Sensex down 1023 pts, Nifty ends near 17200 levels, dragged by Banking & Financials stocks
It was a negative start for the Indian stock markets on Monday amid mixed cues from the global markets. Nifty today opened at 17456.30 levels down by 60 points while Sensex made a negative opening of 95.15 points at 58549.67 levels. Markets fell sharply today and extended their Friday’s losses in the end.
Reasons for the market crash
Indian markets witnessed a sharp selling on Monday as investors were concerned about the persistent foreign outflows. Sentiments got hurt as foreign portfolio investors (FPs) pulled out as much as Rs 6834 crores from Indian markets in the first four trading sessions in February. The rising US bond yields and crude oil price are the other two factors the investors were worried about.
A heavy selling witnessed in the FII’s favorite counters like HDFC twins, ICICI Bank, Kotak Bank, Infosys, etc indicates a continued selling pressure by the FIIs in today’s trading session. The volatility index India VIX surged around 10% as investors were concerned that the US Federal Reserve may hike interest rates at a faster pace, particularly after the strong January months jo report.
On the global front, Asian markets mostly closed in the green on Monday. Shanghai traded today after a long weekend and closed more than 2 percent higher despite the slow down of its services activity in January. The Indonesian GDP speeds up in the last quarter of 2021 due to ease in covid curbs. European markets are also trading marginally higher on Monday. Investors were also optimistic about the upbeat job growth in the US in January, as the world’s top economy was well on the recovery track.
Sensex and Nifty at the Close
At the close, Nifty was down by 302.70 points or 1.73 percent and closed at 17213.60 levels while Sensex declined by 1023.63 points or 1.75 percent and finished at 57621.19 levels. The Bank Nifty index closed lower by 793.90 points or 2.05 percent on spot and ended at 37995.45 levels.
The broader markets closed lower in line with the benchmark indices today. The Nifty midcap index was down by 312.30 points or 1.03 percent and closed at 30129.25 levels. The Nifty smallcap index closed lower by 149.60 points or 1.34 percent and finished at 11047.80 levels.
Top Nifty index Gainers and Losers
The top gainers in the Nifty 50 index were Power Grid Corp, ONGC, NTPC, Shree Cements, and Tata Steel whereas the top losers were Tata Consumer Product, HDFC Bank, HDFC Life, Larsen, and Britannia
The midcap top gainers in the Nifty index were Bank of Baroda, V-Gaurd, and Godrej Properties and the losers were Torrent Power, Nippon, and Polycab.
The top gainers in the Nifty smallcap index was GNFC, Blue Start, and FDC the losers were Sunteck Realty, Indian Bank, and Aegis Logistics
The most active stocks in the Nifty index in terms of value were SBI, Tata Steel, and ICICI Bank. The most active stocks in terms of volume were SBI, ITC, and ICICI Bank.
On a sectoral front, barring Nifty PSU Bank all other sectoral indices closed in the red today. The sectors that dragged the markets were Financial Services, Banking, FMCG, Pharma, and Auto
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Editorial desk