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NEW DELHI: Domestic equity benchmarks extended their losses to a second straight day on Wednesday dragged by metals, private banks and financial services stocks. PSU banks and select auto counters saw buying.
Fears of inflation in the US, thanks to rising commodity prices, have spooked inventors. They believe if inflation rises further, central banks will be forced to raise interest rates, leading to outflows from India.
The 30-share pack Sensex declined 471.01 points or 0.96 per cent to close at 48,690.80. Its broader peer NSE Nifty dropped 154.25 points or 1.04 per cent to settle at 14,696.50.
“Indian indices extended their losses due to concerns over a hike in global interest rates and bond yields due to rising commodity prices and inflationary pressure. International commodity prices will have to stabilize to provide sustenance in the equity market," said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
Broader market indices ended lower but performed better than their headline peers. Nifty Smallcap dipped 0.59 per cent and Nifty Midcap climbed 0.81 per cent. Nifty 500, the broadest index on NSE, fell 0.83 per cent.
Vodafone Idea, Godrej Industries, Union Bank of India, Alkyl Amines, Sun Pharma Advanced Research and Alok Industries were top gainers from midcap and smallcap indices, climbing in the range of 5-9 per cent.
Granules India, Sequent Scientific, Happiest Minds Technologies, SAIL, Cholamandalam Finance and Voltas were major losers from the broader market space, falling in the range of 4-7 per cent.
The sectoral matrix on NSE was mixed. Nifty PSU Bank was the top gainer, rising 3.24 per cent, followed by Nifty Media. Nifty Metal was the top loser, down 2.97 per cent followed by Nifty Private Bank that fell 1.64 per cent.
Overall market breadth was in favour of bulls as 1,586 stocks ended in the green while 1,488 counters settled with cuts. As many as 339 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 31 stocks hit 52-week lows, mostly from the microcap space. About 423 stocks hit upper circuit limits and 165 lower circuit limits.
European markets were trading higher at the last count. London-based FTSE was up 0.83 per cent while Paris and Frankfurt advanced 0.17 per cent and 0.32 per cent, respectively. In Asia, China and Hong Kong gained while other markets closed in the red.
Fears of inflation in the US, thanks to rising commodity prices, have spooked inventors. They believe if inflation rises further, central banks will be forced to raise interest rates, leading to outflows from India.
The 30-share pack Sensex declined 471.01 points or 0.96 per cent to close at 48,690.80. Its broader peer NSE Nifty dropped 154.25 points or 1.04 per cent to settle at 14,696.50.
“Indian indices extended their losses due to concerns over a hike in global interest rates and bond yields due to rising commodity prices and inflationary pressure. International commodity prices will have to stabilize to provide sustenance in the equity market," said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Vodafone Idea rises 9% after first user gain in 15 months
- Steel stocks continue to see profit booking; Tata Steel slumps 5%
- Investors keep accumulating PSU banks; Punjab & Sind Bank up 10%
- Godrej Consumer rallies 22% after Q4 results, new CEO appointment
- Fear gauge VIX gains over 1%
Money-making ideas
Dalal Street has seen volatile moves with the Covid caseload hitting fresh peaks every day. Fears of inflation have also added to the nervousness in the market. In the midst of all this, some stocks are showing signs of breakouts. Here are a few stocks that analysts recommend traders to bag strong returns in the next few weeks.
Broader market indices ended lower but performed better than their headline peers. Nifty Smallcap dipped 0.59 per cent and Nifty Midcap climbed 0.81 per cent. Nifty 500, the broadest index on NSE, fell 0.83 per cent.
Vodafone Idea, Godrej Industries, Union Bank of India, Alkyl Amines, Sun Pharma Advanced Research and Alok Industries were top gainers from midcap and smallcap indices, climbing in the range of 5-9 per cent.
Granules India, Sequent Scientific, Happiest Minds Technologies, SAIL, Cholamandalam Finance and Voltas were major losers from the broader market space, falling in the range of 4-7 per cent.
The sectoral matrix on NSE was mixed. Nifty PSU Bank was the top gainer, rising 3.24 per cent, followed by Nifty Media. Nifty Metal was the top loser, down 2.97 per cent followed by Nifty Private Bank that fell 1.64 per cent.
"We feel the prudent strategy is to keep a check on naked leveraged positions and wait for more clarity."
European markets were trading higher at the last count. London-based FTSE was up 0.83 per cent while Paris and Frankfurt advanced 0.17 per cent and 0.32 per cent, respectively. In Asia, China and Hong Kong gained while other markets closed in the red.
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