Sensex, Nifty snap two-day gaining streak; these key factors dragging the indices lower today

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Updated: Apr 24, 2020 10:50 AM

Nifty Bank, Nifty Financial Services, Nifty Private Bank and Nifty Realty indices were down in the range of 2-2.8 per cent.

Sensex, NiftyAs many as 15 stocks out of 30 Sensex stocks were trading in red with Bajaj Finance as top Sensex laggard, down 5.45 per cent

Pausing the two-day gaining streak, the headline indices, BSE Sensex and Nifty 50 were trading over per cent down on Friday tacking cues from their global peers. After touching the day’s low of 31,278, Sensex was trading 400 points or 1.27 per cent down at 31,457. While the broader Nifty 50 index was ruling 116 points or 1.17 per cent down at 9,204. The report that an experimental antiviral drug for the coronavirus has flopped in its first randomised clinical trial, dented the global sentiment. “Hopes are high that the government will soon be announcing the second round of stimulus and that would be a comprehensive one and any disappointment from that front could also push the markets lower. At the same time, the increasing number of COVID-19 cases as well as muted corporate earnings would further impact investor’s sentiments. We thus reiterate our cautious stance and suggest focusing more on risk management aspects,” Ajit Mishra, VP – Research, Religare Broking Ltd, said.

Bajaj Finance down 5.5%: As many as 15 stocks out of 30 Sensex stocks were trading in red with Bajaj Finance as top Sensex laggard, down 5.45 per cent, followed by IndusInd Bank, ICICI Bank, Axis Bank, HDFC and UltraTech Cement. On the flip side, LT was top Sensex gainer. Hero MotoCorp, ONGC, Sun Pharma were among other gainers on the index. “In the last hour of trade, the market may see short recovery on the back of expectation of stimulus soon in the market. Today, IT stocks may remain in focus with banking for recovery,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, said.

Nifty Metal, Nifty Pharma trade in green: Nifty Bank, Nifty Financial Services, Nifty Private Bank and Nifty Realty indices were down in the range of 2-2.8 per cent. On the other hand, Nifty Metal and Nifty Pharma indices were trading in green, up 0.83 per cent and 0.45 per cent, respectively.

Second stimulus package on anvil: Prime Minister Narendra Modi is scheduled to hold another meeting with Finance Minister Nirmala Sitharaman and other key finance ministry officials at 12 noon today to discuss economic relief measures to tackle the impact of coronavirus (COVID-19) pandemic.

Yes Bank share price down over 4%: Three private banks Kotak Mahindra Bank, IDFC First Bank and Federal Bank have sold some of their equity share allocations from cash-strapped Yes Bank. Under the Yes Bank reconstruction Scheme 2020, six banks along with Housing Development Finance Corporation (HDFC) invested Rs 10,000 crore in the second week of March. Yes Bank share price dropped 4 per cent to Rs 27.15 apiece on BSE in Friday’s trade.

Top Nifty50 gainers and losers: Overall, 18 stocks were trading in green and 32 in red today. ZEEL, Bajaj Finance, ICICI Bank, IndusInd Bank and Bajaj Finserv were the top Nifty50 losers. While Vedanta, LT, Hero MotoCorp, Cipla and ONGC were among the top index gainers.

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