Sensex, Nifty fall for second-straight day; HDFC, IndusInd Bank slip the most, Sun Pharma shares gain

As the day progressed the day progressed the volatility index recopped and surged to sit above 25 levels.

Sensex and Nifty started the day with gains but bears were again seen controlling the market movement sending the indices deep in red. Sensex closed down 335 points or 0.88% while the Nifty 50 ended just above the 11,100 mark. “We were unsuccessful in closing above the 11300 level. Instead, we dropped and tested the 11100 support level. 11000-11100 is going to be a crucial zone for the markets. A bounce from these levels should take the markets back to 11300-11400 but if we break 11000 on closing, we could see a further slide which could take the markets to 10800,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Top gainers: India Power Corporation was the top gainer on Thursday, jumping 20%, followed by Krebs Biochemicals. On the S&P BSE Sensex Sun Pharma and Maruti were the best performing stocks. Star Cement gained 13% during the day while hospitality giant EIH Hotels gained almost 10%.

Top losers: On BSE Sensex, IndusInd Bank and HDFC were down the most. On BSE 500 the worst performing stocks were Manappuram Finance, BPCL, and Inox.

Global stocks markets: Equity markets across Europe were down in the red. In Asia too all major stock markets ended lower except for KOSPI. “Global shares fell on Thursday as the Federal Reserve’s pledge to use all its tools to support the U.S. economy failed to reassure investors uneasy about a stalemate on fiscal support and rising coronavirus cases. Investors were also wary ahead of data that is likely to show that the U.S. economy shrank during the second quarter at the steepest pace since World War II,” said Deepak Jasani, Head Retail Research, HDFC Securities.

Volatility: The fear gauge of the domestic stock markets was seen surging higher today. India VIX opened 24 levels before slipping down to 22. However, as the day progressed the day progressed the volatility index recouped and surged to sit above 25 levels.

Foreing investments still distant: FPIs in the month of July poured in just Rs 3,292 crore with just one day left to go in the month. In the month of june investment from FPIs was recorded at Rs 26,009 crore — a 15-month high. India’s economy is expected to de-grow by 5% this fiscal year.