Stock Market: Monsoon worries visit Dalal Street; sideways swings sting traders

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By S Jha

New Delhi, June 23: Amid worrying signs of the progress of the Monsoon this year, the equity indices on Friday tanked to erase most of the gains made this week. Nifty was back to the 18665 level, while Bank Nifty has retraced to the level of 43,622.

Two immediate triggers have down the equity indices – Jerome Powell of the U.S. Federal Reserve sticking to hawkishness, arguing that higher rates are needed to tame inflation, and over 33 per cent Monsoon deficit in the month of June this year. Deficit rains are reportedly pushing the cereal prices higher, which may give fresh legs to inflation to run more miles.

Amid the bearish sentiments, the Adani group of stocks added fresh load of woes to the street amid reports that the U.S. regulator would be probing the allegations of irregularities. Adani Enterprises along with several other group companies such as Adani Port, Adani Green, Adani Transmission, Ambuja Cements tanked on the bourses.

The fund action also favoured the bears, as both the foreign and domestic institutional investors accounted for a net sell in cash of over Rs 10000 crores.

Yet, the Bank Nifty sought to carry the day for the bourses on its own to give a swinging sideways movements on both Nifty and bank Nifty. HDFC twins continued strong show to help the indices recover from the early losses. Later IndusInd joined the party with a late surge, climbing by almost three per cent at a time, to bring the Bank Nifty in comfort zones.

Bharti Airtel, buzzing for the last few days, shot up sharply to also help Nifty recover some of the losses. Amid billionaire Elon Musk stating interest to bring his Starlink to India, the telecommunication space may see interesting times ahead. Dr Reddy has also been showing signs of strength for the past few days.

Asian Paints, gaining from the low crude process, also gained strongly on Friday. Asian Paints has further increased its stake in Obgenix Software to bring bullishness in the stock. Landmark, luxury automaker, was also buzzing on Friday.

However, heavy profit bookings were seen in scrips which had run too fast in the recent days. The likes of KPI Green, Kaynes Technology, Mazgaon Dockyard, Zen Technology, etc., saw heavy profit booking on Friday after their stellar show in the recent days.