Sensex, Nifty extend fall for 4th day; EKI cracks 10%; PSU banks shine

Bear continued to dominate Dalal Street for the fourth straight session as the benchmark indices settled lower for another trading session on Friday. Weakness in the global markets weighed on the domestic equities, which were further dampened by the rising macroeconomic concerns.

Boil in the crude oil price and US dollar flexing muscles is denting sentiments at Dalal Street. Weakness in the Indian Rupee and intense FII selling is also adding to more pressure at the local levels. Analysts say that Indian equity markets have turned expensive and profit booking its flavour for now.

For the day, BSE's barometer Sensex dropped 221.09 points, or 0.33 per cent, to settle at 66,009.15. NSE's Nifty50 plunged 68.10 points, or 0.34 per cent, to end at 19,674.25. Broader markets ended mixed as the BSE midcap index settled in red, while the BSE smallcap index rose marginally. Fear gauge India VIX dropped more than a per cent to 10.66-level.

Downward spiral continued in the markets despite recovery in other Asian peers, as investors booked profits after the recent upsurge. While Indian market valuations have become expensive, other bigger concerns like rising crude oil prices, firm US Dollar index and treasury yields coupled with continuous FII selling have been denting the sentiment, said Amol Athawale, Vice President - Technical Research at Kotak Securities.

"Technically, on weekly charts, the Nifty has formed a long bearish candle, indicating a weak sentiment in the near future. However, due to temporary oversold conditions, we could expect a one quick pullback rally. For the short-term traders now, the 50-day SMA 19,600 and 19,500 would be the key support zones while 19,800 and 1,9900 could be key resistance areas," he said.

Among the sectors, the Nifty PSU Bank index gained more than 4 per cent, while the NIfty auto index also managed to settle in green. On the downside, the Nifty pharma and healthcare indices declined 2 per cent each for the day. The Nifty consumer durables, realty and metal indices shed a per cent each.

In the Nifty50 pack, Wipro and Dr Reddy's Laboratories topped among the laggards, dropping 2 per cent each. UPL, Cipla, Bajaj Auto and Bajaj Auto were the other major laggards among the blue-chips. HDFC Bank, Ultratech Cement, Power Grid, Divis Laboratories, ITC, Sun Pharma and SBI Life Insurance declined more than a per cent each.

Among the gainers, IndusInd Bank and Maruti Suzuki gained about 3 per cent each. State Bank of India and Mahindra & Mahindra rose about 2 per cent each. Asian Paints, Tech Mahindra, Coal India, Larsen & Toubro, Bajaj Finserv and Hero MotoCorp gained about a per cent each.

Domestic markets closed on a sombre note as mixed cues from US and Asian markets weakened domestic investors’ confidence, said Vinod Nair, Head of Research at Geojit Financial Services.

"Nevertheless, PSU bank stocks outperformed as India's inclusion in JP Morgan's Government Bond Index led to a decline in bond yields. A broad basis, risk-averse sentiment prevailed due to the ongoing ascent of US bond yields and concern over higher rates for a prolonged period," he said.

A total of 3,781 shares were traded on BSE on Friday, of which 1,851 settled with cuts. 1,785 stocks ended the session with gains while 145 shares remained unchanged. A total of 278 shares hit their upper circuit, whereas the 210 shares tested the lower circuit levels for the day.

In the broader markets, EKI Energy Services tumbled 10 per cent, while Electronics Mart India, GMR Power, RattanPower India, Jupiter Wagons and Urban Infra hit lower circuits of 5 per cent each. Arman Financial Services, Hathway Datacom and JB Chemicals and Pharmaceuticals ended 4 per cent down each.

Among the gainers, PNB Gilts and Nelcast hit an upper circuit of 20 per cent each, while Hudco surged more than 19 per cent. IFCI gained over 14 per cent, while Quick Heal Technologies gained about 13 per cent. Omaxe and Lancer Container Lines settled 12 per cent higher each.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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