Erasing gains from March 31, headline indices Sensex and Nifty ended over 4 per cent lower on the first day of the financial year 2020-21 led by heavy sell-off in index heavyweights.
Erasing gains from March 31, headline indices Sensex and Nifty ended over 4 per cent lower on the first day of the financial year 2020-21 led by heavy sell-off in index heavyweights such as Tech Mahindra, Kotak Mahindra Bank and TCS. “After opening in red markets further sold off as traders remained concerned with reports of government missing the revised collection target for the current financial year from CPSE disinvestment and also the government’s fiscal deficit touched 135.2% of the full-year target at February-end mainly due to slower pace of revenue collections. The negative sentiments further increased as RBI data on credit growth showed deceleration and subdued Auto sales numbers reported by manufacturers amid expectations of at least 50% drop in sales,” Narendra Solanki, Head Fundamental Research, Anand Rathi Shares and Stock Brokers, said.
Tech Mahindra, Kotak Bank top Sensex losers– S&P BSE Sensex settled at 28,265, down 1,203 points or 4.08 per cent, while the broader Nifty 50 index ended at 8264, down 334 points or 3.89 per cent. As many as 26 stocks out of 30 Sensex stocks finished trade in deep sea of red, with Tech Mahindra and Kotak Mahindra Bank as top losers, down 9.21 per cent and 8.81 per cent, respectively, followed by TCS and Infosys. On the flip side, Hero MotoCorp, Bajaj-Auto, Bajaj Finance and Titan were the only gainers on Sensex.
Nifty IT index slip 5.5%- All the sectoral indices settled lower in Wednesday’s trade. Nifty IT index was down 5.48 per cent weighed by Tech Mahindra, Mind Tree and TCS. Similarly, Nifty Bank index dropped 4.92 per cent dragged by Kotak Mahindra Bank, Axis Bank and PNB.
Sell-off by FIIs– “FIIs have net sold around Rs 62,000 crores in equity in March and with virus infections increasing, markets are anticipating a worsening of the situation,” Vinod Nair, Head of Research at Geojit Financial Services, said.
Total Coronavirus cases rise to 1,637– The total number of coronavirus cases in India has reached to 1,637, including 1,466 active cases while 133 people have been cured or diagnosed. So far, as many as 38 people have died of coronavirus, according to the Ministry of Health and family Welfare.
Analyst suggests cautious view- As the rising number of coronavirus cases has dented investor sentiment in India and elsewhere.“In the near term, there are no fresh positive triggers which can boost investor sentiments. We reiterate our cautious view on markets and suggest keeping extra care for stock selection and risk management,” Ajit Mishra, VP – Research, Religare Broking, said.