Sensex, Nifty snap four-day winning streak; here’s what stopped the rally

By: and |
Updated: Feb 07, 2020 6:19 PM

After snapping a four-day winning streak, domestic equity market benchmarks Sensex and Nifty settled in negative territory on Friday amid rising coronavirus death toll and economic damage.

As many as 17 stocks out of 30 Sensex stocks finished in red today.

After snapping a four-day winning streak, domestic equity market benchmarks Sensex and Nifty settled in negative territory on Friday amid rising coronavirus death toll and economic damage. S&P BSE Sensex ended 178 points or 0.43 per cent lower at 41,128.04, while the broader Nifty 50 index settled at 12,086.40, down 51.55 points or 0.42 per cent. “In spite of the positive monetary policy which will spur growth in the economy, the market has turned flattish due to Novel coronavirus issue hurting the growth of the world’s second-largest economy. Positive Q3 result, liquidity boost and fiscal support will bring stability in the domestic market during the medium term,” said Vinod Nair, Head of Research at Geojit Financial Services.

Losers and Gainers
As many as 17 stocks out of 30 Sensex stocks finished in red today. NTPC was the top gainer on the Sensex, with a gain of 3.30 per cent, followed by ONGC, HCL Tech, Axis Bank and Titan. On the other hand, IndusInd Bank, M&M, RIL, Power Grid, Tata Steel and Bharti Airtel were among the top losers on the index.

Index tracker
Among sectoral indices, the Nifty Bank index ended 146 points lower dragged by IndusInd Bank, Federal Bank, ICICI Bank, and Kotak Mahindra Bank. However, the Nifty Pharma index gained 107 points led by gains in Auro Pharma, Biocon and Divi’s Laboratories. The broader market outperformed the frontline indices, S&P BSE MidCap index gained 70 points or 0.44 per cent at 15,905 points, while S&P BSE SmallCap jumped 110 points or 0.75 per cent at 14,840 points.

Coronavirus worry pulls market down
A case was made by RBI Governor Shaktikanta Das for preparing a contingency plan to deal with the Coronavirus situation and its impact on the economy. Today global markets were pulled down after reports of an increase in death by the deadly virus made the rounds. 638 people have been killed because of Coronavirus, according to a Reuters report.

“The rally in the Indian markets halted on account of profit-taking as concerns regarding coronavirus resurfaced and impacted the global sentiments,” said Ajit Mishra, VP Research, Religare Broking Ltd. “While the domestic sentiments are buoyant post an encouraging monetary policy, the threat to the global economic growth due to coronavirus spread may weigh on the sentiments. However, on a positive note, China’s plan to slash tariffs by 50% on some of the US imports indicates diffusing trade tensions which could provide support to the markets in the coming days,” he added.

Global markets down
Japan’s Nikkei 225 ended the day 0.19 per cent down; Hang Seng moved down by 0.33 per cent; while Shanghai 50 dropped 0.11 per cent. As more cases from China and across the globe surface investors feared the further impact of Coronavirus.

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