Sensex falls 300 pts, Nifty below 10,400
On Monday, the benchmark indices traded lower for the fourth straight session following weak sentiment in Asia markets. Also, in opening trade against the previous session’s closing, the BSE Sensex fell over 200 points. It was noted that the broader Nifty also traded below 10,400 levels. As per the experts and analysts, the Indian rupee strengthened against the US dollar, by tracking gains in its Asian peers. However, earlier this week it was observed for the second straight session that the domestic equity indices gained to hit the three-week high on upbeat global cues and bargain hunting in select index majors.
Domestic investors seemed to stay positive before this week as some of the important macro numbers were released. The numbers like GDP numbers for December quarter as well as the fiscal deficit and manufacturing data were released recently. On last Monday, the experts claimed that the Nifty50 closed 92 points, or 0.87 percent, up at 10,583, while the 30-share Sensex settled 304 points, or 0.89 percent, up at 34,446. Since February 5, 2018, both the indices hit their respective highest levels.
Out of 50 stocks in the Nifty50 index, 38 closed the day in the green. However, remaining 12 stocks declined. On the other hand, broader BSE Midcap and smallcap indices also closed higher a little behind the BSE benchmark Sensex. It was noted that the midcap index closed 0.74 per cent up at 16,685, however, the smallcap index ended 0.88 percent up at 18,154.
Experts stated that this is a short week as there are holidays, and they have some important data like GDP, auto and cement monthly sales figure lined up ahead. Some favourable global cues have also played important role in this bounce so far. Moving further, investors must closely watch local developments along with cues from world markets. For further recovery, Nifty should decisively hold above 10,600. Otherwise, profit taking will resume. Some of the gainers included Maruti Suzuki followed by Tata Motors and Larsen & Toubro. Even IndusInd Bank is in the race. List of losers included Sun Pharma, TCS, Tech Mahindra, Infosys and ITC. However, Sun Pharma with a loss of over 2 percent, stood at the top.
Nifty Realty remained the top gainer, climbing over 3 percent, among the sectors on the NSE. All the sectors that settled in the green include Nifty PSU Bank, pharma, IT and FMCG, by gaining over 1 percent.
The stocks that hit fresh 52-week highs include Britannia Industries, Hindustan Zinc, IDBI Bank, Oberoi Realty, InterGlobe Aviation, and JSW Steel.
However, some other stocks that hit fresh 52-week lows on Monday were Dhanlaxmi Bank, Gitanjali Gems, Oriental Bank of Commerce and Punjab National Bank. On Monday, the global stocks moved up, but the majority of Asian markets closed with gains of over 1 percent.