On an optimistic note, any positive outcome from the US president’s India visit in terms of strategic partnership/trade deal could possibly cheer the Indian markets
Following the global cues amid a spike in new infections from coronavirus outside China, Sensex and Nifty ended two per cent lower on Monday. S&P BSE Sensex ended 806 points or 1.96 per cent lower at 40,363, while the broader Nifty 50 index settled below the crucial 11,850-mark, at 11,838, down 242 points or 2 per cent. “Traders also remained worried with National Council of Applied Economic Research (NCAER) in its latest report has pegged India’s economic growth at 4.9% for the current fiscal (FY20),” Narendra Solanki, AVP- Equity Research, Anand Rathi Shares and Stock Brokers said. India VIX, the barometer of volatility in the market, spiked 25.63 per cent to close at 17.21.
Top gainers and losers on S&P BSE Sensex- Index heavyweights such as RIL, HDFC, ICICI Bank, TCS and Axis Bank were among the major contributors towards today’s fall. All Sensex constituents traded in the red. Tata Steel was the top index loser with a decline of 6.39 per cent, followed by ONGC, Maruti, Titan, ICICI Bank and HDFC.
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All sectoral indices in red- Nifty Metal index was the top sectoral loser, down 5.36 per cent dragged by Jindal Steel, JSW Steel and SAIL. The Nifty Auto index settled 3.5 per cent lower weighed down by Motherson Sumi, Bharat Forge and Tata Motors.
Markets to remain choppy in near-term- “We expect the markets to be choppy in the near term as global sentiments continue to remain muted. In addition, F&O expiry could also induce some volatility during the week. On an optimistic note, any positive outcome from the US president’s India visit in terms of strategic partnership/trade deal could possibly cheer the Indian markets,” Ajit Mishra, VP – Research, Religare Broking Ltd said.
Investors lose Rs 3 lakh crore- Investors lost more than Rs 3 lakh crore in the domestic markets today. S&P BSE Sensex saw its market capitalisation slip from Rs 158.5 lakh crore on its previous closing to Rs 155.3 lakh crore on closing today.
Technical view- “A long bear candle was formed today with a gap down opening. Today’s opening downside gap remains unfilled. This pattern indicates that the optimistism created after the union budget 2020 seems to have nullified and the Nifty is currently into a down trended move. The daily 13-period ADX indicator was continuously hinting at a possibility of a sharp trended movement and the other chart setup was indicating a probable down trend,” Nagaraj Shetti – Technical Analyst, HDFC securities said.
Fear of coronavirus pandemic grows- The surge of infections outside mainland China triggered steep falls in Asian shares and Wall Street stock futures as investors fled to safe havens such as gold. World Health Organization (WHO) said it no longer had a process for declaring a pandemic but the coronavirus outbreak remained an international emergency, as per the Reuters news report.