Bears continue to topple Sensex, Nifty for 7 days in row; smallcap worst hit; Tata stocks top losers
3 min read . Updated: 27 Feb 2023, 05:39 PM IST
Premium- Broad-based selloffs pushed Sensex and Nifty 50 down for seven days in row. Smallcap stocks were under pressure. Banking stocks outperformed benchmarks but could not offset the bears due to steep selloffs in IT, auto, and healthcare stocks.
Indian markets kicked started the week with bears continuing to hold the command. Sensex and Nifty 50 have now tumbled for seven days in a row. On Monday, the 30-scrip benchmark slipped below the 59,300 level and the Nifty 50 erased the 17,400 mark. A broad-based selloff was seen across indices. Smallcap stocks were under pressure. Banking stocks outperformed benchmarks but could not offset the bears due to steep selloffs in IT, auto, and healthcare stocks. Huge profit booking in major Tata Group stocks also weighed on sentiment.
Sensex dipped by 175.58 points or 0.30% to end at 59,288.35. Meanwhile, Nifty 50 dropped by 73.10 points or 0.42% to finish at 17,392.70.
Tata Group stocks were top losers on Monday. Tata Steel led the bear market by slipping nearly 3.4%, while Tata Motors and heavyweight TCS shed 2.3% and 2.01%. Also, Infosys and HCL Tech added to the woes by plunging around 2.7% and 1%. M&M was also among the draggers with a downside of 1.8%.
Stocks like Power Grid, ICICI Bank, Kotak Bank, and SBI were top gainers.
In broader markets, BSE Smallcap was the top laggard. The index declined by 352.20 points or 1.28% to end at 27,232.39. BSE Sensex Next 50 and the Midcap index also tumbled by nearly 380 points and 166 points respectively.
In terms of sectoral indices, IT stocks took a huge beating. On BSE, the IT index plummeted over 591 points or 1.96%, followed by the Auto and Capital Goods index with a drop of over 445 points and 324 points. Healthcare and consumer durables stocks also dragged the performance.
It was only banking stocks that were in the gains. BSE Bankex surged nearly 485 points or 1.07%. While Bank Nifty 50 soared by nearly 398 points or 1%.
Ajit Mishra, VP - of Technical Research, at Religare Broking, said, "Markets started the week on a feeble note and lost nearly half a percent, in continuation to the prevailing corrective phase. After the initial downtick, Nifty breached the budget day low i.e. 17353 levels, and oscillated in a narrow band thereafter."
Mishra added, "Meanwhile, pressure in the IT, metal, and auto majors kept the tone negative however resilience in the banking pack capped the damage. And, a fresh fall in the broader indices further deteriorated the sentiment."
As for the Indian rupee, at the interbank forex market, the local unit dipped against the US dollar tracking the fall of Asian peers on the worries that the Fed may hike interest rates for a longer period of time.
After weakening to 82.9475 during the trading session which would be its lowest level since October 20 last year, the rupee ended at 82.8350 per dollar on Monday compared to the last week's Friday's print of 82.75 per dollar.
Going ahead, Mishra said, "The pressure in banking and financial majors was weighing on the sentiment during the initial phase of correction and now it’s cascading to the other sectors as well. Besides, the fall in the US markets is adding to the pessimism."
Amid all, Mishra added, "we feel it’s prudent to wait for a rebound for creating fresh shorts citing oversold positions and some resilience in select private banking names. "
Rohan Shah-head technical analyst at Stoxbox said, "Nifty is taking support at the 200 DMA. Nifty shows a sharp recovery from the day low of 17,299 level. Intraday traders can look for long opportunities only above the resistance level of 17,460 & the price should sustain above 17,460 for 15 minutes to confirm long. Traders can look for fresh shorts only if nifty breaks the 17,300 level & remains below for 15 min to confirm short."