The resurgence of virus cases in some parts of Europe may bring back the lockdown, as noted by the UK and Scottish authorities. The September F&O expiration also added to the volatility, as traders challenged or renewed their position.
The 30-share Sensex package plummeted 1,114.82 points, or 2.96 percent, to 36,553.60. Its broader pair, NSE Nifty, fell 326.30 points, or 2.93 percent, to 10,805.55. Both indices extended their losing streak to day six, matching a six-month record.
The biggest obstacles for Sensex come from the banking and IT sector. Infosys contributed the most negative points against Sensex with 150.04 points, followed by RIL (143.34 points), TCS (130.68 points), ICICI Bank (100.53 points) and HDFC Bank (65.67 points) .
Stock market investors lost 3.91 lakh crore rupees in Thursday’s loss as the market capitalization of BSE-listed companies slipped to Rs 148.79 lakh crore.
“Uncertainty regarding the economic recovery, the steady increase in virus infections and today’s expiration date for derivatives contributed to the negativity. Since volatility is expected to be high, traders are advised to be cautious, ”said Vinod Nair, Research Director at Geojit Financial Services.
The market at a glance:
- Angel Broking IPO subscribed almost 4 times so far
- GMM Pfaudler crashes in lower circuit for third day in a row
- Nifty IT and Nifty Metal record biggest losers for the day, down more than 4%
- Infy, RIL, TCS and ICICI Bank contribute nearly half of Sensex’s decline
- India VIX rises more than 12% to level 24, reflecting widespread fear on Dalal Street
- Nifty Midcap falls below 50-DMA for the first time since May 22
- Despite this, 89 stocks hit 52-week highs: Advanced Enzymes, Apollo Hospitals and the top names at Syngene International.
Analysts believe that the depression in the market will continue as a correction was expected, given the rising valuation and the price premium of the economic recovery by the market. Market participants will be watching how the world market reacts now, as that may give some clue as to the future course of national indices.
Among Nifty50 stocks, Bharti Infratel was the top earner, posting low-level buying after Wednesday’s massive drop. It gained 2.85 percent to Rs 171.70 followed by Zee Entertainment and HUL who were other winners.
IndusInd Bank was the biggest loser among Nifty’s constituents, falling 7.45 percent to Rs 488.70. It was followed by Tata Motors, Bajaj Finance, Grasim Industries, TCS, Tech Mahindra, UPL and M&M, which fell between 5% and 7%.
AgenciesNifty’s Best Winners and Losers
The broader markets also saw massive sales, but were relatively better positioned than their major peers. Nifty Smallcap fell 2.57 percent while Nifty Midcap extended its losing streak to the sixth day, closing with a 2.51 percent cut.
Indiabulls Housing Finance, Ashok Leyland, Rajesh Exports, Indiabulls Real Estates, IRB Infra and IDFC were among the top losers from the mid- and small-cap indices, which fell in the 6 to 9 percent range.
On the other hand, Apollo Hospitals, Coromandel International, CESC, HEG Infra, Metropolis Healthcare and KEC International were among the main beneficiaries of the broader market, increasing from 2 to 8 percent.
“Traders would be prudent to wait for clarity before launching a trade, while investors should have their shopping list handy and continue to rack up fundamentally strong stocks on dips.
All sector indices closed deep in the red. Nifty Metal extended its loss to the sixth day today and was also the biggest loser, down 4.24 percent. It was followed closely by Nifty IT, which fell 4.20 percent. Nifty Bank and Nifty Auto were among other big losers.
The breadth of the market was in favor of the losers with 625 stocks ending in green while 2,025 names closed the shop with cuts. Up to 89 stocks hit 52-week highs, mostly from the small-cap space. Meanwhile, 75 names hit 52-week lows, mostly from the microcap space. Approximately 160 actions reach the upper limit of the circuit and 384 the lower limit of the circuit.
European markets were mixed with London’s FTSE falling 0.25 percent and France’s CAC and Germany’s DAX adding 0.03 percent and 0.25 percent, respectively. All East Aisan markets closed the day in the red. Taiwan was the biggest loser, down 2.59 percent.
Let’s get ready for tomorrow:
- Loan growth data: The RBI will release growth data for bank loans and deposits for the fortnight ending September 11, which will be followed by investors in bank stocks.
- Currency reserves: The RBI will also release foreign exchange reserve data on Friday that will reveal the central bank’s dollar buying pattern.
- Global signals: Market participants will be keeping an eye on the European and US markets as the move will give a clue as to how stocks can be traded in India.
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