Sensex tanks 670 pts, Nifty holds above 17,400; AEL, HDFC Bank drop 3% each

Domestic stock indices settled sharply lower on Friday amid an across-the board selloff. While some buying emerged towards the fag end of the session, it was insufficient to erase big losses. At close, the 30-share pack Sensex was down 671.15 points, or 1.12 per cent, at 59,135.13. The NSE benchmark Nifty tanked 176.70 points, or 1 per cent, to 17,412.90. Midcap and smallcap indices outperformed the larger peers, falling about half a per cent each. Fear gauge India VIX spiked 5 per cent to 13.41-level.

On a weekly basis, the benchmark indices shed 1 per cent each.

"The Nifty has formed a strong bearish candle on the weekly chart and is comfortably trading below the 20- and 50-day SMAs. For positional traders, the level of 17,550 should act as a medium-term resistance. Below the same, expect the index to slip till 17,150. On the flip side, a minor pullback rally is possible, if the index trades above 17,425. In that scenario, it could move up to 17,480-17,500 levels," he said.

Out of 3,611 shares that traded on BSE on Friday, 2,100 settled lower. Among the remaining ones, 1,405 shares advanced while 106 ended unchanged for the day. A total of 159 shares hit upper circuit limits. A total of 165 other stocks tested their lower circuit limits.

Adani Enterprises topped the Nifty losers, dropping 3 per cent. HDFC also recorded similar cuts. Apollo Hospitals, HDFC, IndusInd Bank and State Bank of India shed over 2 per cent each. Axis Bank, Bajaj Finserv and Mahindra & Mahindra were other key laggards. Tata Motors jumped over one per cent as its subsidiary Tata Technologies filed DRHP with Sebi. NTPC and Maruti Suzuki added over a per cent each. Britannia Industries, Power Grid, Titan, Sun Pharma and Adani Ports were also slightly up.

On the sectoral front, Nifty FMCG index was the sole gainer. Nifty PSU Bank and Private Bank indices dropped 2 per cent each, followed by Nifty Financial Services index. Nifty Media, Real Estate and Metal indices declined a per cent each.

Adani Group stocks Adani Wilmar and NDTV declined 5 per cent, followed by an up to 2 per cent fall in ACC and Ambuja Cements. Adani Ports settled in the black. Adani Power, Adani Transmission, Adani Total Gas, and Adani Green Energy hit their 5 per cent upper circuit limits.

Global markets were cautious due to chances of a sharper rate hike, said Vinod Nair, Head of Research at Geojit Financial Services

"Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, which will have a significant impact on the upcoming Fed meeting. However, higher-than-expected jobless claims in the US that came in yesterday helped alleviate some concerns about the Fed becoming stricter," he said.
In the broader market, Deep Polymers hit an upper circuit of 20 per cent, whereas Nahar Spinning Mills advanced over 15 per cent. Nahar Capital and Nahar Polyfilms also rose about 12 per cent each. Sequent Scientific was up 8 per cent despite the selloff.

Nucleus Software Exports hit its 10 per cent lower circuit limit. GRM Overseas declined 7 per cent. Equitas Small Finance Bank and Patel Engineering retreated 6 per cent each.

“The sentiment has been bruised by the recent US Fed statement that more rate hike is on the card to keep inflation under control, said Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities

Traders were be keenly awaiting the US unemployment data scheduled for later in the day. Other than this, US inflation numbers are due next week, which will guide the market in the near-term. Overall sentiments, however, remain feeble.

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