Sensex, Nifty erase opening gains, end with minor cuts; key factors behind market’s last hour plunge

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Published: May 11, 2020 4:05:38 PM

ICICI Bank, HDFC Bank, HDFC, Kotak Mahindra Bank, HUL and Nestle India were the major contributors in the Sensex plunge today

Sensex, NiftyMarch IIP and April CPI figures are scheduled to be announced on Tuesday

Headline indices BSE Sensex and Nifty 50 climbed off the day’s high in the last hour of the trade to settle with losses on Monday. Sensex fell 740 points from intraday high to end at 31,561 while Nifty 50 index slipped below 9,250 to settle at 9,239. ICICI Bank, HDFC Bank, HDFC, Kotak Mahindra Bank, HUL and Nestle India were the major contributors in the Sensex plunge today. “In a day which saw Reliance Industries notch up a mcap of Rs 10 lakh crore, profit-taking in afternoon trade trimmed all gains even as the automotive sector displayed strength throughout the day led by the resumption of production and expectation of the much-awaited scrappage policy,” S Ranganathan, Head of Research at LKP Securities, said.

Top gainers and losers on BSE Sensex: ICICI Bank was the top Sensex loser, followed by Kotak Mahindra Bank, Hindustan Unilever, State Bank of India (SBI) and Tech Mahindra. On the flip side, Hero MotoCorp was the top Sensex gainer with a growth of 6.15 per cent. Bajaj-Auto, Maruti Suzuki, TCS and HCL Tech were among other gainers on the pack.

Auto stocks rally: Nifty Bank index fell 2.08 per cent or 402 points weighed by ICICI Bank, Kotak Mahindra Bank and RBL Bank. Nifty Auto index advanced 4.26 per cent led by gains in Hero MotoCorp, TVS Motor and Tata Motors.

FM Sitharaman’s meet with PSB chiefs postponed: Finance Minister Nirmala Sitharaman’s discussion with PSU banks’ chiefs, which was supposed to take place today, has been postponed for later this week. Speculations were that FM Sitharaman was about to review issues such as credit flow to key sectors like MSMEs and NBFCs, rate transmission to borrowers, and progress under the targeted long-term repo operations (TLTRO) before the second fiscal stimulus package is released.

Market outlook: March IIP and April CPI figures are scheduled to be announced on Tuesday. “Tomorrow, even if the markets see any modest upsides, they will stay vulnerable at higher levels. The lead indicators are pointing towards some impending weakness from a technical perspective. The NIFTY has shifted its base lower to 9500, and therefore, the zones of 9450-9500 will offer stiff resistance to the markets going ahead,” technical analyst Milan Vaishnav CMT, MSTA, said. He advised to approach the markets on a highly selective and cautious note going ahead from here and refrain from aggressive purchases during the dips.

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