Domestic equity benchmarks Sensex and Nifty ended lower on Thursday, reversing all the gains made yesterday ahead of the expiry of January series derivative contracts. A host of factors such as coronavirus fears, the announcement of GDP numbers, Economic Survey and Union Budget weighed the investor sentiment in today’s trade. “We expect markets to remain volatile in the near term given the earnings season and nervousness surrounding the crucial event – Union Budget. Further, the release of Auto sales numbers for the month of January (scheduled on Feb 1st) will remain on the market radar. We believe investors can utilize any correction to invest in fundamentally sound companies with strong growth prospects,” Ajit Mishra, VP – Research, Religare Broking Ltd said.

1. 22 out of 30 stocks end in red:S&P BSE Sensex ended 284.84 points, 0.69 per cent lower at 40,913.82, while the broader Nifty index settled at 12,035.80, down 94 points or 0.77 per cent. 23  out of 30 stocks traded in red in today’s session. In the broader market, S&P BSE MidCap index finished at 15,556.34, down 198 points or 1.26 per cent, while S&P BSE SmallCap ended 137 points or 0.92 per cent lower at 14,703.96.

2. RIL, SBI top drags: Reliance Industries was the top loser in the index, down 2.64 per cent to Rs 1440.70, while SBI share price fell 1.80 per cent to end at Rs 310.70 on BSE. Nestle Industries, IndusInd Bank, M&M, UltraTech Cement were among the top laggards on the Sensex. On the other hand, Bajaj Auto, Power Grid, ICICI Bank gained the most.

3. All Nifty sectoral indices end deep in red: All the sectoral indices ended in red in today’s session. The Nifty FMCG index settled over one 1.5 per cent lower, weighed by Emami, Procter & Gamble Hygiene and Health care, and Dabur India. Nifty Bank index, too, ended lower dragged down by IDFC First Bank, Yes Bank, RBL Bank and Federal Bank.

4. Union Budget presentation on Feb 1: As the major event is coming closer, volatility is rising, India VIX gained by one percent. One should take money out of the table and wait for a Budget event to pass on to take a calculated risk,” Vishal Wagh, Research Head, Bonanza portfolio Ltd said.

5. F&O expiry week: “Markets will remain open on account of the budget. Though any significant up move (3%-5%) is unlikely; any disappointment to improve the economy will pull down the market. Nifty has failed to sustain above 12400 level in the recent past and we may see profit booking at a higher level. LTCG, Dividend Distribution Tax (DDT), Cut in Personal Income tax will be the key announcements investors are looking forward to in the budget,” Rahul Mishra, AVP (Derivatives), Emkay Global Financial Services said.

6. Coronavirus fears: On Thursday, the National Health Commission of China confirmed the death toll from the China virus has climbed to 170. This forced airlines to cut flights and stores to close as the potential economic hit from the outbreak came into focus, as per the Reuters news report