The 30-share Sensex package sank 811.68 points, or 2.09 percent, to 38,034. Its broader pair, Nifty, fell 282.75 points or 2.46 percent to 11,222.20. The investor lost 4.58 million rupees lakh in the chaos when the capitalization of companies listed on the BSE fell to 154.42 million rupees.
India VIX, the measure of fear in the market, jumped more than 13 percent to 22.65, reflecting the sentiments of the market community that it expects more volatility in the market.
“The Indian benchmarks succumbed to the profit record in the second half of the trading day. It was in sync with global signals turning negative following a spike in infections in several countries, including Europe. Additional restrictions were being considered in Europe following an increase in infections, ”said Vinod Nair, director of research at Geojit Financial Services.
The market at a glance:
- Route Mobile trades at a 105% premium, but falls to close at 86% above the issue price
- Chemcon Specialty Chemicals IPO Advances, Signed 4.33x So Far
- CAMS IPO sees 56 percent underwriting so far
- All Industry Indices in the Red, Nifty Realty’s Biggest Loser
- Metals lose their shine, Nifty Metal closes almost 6%
- Despite the bloodbath on D-Street, 140 stocks hit 52-week highs: Dr Reddy’s, M&M, Mindtree, Laurus Labs and KPIT Tech among the top names
These are the key factors that put pressure on the market:
Emerging virus cases
Europe, which had somewhat controlled the pandemic, is experiencing a resurgence of the virus, which scared investors around the world. European countries, including Denmark, Greece and Spain, have introduced new restrictions on activity.
Britain is considering a second national lockdown as new cases increase by at least 6,000 a day. Germany’s health minister said the increase in new infections in countries like France, Austria and the Netherlands is concerning.
Meanwhile, India is also adding almost 1 lakh of cases every day.
Global settlement
European stocks have fallen further since July as investors worried about tighter virus restrictions and a report detailing suspicious transactions at international banks. S&P 500 stock futures sank 1.8%, indicating that US stocks are poised to extend three weeks of losses, Bloomberg reported. The political tensions also made merchants nervous as Republicans and Democrats prepare to fight over who will be the next Supreme Court justice.
The UK’s FTSE was the biggest loser, down 3.16 percent, followed by France’s CAC down 2.76 percent and Germany’s DAX down 2.85 percent. US futures also traded nearly 2% lower.
Tensions in LAC
The Indian and Chinese military are still positioned in forward positions, ready to block each other’s movements, keeping tensions high at the border. Several rounds of diplomatic and military talks have yielded no solution, leaving the market nervous.
Fed members to speak
Investors also refrained from buying ahead of Congressional hearings during which Fed members are likely to speak. Seven Fed members will speak this week, including President Jerome Powell who will appear before Congressional committees, so that investors will look for clues to determine the direction of the dollar.
What happened in the market
Kotak Mahindra Bank, Infosys, and TCS were among the winners among large-cap stocks. On the other hand, Hindalco, IndusInd Bank, Tata Motors, Bharti Airtel, JSW Steel and Tata Steel were among the main losers, falling between 5% and 9%.
AgenciesMarket breadth tilted sharply in favor of the losers with just 595 stocks ending in green while 2,165 names closed with cuts. Some of the biggest losers in the broader market were Indiabulls Housing Finance, Jindal Steel, Indiabulls Real Estate, IFB, PTC India and Birla Corporation, which fell between 8 and 14 percent.
On the other hand, IIFL Wealth Management, Astrazeneca, Supreme Industries and Tata Elxsi were some of the winners who advanced more than one percent each.
The broader markets also lost their glamor after a week of excellent rebound. Nifty Smallcap fell 4.17% and Nifty Midcap fell 4.06%. Nifty500, the broadest NSE index, was down 2.86%.
Nifty Realty was the industry’s biggest loser, down 5.98 percent, followed by Nifty Metal, down 5.53 percent. Nifty Pharma, Nifty Media and Nifty Auto were among other top losers. All indices closed the day in red.
Let’s get ready for tomorrow:
- Angel Broking IPO: The IPO of the brokerage house will open for subscription tomorrow.
- Address of the Sebi chair: Sebi President Ajay Tyagi will address AMFI members at their 25th Annual General Meeting at 11am.
- United States Markets: Traders will be on the lookout for movement in the US markets as that will provide a clue as to how D-St will perform on Tuesday.
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