BSE Sensex and Nifty 50 drifted over one per cent lower on Thursday, on the back of weak global cues and sell-off in index heavyweights.
Domestic markets along with their global peers mirrored the wounded trend of the US market.
BSE Sensex and Nifty 50 drifted over one per cent lower on Thursday, on the back of weak global cues and sell-off in index heavyweights. Sensex plunged 599 points or 1.16 per cent to close at 50,846, while the broader Nifty 50 index declined 165 points or 1.08 per cent to 15,081. HDFC Bank, Housing Development Finance Corporation (HDFC), Reliance Industries Ltd (RIL), ICICI Bank, Infosys and Axis Bank, among others, contributed the most to the indices’ loss. However, broader market indices, midcaps and smallcaps outperformed the equity benchmarks. BSE Midcap index gained 0.48 per cent or 100.29 points to end at 20,984, while the S&P BSE SmallCap jumped 0.80 per cent or 169 points to finish at 21,254. Both the indices hit their respective 52-week highs in the intraday.
Domestic markets along with their global peers mirrored the wounded trend of the US market. The surge in US bond yields added selling pressure in technology stocks, forced Wall Street to close lower. Blue-chips were much affected by the weak global cues, but Mid & Small caps with its increased investor confidence retained its positive momentum.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
Today, again we witnessed a sharp decline in our market mainly due to the sudden jump in the long term bond yields of the US. We think, soon it will be normal for the market and then the market can react normally. The steady growth in the economy leads to a steady rise in the bond yields and therefore the market should start offering discounts in the medium to long term. Technically, the market recovered from lower levels but due to the pressure of the weekly expiration of iIndex contracts the Nifty/Sensex came back from the highs of 15200/51260. On Friday, 15050/50750 and 14950/50400 levels will be decisive for the market. The Nifty / Sensex could fall to 14850/50100 or 14750/49800 on a decisive dismissal of 14950/50400. On the upside, the 15250/51300 level would be a big hurdle for the index
Index opened a with a gap down on weak global cues though we saw some bounce but again in the second half we witnessed profit booking and index closed a day at 15080 with loss of one percent and formed a bearish candle on the daily chart. Going forwards index has one good support at 15k mark if managed to hold above that then some pullback otherwise more profit booking can be seen, on the higher side 15150-15200 zone will be stiff hurdle.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The Nifty made some recovery post the gap down opening. The overall trend remains positive as we have not broken the support of 14600-14700. The index still has wings to go higher and achieve targets closer to 15400-15500. Traders can utilize corrections like today’s to accumulate long positions.
S Ranganathan, Head of Research at LKP Securities
Markets opened weak on muted global cues and drifted lower during the afternoon even as we saw heightened investor interest in PSU stocks on hopes of privatisation and asset monetisation. In the broader market Sugar stocks registered smart gains for the second day in a row.