Domestic market benchmarks S&P BSE Sensex and the 50-stock Nifty fell into the red as trading resumed on the Indian stock markets after a three-day break.
Domestic market benchmarks S&P BSE Sensex and the 50-stock Nifty fell into the red as trading resumed on the Indian stock markets after a three-day break. S&P BSE Sensex opened down by 178 points but fell further in the initial hour of trade to go down by over 532 points or 1.7% to sit at 30,626. The 50-stock index followed the same path, falling 155 points or 1.7%, dropping below the psychologically important 9,000 level. Bajaj Finance was the biggest loser on S&P BSE Sensex falling close to 8% while, followed by Titan Company and Mahindra and Mahindra. The top gainers on the index were Sun Pharma and Bharti Airtel both gaining over 1.5%.
All sectoral indices fall: On the National Stock Exchange, all the sectoral indices were deep in red, except Nifty Pharma. Nifty Realty fell the most, going down by 6%, followed by Nifty Media down by 5.4%. On Sensex, S&P BSE healthcare was up, but most of the other sectoral indices were down.
Pharma stock rally again: Pharma stock continued their rally on Monday as well. Glenmark was up 11.4% on the NSE; followed by Aurobindo Pharma, Lupin, Dr Reddy’s and Divi’s Lab. Sun Pharma was the biggest gainer among the 30 stocks that constitute the index, jumping 3.31%.
2 lakh crore lost: The market capitalisation of all BSE Listed scrips fell to Rs 118 lakh crore as markets fell on Monday. With the equity market capitalisation reaching Rs 118 lakh crore, investors were left poorer by Rs 2 lakh crore in a matter of a few minutes. Sensex was able to add Rs 4 lakh crore in market capitalisation in the previous week as markets rallied.
To gainer and losers: While Sun Pharma and Bharti Airtel were the clear winners on the bourses, Bajaj Finance and Titan led the losers tally. On the National Stock Exchange, Dr Reddy’s was the biggest gainer going up by 5.5% to trade at Rs 3,882 per share. Zee Enterprises tanked over 12% to become the biggest laggard on NSE.
Index Outlook: “Covid-19 is a black swan event with far reaching implications for businesses worldwide. The Indian economy is no exception with a stringent 21-day lockdown period underway. With almost nil manufacturing activity in this 21-day period and slow ramp up thereafter amid subdued consumer sentiment, we downgrade our Nifty earnings estimates to the tune of 4% for FY20E, 18% for FY21E and 13% for FY22E. Incorporating the downward revision, we now expect Nifty earnings to grow at a CAGR of 13.2% in FY19-22E vs. expectation of 18.6% CAGR in the past,” said ICICI Securities.