Sensex, Nifty erase previous session’s gains on weak global cues; check what dragged D-St 1.5% today

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October 28, 2020 4:22 PM

Indian share markets have mirrored global trend as investors turned cautious due to spike in coronavirus cases worldwide, uncertainties around US election and stimulus

sensex, niftyToday, Indian share markets erased the gains made in the last 11 days

Headline indices, BSE Sensex and Nifty 50 tumbled 1.5 per cent each on Wednesday as markets succumbed to selling pressure due to fears of lockdown in most of the European countries on rising COVID-19 cases. BSE Sensex plunged 600 points or 1.48 per cent to end at 39,922, while the broader Nifty 50 index gave up 11,750, and settled at 11,730. Indian share markets have mirrored global trend as investors turned cautious due to spike in coronavirus cases worldwide, uncertainties around US election and stimulus. Besides, market participants have also closely watched the developments in the Bihar assembly election. “After the initial rush, we are falling in tandem with the weak global trend as the world’s economic recovery will slow down this quarter with implications on world equities,” said Vinod Nair, Head Of Research at Geojit Financial Services.

IndusInd Bank shares fall most: Out of 30 Sensex stocks, 26 scrips ended the trade in the negative territory. IndusInd Bank, HDFC, ICICI Bank and Tech Mahindra shares fell in the range of 3-3.45 per cent. Similarly, SBI, HCL Tech, Tata Steel, Kotak Mahindra Bank, HDFC Bank, UltraTech Cement and Bajaj Finance shares were down up to 2.5 per cent.

Technical talk: “As of now, Nifty 50 strong support comes at 11660; if the index breaks this support then further downside would be there up to 11555 to 11410 levels. While upside resistance comes at 11900-12040,” said Sumeet Bagadia, Executive Director at Choice Broking.

Rupee ends weak: Indian rupee ended weaker at 73.87 per US dollar on Wednesday as compared to a previous close of 73.70 against the US dollar. Global indices plunged following rising infections which could lead to lockdown in Europe and affect global economic growth. “Indian rupee fell along with other Asian currencies following risk-off sentiments. Hopes of government decision to introduce more stimulus before the Diwali festival capped the rise,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.

Bharti Airtel top Sensex gainer: Bharti Airtel shares were firm throughout the session, ending 4.26 per cent higher at Rs 451.45 apiece on MSCI rejig and strong Q2 earnings. Telecom giant was followed by M&M, Maruti Suzuki and L&T, which gained 1.17 per cent, 0.33 per cent and 0.12 per cent, respectively.

European stocks hit late-May lows: European stock markets on Wednesday tumbled to the lowest level since late-May on fears of a new national lockdown in France and tighter curbs elsewhere to combat a surge in coronavirus cases, according to Reuters. The pan-European STOXX 600 index fell 1.6 per cent, while Germany’s DAX tumbled 2.51 per cent, UK’s FTSE 100 dropped 1.2 per cent and France’s CAC 40 plunged 2.18 per cent.

Nifty Financial Services index top sectoral loser: All the sectoral indices finished trading deep in the red. Nifty Financial Services index was the top sectoral laggard, followed by Nifty Bank index. Nifty FMCG index too fell 0.71 per cent in today’s trade.

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