Sensex hits 3-week low, ends 1,145 pts down; Nifty holds 14,650; metals up

India VIX index surged over 14 per cent to close at 25.5 levels

4:57 PM

MARKET CLOSING COMMENT :: Sumeet Bagadia, Executive Director, Choice Broking

Fundamental

 

The Indian equity markets witnessed the largest selloff in recent months amid rising covid-19 cases and fears of another lockdown. The benchmark Nifty index ended the day around 2% down. All sectoral indices saw losses today, with Media, IT and Realty stocks being the worst performers. Broader markets were in the red too but fared relatively better than the benchmark indices, the Midcap and Smallcap indices end the session around 1.3% and 1.2% down. In stock specific news, Adani Ports, JSW Steel and Hindalco Industries were the top gainers in the index, while Eicher Motors, Mahindra & Mahindra and Tech Mahindra were the top losers. Going ahead investors will keenly watch daily coronavirus case numbers and any announcements regarding lockdowns.

 

Technical

 

After a negative opening, both benchmark indices corrected after a levitation concern for return of lock down situation in a few states which hurt the sentiment and based on which the Nifty gave an intraday correction of over 300 points and settled at 14675 level. Sector wise, NIFTYMEDIA, NIFTYPSUBANK and NIFTYAUTO witnessed an average loss of somewhere around 2%, while only NIFTYMETAL traded firm in green with a gain of 2.00%. Technically, the benchmark index has given a close below its 21 Days Moving Average which shows further concern for an upcoming trading session, based on which we may see pain in the Nifty, which has a strong support at 14480 while upside Resistance comes at 14800.

4:47 PM

MARKET CLOSING COMMENT :: Shrikant Chouhan, Executive VP, Equity Technical Research at Kotak Securities

Markets fell more than 2% led by weakness in financial stocks following a sudden rise in 10-year bond yield across the world. India’s 10-year GSec, which was at 5.71, has started trading at 6.20, however, in the US it was at 0.31 in the month of March 2020 and now it is quoting at 1.38. The rise in bond yields controls liquidity and money starts flowing back to developed markets from emerging markets. Today, Nifty/Sensex has broken crucial support of 20 days SMA, which was at 14780/50150 and also the retracement support, which was at 14730/50100 levels. India’s Volatility index has also jumped to 25.82, which is a 16.04 per cent rise in a single day. It is negative for the market as it signals further weakness in the market. The next level to watch out for would be 14500/49340, which is a 50% retracement of the previous up-move started from the lowest levels of 13600/46160. As the market is approaching the monthly expiry of the current month, the market could bounce back from 14500/49340 levels. The short term and medium-term strategy should be to buy on dips. On the higher side, 14900/50400 and 15000/50600 levels would be immediate hurdles.  Our advice is to invest in strong companies between 14650-14550/49400-49500 levels with a medium-term view

4:30 PM

MARKET CLOSING COMMENT :: Deepak Jasani, Head of Research, HDFC Securities

Indian benchmark equity indices fell the most in two months on Feb 22, ending lower for the fifth consecutive session. Nifty opened lower and kept falling by making lower top lower bottom during the session

 

Nifty has fallen 5% from its all time high in about 5 sessions. Indian equities came under selling pressure due to Cautious trade in markets abroad, Slowing FPI inflows, profit taking and breach of key technical levels. Rising crude oil prices that could impact the macros and inflation and rising 10 year Gsec yields were the key local factors that shook the equity markets. Also markets have run up quite sharply since end January 2021.

 

Nifty made a low of 14635. Nifty 14527 and 14336 are key retracement levels on the downside with the latter also being a gap support. In the meanwhile 14898-14977 could be the resistance for any bounce.

4:09 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Rising economic restrictions from spike in virus cases and weak global cues hit the domestic market sentiment. The rate of market fall was aggravated by a sharp rise in volatility, being a monthly F&O expiry week. FPI inflows which was leading the rally slowed down due to global vulnerabilities from rising bond yield & inflation. However, this is a buy on dip market, a short-term correction will trigger new buying, as economic fundamentals have improved, with more focus on industrial & cyclicals

3:50 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research, CapitalVia Global Research

The market failed to show resilience to stay above the Nifty 50 Index level of 14750. While it is subject to further price action evolution, the technical factors are shifted today to support a further correction in the future. Any corrective wave down should find support around 14500-14300. The traders to refrain from building a new buying position until we witness a correction till 14300-14500 level. The volatility is  observed to expand in today’s trading session indicating profit booking and stock distribution at a higher market level.

3:49 PM

IT stocks worst hit amid market rout

3:46 PM

Metal stocks dazzle at the bourses

3:45 PM

Index laggards :: RIL, HDFC, TCS account for maximum loss on Sensex today

3:42 PM

Sectoral trends on NSE at Close

3:41 PM

Sensex Heatmap at Close

3:33 PM

CLOSING BELL

At close, the BSE barometer of the 30-share index settled at a 3-week low of 49,744 levels, down 1,145 points or 2.25 per cent. 

 

On the NSE, the Nifty50 index managed to end above the 14,650-mark at 14,676, down 306 points or 2 per cent. About 40 stocks cracked on the index while 10 advanced. Adani Ports, JSW Steel, Hindalco, Tata Steel, and ONGC were the winners.

3:22 PM

Selloff gathers steam! Sensex tanks 1,200 points

3:14 PM

BSE advance-decline ratio at nearly 1:2

3:01 PM

Sector Watch :: BSE IT worst sectoral performer, tanks over 2%

2:50 PM

Heatmap: Only three out of the 30 S&P BSE Sensex constituents trade in the green

2:39 PM

European markets check

(Source: Reuters)

2:35 PM

Gold off seven-month low as dollar weakness outweighs firmer yields

Gold prices gained on Monday after hitting a more than seven-month low in the previous session, as support from a weaker dollar eclipsed pressure from firmer Treasury yields. Spot gold rose 0.5 per cent to $1,791.50 per ounce by 0733 GMT, having touched its lowest since July 2 at $1,759.29 on Friday. US gold futures gained 0.6 per cent to $1,787.70. READ MORE

2:23 PM

Nifty gives up 14,700!

2:21 PM

BUZZING STOCK :: Jet Airways shares locked in 5% upper circuit

>> Jalan Kalrock Consortium, the winning bidder for Jet Airways, expects to restart operations of the defunct airline in four to six months after receiving approval from the NCLT for its resolution plan. 

2:13 PM

India VIX surges 13% to top 25 level

>> VIX is a measure of market volatility.

2:04 PM

Market Check :: Only 3 stocks hold head above water as Sensex turns a sea of red

2:01 PM

DHFL auditor unearths another fraudulent transaction worth Rs 6,182 cr

Dewan Housing Finance Corporation (DHFL) on Monday said its transaction auditor, Grant Thornton, has reported another fraudulent transaction of Rs 6,182 crore in the company. The administrator of the company received an initial report from the professional agency appointed as the transaction auditor indicating that there are certain transactions which are "undervalued, fraudulent and preferential in nature", DHFL said in a regulatory filing. READ MORE

1:56 PM

Here's what triggered Sensex's 950-point crash on Monday

Markets lost considerable ground yet again on Monday after a weak start and are set to extend their losing run to the fifth day. Weak global cues, rising bond yields, amid fears of Covid-19-led lockdown came to haunt the bulls on the Street. Meanwhile, elevated oil prices and stretched valuations also concerned investors as most chose to take the profit off the table and stay on the sidelines following a secular rally in the benchmark in nearly one year. READ MORE

1:49 PM

Small loans, big stakes: Why MSMEs are banking on fintech lenders

The 24-hour restriction imposed by the bank to add beneficiary accounts didn’t permit him to use his personal funds to make the payout. That’s when Razorpay, a fintech-based lender, pitched in. “I pinged @harshilmathur (the link to co-founder and CEO, Razorpay) at 10:30pm and asked for help. READ MORE

1:38 PM

MARKET UPDATE:: Sensex extends decline, gives up 50k

1:26 PM

Torrent Power shares hit 52-week high

Shares of Torrent Power Ltd on Monday surged over 5 per cent during morning trade after the firm said it has emerged as the highest bidder for 51 per cent stake in a power distribution company in the Union Territory of Dadra & Nagar Haveli and Daman & Diu. On BSE, the scrip rose 5.66 per cent to 52-week high value of Rs 385.45.

(Text Source: PTI)

1:18 PM

Top losers on BSE at this hour

Company	PRICE(rs)	CHG(%)
New India Assura	160.40	-14.43
Central Bank	19.48	-9.98
I O B	15.90	-9.81
Bank Of Maha	21.25	-9.23
General Insuranc	188.20	-8.22

1:06 PM

SC bars NCLT from finalising orders allowing $3.4 bn Future-Reliance deal

The Supreme Court on Monday sought a response from Future Retail Limited (FRL) in a plea by e-commerce giant Amazon challenging the Delhi High Court order which had stayed the implementation of status quo direction passed by single-judge of the High Court with respect to the $3.4 billion Future-Reliance deal. A bench headed by Justice Rohinton Nariman also ordered that while the proceedings before National Company Law Tribunal (NCLT) can go on, they should not culminate in any final order of sanction of the scheme. READ MORE

1:02 PM

NEWS ALERT :: Hindalco Board approves Dividend Distribution Policy

>> Dividend will be declared for any financial year out of the profits of the company for that year or out of the profits of the company for any previous financial year or years arrived at after providing for depreciation and remaining undistributed, or out of both;

>> The Board will endeavor to distribute a dividend in the range of 8 % to 10% of the Free Cash Flow at Hindalco Consolidated Level (defined as Cash Flow after meeting interest, tax, other statutory dues, maintenance capital expenditure and working capital requirements at Hindalco Consolidated Level but before considering strategic capital expenditure and debt repayments/pre-payments) of the relevant year subject to compliances of the Companies Act 2013 and all other applicable Regulations.

Click here to read the policy
 

12:54 PM

Regulatory authorities used intra-day trading curbs more often last year

Regulatory authorities barred intra-day trading of stocks often to curb speculation in the last financial year. Instances of stocks being transferred to the trade-for-trade segment rose 12-25 per cent across exchanges during the year, reveals data from the Securities and Exchange Board of India’s (Sebi’s) recently released annual report for the financial year 2019-20 (FY20). The trade-for-trade segment doesn’t allow shares to be bought and sold on the same day. READ MORE