BSE Sensex and Nifty 50 plunged 1.50 per cent each on Friday, ending this week on a flat note.
Budget expectations are aflush, and markets have corrected more than 5% from their all-time highs, making equities that were very expensive a few weeks back scale down a little bit.
BSE Sensex and Nifty 50 plunged 1.50 per cent each on Friday, ending this week on a flat note. Sensex tumbled 746 points or 1.50 per cent to end at 48,878.54, while the Nifty 50 index lost 218.45 points or 1.50 per cent to settle at 14,371.90. During intraday, Sensex fell 790 points to hit day’s low of 48,832.08. NSE’s Nifty touched the day’s low of 14,357.75. Market breadth favoured the bears today as 2,005 stocks declined while 979 scrips advanced. Today, BSE market capitalisation plunged to Rs 194.42 lakh crore from Rs 196.51 lakh crore yesterday, wiping over Rs 2 lakh crore investor wealth. India VIX, the volatility index, rose 1.09 per cent to settle at 22.42 levels. Ahead of October-December quarter results, Reliance Industries Ltd (RIL) shares fell 2.30 per cent to Rs 2,049.65 apiece.
Indian indices tumbled on afternoon trade dragged by weak global markets and selling seen in Metal and Banking indices. Positive outlook for Auto and IT stocks helped them to retain their momentum even during today’s correction. European markets fell today on weak UK retail sales numbers and increasing restrictions in the Eurozone, while Asian markets followed its European peers. The decisions taken in the upcoming Union Budget along with the policies of the new US Government are expected to define momentum in the near term.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities
We can expect volatility to remain high next week also as there will be the monthly expiry and it will be the last week before the Union Budget. Earnings print is coming good and we are seeing more upgrades than downgrades. Nifty-50 could remain in the 14,000-15,000 range till budget and any break-out or break-down from this range could be seen post budget.
Markets traded weak today with profit booking in Metals & Financials even as we saw a very strong response to the IPO of a Paint Company. The key highlight of the day, however, was the strong appetite for Auto stocks which coupled with the IT biggies kept the optimism alive on a weak day as the Street awaits the Earnings of RIL.
Binod Modi, Head Strategy at Reliance Securities
A sharp pullback was seen in domestic equities mainly on weak global cues. Auto stocks continued to remain in flavour as sharp rebound in earnings of select auto companies boosted confidence among investors. This kind of profit booking ahead of budget was broadly on expected line. While underlying strength of domestic markets remains intact, a robust rally here-on looks to be limited in the near terms considering rich valuations of the market which already factored in a large portion of expectations of robust earnings growth. Market is expected to remain volatile in coming days ahead of budget and rotational trading might be visible wherein sectors like infrastructure, real estate, healthcare, building materials, agro-chemical and automobile are likely to be in focus.