Traders who have been bullish on the market unwinded their positions. Analysts said the fall in the market is good as it would help cool off overheated equities.
The 30-share pack Sensex tanked 535.57 points or 1.13 per cent to close at 46,874.36. Its broader peer NSE Nifty slid 149.95 points or 1.07 per cent to 13,817.55.
With Thursday’s fall, the Sensex has lost a total of 2,917.76 points in five consecutive trading sessions.
“Market turned cautious after the unidirectional upside of the last 10 months due to ambiguity ahead the budget and profit booking in the global market due to over-enthusiasm. Global risk parameters increased despite the US Fed maintaining its supportive policy, due to high speculation in the equity market and likely drop in fiscal & monetary liquidity, in the future,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Q3 impact: Axis Bank surged 6% after earnings announcement
- HUL, Maruti Suzuki drop 4% each after Q3 their show
- IPO watch: Stove Kraft issue subscribed 14.51 times
- Route Mobile plunges 10% even after doubling Q3 profits
- Broader market outperforms but still close in the red
Among the bluechip names, Axis Bank was the top gainer, rising 5.54 per cent. SBI, Indian Oil, BPCL, GAIL, ICICI Bank, ONGC, Shree Cement and Hero MotoCorp were other gainers.
HUL was the top loser in the Nifty basket, falling 3.65 per cent. Maruti Suzuki, Wipro, HDFC Bank, Power Grid, HCL Tech, Kotak Mahindra Bank and Bajaj Finserv were other stocks that ended in the red.
The broader market indices closed mixed outperforming their headline peers. Nifty Smallcap dipped 0.69 per cent and Nifty Midcap skidded 0.59 per cent. Nifty 500 — the broadest index on NSE — dropped 0.90 per cent.
Dhani Services, Federal Bank, BHEL, RVNL, Trident and CEAT were top gainers in the mid and smallcap indices, climbing in the range of 2-10 per cent.
India Cements, Vakrangee, Timken India, Aditya Birla Fashion Retail, Navin Fluorine and Yes Bank were major losers from the broader market space, falling in the range of 4-6 per cent.
Barring Nifty Bank and Nifty Private Bank, which rose about 0.2 per cent each, all sectoral indices closed with cuts. Nifty Realty was the biggest loser, down 2.2 per cent, followed by Nifty IT, which dropped 2.18 per cent.
“Considering the prevailing scenario and upcoming Union Budget, we suggest continuing with hedged positions and preferring index majors over others.”
Market breadth was in favour of gainers, as 1,551 stocks ended in the green on BSE, while 1,324 names settled with cuts. As many as 154 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 40 counters hit 52-week lows, mostly from the microcap space. About 315 stocks hit upper circuit limits and 265 lower circuit limits.
European markets were trading with cuts at the last count. London-based FTSE was down 1.04 per cent while Paris and Frankfurt were down 0.35 per cent and 1.04 per cent, respectively. In Asia as well, all markets closed with cuts, led by Hong Kong and Thailand.