Decline in banks outweighs gains in IT, pharma stocks; Sensex slips 87 pts
IndusInd Bank, Power Grid, ICICI Bank, Tata Motors, HDFC Bank, Reliance Industries, and Axis Bank, down up to 4 per cent, were the top laggards on both the benchmarks
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Stock market updates: Weak global sentiment scarred bulls on Monday as heavy selling in the financial and banking counters outweighed the gains in pharma, IT, and FMCG space. Asian stocks were mixed while European markets bled as a plunge in the Turkish lira sparked talk that capital controls might be needed to stem the rout.
The dollar soared 12 per cent versus the lira at 8.0520, the sharpest move since August 2018, after President Tayyip Erdogan shocked markets by replacing Turkey’s hawkish central bank governor with a critic of high interest rates.
The uncertainty saw Japan’s Nikkei fall 1.6 per cent, partly on speculation Japanese retail investors could face losses on large long positions in the high-yielding lira. However, MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3 per cent, aided by a 0.7 per cent rise in Chinese blue chips.
In Europe, concerns over the currency and prolonged lockdowns in Germany and France pushed stocks lower, with banks and travel shares taking the biggest hit. The pan-European STOXX 600 fell 0.5 per cent. The German DAX was down 0.5 per cent, while France’s CAC 40 fell 0.9 per cent, and the UK's FTSE 100 dropped 0.8 per cent.
Against this backdrop, Dalal Street saw investors pressing the sell button. The frontline S&P BSE ended the session at 49,771 levels, down 87 points or 0.17 per cent. On the NSE, the Nifty50 closed at 14,736 levels, down 7.6 points or 0.05 per cent. The benchmark, however, staged a smart recovery from their intra-day lows of 49,281 and 14,598, respectively.
Tech M, Sun Pharma, TCS, HUL, ITC, and Dr Reddy's Labs were the top gainers on the Sensex while Adani Ports, Britannia, Divis Labs, and Cipla were the additional gainers on the Nifty. All these stocks gained between 1 per cent and 5 per cent.
On the downside, IndusInd Bank, Power Grid, ICICI Bank, Tata Motors, HDFC Bank, Reliance Industries, and Axis Bank, down up to 4 per cent, were the top laggards on both the indices.
The broader markets, on the contrary, exhibited strength and settled firm. The S&P BSE MidCap and SmallCap indices ended 0.99 per cent and 0.73 per cent higher, respectively.
Among individual stocks, shares of Adani Green Energy (AGEL) were locked in 5 per cent upper circuit at Rs 1,251, also its new high, on the BSE after Adani Renewable Energy Holding Fifteen Limited (AREHFL), a subsidiary of the company, received Letter of Award (LOA) for 300 MW wind project. READ MORE
Those of Vidhi Specialty Food Ingredients hit a new high of Rs 213.55, up 13 per cent on the BSE in the intra-day trade, as buyers lined-up at the counter to buy the stock on expectation of strong demand for its products. The stock has rallied 52 per cent in the past one week as compared to a 1.7 per cent decline in the S&P BSE Sensex. READ MORE
ACC rallied 7 per cent to Rs 1,865, trading close to its record high level of Rs 1,893.80, touched on March 5, 2021. Trading volumes on the counter more-than-doubled with a combined 4.8 million equity shares changing hands on the NSE and BSE till 12:59 pm. In comparison, the S&P BSE Sensex was down 1 per cent at 49,341 points. Shares of Ambuja Cements, meanwhile, gained 4 per cent at Rs 295.35, and were trading near its all-time high level of Rs 298.25, hit on March 5.
Lastly, shares of Intellect Design Arena surged 9 per cent to hit a new high of Rs 733.50 on the BSE in intra-day trade. The stock has rallied 69 per cent thus far in the month of March on expectations of a strong revenue outlook. In comparison, the S&P BSE Sensex has added 1.5 per cent during the same period. READ MORE
In terms of sectoral performance, the Nifty Bank and Private Bank indices slipped 2 per cent each, while that of Auto, Financial Services, and PSU Bank eased up to 1.5 per cent. On the upside, the Nifty Realty, FMCG, IT, Pharma, and Metal indices were up in the range of 0.2 per cent to 2 per cent.
4:17 PM
TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking
On the technical front, the Nifty index has been trading with the support of 21-Hourly Moving Averages, which points out strength in it. Moreover, The benchmark Index has confirmed Bullish Engulfing Candlestick Pattern on an Hourly Chart which suggests an upside rally for the upcoming session. At present, the Nifty index has an immediate resistance at 14900 levels while downside support is shifted up to 14500 levels.
4:06 PM
TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research
Today the market failed to show resilience to stay above the level of 14750. As of now, the short-term technical condition of the market shows that the expected range of the market is likely to be between 14410 and 14900. While it is subject to further price action evolution, the market expects to gain momentum above the level of 14900. As such the traders are advised to refrain from building a fresh buying position until further decisive movement is seen in the market
3:58 PM
MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities
Markets opened weak on fears of the recent spike in coronavirus infections in a few states. Afternoon Trade however witnessed a recovery led by Cement stocks ( both large and midcap) with support from Technology stocks
3:52 PM
MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services
Fear of the second wave of Covid-19, elevated bond yield and weak global cues is weighing on the domestic market. The expectation of rise in inflation is also impacting the market. The market has marched well in anticipation of faster economic recovery and is taking a breather given tightening restrictions & an increase in future interest rate, spiking fear of a slower recovery
3:50 PM
BSE Snapshot
3:49 PM
SECTOR WATCH :: IT stocks shine among defensive stocks; index up 2%
3:48 PM
SECTOR WATCH :: Realty stocks outperform; index ends 3% higher
3:47 PM
SECTOR WATCH :: Private Banks slip the most
3:45 PM
Broader market check :: S&P BSE MidCap index ends 1% higher
3:44 PM
Stocks that dragged the Sensex lower today
3:42 PM
Sectoral trends on the NSE
3:39 PM
Sensex Heatmap at Close :: Index stages smart recovery in last hour of trade
3:34 PM
CLOSING BELL
The frontline S&P BSE ended the session at 49,771 levels, down 87 points or 0.17 per cent. On the NSE, the Nifty50 closed at 14,736 levels, down 7.6 points or 0.05 per cent. The benchmark, however, staged smart recovery from their intra-day lows of 49,281 and 14,598, respectively.
3:26 PM
Increase gap between two doses of Covishield to 6-8 weeks: Centre to states
In view of emerging scientific evidence, interval between two doses of a Covishield, has been revisited by National Technical Advisory Group on Immunization and subsequently by National Expert Group on Vaccine Administration for Covid-19, the government said. READ MORE
3:22 PM
MARKET COMMENT :: Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi
Indian markets opened weak with marginal decline following mixed to negative cues from its Asian market peers as investors watched the weakening Turkish Lira and fears of rise in cases due to Covid virus which increased volatility in markets. During the afternoon session, the markets extended their losses and sentiments were dented due to major dampener in the form of fast-rising COVID-19 cases, especially in some economically significant cities like Maharashtra. Restricted economic activity in these regions may impact the optimistic growth projections for FY22. Traders seem to have overlooked RBI’s data that foreign portfolio investors have pumped in a record $36 billion into equities so far this fiscal up to March 10, which is the highest since FY13. On the other hand, net foreign direct investment inflows jumped to $44 billion, till end January, up from $ 36.3 billion a year ago, driven by the massive inflows in November and December. On sectoral front, today's decline was led by Banks and Financial stocks while IT, FMCG and Pharma traded in green
Topics : MARKET WRAP Markets SGX Nifty Sensex Nifty50
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First Published: Mar 22 2021 | 7:53 AM IST
