BSE Sensex broke below 28,000 mark by tumbling 483.97 points to close at 27,687.72 while NSE Nifty too tanked 147.75 points to 8,363.05, after an extremely volatile session.
Stock market benchmark Sensex today tumbled over 483 points, its biggest fall in over a month, to settle below the 28,000-level as rout in Shanghai shares and fears of Greek’s eurozone exit rattled investors.
With investors indulging in widespread selling, including in metal and auto shares, the NSE benchmark Nifty also crashed below 8,400-point mark.
A fresh weakness in the rupee against the US dollar also dampened the trading sentiment, equity brokers said.
Market analysis by Jayant Manglik, President, Retail Distribution, Religare Securities
In reaction to negative global cues, markets witnessed a weak start on Wednesday and lost nearly two percent by the end. Adding to Greece crisis, slowdown in China has now started haunting the markets world over. Selling pressure was witnessed across the board as a result all the sectoral indices closed in red. The same bias was reflecting on the market breadth front too.
Though we saw exceptional resilience in our domestic bourses in last two weeks amid global uncertainty but it seems that participants are now giving in to negative forces. Having said that, we still believe that local cues would dictate the trend ahead so participants should keep a close eye on upcoming earning season, monsoon and other macro-economic data.
In case, Nifty slips and sustain below the crucial support mark of 8350, we might see further decline in coming sessions otherwise sideways bias would prevail. Traders are advised to maintain stock specific trading approach with strict risk management rules.
Investor sentiment was badly hit following a major sell-off in other Asian markets with a nearly 6 per cent crash in Shanghai despite additional measures announced by the government to shore up the tumbling market, they added.
The 30-share index commenced lower and dipped below the psychological 28,000-mark to touch a low of 27,635.72 before ending at 27,687.72, a fall of 483.97 points, or 1.72 per cent.
This is the biggest one-day fall of the Sensex since a plunge of 661 points recorded over a month ago on June 2.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Increase in the risk of Grexit & a sharp fall in China has paused the outperformance that Indian markets have put up during the last couple of weeks. Indian markets had been focusing on domestic development while excluding external factors like Greece. But a sharp fall in Chinese markets and a correction in international commodities are directly impacting India’s performance. It is too early to conclude the finer reasons and ultimate impact of volatility in China i.e. whether it is led by market bubble or instability in its economy, but it will continue to impact global flows accordingly.
Selling was widespread in the market, which pulled down all the sectoral indices by up to 3.89 per cent.
The broader NSE Nifty also succumbed to all-round selling and slipped below the 8,400-mark to close the session 147.75 points, or 1.74 per cent, to close at 8,363.05.
Intra-day, it hovered between 8,457.50 and 8,341.40.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The domestic markets today opened down on the concerns regarding the Chinese markets. The weak movements in Hang Seng index kept the Nifty under the pressure throughout the day and closed below its 200 DMA (8375). IIP data along with the quarterly numbers where the investors are not expecting any surprise will be a trigger for the markets.
Nifty today closed at 8363 down around 147 points. The market breadth changed to negative from positive as there were seen 952 stocks advancing against 1793 stocks declining. The Nifty volatility index, India VIX stood at 17.7900 up around 19.09 %. The mid-cap and small cap sector closed down around 1.30% and 1.28% respectively.
All the sectors closed in red and the major losers for the day were Metal and Auto which ended down around 3.89% and 2.24% respectively.
The losers in the stocks’ front were VEDL and Yes Bank, closed down around 8.77% and 7.77% respectively. Buying was seen in Bharti Airtel which ended up around 0.01%.
The FIIs were net buyers in the cash market segment on 07 July 2015, Tuesday, bought shares worth Rs 23.54 crore. The DIIs on the other hand were sellers on 07 July, sold shares worth Rs 94.71 crore in the capital markets segment.
The European markets were seen fluctuating after opened with a positive note. The US index futures were trading lower.
Tomorrow companies like Bajaj Corp, RS software, TCS and Thangamayil may announce their earnings.
In line with the trend, broader markets mid-cap and small-cap indices closed lower by 1.30 per cent and 1.28 per cent, respectively.
China mainland index Shanghai Composite dived 5.90 per cent after falling over 8 per cent in early trade. Similarly, Japan’s Nikkei fell 3.14 per cent and Hong Kong’s Hang Seng 5.84 per cent, its biggest one-day drop since October 2008.
Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
Having run up all the way to 8500 levels in Nifty from sub 8000 levels, and with Q1 earnings season about to start, bulls were found wanting in confidence to push prices any higher. And with Chinese stock markets’ fall refusing to find a bottom, despite a month long decline, panic finally enveloped all of Asia. Investors have taken cognizance of the fact that the Chinese panic is less of a matter of valuation, and more of a case of inability of regulator and intermediaries to stem falls of such proposition. Expectations of a good IIP release later this week allowed bargain hunting to re appear after early fall. Meanwhile, Greece after shocks are likely to linger on, while, talks about July monsoons may re appear if inflation data due for release next week disappoint.
Vedanta was the top Sensex loser, skidding as much as 7.85 per cent, followed by Tata Motors.
Of the 30-share Sensex pack, 29 ended the day lower while Hind Unilever bucked the trend and ended in the positive zone.
Market View by Gaurav Jain, Director, Hem Securities
Global sell-off across all the asset classes triggers sharp fall at the Indian bourses. Sharp sell in crude and metals was witnessed due to China worries. Investors seem to unwind their position ahead of key outcomes on Greece crisis, US FOMC minutes which are scheduled to be released later today.
Sectorally, the metal index fell the most, followed by auto, realty, banking, PSU, oil and gas and IT.
Foreign portfolio investors (FPIs) were net buyers at Rs 23.54 crore yesterday, according to provisional exchange data.