Business Standard

Sensex crashes 928 pts, ends below 60K; Nifty near 17,550 amid global rout

CLOSING BELL: The market cap of Adani Group companies fell below Rs 8-trillion-mark in Wednesday's intra-day trade, down from Rs 25 trillion recorded before the release of the Hindenburg report

Image SI Reporter New Delhi
Sensex crashes 928 pts, ends below 60K; Nifty near 17,550 amid global rout

CLOSING BELL

Stock market highlights: Concerns over hawkish central bank action, amid sticky inflation and resilient economic activity, fretted investors on Wednesday. Moreover, increased geopolitical tensions between Russia and the US, over Ukraine war, dampened sentiment. The S&P BSE Sensex slipped below the 60,000-mark today, falling nearly 1,000 points and hitting an intra-day low of 59,681.55. The Nifty50, meanwhile, gave up the 17,550-mark intra-day.

The indices settled at 59,745 (down 928 points or 1.53 per cent), and at 17,554 (down 272 points or 1.53 per cent), respectively. This was the indices' biggest one-day fall in a month.

The RBI and the US Fed will release minutes of their February policy committee meetings on Wednesday. While India's retail inflation accelerated to 6.5 per cent in January 2023, consumer price index (CPI) in the US rose 0.5 per cent in January to 6.4 per cent. With this spike in inflation data, it gives more ammunition to both central banks to stick to their policy tightening path. 


The weakness percolated to the broader markets, too, with the BSE MidCap and SmallCap indices closing 1 per cent lower each. India VIX jumped 12 per cent.

All the sectoral indices ended in the negative zone with the Nifty Metal index slipping over 2.5 per cent, the Nifty PSU Bank index 2 per cent, and the Nifty Realty index 1.7 per cent.

Market Heatmap
Adani Enterprises, Adani Ports, Grasim, JSW Steel, Bajaj twins, M&M, RIL, L&T, Wipro, SBI Life, Titan Company, Ultratech Cement, NTPC, ICICI Bank, Tata Steel, KOtak Bank, Tata Motors, and HDFC Bank fell in the range of 1.5 per cent to 11 per cent.

ITC, and Bajaj Auto were the only large-cap gainers, up 0.5 per cent, and 0.26 per cent, respectively. 

In the broader market, Adani Power, Aditya Birla Fashion and Retail, ACC, IRCTC, IDBI, Capacite Infra, SVP Global, Likhitha Infra, and Uflec lunged between 4 per cent and 11 per cent.

Adani Group
The market capitalisation of Adani Group companies fell below Rs 8-trillion-mark in Wednesday's intra-day trade, down from Rs 25 trillion recorded before the release of the Hindenburg report. In the past one month, the market price of Adani Total Gas has tanked 79 per cent. While Adani Green Energy, and Adani Transmission have plunged 73 per cent, and 71 per cent, respectively, the remaining group stocks have slipped in the range of 25 per cent to 60 per cent. The Group has repeatedly denied the accusations. In comparison, the S&P BSE Sensex has slipped 1.9 per cent during last one month. READ MORE

4:30 PM

Nifty: Bears to have the upper hand as long as index remains below 18,000

"NIFTY 50 index is trading in a downtrend with lower high and lower low formation intact on the daily and weekly chart. The momentum indicator RSI is on the verge of a breakdown and is likely to enter the weak zone. The view remains bearish as long as the index stays below the 18,000 mark and can slide towards 17,400/ 17,200 levels."
 
- Rupak De, Senior Technical Analyst at LKP Securities
 
4:29 PM

Bank Nifty:: Index in oversold territory; 40,000 key level to watch out

"The Bank Nifty index continued to witness selling pressure from the higher levels. The index is now trading in an oversold territory and if it sustains above 40,000 can witness a pull back rally towards 40600/ 40800 levels."
 
- Kunal Shah, Senior Technical Analyst at LKP Securities
4:16 PM

COMMENT:: Trading strategy for Nifty, Bank Nifty based on options data

However, if there is a gap-down opening seen in the Bank Nifty Index tomorrow, the put writers will have to run for cover propelling Bank Nifty further down and all the way up to the 39,000 level. Nifty too, saw a similar situation today with large amount of call shorting happening at 17,600, 17, 700 and 17, 800 call option strikes. The highest OI on the put side remains at the 17, 500 PE strike and this will move in the same manner depending on whether there is a gap opening tomorrow. Also, as the level of 17,710 has been taken out, the near term trend has now become sideways to bearish pending the take out of the 200-day EMA and SMA. Once this also gets taken out, the trend will get confirmed to bearish.”
 
- Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform
4:14 PM

Comment :: 'Traders can expect dead cat bounce in Nifty Bank index on Wednesday'

On Tuesday, we saw huge shorting of ITM 40, 500 CE of Bank Nifty of next month expiry indicating sharp bearishness in the markets. This huge OI build-up on this strike today was replaced by shorting of the 40,000 PE of Bank Nifty, which was one of the primary reasons for Bank Nifty not being able to break the 40,000 level so easily today. The 40,000 PE has the highest OI among the puts side units indicating there might be a dead cat bounce, which traders can expect tomorrow. 
 
However, if there is a gap-down opening seen in the Bank Nifty Index tomorrow, the put writers will have to run for cover propelling Bank Nifty further down and all the way up to the 39,000 level. Nifty too, saw a similar situation today with large amount of call shorting happening at 17,600, 17,700 and 17,800 call option strikes. The highest OI on the put side remains at the 17,500 PE strike and this will move in the same manner depending on whether there is a gap opening tomorrow.

Also, as the level of 17,710 has been taken out, the near term trend has now become sideways to bearish pending the take out of the 200-day EMA and SMA. Once this also gets taken out, the trend will get confirmed to bearish.

Views by: Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform
 
4:10 PM

Comment :: Resurgence of cold war between US & Russia made the market apprehensive

Resurgence of cold war between US & Russia has brought apprehension in the market. Although it should be a short-term effect, the fear of sanctions against Russia and its degree of implication on the economy, especially on food and oil exports, is adding to the anxiety. The market is just recovering from the pandemic, and high interest & inflation are the headwinds in the background. It is presumed that this war will be fought on an economic front, limiting its effect on strong economies like the US & India. Awaiting the release of Fed and RBI minutes are the other major elements that kept investors on the side lines.
 
Views by: Vinod Nair, Head of Research at Geojit Financial Services
4:08 PM

These 4 factors were behind Wednesday's market fall

Analysts believe that this down trend is a short-term gyration and investors' should use this dip to accumulate high quality growth stocks. READ MORE

Sensex, Nifty fall amid hike in crude oil price, deficient monsoons

4:04 PM

Adani group shares extended fall; Adani Total Gas tanks 79% in one month

Shares of Adani group companies continued to reel under pressure, falling up to 11 per cent in Wednesday's trade. Adani Enterprises was the top loser, while Adani Total Gas extended its lower circuit hitting streak. READ MORE

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4:00 PM

Cyient hits 52-week high on inking pact with Thingtrax

Last month, electronic Manufacturing Services (EMS) firm Cyient DLM, a subsidiary of Cyinet, filed preliminary papers with capital markets regulator Sebi to raise Rs 740 crore through an IPO. READ MORE

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3:58 PM

Chaman Lal, KRBL: Firm demand to keep rice shares steaming, say analysts

Analysts expect global and domestic rice demand to remain firm, which they believe, would keep the stock prices piping hot going ahead. READ MORE

The centre will bear the entire cost of rice fortification, of about Rs 2,700 crore per annum

3:56 PM

Shares of air-conditioner makers gained on Wednesday amid heat wave alert

Analyst at Jefferies believes FY24E should see both Air-Conditioner (AC) and Engineering segments of Voltas being in a sweet spot. READ MORE

electronics, home appliances, goods, manufacturing, AC, air conditioners, coolers, heat, summer

3:53 PM

IRB Infra soars 15% as stock trades ex-split in 1:10 ratio

Recently, the company also emerged as a preferred bidder for Rs 2,132 crore built-operate-transfer (BOT) project in Gujarat. READ MORE

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3:50 PM

Market Breadth was extremely bearish with over 2,500 stocks declining v/s 950 advancing shares on the BSE

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3:48 PM

Nifty Media index cracks 1.9%; NDTV, Zee Entertainment fall over 4%

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3:46 PM

Bank Nifty slumps 1.7%; PNB, IDFC First Bank slip over 2%

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3:44 PM

BSE Smallcap Heatmap:: IRB Infra, CCD zoom up to 15% in a weak market

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First Published: Feb 22 2023 | 8:09 AM IST

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