (F&O) segment. This was the fourth weekly expiry after relaunch of the Sensex and Bankex derivatives. The turnover was twice that of previous week’s expiry day, when it stood at Rs 69,422 crore. BSE’s move to shift for expiry on Friday has been followed by NSE which has decided to change the expiry of Bank Nifty derivative contracts to Friday effective from the second week of July. According to BSE, a total of 2.75 million contracts were traded on Friday with over 170 members participating in the segment, the exchange said in a release.