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NEW DELHI: Weak global cues, and profit-booking in banking and financial services stocks along with FMCG counters pulled benchmark indices lower on Wednesday, extending the losses to a second straight day.
The market rally in February so far has been fueled by the government's capex plans and better-than-expected earnings, leading to buying on every dip. The cool-off in the market could be another such opportunity, say analysts.
The 30-share Sensex pack fell 400.34 points or 0.77 per cent to close at 51,703.83. The index hit a low of 51,586.34 before recovering slightly. The Sensex has shed 812.93 from its all-time high of 52,516.76 registered on Tuesday.
Its broader peer NSE Nifty fell 1.04.55 points or 0.68 per cent to 15,208.90.
"The Indian market opened low replicating the weak global trend due to rising bond yield and inflation. PSU banks which were in the limelight on reports of privatisation continued to ride their uptrend. Mid and small-cap stocks remained firm and outperformed the benchmark indices,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance
Nestle India was the top loser in the Nifty pack, falling 3 per cent. Asian Paints, Maruti Suzuki, Bajaj Finserv, HDFC Bank, Divi’s Labs, IndusInd Bank, Dr Reddy’s Labs and HDFC were others that ended in the red.
Broader market indices ended with gains outperforming their headline peers. Nifty Smallcap added 0.03 per cent and Nifty Midcap advanced 0.31 per cent. Nifty 500 -- the broadest index on NSE -- fell 0.39 per cent.
Dr Lal Pathlabs, Aditya Birla Capital, Varun Beverages, Indian Bank, Linde India and IDBI were top gainers from the mid- and small-cap indices, climbing in the range of 4-10 per cent.
JB Chemicals and Pharmaceuticals, Indiamart Intermesh, Indiabulls Real Estate, Page Industries, Mphasis and RBL Bank were major losers from broader market space, falling in the range of 2-6 per cent.
The sectoral matrix on NSE was mixed. Nifty Bank was the top gainer, up 3.32 per cent, followed by Nifty Private Bank and Nifty Financial Service. Nifty Metal was the top loser, down 0.47 per cent. Nifty IT and Nifty Pharma were other indices that ended in the red.
Market breadth was in favour of gainers as 1,513 stocks ended in the green while 1,448 counters settled with cuts. As many as 257 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 37 scrips hit 52-week lows, mostly from the microcap space. About 340 stocks hit upper circuit limits and 235 lower circuit limits.
European markets were trading with cuts at the last count. London-based FTSE was down 0.28 per cent while Paris and Frankfurt fell 0.09 per cent and 0.66 per cent, respectively. In Asia, barring Hong Kong and Taiwan that registered gains, all markets ended in the red.
The market rally in February so far has been fueled by the government's capex plans and better-than-expected earnings, leading to buying on every dip. The cool-off in the market could be another such opportunity, say analysts.
The 30-share Sensex pack fell 400.34 points or 0.77 per cent to close at 51,703.83. The index hit a low of 51,586.34 before recovering slightly. The Sensex has shed 812.93 from its all-time high of 52,516.76 registered on Tuesday.
Its broader peer NSE Nifty fell 1.04.55 points or 0.68 per cent to 15,208.90.
"The Indian market opened low replicating the weak global trend due to rising bond yield and inflation. PSU banks which were in the limelight on reports of privatisation continued to ride their uptrend. Mid and small-cap stocks remained firm and outperformed the benchmark indices,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance
- BOI, CBI, IOB and Bank of Maharashtra rally 20% each on privatisation hopes
- Nestle India drops 3% after Q3 show, emerges top Nifty loser
- India VIX -- the measure of volatility -- falls 2% to 21.33
- IPO watch: RailTel subscribed 5.68x so far; Nureca 36.95x
- HDFC twins biggest drag on Sensex, Nifty; RIL provides support
Nestle India was the top loser in the Nifty pack, falling 3 per cent. Asian Paints, Maruti Suzuki, Bajaj Finserv, HDFC Bank, Divi’s Labs, IndusInd Bank, Dr Reddy’s Labs and HDFC were others that ended in the red.
Broader market indices ended with gains outperforming their headline peers. Nifty Smallcap added 0.03 per cent and Nifty Midcap advanced 0.31 per cent. Nifty 500 -- the broadest index on NSE -- fell 0.39 per cent.
Dr Lal Pathlabs, Aditya Birla Capital, Varun Beverages, Indian Bank, Linde India and IDBI were top gainers from the mid- and small-cap indices, climbing in the range of 4-10 per cent.
JB Chemicals and Pharmaceuticals, Indiamart Intermesh, Indiabulls Real Estate, Page Industries, Mphasis and RBL Bank were major losers from broader market space, falling in the range of 2-6 per cent.
The sectoral matrix on NSE was mixed. Nifty Bank was the top gainer, up 3.32 per cent, followed by Nifty Private Bank and Nifty Financial Service. Nifty Metal was the top loser, down 0.47 per cent. Nifty IT and Nifty Pharma were other indices that ended in the red.
"A sharp rise in US Treasury yields and a pickup in commodity prices would have negative implications for foreign flow into bonds, and some collateral impact on INR as well. In this context, one can expect more defensive sectors to remain well-bid in the near term."
European markets were trading with cuts at the last count. London-based FTSE was down 0.28 per cent while Paris and Frankfurt fell 0.09 per cent and 0.66 per cent, respectively. In Asia, barring Hong Kong and Taiwan that registered gains, all markets ended in the red.
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1 Comment on this Story
 | Krishan Kumar Totlani51 minutes ago The stock markets were in bear grip as profit-booking dragged indices lower across the globe. The sensex ended down 400 points to close at 51704 & Nifty ended down 105 points at 15209 Levels. |
