Volatility hit an eight-month high.(Image: REUTERS)Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity markets followed global markets and witnessed one of the steepest sell-offs since March last year. At the end of the trading session, Sensex was at 49,099 points, marginally higher from the intra-day low of 48,890. The broader Nifty 50 index closed at 14,529, after having reached an intra-day low of 14,469 points. None of the Sensex constituents closed with gains. ONGC was the worst performer, down 6.6%, followed by Mahindra & Mahindra, Bajaj Finserv, and Axis Bank. Financials were among the worst-hit stocks on Dalal Street today. bank Nifty tanked 4.63%, along with a 4.86% fall in Nifty Financial Services. Volatility spiked to an eight-month high of 28.05 points, jumping 22.54%.
Highlights
Domestic equity benchmarks witnessed a sharp sell-off on Friday, following a sharp fall in global peers as bond yields rose. S&P BSE Sensex plunged as much as 2,100 points but closed marginally higher at 49,099. Nifty 50 gave up 14,500 during the day but recouped some losses to end at 14,529 points. The volatility index or the fear gauge of domestic stock markets surged to an eight-month high as it jumped nearly 23% during the day’s trade. Banking stocks were the worst hit. Bank Nifty index closed deep in red, falling 4.63%.
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"Indian markets have seen a stellar rally in the past couple of months due to strong foreign flows, improving macros & return of corporate earnings growth. The ingredients of a structural bull market remain intact for India. Such ebbs & corrections will provide opportunities for long-term investors to take advantage of volatility and accumulate quality businesses at reasonable valuations & price points," said Devang Mehta, Head Equity Advisory, Centrum Broking.
Friday brought flashbacks of last year for domestic markets as Sensex and Nifty fell amid a global sell-off and closed near their intra-day lows. Sensex and Nifty nosedived nearly 4% each during the day's trade.
Sensex is threatening to give up 49,000 ahead of the closing bell. This would take the benchmark index down to levels last seen on February 1.
All Sensex constituents were sitting deep in red on Friday, just ahead of the closing bell. ONGC was the worst performer, down 7%. This was followed by Mahindra & Mahindra, power grid, Axis Bank, and Bajaj Finserv.
Nifty slipped below 14,500 for the first time since February 2, while the benchmark BSE Sensex nosedived 2,100 points on Friday as domestic markets mirrored the global sell-off.
Nifty gave up 14,500 on Friday to hit a low of 14,492. The index had began trading at 14,888 points on Friday morning.
Nifty Bank index was down nearly 5% on Friday at 34,734. The Index is now at its lowest since February 3.
“The Nity-50 & BSE Sensex are down by more than 2% this week with major cut seen on Friday. There has been a global correction led by the sharp spike in global bond yields along with a sudden increase in Covid-19 cases in a few Indian states. The sell-off is seen more in tech stocks globally led by sharper correction in the Nasdaq Composite Index. The BSE IT Index is down ~3.7% this week on the back global tech correction," said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.
Sensex went from sitting at 49,528 points to 49,184 points in 5 minutes, erasing 344 points, over and above the 1400 point fall of the benchmark index.
After showing some signs of recovery Nifty slipped below 14,600 once again. The fall comes just minutes before the closing bell. Sensex too fell adding nearly 400 points, to its 1,400 point fall.
Rollovers for Nifty and Bank‐Nifty stood at 78% and 77% vs 77% and 74% in the previous month. Nifty rolls remained in line while Bank Nifty rolls lower in shares term indicates short squeeze. Nifty roll expanded on expiry day from ~45 points to ~65 points hinting refueled optimism above 15,000 mark. Market-wide rolls in line with previous month ~92% vs 3month avg. of ~92%.
~ Yes Securities
Up from day's low, Sensex was still down 1,450 points on Friday. Maruti Suzuki India, Nestle India, and NTPC continued to be the only stocks trading in green.
Nifty Junior or the Nifty Next 50 was down only 1.25% on Friday, just before the closing bell. The index was outperforming the benchmark Nifty 50, which was down 2.8%.
Prime Minister Narendra Modi on Friday stressed on increasing credit flow to businesses to meet the needs of a fast reflating economy and said financial products will have to be tailor-made for fintech and startups.
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For transportation of Liquified Natural Gas (LPG) through barges on National Waterways-1 and National Waterways-2, an MoU has been signed between Inland Waterways Authority of India (IWAI) and MOL (Asia Oceania) Pte. Ltd. According to the Ministry of Ports, Shipping and Waterways, IWAI will offer support for handling of LPG cargo on IWAI and multimodal terminals at Sahibganj, Haldia as well as Varanasi as per notified provisions and rates on MOL’s request, facilitating with adequate fairway, and providing information on Lease Available Depth (LAD) on monthly/fortnightly basis. The world’s largest gas carrier firm, MOL Group will invest for the construction as well as operation of dedicated LPG barges under the Modi government's 'Make-in-India’ initiative.
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BSE Smallcap index was down 0.49% ahead of the closing bell while the Nifty Smallcap 100 was down 0.99%. On the other hand, the NIfty Midcap100 was trading 1.39% lower while the BSE Midcap index was down 1.48%. Sensex trimmed losses to trade 2.82% lower and Nifty was down 2.8%
Rising oil prices, rising yields in the US and tensions of US in middle east have spooked investors. Let’s examine all 3 factors:
1 oil prices should normalize once weather becomes better in the US. Oil supplies will also increase, which would help in normalizing the current condition
2 Current US govt wants to improve international relations as opposed to the regime under Donald Trump
3 Yields should also be more benign once things normalize and world resumes normalcy in the next few months.
Investors should use this opportunity to invest more in the market. India is sitting on a secular cyclical upturn, and investors should make most of this.
~Vaibhav Agrawal - Chief Investment Officer, Teji Mandi
US 10-year bonds were trading 1.46% down from 1.51% earlier.
Bank Nifty was down 3.8% on Friday with less than an hour to go before the closing bell, Nifty Private bank index and Nifty Financial Services index were also seen trimming some losses.
"Equity markets opened gap down following spike in global bond yields and extended its weakness further as the session progressed. Panic in global bond markets led to sharp rise in yields which spooked investors amid fears of interest rate cycle reversal. Sensex tumbled 1800 points while Nifty tanked 500 points largely led by sharp fall in banking and financial stocks. Nifty Bank and Nifty Financials are down almost 5% against ~3.5% fall for Nifty. However, the fall in the broader market is less severe with Nifty Midcap 100 and Nifty Smallcap 100 down ~2%. India VIX has spiked 27% to 29 levels. Investors have thus turned to Pharma stocks amidst this market crash which is down just 0.4%. This sector has been in consolidation mode so far 2021YTD as it witnessed profit booking post sharp rally in CY20. It has also got a boost from the second PLI scheme being approved for the sector. The market correction might continue for some time till inflation fears ease down," said Hemang Jani, Head of Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services.
India VIX was up 19%, after trimming gains. The volatility index was sitting at 27.38 levels, down from its high of 29.65.
BSE Smallcap index was down just 0.58% while the Midcap index fell 1.56% and the benchmark Sensex was down 2.88%.
Nifty regained 14,650 and was nearing 14,700 with little over an hour left during the day's trading session.
NTPC, Nestle India, and Maruti Suzuki India were the only gainers on Sensex while the remaining 27 stocks traded in the red.
Sensex is sitting at 49,386 points, down 3.2% on Friday. Nifty 50 was hovering around 14,600 levels.
ACC, NMDC, and Vedanta Limited are the only three stocks to have hit -52-week highs on Friday. Among these, ACC was now trading with losses, NMDC was flat, and Vedanta Limited was up with marginal gains.
Nifty Pharma, the only sectoral index to be trading with gains on Friday, gave up all gains and began trading in the red.
From the 30 stocks that make up BSE Sensex, only NTPC was trading in the green. The PSU stock was up marginally while all other Sensex stocks were down in red.
"Given the surge in volatility and the breach of a key support, one should refrain from building new long positions in the index till it trades below its immediate resistance of 14760. That said, existing long positions in Nifty must be hedged if the index sustains below the 14635-14600 zone," said Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS.
Among Nifty Bank constituents, only Bandhan Bank was up with gains on Friday, surging 1.56% higher. Axis Bank and ICICI Bank were down 5.22% each on NSE.
On Sensex, ICICI Bank was down 5.16%, making it the top Sensex drag. It was followed by Mahindra & Mahindra, down 5.08% and Axis Bank.
Nifty has regained 14,600 after falling as low as 14,554 during the day's trade. Stock markets across the globe are witnessing a sharp sell-off today.
'Nifty has today broken the low that was formed on February 22, at 14635, creating a sequence of lower high and lower low. If the index sustains below 14635, we could witness a fall towards 14297-13989 in the days ahead,' said Abhishek Chinchalkar, CMT Charterholder and Head of Education, FYERS.
The volatility index or India VIX continues to gain on Friday, now at its highest in 8-months. Often called as the fear gauge of domestic markets, India VIX was up 28.9% at 29.52 levels.
PVR was down over 4% and Inox Leisure slipped 3.7% on Friday as investors worry about lockdowns being re-instated as coronavirus cases resurface in Maharashtra.
India now close to the mass roll-out of the coronavirus vaccine so a rise in covid cases might only be a short term worry, Mihir Vora, CIO, Max Life Insurance told CNBC TV18 today. He added that global liquidity has been driving markets up and a reversal in that would be a worry.
Stocks markets are believed to be reacting to rising bond yields, fresh tensions between US and Iran and surging coronavirus cases domestically.
Sensex reached a fresh low of 49,280 points while the broader NSE Nifty 50 slipped below 14,600 levels to hit a fresh low of 14,585 points on Friday.