Despite last hour surge Sensex, Nifty extend losses for 4th day; key factors from today’s trade

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Published: February 18, 2020 4:22:33 PM

The broader Nifty 50 index closed below 12,000-mark at 11,992 points, down 53 points or 0.44 per cent while S&P BSE Sensex witnessed a sharp recovery in the last hour of the trade to end 161 points or 0.39 per cent lower at 40,894 points.

Sensex, NiftyWeak domestic data, muted earnings and the concern over global economic growth slowdown due to coronavirus are likely to weigh on the market sentiments

A surge in the last hour of the trading helped Sensex and Nifty to close off lows on Tuesday. The broader Nifty 50 index closed below 12,000-mark at 11,992 points, down 53 points or 0.44 per cent while S&P BSE Sensex witnessed a sharp recovery in the last hour of the trade to end 161 points or 0.39 per cent lower at 40,894 points. “Weak domestic data, muted earnings and the concern over global economic growth slowdown due to coronavirus are likely to weigh on the market sentiments. Hence, we would remain cautious on the Indian markets in the near term. Investors would keep a watch on the movement of currency and crude oil prices,” Ajit Mishra, VP – Research, Religare Broking Ltd said.

Heavyweights RIL, HDFC twins drag Sensex, Nifty lower– Index heavyweights such as HDFC, RIL, Bharti Airtel, Maruti and IndusInd Bank were among the major contributors towards today’s fall. At the index level, SBI was the top gainer, up 1.08 per cent.

Top gainers and losers on S&P BSE Sensex- Bharti Airtel was the top loser, down 2.80 per cent, followed by IndusInd Bank, Maruti, Hero MotoCorp, HDFC and Nestle India. Among Sensex gainers, SBI gained the most, up 1.08 per cent. Infosys, Power Grid, Tech Mahindra and TCS were among other gainers on the index.

Most of the sectoral indices in red- Barring Nifty IT and Nifty Media index, all the sectoral indices closed in red. The nifty Metal index lost the most, dragged down by Hindalco, Jindal Steel and Hindustan Zinc.

Technical view- “The Nifty continued with sharp downside momentum today in the early to mid part of the session, but was able to show a smart upside recovery from the lows towards the end. A small negative candle was formed today with long lower shadow. Technically, this pattern indicates a formation of a bullish hammer type candlestick pattern. This is a positive indication and signals a possibility of upside bounce in the next session.,” Nagaraj Shetti – Technical Analyst, HDFC securities said.

Coronavirus scare- “The issue of Coronavirus is dominating around the globe which is leading selling pressure in equity markets where emerging markets are major victims. Further development on the coronavirus will have a major impact on global equity markets,” Santosh Meena, Senior Analyst, TradingBells said.

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