Coronavirus, GDP numbers, global sell-off drag Sensex, Nifty; India VIX jumps 29%

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Published: February 28, 2020 4:43 PM

India VIX index, commonly known as fear gauge, spiked 28.75 percent to 22.87 points in todays trade, indicating the nervousness among the market participants

Global rout dragged the domestic equity market benchmarks Sensex and Nifty for the sixth consecutive session on Friday, with Nifty clocking one of the highest weekly fall post 2008 crisis. S&P BSE Sensex ended 1448 points or 3.64 per cent lower at 38,297 points while, broader Nifty 50 index, slipped below the crucial 11,300 mark, to close at 11,209, down 414 poinst or 3.56 per cent. “With the Dow recording the steepest single-day fall our markets had to open gap down today morning despite having sold off during the entire week. With China accounting for over 15% of Global GDP and with the Corona Virus spreading its wings fast we witnessed selling in IT sector today and almost everything joined in today’s steep fall,” S Ranganathan, Head of Research at LKP Securities.

29 Sensex stocks end in red- As many as 29 out of 30 Sensex stocks have closed in red today. Tech Mahindra was the top loser on the pack, down 8.14 per cent, followed by Tata Steel, M&M and HCL Tech. ITC was the only gainer, up just 0.05 per cent.

India VIX jump 29%- India VIX index, commonly known as fear gauge, spiked 28.75 percent to 22.87 points in todays trade, indicating the nervousness among the market participants.

Nifty Metal top sectoral loser- All the sectoral indices were deep in red. Nifty Metal index plummetted 7.34 per cent, following a heavy sell-off in Vedanta, Jindal Steel, Welspun Corp and Hindalco. Nifty IT index too plunged 5.27 per cent, dragged down by NIIT Tech, Tech Mahindra, HCL Tech and Infosys.

India’s Q3 GDP numbers eyed– GDP numbers for December quarter will be released today. Economists do not see a major improvement in the number which was at 4.5 per cent in the September quarter. The Chief Economic Adviser (CEA) to the Narendra Modi government, Krishnamurthy V Subramanian, has said that the slowdown in the economy that has lasted for 13 quarters as part of a business cycle.

Investors lose Rs 5.5 lakh crore– Investors lost more than 5 lakh crore in the domestic markets today. S&P BSE Sensex saw its market capitalisation slip from Rs 153.4 lakh crore on its previous closing to Rs 146.8 lakh crore on closing today.

Technical Observation- “A long negative candle was formed today with opening downside gap. The positive element created by the formation of hammer and a positive divergence in the RSI of 27th Feb was negated completely in today’s session. Nifty as per weekly chart formed a long negative candle in this week, that moved down as per the larger negative sequence of lower tops and bottoms,” Nagaraj Shetti – Technical Analyst, HDFC securities said.

Heavy FII selling- In last few days, FIIs have sold shares aggressively. “This week’s fall can be attributed to the FIIs who have been aggressively removing flows out of the country. On the contrary, the surprising fact is that DIIs have been net buyers this week till Thursday. While Coronavirus has managed to propel FIIs to pull the trigger, Gold, the safest class of asset, is on the journey of making new highs. This possibly imparts that globally investors have taken a back seat to try hands in such a volatile market,” Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote said.

Coronavirus fears- Countries on three continents reported their first cases of the coronavirus on Friday as the world prepared for a pandemic and investors dumped equities in expectation of a global recession. Mainland China reported 327 new cases, the lowest since Jan. 23, taking its tally to more than 78,800 cases with almost 2,800 deaths, as per the Reuters news report.

8 stocks hit 52-week highs on NSE- As many as 8 stocks including Mishra Dhatu Nigam (Midhani), Rajdarshan Industries, DIC India, Nippon India ETF consumption hit a new 52-week high on NSE. However, Bank of India, Bosch, Hindalco Industries, Hind Petro, IndusInd Bank, ITC, ONGC and PNB are among 352 stocks that touched 52-week low on NSE in today’s trade.

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