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Below is the Views On Market Closing Quote by Deepak Jasani, Head of Retail Research, HDFC securities
Markets were in correction mode on Tuesday after the hefty rally seen in the previous session that pushed the Nifty to new life highs. The markets took a breather from a rally to record highs ahead of Reserve Bank of India’s policy decision on June 06.The Nifty index ended 66.9 points or 0.55% lower at 12,021.65.
Broad market indices like the BSE Mid Cap and Small cap indices fell less, thereby outperforming the Sensex/Nifty. Market breadth was negative on the BSE/NSE.
Sectorally, the top gainers were the BSE Capital Goods, Metal and Telecom indices. The top losers were the BSE IT, Healthcare, Oil and Gas and Realty indices.
European shares fell on Tuesday as U.S. antitrust action against Google and other large technology companies drove peers in the region lower, although a boost from automakers capped losses.
ICICI Bank and Axis Bank shares fell around a percent each intraday on June 4 after Fitch downgraded both by a notch saying financial health of the private sector banks has weakened. Axis Bank later ended in the positive.
Major Asian markets have closed on a mixed note. European indices like FTSE, DAX and CAC are trading in the green.
Indian markets underwent a much awaited correction due to profit taking ahead of the RBI's policy decision on the next trading day. Losses in IT (due to Nasdaq weakness), Oil & Gas (due to GST notices) offset gains in other sectoral indices. Fitch downgrade of ICICI Bank and Axis Bank raised fears of further such action on other Financials.
Technically, while the Nifty has corrected today, the index remains in a firm uptrend. Further upsides are likely once the immediate resistance of 12095 is taken out. Crucial supports to watch for any weakness are at 12006-11968.
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