Sell-off in financials drag Sensex, Nifty to one-month low; what pulled D-St down today

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May 18, 2020 4:05 PM

The market breadth remained bearish. For every gainer, there were more than a couple of losers. Nifty Bank index tanked 1,260 points or 6.69 per cent dragged by IndusInd Bank, RBL Bank and Federal Bank

sensex, niftyThe decline in equity markets was led by bank stocks as the government said that no fresh insolvency proceeding will be initiated for up to one year

Headline indices BSE Sensex and Nifty 50 ended lower for the third consecutive day on Monday as economic package announcements over the weekend failed to boost investor sentiment. BSE Sensex tanked 1.027 points or 3.31 per cent to end the session at 30,070, while the Nifty 50 index dropped 314 points or 3.43 per cent to close the session at 8,823. The decline in equity markets was led by bank stocks as the government said that no fresh insolvency proceeding will be initiated for up to one year. “With the stimulus package announced by the government, not seen as adequate considering the need of the hour and with infections continuing unabated, the markets ended down by around 3.4%. Most measures may be seen as a longterm positive and markets were more worried about the immediate impact of these measures,” said Vinod Nair, Head of Research at Geojit Financial Services.

Top BSE Sensex gainers and losers: IndusInd Bank was top Sensex loser, down 9.63 per cent followed by HDFC, Maruti Suzuki, Axis Bank and UltraTech Cements. While TCS, Infosys, ITC and HCL Tech were the only Sensex gainers today. The market breadth remained bearish. For every gainer, there were more than couple of losers. “Going forward, Nifty has resumed a bearish trend below 8800 it may test 8600-8500 levels. On a higher level, 9000 will work as resistance,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, said.

Nifty Bank tanks 6.7%: Nifty Bank index tanked 1,260 points or 6.69 per cent dragged by IndusInd Bank, RBL Bank and Federal Bank. While IT index advanced nearly a per cent led by gains in Mind Tree, TCS, Infosys and HCL Tech. “Sentiments remained down-beat throughout the day, as India’s merchandise exports shrank by 60.3% in April-20 as compared to the same period of last year. Traders and investors also remained cautious, as Union home ministry extended the lockdown for another two weeks till May 31,” said Narendra Solanki, Head Fundamental Research, Anand Rathi Shares and Stock Brokers.

Financials, bank stocks drag indices: Bank stocks plunged up to 10 per cent in Monday’ weak trade as the government announced that no fresh insolvency cases under Insolvency and Bankruptcy Code (IBC) will be initiated for up to one year.

Coronavirus cases in India above 96,000: Coronavirus cases in India have surpassed 96,000-mark and the death toll has also crossed 3,000-mark. Seeing the continuous spike in cases in India, the nationwide lockdown has been extended till May 31 to contain the novel pandemic.

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