Sensex, Nifty end in red for second day running, how long with stock markets continue to tank?

By: |
Updated: March 25, 2021 4:21 PM

Equity markets traded in the negative territory for the second day straight. Although Sensex and Nifty attempted to pull back from the lows but failed to move out of the red and closed near the day's low.

Stock marketShare markets plunged for the second day straight.

Equity markets traded in the negative territory for the second day straight. Although Sensex and Nifty attempted to pull back from the lows but could not move out of the red and closed 1.5% lower each. Only Dr Reddy’s, ICICI Bank, HDFC, and Larsen & Toubro ended in the green among Sensex constituents. Maruti Suzuki, Hindustan Unilever, and Bharti Airtel were the worst performing Sensex stocks. Among sectoral indices, the Nifty Media index was down 3%, making it the worst Sensex performer. The Nifty Metal index ended flat with a positive bias.

Deepak Jasani, Head of Retail Research, HDFC Securities –

“Indian benchmark equity indices suffered sharp swings on either side on March 25 as the March series F&O expiry had a volatile close. A second sharp selloff post 1445 Hrs meant that the Indices closed almost at the intra day lows. Nifty has seen acceleration in its downtrend after it breached the crucial level of 14788. In the process it has filled the upgap made on Feb 02. A sharp rise in COVID-19 cases globally and reports of lockdown seems to have eroded investors’ risk appetite. Hardening bond yields, and rising inflation are also not helping matters. Although the indicators/oscillators are oversold, we are not sure as to whether a bounce will come from these levels or after falling to 13966.”

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments –

“The Nifty respected the support of 14300-14350 on a closing basis. However, if we break 14300 on a closing basis, we will plummet further to levels closer to 13600. On the upside, the resistance is at 14900 and any upside correction can be utilized to short the index for newer targets on the downside.”

Vinod Nair, Head of Research at Geojit Financial Services

“Increased rate of infection across the country & world is creating more pessimism in the market, which has increased today due to monthly expiry. After the stellar rally, the market was on a consolidation stage during the last one month, which amplified post the sudden rise in infection impacting future economic growth. The economic fallout in India from the reduction in world GDP growth is likely to be marginal. A fall in the rate of infection through tougher restrictions and pace in vaccination may quickly stabilize the market.”

S Ranganathan, Head of Research at LKP Securities

“Weak Global Cues coupled with derivative expiry kept markets in the red even as we witnessed a bout of short-covering in Financials during  Afternoon Trade. Autos bore the brunt of selling today even as we saw Steel stocks in demand on hopes of a price rise while select Pharma names held out well ahead of a curtailed week ahead.”

Ajit Mishra, VP – Research, Religare Broking –

“Markets traded under pressure on the F&O expiry day and lost over one and a half percent. The sentiment was downbeat from the beginning, citing subdued global cues and the continuous uptick in COVID cases in India. The selling pressure has intensified in the last couple of sessions owing to weak global cues and concerns over the second wave of COVID cases. On the benchmark front, Nifty has next critical support at 14,000 levels however rebound in the banking index might result in some bounce or consolidation first. Amid all, we reiterate our cautious stance and suggest traders to focus more on risk management.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Significant portfolio returns possible if investors remain unnerved by 5-10% corrections
2Two stocks to buy for near term gains while Nifty continues to trade with weak bias
3Global markets: Asian shares tick up but Omicron worries leave markets on edge