Sensex, Nifty give up five-day gaining streak as volatility surged; here’s what moved stock markets

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Published: July 8, 2020 4:30 PM

Giving up their 5-day winning spree, domestic benchmark indices ended in the negative territory on Wednesday.

Share Market Live, Stock Market Live, Nifty Live, NSE live, BSE live, Live Market Update, Market Today, stock market update in hindi, स्टॉक मार्केट, शेयर बाजार, Indian Share Market Live, Indian Stock Market Live, बीएसई, एनएसई, सेंसेक्स, निफ्टीThe fear gauge of domestic equity markets, India VIX, after having cooled down significantly made a return on Wednesday.

Giving up their 5-day winning spree, domestic benchmark indices ended in the negative territory on Wednesday. S&P BSE Sensex ended down 345 points or 0.94% at 36,329 points, while the 50-stock Nifty closed just above 10,700. Senesex, Nifty were in for a volatile session as the benchmark indices danced between gains and losses for most part of the day. “Index formed a negative candle after forming a gravestone doji which hints more weakness if the Nifty continued to trade below 10675 zone. Immediate support for nifty is coming near 10630-10560 zone and resistance is formed near 10770-10830 zone, it is still recommended to book profit on every rise,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

Volatility makes a return: The fear gauge of domestic equity markets, India VIX, after having cooled down significantly made a return on Wednesday. The volatility index jumped 4% after opening at 25.1 to surge higher and close at 26 levels. Volatility is down from its March highs of 86.6 and was seen easing further before today. “Volatility is expected to continue and investors need to maintain a stock-specific view on the market,” said Vinod nair, Head of Research, Geojit Financial Services.

Big names slip: Stocks like Reliance Industries Ltd, TCS, Infosys, Mahindra & Mahindra, and even ICICI Bank ended in the red on Wednesday. Bajaj Finance also saw profit booking today and closed down by 4.4%. RIL fell 1.4% while ICICI Bank dropped 1.8%. TCS ended 2.3% down and Infosys tanked 2.5%.

Sectoral view: On opening bell only Nifty IT was in the red but soon the picture evolved and at closing it was a mixed bag. Nifty PSU Bank index was up 2.34% followed by Nifty Pharma, Nifty FMCG, and the Nifty Metal. Nifty Realty suffered the most as it fell 1.95% followed by Nifty IT which was down 1.7% and Nifty Media, down 1.5%.

Global Markets: Asian markets were mixed today with Nikkei 225 and TOPIX in the red while Hang Seng, CSI 300 were up. “Asian markets were in mixed territory Wednesday as investors continued to be on edge over the rising rates of COVID-19 cases around the world. European markets were lower Wednesday morning as surging coronavirus cases in parts of the world continue to cast doubt over the prospect of a global economic recovery,” said Deepak Jasani, Head Retail Research, HDFC Securities.

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