Foreign institutional investors have fuelled the rally so far in the Indian markets. Any reversal in the trend will likely lead to more selloff as investors will look to liquidate their positions.
The 30-share pack Sensex dived 470.40 points or 0.96 per cent to close at 48,564.27. The index ended up over 150 points from lows. Its broader peer NSE Nifty dipped 152.40 points or 1.06 per cent to settle at 14,281.30.
“Markets traded weak for the most part of the day and closed in the red as fears of price cuts led to profit booking in Metal stocks in the wake of rising coking coal prices. Afternoon Trade witnessed selling in Oil & Gas stocks too causing the market breadth to deteriorate,” said S Ranganathan, Head of Research at LKP Securities.
Market at a glance:
- Adani Green Energy rises 1% after Total buys 20% stake
- IRFC IPO sees good response, subscribed 51% of Day 1 so far
- JSPL, Tata Steel plunge on fear of price cut, rising coke prices
- All sectors end in the red; Nifty Metal down over 4%
- India VIX gains for another day, reflecting nervousness in market
Investors became poorer by Rs 2.72 lakh crore as total market cap of BSE-listed companies came down to Rs 192.70 lakh crore.
Among the bluechip names, UPL was the top gainer, rising 6.21 per cent. Reliance Industries, Titan, HDFC Bank, ITC and Eicher Motors were other gainers.
Losers among Nifty constituents were led by Tata Motors, which fell 6.07 per cent. Tata Steel, ONGC, Hindalco, JSW Steel, IndusInd Bank, Sun Pharma and Power Grid were other stocks that ended in the red.
Broader market indices closed with cuts underperforming their headline peers. Nifty Smallcap dropped 1.77 per cent and Nifty Midcap fell 2.12 per cent. Nifty 500 — the broadest index on NSE — fell 1.30 per cent.
Trent, Whirlpool of India, Jubilant FoodWorks, KEI Electronics, Tata Elxsi and CSB Bank were top gainers from mid- and small-cap indices, climbing in the range of 2-7 per cent.
Indiabulls Housing Finance, M&M Financial Services, SAIL, Rain Industries, Sobha and Welspun Corp were major losers from the broader market space, falling in the range of 5-7 per cent.
All sectoral indices on NSE closed with losses. Nifty Metal plunged the most, down 4.08 per cent. Nifty Pharma, Nifty Auto, Nifty PSU Bank, Nifty Realty and Nifty Media closed with cuts of more than 2 per cent.
“We reiterate our positive yet cautious view and suggest focusing more on stock selection and risk management.”
Market breadth was in favour of losers as 938 stocks ended in the green, while 2,090 names settled with cuts. As many as 218 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 37 shares hit 52-week lows, mostly from the microcap space. About 335 scrips hit upper circuit limits and 330 lower circuit limits.
European markets were trading flat with a negative bias. London-based FTSE was down 0.12 per cent while Paris was down 0.20 per cent. Frankfurt was unchanged. In Asia, the markets in Hong Kong, Indonesia and China closed in the green while others registered losses.