Stock markets fell for the second straight session with the benchmark Sensex today sliding 134.91 points to one-month low of 28,709.87 as investors sold realty, power and oil&gas shares amid lingering worries over an earlier-than-expected hike in US interest rates.
After yesterday’s over 604-point crash, the 30-share BSE Sensex opened in positive terrain but soon succumbed to selling pressure. It touched day’s low of 28,584.49.
A late round of buying helped reduce some losses and the Sensex settled at 28,709.87, its weakest closing since February 11, down 134.91 points, or 0.47 per cent. Intra-day, it touched a high of 28,949.11.
The 50-issue NSE Nifty lost 44.70 points,or 0.51 per cent, to settle the session at 8,712.05. Intra-day, it dipped below the key 8700-mark to touch a low of 8,677.35.
Prominent losers that pulled down the indices include HDFC, Hindustan Unilever, Hindalco, Sun Pharma, Tata Steel, Tata Power, NTPC, RIL, SBI, Axis Bank, HDFC Bank and Dr Reddy.
Sesa Sterlite, Tata Motors, Maruti Suzuki, L&T, GAIL, Cipla and ONGC also saw moderate losses.
As many as 20 out of 30 Sensex constituent stocks closed in the red, while 10 ended in the green.
Shares of telecom firms such as Airtel, Idea and RCom were in the limelight after analysts said bidding intensity in the ongoing spectrum auction has subsided.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Profit booking continues as investor across the world are concerned about US rate hike. The world believe that US rate hike will start post June’15. FED meeting will be held on 17th and 18th March. We have always seen global consolidation and currency volatility around the FED Meet. FED will provide the trajectory of the US economy, which will unwrap when to expect the rate hike. The US rate hike is the crucial decision which has to be taken in the second half of the year. This will impact all EMs, respectively to their macro health. Hence till the time this transformation is initiated volatility cannot be avoided. Having said that the inflation numbers in US is not encouraging, hence FED will consider to postpone immediate decision. Hence till the time this meeting is concluded India can be in consolidation.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The continuation of previous day’s trend, the markets came under pressure on the back of strong US dollar. The major reason for the rise in US dollar was the fear of an imminent rate hike by FED. The major selling was seen in the realty and banking counters.
Nifty closed at 8712 down around 44 points. The market breadth stood negative as there were seen 1234 stocks advancing against 1607 stocks declining. The Nifty volatility index, India VIX stood at 15.5325 down around 1.77%.
The Mid cap and small cap indices closed lower, down around 0.22% and 0.20% respectively.
The major sectorial losers for the day were Realty and Oil & gas, which closed lower around 1.64% and 0.88% respectively. On the other side, the gainers were Consumer Durables and Metal which closed up around 1.17% and 0.68% respectively.
In the stocks’ front, selling was seen in DLF and HDFC, closed down around 4.44% and 3.62% respectively and on the other end the buyers were Bharti Airtel and Coal India which closed up around 6.87% and 4% respectively.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 838.30 crore on Monday, 09 March 2015. On the other hand the DIIs were net sellers on 09 March 2014, sold shares worth Rs 35.31 crore as per the provisional data from the stock exchanges.
On the concerns over the Greece debt deal talks, the European markets were trading lower. The US index futures were also trading lower.
Select stocks in auto space like M&M, Bajaj Auto and Hero Moto rose after car sales in India grew by 6.85 per cent in February. Also, industry body SIAM said it expects sales to be in positive with single-digit growth this fiscal.
The mood was cautious amid a persisting downward trend in global markets that negatively impacted domestic equities.
Foreign Portfolio Investors bought shares worth net Rs 838.30 crore while Domestic institutional Investors sold shares worth Rs 35.31 crore yesterday, provisional data shows.
Sectorally, the BSE Realty index suffered the most by losing 1.83 per cent, followed by Oil & Gas (0.78 per cent), Power (0.63 per cent), Banking (0.49 per cent), Capital Goods (0.41 per cent) and FMCG (0.39 per cent) among others.
Bucking the trend, Consumer Durables index rose 1.20 per cent, Teck index 0.78 per cent, Metal index 0.58 per cent and Auto index 0.37 per cent.