The market has in recent days been volatile as stretched valuations are worrying investors. This is despite FIIs remaining bullish on India like never before. Analysts believe some consolidation is likely before another rise.
The 30-share pack Sensex dropped 746.22 points or 1.5 per cent to close at 48,878.54. Its broader peer NSE Nifty slid 218.45 points or 1.50 per cent to settle at 14,371.90.
“Indian indices tumbled on afternoon trade dragged by weak global markets and selling seen in Metal and Banking indices. European markets fell today on weak UK retail sales numbers and increasing restrictions in the Eurozone, while Asian markets followed its European peers,” said Vinod Nair, Head of Research at Geojit Financial Services.
The crash wiped off Rs 2.09 lakh crore from the market, as the total market capitalisation of BSE-listed companies fell to Rs 194.42 lakh crore.
Market at a glance:
- Q3 impact: Bajaj Auto surges over 10% after earnings
- Banking stocks tumble: Nifty Bank falls over 3%
- India VIX inches up 1%, reflecting Street’s nervousness
- IPO watch: Indigo Paints subscribed 61 times; Home First 1.61 times
- 223 stocks hit 52-week highs: Ashok Leyland, Havells, TaMo, TVS Motor, Crompton and Bosch top names
Among the bluechip names, Bajaj Auto was the top gainer, rising 11 per cent. Hero MotoCorp, Eicher Motors, HUL, UltraTech Cement, TCS, GAIL and Tata Motors were other gainers.
Axis Bank was the top loser in the Nifty pack, falling 4.48 per cent. Asian Paints, JSW Steel, ICICI Bank, Hindalco, IndusInd Bank, SBI, Bajaj Finance and Tata Steel were others that ended in the red.
The broader market indices closed with cuts outperforming their headline peers. Nifty Smallcap fell 0.58 per cent and Nifty Midcap skidded 1.22 per cent. Nifty 500 — the broadest index on NSE — dropped 1.34 per cent.
Apollo Tyres, Future Retail, Endurance Technologies, DCM Shriram, Kajaria Ceramics and CEAT were top gainers from mid and smallcap indices, climbing in the range of 3-8 per cent.
Engineers India, EID Parry, Indiabulls Real Estate, Jindal Steel, SRF and RBL Bank were major losers from broader market space, falling in the range of 3-7 per cent.
Barring Nifty Auto and Nifty IT that added 1.43 per cent and 0.15 per cent, respectively, all sectoral indices on NSE closed with gains. Nifty Metal and Nifty Bank dropped the most, down 3.89 per cent and 3.17 per cent, respectively.
“There’ll be no relief from the volatility front due to the prevailing earnings season and upcoming derivatives expiry. We thus strongly advise keeping a check on naked leveraged positions and waiting for further clarity.”
Market breadth was in favour of losers as 2,005 stocks ended in the green, while 979 names settled with cuts. As many as 223 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 36 shares hit 52-week lows, mostly from the microcap space. About 280 stocks hit upper circuit limits and 317 lower circuit limits.
European markets were trading with cuts at the last count. London-based FTSE was down 0.52 per cent, while Paris and Frankfurt were down 0.98 per cent and 0.62 per cent, respectively. In Asia as well, all markets closed in the red.