Markets end the day with tiny losses even as heavyweight RIL tanks 7%

Despite falling for three consecutive sessions, both the Sensex and Nifty added 0.3 per cent for the week, their second straight weekly advance

stock markets — FMCG, financials and IT stocks helped the markets offset losses caused by energy stocks.

2 min read Last Updated : Jul 01 2022 | 10:56 PM IST

Benchmark equities only suffered marginal losses even as shares of Reliance Industries (RIL), which has the highest weighting, tanked over 7 per cent. The benchmark Sensex closed 111 points, or 0.21 per cent lower at 52,908, while the Nifty closed 28 points, or 0.2 per cent, lower at 15,752.

Shares of RIL fell 7.3 per cent to close at Rs 2,406. The stock dragged the Sensex lower by 565 points. In other words, if not for RIL’s steep correction, the index could have closed nearly 500 points higher. Shares of ONGC, which is part of Nifty but not Sensex, fell 13.3 per cent. Both stocks dropped after the centre slapped taxes on fuel exports and local crude oil production to tap windfall gains from surging global prices.

FMCG, financials and IT stocks helped the markets offset losses caused by energy stocks. ITC shares rose over 4 per cent, while Britannia and Hindustan Unilever added close to 3 per cent each.

"The FMCG sector witnessed strong buying supported by declining commodity prices on the belief that the prices have peaked out," said Vinod Nair, Head of Research at Geojit Financial Services.

Despite falling for three consecutive sessions, both the Sensex and Nifty added 0.3 per cent for the week, their second straight weekly advance.

Broader markets outperformed with the Nifty Midcap gaining 0.5 per cent and Nifty Smallcap advancing 1 per cent during the week. "Market is expected to remain volatile due to a slew of market-moving events. On the macroeconomic front, investors will be watching FOMC minutes to see where the economy is headed. Furthermore, global markets would be influenced by China's inflation figures, which are due next week.

"Back home, the first quarter of fiscal year 2023 earnings season will drive market sentiment and stock-specific actions," said Yesha Shah, Head of Equity Research, Samco Securities.

Among the BSE sectoral indices, energy tumbled 3.99 per cent, followed by oil & gas (3.21 per cent), utilities (0.86 per cent), power (0.77 per cent) and telecom (0.36 per cent).