Extending the fall to the second straight session, major benchmark equity indices -- Sensex and Nifty -- on Monday plunged mainly amid fears over India's retaliatory tariffs on US goods and ongoing NBFC crisis.
Extending the fall to the second straight session, major benchmark equity indices — Sensex and Nifty — on Monday plunged mainly amid fears over India’s retaliatory tariffs on US goods and ongoing NBFC crisis. While Sensex plunged 491.28 points to end at 38,960.79, Nifty dropped 151.15 points to 11,672. The market breadth was tilted in favour of sellers as about 685 shares have advanced, 1847 shares declined, and 126 shares are unchanged. Sectorally, BSE metal was the worst hit, losing over 3 per cent, while energy index fell over 2 per cent. Tata Steel emerged as the biggest loser with over 5 per cent fall. The other key laggards were Vedanta, Tata Motors, Axis Bank, Bharti Airtel, Reliance, ONGC, Sun Pharma, Maruti and L&T, falling as much as 3.33 per cent in the Sensex pack.
“Issues related to NBFC stress as well as the sell off in the ADAG group stocks continue to impact sentiments as the RBI has not been willing to put in sufficient liquidity into the system. Transmission of MPC rate cuts has been very low which is necessary for economic revival,” veteran investment expert Sandip Sabharwal told Financial Express Online.
The short-term sentiments are also getting impact due to the ongoing uncertainties around monsoon rains and no concrete steps from the government to revive economic growth are also impacting short term sentiments, he added. “However markets should stabilize within 100 points of the Budget day low for the Nifty. 11400-500 levels should be held,” he also said.
“Going ahead, we expect the broader technical structure to remain weak. Given the sharp selloff that we witnessed over the past couple of days, there are chances of a mild technical pullback going ahead and the support of 50-DMA at close can hold briefly. However, it is important to note that any pullbacks, if there are any, will not be an opportunity to buy. NIFTY continues to remain vulnerable at higher levels.,” technical analyst Milan Vaishnav told Financial Express Online.
“The RSI has marked a fresh 14-period low and it is bearish. The daily MACD stays bearish while trading below its signal line. Even if we see a technical pullback, chasing the same should be avoided and the markets may be approached with a great degree of caution”, he added.