The key equity indices Sensex and Nifty extended the Friday losses and fell heavily on Monday marking the first major bearish tone for the year 2017. BSE Sensex lost 350 points to hit the day’s low of 31,573.32 points whereas NSE Nifty washed off 128 points to mark the day’s low of 9,836..2 points. All of the sectoral indices of NSE fell up to 2.2% led by Nifty Realty, Nifty PSU Bank, Nifty Pharma, and Nifty Metal.
Amid the increased caution of investors Gautam Shah Chief Technical Analyst at JM Financial said that the domestic markets may not move beyond a certain limit. Markets are moving towards a short-term top, Gautam Shah said in an interview to ET Now on Monday. Gautam Shah said that he sees a ceiling for the markets in the near term and this is the first meaningful correction in the year 2017. There will be a correction in the trading favorites, don’t see a hammering in the large cap, he added. Earlier on Friday last week, Nilesh Shah MD & CEO Envision Capital told in an interview to ET Now that Indian markets may see a 5-10% correction in the coming months. Both liquidity and earnings will be needed to drive markets next year and liquidity will be hugely supportive of the current bull market, Nilesh Shah said. There is some pressure seen on the banking space which in turn put pressure on the key indices, Nilesh Shah added.
Axis Bank, Canara Bank, IDFC Bank, State Bank of India, Yes Bank, PNB, Bank OF Baroda, and Kotak Mahindra Bank were the worst losers amid the Nifty Bank shares today. Stocks of heavyweight companies such as L&T, HDFC, HDFC Bank, Kotak Mahindra Bank, Maruti Suzuki, and State Bank of India, Tata Steel, Adani Ports, and ITC contributed the most in the Sensex decline.
Sensex opened marginally higher but very quickly swung into the red while Nifty extended losses to open lower on Monday as most of the Asian shares fell in the early trade except Japan following the concerns about China’s economy. BSE Sensex gained 64 points to open at 31,986.4 points whereas NSE Nifty washed off 4 points to open at 9,960.1 points. Within minutes of trading both the key indices edged lower into negative territory.
Indian stock markets plunged heavily on Friday on a possibility that North Korea may conduct another hydrogen bomb test, this time in the Pacific Ocean. The benchmark Sensex shed 484 points to mark the day’s low of 31,886.09 points which is its biggest fall since 15 November 2016 — demonetisation period. The broader Nifty 50 index also fell, lost as much as 169 points to fell below 10,000 mark to 9,952.8 points.