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
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Stock market updates: Indices were painted in the red for fifth consecutive session as weak global cues, rising bond yields, and fears of Covid-19-led lockdown came to haunt the bulls on the Street. The frontline indices nursed the maximum loss (in absolute terms) in nearly two-months today with the benchmark S&P BSE Sensex sinking 1,262 points in the intra-day trade while the Nifty50 lost 345 points.
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. Only three counters -- ONGC, Kotak Mahindra Bank, and HDFC Bank -- were ruling up to 1 per cent higher. On the downside, Tech M (down 5 per cent), M&M and Dr Reddy's Labs (down around 4.5 per cent each), RIL, IndusInd Bank, Axis Bank, and TCS (down 4 per cent each), and Maruti Suzuki (down 3 per cent) were the top laggards.
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.
The broader markets, however, felt lesser pain with the S&P BSE MidCap and SmallCap indices closing 1.34 per cent and 1 per cent down, respectively.
On the sectoral front, metal stocks dazzled at the bourses amid improved outlook in the copper market. The Nifty Metal index ended in the green, up 1.6 per cent on the NSE with Hindustan Copper, Ratnamani Metals, Hindalco, JSW Steel, and MOIL closing up to 14 per cent higher.
On the downside, the Nifty Realty, PSU banks, Pharma, IT, and Media indices declined by 3 per cent, while the Nifty Private Bank, FMCG, Financial Services, and Banks' index closed 2 per cent down.
Global markets
World shares sank on Monday as expectations for faster economic growth and inflation battered bonds and boosted commodities, while rising real yields made equity valuations look more stretched in comparison.
Global markets
World shares sank on Monday as expectations for faster economic growth and inflation battered bonds and boosted commodities, while rising real yields made equity valuations look more stretched in comparison.
MSCI’s All Country World Index, which tracks shares across 49 countries, was down 0.4 per cent after the start of European trade.
The pan-European STOXX 600 index was down 1 per cent, at its lowest in 10 days. Germany’s DAX, France’s CAC 40 and Spain’s IBEX 35 index fell 1 per cent each, Britain’s FTSE 100 lost 0.85 per cent and Italy’s FTSE MIB index fell 0.9%.
S&P 500 futures fell to their lowest since Feb. 4, down 1% on the day.
(With inputs from Reuters)
(With inputs from Reuters)
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
Topics : MARKET WRAP Markets
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First Published: Feb 22 2021 | 8:04 AM IST
