Indian markets plunged deeper into the red on May 12, as the fall continued for a fifth straight day amid weak global markets led by rising inflation fears and selling across the sectors.
At close, the Sensex was down 1,158.08 points, or 2.14 percent, at 52,930.31, and the Nifty was down 359.10 points, or 2.22 percent, at 15,808.
Amid weak global markets, Indian indices started on a negative note with the Nifty slipping below the 16,000-mark in the initial trade. Selling intensified as the day progressed but the Nifty recovered some losses to close at 15,800.
"Indian equity benchmarks opened in the red following weak trade in Asian market peers as global stocks struggled for rebound after higher US inflation report," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers.
Markets further weakened in the afternoon, dragged by metal, power and utilities and ahead of the domestic retail inflation numbers.
"Traders were also cautious as reports cited the RBI could again hike rates in the June policy meet to fight inflation pressures and shore up the rupee," Solanki added.
Adani Ports, IndusInd Bank, Tata Motors, Tata Steel and Hindalco Industries were among the top Nifty losers.
All sectoral indices ended in the red, with the Nifty auto, bank, metal, FMCG, PSU bank and pharma indices shedding 1-5 percent.
| Index | Prices | Change | Change% |
|---|---|---|---|
| 52,930.31 | -1,158.08 | -2.14% | |
| Nifty 50 | 15,808.00 | -359.10 | -2.22% |
| Nifty Bank | 33,532.15 | -1,161.00 | -3.35% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Wipro | 473.80 | 1.90 | +0.40% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| Adani Ports | 713.30 | -46.60 | -6.13% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 29756.80 | -293.40 | -0.98% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty PSU Bank | 2403.45 | -136.85 | -5.39% |
Stocks and sectors
On the BSE, capital goods, auto, bank, metal, oil & gas, power, FMCG, healthcare and realty indices were down 1-4 percent.
Among broader indices, the BSE midcap and smallcap indices shed 2 percent each.
A long build-up was seen in Gujarat Gas and Ambuja Cement, while a short build-up was seen in Punjab National Bank, Adani Ports and Federal Bank.
More than 300 stocks, including Wockhardt, Voltas, Sun TV Network, RBL Bank, Nestle India, Jubilant FoodWorks and IFCI, touched their 52-week low on the BSE.
Outlook for May 13
Sahaj Agrawal, Head, Research-Derivatives, Kotak Securities
Markets continue to remain under pressure in sync with the global market. For the Nifty, the short-term sentiment remains weak, with resistance at 16,400 levels. No strong reversal attempt or confirmation are visible yet.
The medium-term trend support is placed at 15,500, a breach of the which can have significant implications in the short term.
Ajit Mishra, VP-Research, Religare Broking
The US inflation data, which came in closer to a four-decade high, dented sentiment across the globe, including in India. Selling pressure was widespread and all sectoral indices ended lower. The broader indices too lost nearly 2 percent each.
On May 13, markets will react to the macro-economic data (IIP and CPI) in the early trade. This data will have a bearing on the next RBI MPC meet, which is scheduled in June.
Besides, the performance of the global markets will also be in focus. We recommend maintaining a bearish stance on Nifty until it crosses the 16,100 zone decisively.
On the downside, a break below 15,650 can pave the way for 15,400. Participants should align positions according to the trend and focus more on position management.
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