The benchmark equity indices closed lower Tuesday, as both Sensex and Nifty extended losses for the fourth straight day largely on account of late selling in financial and auto stocks.
The benchmark equity indices closed lower Tuesday, as both Sensex and Nifty extended losses for the fourth straight day largely on account of late selling in financial and auto stocks. The Sensex closed 48.39 points or 0.13 per cent lower at 37,982.74, while the Nifty fell 15.15 points or 0.13 per cent to close at 11,331.05. The top laggards in the Sensex pack included SBI, HDFC twins, Bajaj Auto, ONGC and Tata Steel. The major gainers were PowerGrid, Kotak Bank, Hero MotoCorp, ITC and Asian Paints. The stock market has been seeing a sell-off by foreign investors, owing to weak earnings season and additional taxes proposed in the budget.
“In the absence of any major domestic and global triggers, selling pressure could continue in the coming sessions, hence we maintain our cautious stance on the Indian markets in near term. The focus of investors would be on Q1FY20 earnings season, as it is likely to induce stock specific volatility,” Ajit Mishra Vice President, Research, Religare Broking said. The investors must stay focussed on the blue chip companies, he added. The traders are also advised to hedge their leveraged positions in the stocks on account of near term uncertainty, he also said.
Even though markets plummeted yet again today, this may not continue any longer, said Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity said. “Tomorrow is the penultimate day of expiry of the current month derivative series and day after that we will have the expiry day. The Options data suggest massive Call Open Interest built up at 11300 strikes. Apart from this, there are some classical signs pointing towards likely exhaustion of the selling pressure are appearing,” he added.