Nifty succumbs to selling pressure

IANS Photo

IANS Photo

New Delhi, July 27 (IANS): Nifty opened higher but soon succumbed to selling pressure to close with a loss of 118 points or 0.6 per cent at 19,660, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, has said.

Domestic equities are off from the day's high amid derivatives' monthly expiry and hawkish commentary from US Fed.

Except for Pharma and Realty, all sectors ended in the red. Pharma sector saw huge buying interest on the back of good results announced by Cipla and Dr. Reddy, along with a couple of USFDA approval given to Aurobindo, he said.

The Real Estate sector also saw a run-up on the back of strong demand growth seen in the luxury housing segment.

Cautiousness was seen in the market ahead of ECB and BoJ interest rate decision due on Thursday. 

Market is likely to consolidate given no clarity given by the US Fed on its future course of action, leading to mixed global cues. 

Overall strength continues in the market, with the likelihood of consolidation at higher levels, he added.

Vinod Nair, Head of Research at Geojit Financial Services said the FOMC's decision aligned with market expectations as they implemented a 25bps hike and expressed a data-centric approach for future rate actions.

Positive global sentiment prevailed due to the reduced prospects of a US recession. 

Despite this, the domestic market witnessed sharp corrections led by banks and autos, while pharma stocks performed on a positive start to their earnings season, he added.