Sensex, Nifty decline for second consecutive session; 5 factors that led the fall

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February 10, 2020 4:06 PM

As many as 23 out of 30 Sensex stocks ended in red today. Heavyweights like M&M, ITC, Tata Steel, LT, Axis Bank, Infosys were the top contributors towards today’s fall

Sensex, Nifty, RIL, M&M, Tata SteelThe mood of the markets remained impacted amid rising apprehension about economic fallout due to Chinese coronavirus globally

Domestic equity market benchmarks Sensex and Nifty closed lower on Monday amid concerns about economic fallout due to coronavirus outbreak. “Indian markets opened negative following negative global cues. The mood of the markets remained impacted amid rising apprehension about economic fallout due to Chinese coronavirus globally and an increase in casualty figures surpassing the SARS outbreak, raising alarm bells about its severity. Some pessimism also came in with report that as many as 400 infrastructure projects, each worth Rs 150 crore or more, have been hit by total cost overruns of over Rs 4 lakh crore owing to delays and other reasons,” Narendra Solanki, Head of Fundamental Research- Investment Services, Anand Rathi Shares & Stock Brokers said.

What dragged Sensex, Nifty-

  • Sensex ends below 41,000 mark- Domestic equity market benchmarks Sensex and Nifty traded in negative territory on Monday. S&P BSE Sensex settled 162 points or 0.39 per cent down at 40,980 points, while the broader Nifty 50 index finished at 12,039, down 60 points or 0.49 per cent.
  • M&M top loser on Sensex pack- As many as 23 out of 30 Sensex stocks ended in red today. Heavyweights like M&M, ITC, Tata Steel, LT, Axis Bank, Infosys were the top contributors towards today’s fall. At the index level, Bajaj Finance (up 1.5546 per cent), RIL, Kotak Mahindra Bank, TCS, Asian Paint and HUL were among top gainers on the Sensex, while M&M (down 7.17 per cent), Tata Steel, ONGC and Sun Pharma were the top laggards.
  • Tata Steel leads decline in metal stocks– All the key sectoral indices finished trading in the negative territory. Nifty Metal index, top loser, was down 3 per cent weighed by Tata Steel, SAIL, Hindalco and Coal India. The Nifty Auto index, too, settled 2.5 per cent lower, dragged by weakness in M&M, Motherson Sumi Systems, Bharat Forge and Eicher Motors. In the broader market, S&P BSE MidCap index dropped 124 points or 0.78 per cent to close at 15,781 points, while S&P BSE SmallCap index settled at 14,776 points, down 64 points or 0.43 per cent.
  • Investors to eye key macroeconomic data– “Going forward, the markets would take cues from the last leg of earnings season and global developments on Coronavirus outbreak. On the domestic front, key macroeconomic data like CPI, IIP and WPI this week would be actively tracked by the investors. We continue to maintain our cautious stance at current levels due to lackluster earnings season and stretched valuations,” Ajit Mishra, VP – Research, Religare Broking Ltd said.
  • Coronavirus fears- The death toll of 97 on Sunday was the largest in a single day since the outbreak was detected in December. It has been linked to a market selling animals in Wuhan, the capital of Hubei province. Across mainland China, there were 3,062 new confirmed infections on Sunday, bringing the total number to 40,171, according to the National Health Commission (NHC), with 908 dead, as per the Reuters news report.

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