Apart from the abundance of caution ahead of the Union Budget, sentiments have been dented due to selling by foreign institutional investors who have driven the market higher in the past 10 months.
The 30-share pack Sensex tanked 588.59 points or 1.26 per cent to close at 46,285.77 as the index shed over 3,500 points in the past 6 sessions. Its broader peer NSE Nifty slid 182.95 points or 1.32 per cent to 13,634.60.
“Weakening global trend due to the concerns of speculation and slowing economic recovery has hugely impacted the cautious pre-budget domestic market. The pace of recovery in the US and Europe has slowdown, having implication on Indian exports and FII inflows,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- IndusInd Bank surges 6 per cent ahead of Q3 earnings.
- Dr Reddy’s Laboratories tumbles 6 per cent after flow Q3 show.
- India VIX spikes over 4 per cent to trade above 25 level.
- Auto stocks some of the biggest losers; Nifty Auto down 3 per cent.
- Broader market indices outperform Nifty and Sensex but end in red.
How the bluechips performed
Among the bluechip names, IndusInd Bank was the top gainer, rising 6.14 per cent. Sun Pharma, ICICI Bank, HDFC Bank, HDFC Life Insurance, Indian Oil and BPCL were other gainers.
Dr Reddy’s Labs was the top loser in the Nifty pack, falling 5.30 per cent. Maruti Suzuki, Hero Motocorps, Tata Steel, Bharti Airtel, NTPC, JSW Steel, Wipro and Bajaj Auto were others that ended in the red.
Broader market outlook
Broader market indices closed with cut but outperformed their headline peers. Nifty Smallcap dipped 0.63 per cent and Nifty Midcap skidded 0.38 per cent. Nifty 500, the broadest index on NSE, dropped 1.22 per cent.
Emami, Dhani Services, TVS Motor, Equitas Holdings, Westlife Development and Rail Vikas Nigam were top gainers from mid and smallcap indices, climbing in the range of 3-7 per cent.
KEI Infrastructure, Cyient, Granules India, M&M Financial Services, Vodafone Idea and Page Industries were major losers from broader market space, falling in the range of 5-7 per cent.
Sectoral outlook on the NSE was mixed. Nifty PSU Bank was the biggest gainer, up 1.69 per cent followed by Nifty Bank and Nifty Realty. Nifty Auto was the top loser, down 2.89 per cent while drop Nifty IT followed with a slide of 2.59 per cent. Nifty Metal and Nifty Pharma were other major losers.
Market breadth was in favour of losers as 1,382 stocks ended in the green, while 1,529 names settled with cuts. As many as 165 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 36 names hit 52-week lows, mostly from the microcap space. About 305 stocks hit upper circuit limits and 278 lower circuit limits.
European markets were trading with cuts as well. London-based FTSE was down 1.23 per cent while Paris and Frankfurt were down 1,28 per cent and 1.23 per cent. In Asia as well, all markets closed with cuts led by South Korea.