Snapping the four-day gaining streak, BSE Sensex and Nifty 50 recorded the biggest single-day fall in two weeks on Thursday. Today’s fall in the markets erased over 80 per cent of gains made last week. The 30-share Sensex gave up the crucial level of 32,000 and Nifty 50 index settled below the psychological mark of 9,300. Banking stocks were the top Sensex laggards with a decline of up to 11 per cent. “In sync with global markets, the Indian benchmark indices lost around 5.6% with an increase in the volatility index by around 28%. The extension of the lockdown and the fear that the economy and businesses will take longer to get back on track impacted the markets,” Vinod Nair, Head of Research at Geojit Financial Services, said.
Investors lose Rs 5.81 lakh crore: Investors witnessed a wealth erosion of Rs 5.81 lakh crore in BSE-listed companies. The market capitalisation of BSE-listed companies fell by Rs 5,81,182.15 crore to Rs 1,23,60,438 crore.
Bharti Airtel gained 3.5%: ICICI Bank was top laggard, down 11 per cent, followed by Bajaj Finance, HDFC, IndusInd Bank and Axis Bank. While, Bharti Airtel and Sun Pharma were the only Sensex gainers, up 3.49 per cent and 0.04 per cent, respectively. “The selling in domestic markets was primarily led by financials, metals and auto stocks. All the major sectoral indices ended in red except Pharma sector which traded marginally in green for the day,” Narendra Solanki, Head Fundamental Research, Anand Rathi Shares and Stock Brokers, said.
Nifty Private Bank worst performer: Barring Nifty Pharma, all the sectoral indices settled in negative territory. Nifty Private Bank index was top sectoral loser, down 8.60 per cent dragged by ICICI Bank, Federal Bank and IndusInd Bank. On the flip side, Nifty Pharma index posted gains led by Aurobindo Pharma, Cipla and Cadila Healthcare.
RIL share price ends over 2% down: RIL share price ended the session 2.16 per cent lower at Rs 1,435 apiece on BSE. It hit the day’s high of Rs 1464.90 and low of Rs 1419.75. Reliance Industries announced an investment of Rs 5,656 crore by American private equity firm Silver Lake Partners in Jio Platforms.
Technical observation: Nifty50 breached the crucial 9,300-mark on Monday led by heavy sell-off in the markets. “After showing sharp upmove on Thursday, Nifty tanked down in today’s session and closed the day lower by 5.74%. Today’s sharp decline is also signalling a possibility of a false downside breakout of a rising wedge, which was unfolding in the last one month. Hence, a further decline from here could confirm a false upside breakout of the rising wedge and could further indicate more declines in the Nifty ahead,” technical analyst Nagaraj Shetti, HDFC Securities, said.