Sensex crashes 1,546 pts, Nifty ends below 17,150 amid US Fed uncertainty

Closing Bell

It was a sea of red for Dalal Street on Monday with benchmark indices falling the most since April last year in intra-day deals. Panic selling due to the uncertainty around the quantum of a rate hike by the US Fed spooked the markets. Besides, geo-political tensions between Russia and Ukrain, rising dollar index, and surging oil prices and bond yield added to the woes.

The frontline S&P BSE Sensex crashed nearly 2,000 points intra-day, hitting a low of 56,984. It, however, staged a mild recovery in the fag-end and ended 1,546 points, or 2.6 per cent, lower at 57,491.5.

On the NSE, the Nifty50 shut shop at 17,149, down 468 points or 2.6 per cent, with only 2 stocks managing to end higher on the index. Earlier today, it had slipped below the 17,000-mark, hitting a low of 16,998.

"Sell off in global markets, weak Q3 results and pre-budget nervousness triggered heavy sell-off in the domestic bourses as risk sentiment took a blow ahead of the FOMC meeting starting tomorrow. Investors are keenly awaiting the result of the two-day Fed meeting where the US Central Bank is expected to provide more guidance on its rate hike plans," said Vinod Nair, head of research at Geojit Financial Services.

Global view

In Europe, the pan-European Stoxx 600 fell 1.4 per cent by mid-morning while Germany's DAX and France's CAC40, also, dropped over 1 per cent each. However, Futures linked to the US were trading up to 0.3 per cent higher each as of 3:30 PM.

Shares across the world fell on Monday as the prospect of a Russian attack on Ukraine quashed demand for riskier assets, bolstering the dollar, buoying oil and bruising bitcoin.

The U.S. State Department said on Sunday it was ordering diplomats' family members to leave Ukraine in one of the clearest signs yet that American officials are bracing for an aggressive Russian move in the region. READ MORE ABOUT IT HERE

Buzzing stocks

Among individual large-cap players, JSW Steel and Tata Steel plunged 7 per cent and 6.4 per cent, respectively, while Bajaj Finance, Grasim, Hindalco, Wipro, Tech M, Titan, and Tata Consumer Products shed between 5-6 per cent. 

In the broader markets, the BSE MidCap index declined 3.8 per cent while the BSE SmallCap index slipped 4.4 per cent. TCI, Angel One, NIIT, PNB Gilts, Just Dial, and Affle India were the worst hit stocks from the latter segment, tumbling up to 13 per cent. 

Notably, the shares of Vodafone Idea dipped 9.6 per cent to Rs 10.7 on the BSE in Monday's intra-day trade after the company's losses widened 59.5 per cent to Rs 7,230 crore in Q3FY22 on a year-on-year (YoY) basis amid fall in revenue and subscribers. 

Besides, the shares of FSN E-Commerce Ventures (Nykaa) hit a new low of Rs 1,693, down 15 per cent on Monday, falling as much as 13 per cent in past two trading sessions on the BSE. The shares ended 12.5 per cent lower at Rs 1,742 per share.

Shares of other new-age companies also tumbled on the bourses with Paytm down 4.4 per cent (at Rs 917), Zomato 19.6 per cent (Rs 91.4), and Policybazaar 10 per cent (Rs 776.6) as growth in profitability reduced and valuations remained expensive.

"Nasdaq has corrected by around 14 per cent which has taken the sheen away from very good IT numbers & guidance locally. More than index correction this round of volatility has made lot of good businesses correct, which should ideally be utilized as an opportunity in adversity. An approach to buy quality franchisees and market leading businesses gradually or in tranches will ensure that you take advantage of volatility, as we approach the Union Budget amidst the ongoing third quarter result season," said Devang Mehta, Head - Equity Advisory, Centrum Wealth.  

Overall, over 3,000 stocks declined on the BSE while just 518 stocks managed to end higher. Moreover, 948 stocks hit their down limits today as against 268 stocks that hit upper limits.

Sectorally, all the indices ended with sharp losses, led by the Nifty Realty index (down 6 per cent), the Nifty Metal index (down 5.2 per cent), and the Nifty IT index (down 3.4 per cent).   

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Markets at 02:40 PM

LIVE market updates: Panic selling gripped Dalal Street, with key benchmark indices registering newer lows as the day progressed. So intense has been the selling, that all broader indices were down more than 2 per cent each, Smallcaps the worst hit - down nearly 5 per cent.

The BSE Sensex nose-dived to a low of 56,984, and was down 1,727 points at 57,310. The NSE Nifty 50 index had plunged 517 points to 17,100.

Most of the major sectoral indices were down in the range of 3-5 per cent each. The BSE Metal and Consumer Durables index had cracked nearly 5 per cent each. The Bankex, Auto, IT, Healthcare and Capital indices were down around 3 per cent each.
 


Bajaj Finance continued to remain the top per centage loser, down nearly 6 per cent. Tata Steel and Tech Mahindra too had plunged 5.5 per cent each. Titan, Wipro, HCL Technologies and Bajaj Finserv were the other major losers.

Index heavweight Reliance Industries had shed nearly 4 per cent at Rs 2,382, despite reporting strong Q3 earnings. Asian Paints, Kotak Bank, Dr.Reddy's, Larsen & Toubro and UltraTech Cement were also down over 3 per cent each.

The overall breadth remained extremely bearish - out of 3,674 stocks traded on the BSE so far, 3,088 had declined and 463 advanced.
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Markets at Lunch (01:30 PM)

LIVE market updates: The key benchmark indices continue to reel under the selling pressure, as investors turn anxious ahead of the crucial US Federal Reserve meeting outcome, on interest rates, this Thursday. Sustained FII outflows and nervousness ahead of the upcoming Budget announcements were also weighing on the investment sentiment.

The BSE Sensex was near the lows of the day, down 1,387 points at 57,650. In the process, the BSE benchmark index had shed more than 6 per cent in just the last five trading sessions, from a high of 61,475 touched on January 18.

The NSE Nifty 50 index had plunged 422 points to 17,195.

All Sensex 30 shares were in the negative zone, with Bajaj Finance as the biggest per centage loser, down 5.4 per cent. Tech Mahindra, Tata Steel, Titan and Wipro were the other major losers, down 4.5 per cent each.

Among the index heavyweights, Infosys, Reliance Industries and HDFC Bank were the major laggards, accouting for almost one-third of the losses on the BSE benchmark index.

The broader markets crashed deeper into red. The BSE Midcap index had slumped 3.5 per cent, and the Smallcap index had cracked 4.2 per cent. The overall breadth too was extremely bearish, with more than six declining stocks for every advancing share on the BSE.

In the broader markets, Sharda Corpchem had zoomed over 14 per cent and was one of the prominent gainer backed by strong Q3 earnings. ITDC, Bandhan Bank, Agi Infra, Prabhat Technologies, Poojawestern Metaliks, Hilton Metal Forgings, Bigbloc Construction and Khaitan India were some of the other notable gainers.

On the flip side, Zomato had slumped over 18 per cent. Electrothem (India), Ambica Agarbathies, PNB Gilts, Ramky Infrastructure, Nahar Polyfilms, Bal Pharma, Pennar Industries, Cybertech Systems, Gokaldas Exports, Talbros Automotive, Nykaa, Zee Learn, NIIT, GMDC, Sobha, Elecon Engineering, Triveni Engineering, Affle India, Moldtek Packaging, BASF India, TCI Express, Jaiprakash Power Ventures and KPR Mill were the other major losers, down over 9 per cent each.
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Markets at 12 noon

LIVE market updates: The headline indices were in the red with deep cuts, up to 1.7 per cent lower in noon deals. The BSE Sensex fell over 1,000 points at 58,022, while the NSE Nifty was at 17,295, lower by 321 points. 

On the 30-share Sensex benchmark, 28 stocks were in the red zone, led by losses in RIL, Infosys, HDFC twins, Bajaj Finance, Asian Paints, Kotak Bank, Tech M, ICICI Bank, Titan, L&T and Tata Steel, down 2-4 per cent.  

The broader markets were also in deep losses with the BSE MidCap and SmallCap indices trading 3 per cent and 4 per cent lower, respectively. 

ALSO READ: ICICI Bank may become 'super banktech'; analysts see 37% upside post Q3 nos

The volatility index was up 16 per cent around 22 levels, indicating jittered investor sentiment ahead of the Union Budget. 

Sectorally, Metals and Realty indices had crashed 3 and 4 per cent, while IT, banks , Pharma were down 1-2 per cent. 

“Broader volatility will continue at elevated levels through the next couple of weeks. Prices reflect heightened anticipation of a tighter policy stance by the US fed post the FOMC meet. Uncertainty around the quantum of tightness in the policy along with upcoming expiry and the Union Budget have many on the edge. Corporate earnings' expectations are not alleviating fear either. The series of events are culminating into a global risk-off environment, only more amplified within domestic context," said Rakesh Singh, CEO-Broking, Fisdom.

Adding: "We can expect high volatility on broader indices as foreign investors trim exposure to risky growth assets while domestic institutions await policy clarity. Post-budget sectoral rotation of capital will only accentuate the choppiness.”

BS Special: Axis Bank, Bajaj Auto: Nearly 45% of Nifty500 stocks trading below 200-DMA

Among stocks, newly listed companies were also trading lower owing to huge profit-booking. Shares of Zomato, Nykaa and Paytm were down 18 per cent, 10.5 per cent, and 6 per cent, respectively, while GoFashion, Sigachi Ind, Supriya Lifescience, Latent View were down 2-9 per cent on the BSE.

Asian markets
Asian markets were largely mixed amid high volatility. Investors are seen looking to the U.S. Federal Reserve’s monetary policy meeting this week. The Federal Open Market Committee is due to meet on Tuesday and Wednesday to decide on the next steps for the U.S. monetary policy.

Japan’s Nikkei 225 closed in green up 0.24 per cent. In South Korea, the Kospi fell 1.5 per cent, while Hong Kong’s Hang Seng index was also 1 per cent lower. The Shenzhen component was up 0.3 per cent. 

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Markets at 11 AM

LIVE market updates: The benchmark indices extended losses in morning trade amid continued weakness across global markets. The BSE Sensex was 645 points lower at 58,392 and the NSE Nifty was down by 208 points at 17,408. The two indices were up to 1.2 per cent lower.

Infosys (down 2 per cent), Reliance, HDFC Bank (down 1 per cent each) and Bajaj Finance(down 4 per cent)  were the top four draggers pulling the indices down. 

The broader markets were also seen underperforming the benchmarks with the BSE MidCap and SmallCap indices falling 2.5 per cent and 3.3 per cent, respectively. 

ALSO READ: Axis Bank to report Q3 result today; here's what leading brokerages expect

Among midcaps, Concor, Oil India, Emami, and Proctor &Gamble were the gainers. Meanwhile, Sona BLW Precision, Astral, Naukri, Zee Entertainment, Aditya Birla Fashion, Vodafone Idea, Godrej Properties, ICICI Securities, Ashok Leyland, Mphasis, Mindtree, Gland Pharma, Natco Pharma,RBL Bank, Adani Power, Ramco Cements, Gujarat Gas, Jindal Steel, Tata Communications and IRCTC were the top losers, trading 3-10 per cent lower. 

Sectorally, Nifty Metals and Realty were leading the losses, trading nearly 4 per cent and 3 per cent lower. 

Among stocks, shares of FSN E-Commerce Ventures (Nykaa) hit a new low of Rs 1,776.50, down 11 per cent on Monday, falling as much as 13 per cent in past two trading sessions on the BSE. READ MORE.

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Markets at 10 AM

LIVE market updates: The key benchmark indices extended their opening losses amid broad-based selling. The BSE Sensex was down 541 points at 58,496 and the NSE Nifty was at 17,446, lower by 171 points.

Bajaj Finance was the top loser on the Sensex, down 3 per cent, followed by Tech M, Wipro, Bajaj Finserv, Titan, Asian Paints, Infosys, Tata Steel, Ultratech Cement, HCL Tech, Dr Reddy's, Kotak Bank, Axis Bank, HDFC Bank and TCS. On the Nifty, Divis Labs and Hindalco were the top losers, down 5 and 3 per cent, respectively. 

Sectorally, the Nifty Consumer Durables, IT, Metals and Realty were now down over 2 per cent each. Financials, auto and pharma were 1 per cent lower. 

ALSO READ: Farm-loan waiver, tax cuts, fiscal prudence: Expectations from Budget 2022

In the broader markets, the BSE MidCap and SmallCap indices were trading nearly 2 per cent and 2.5 per cent lower, respectively. 

Moreover, shares of Vodafone Idea dipped 5 per cent on the BSE after the company’s losses widened 59.5 per cent to Rs 7,230 crore in Q3 FY2022 on a year-on-year (YoY) basis amid fall in revenue and subscribers. With today’s decline, the stock has corrected 33 per cent from its 52-week high of Rs 16.79 touched on December 10, 2021. READ MORE HERE.

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Opening Bell

LIVE market updates: The benchmark indices started trade on a lower note extending losses for a fifth session on Monday. The BSE Sensex was down 198 points lower at 58,840, while the NSE Nifty was at 17,556, lower by 60 points. 

In the broader market, the BSE MidCap and SmallCap indices were also in red and were down 0.3 and 0.5 per cent, respectively.  

On the Sensex, Maruti, PowerGrid,ICICI Bank, Bharti Airtel, IndusInd Bank, RIL, SBI, and NTPC were the top gainers, up between 0.2-1.6 per cent. On the Nifty, ONGC and Cipla were the additonal gainers. 

Meanwhile, Asian Paints, Tech M, Bajaj Twins, Wipro, HCL Tech, Infosys, Dr Reddy's were the top laggards, trading 1-2.5 per cent lower on the BSE. JSW Steel, Hindalco, Divis Labs were the top losers on the Nifty. 

Among indices, Nifty Consumer Durables, IT, Metals and Realty were the top losers, down 1-2 per cent. Rest of the indices were also trading in the negative territory. 

Individually, Vodafone Idea was trading nearly 5 per cent lower on the BSE as the telecom player reported wider losses at Rs 7,230 crore in Q3 FY2022, up 59.5 per cent on a year-on-year (YoY) basis amid fall in revenue and subscribers. 

Similarly, JSW Steel was down 4 per cent on the bourses as its Q3 results seemed to disappoint investors. The Sajjan Jindal-led company reported a consolidated net profit of Rs 4,357 crore in the December quarter, up 63 per cent from last year, while net sales were 74 per cent up YoY to Rs 37,462 crore. 
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Pre-open session

LIVE market updates: The benchmark indices were seen holding mild gains in pre-open trades on Monday. The BSE Sensex was up 57 points at 59,095, while the NSE Nifty was largely unchanged at 17,603.

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LIVE market updates: The key benchmark indices are likely to start the week on a negative note amid bearish global cues, possibly extending weakness for a fifth session on Monday.

At 8 am, the SGX Nifty futures were quoting 17,548 levels, down 100 points from Nifty's spot close on Friday, thus indicating a gap-down opening. 

The market today may get direction from heavyweights RIL and ICICI Bank, which posted their earnings on Friday after market hours and Saturday, respectively. The Mukesh Ambani-led company reported a strong 42 per cent YoY jump in consolidated net profit at Rs 18,549 crore for Q3FY22, backed by a 57 per cent growth in consolidated revenue at Rs 1,85,027 crore. READ MORE

ICICI Bank, on the other hand, posted a 25.4 per cent YoY growth in Q3 standalone net at Rs 6,193.81 crore,  on the back of 10.9 per cent increase in total income to Rs 27,069.67 crore.

Further, stocks of Axis Bank, HDFC AMC, Indian Energy Exchange, SBI Cards and Shriram Transport Finance are also likely to be in focus ahead of their respective December quarter earnings. READ MORE.

Globally, the US Federal Reserve policy meeting on January 27 on the interest rate decision and the FOMC statement for further direction on rates are also watched out for this week. 

Global cues

The US markets wilted under the selling pressue last week, with Nasdaq posting its biggest weekly loss since March 2020 amid inflation concerns and fears of monetary tightening. On Friday, the Dow Jones slipped 1.3 per cent, the S&P 500 index dropped 1.9 per cent and Nasdaq tumbled 2.7 per cent.

Meanwhile, oil prices witnessed some profit-taking after rallying to 7-year highs. Brent Crude was down 0.6 per cent at $87.89 a barrel, and WTI Crude slipped 0.5 per cent to $85.14 a barrel.

Major markets in Asia this morning were down around a per cent each. Hang Seng, Shanghai Composite and Taiwan were down 0.9 per cent – 1.1 per cent each. Kospi had dropped 1.5 per cent, while Nikkei and Straits Times declined 0.7 per cent and 0.5 per cent, respectively.