NEW DELHI: Throughout the day, domestic equity indices traded in the red but pared some of the afternoon losses at close on Wednesday after European markets opened with some gains, lifting the sentiments.
Rout in US technology stocks and setback in Astrazeneca Covid-19 vaccine trial put pressure on Indian markets as investors sold shares in the heap. The drug firm stopped phase three trials after one of the participants developed unexplained illness.
The 30-share pack Sensex ended the day down 171.43 points or 0.45 per cent at 38,193.92. During the day, the index had fallen below 39,000 level but recovered nearly 260 points from its day’s low. The NSE flagship Nifty closed down 39.95 points or 0.35 per cent at 11,278.
“After opening with losses and drifting lower, the benchmark indices recovered towards the latter half of trading but still ended the day with losses. With Asian markets all ending in losses, the slight recovery seen in the Indian markets mirrored with the positive opening in the European markets. A sell off in US tech stocks and a setback to one of the vaccine trials kept markets on the edge,” said Vinod Nair, Head of Research at Geojit Financial Services
Market at a glance:
- Retail portion of Bharat Dynamics OFS subscribed 60 per cent
- Heavy demand for Happiest Minds IPO, subscribed 150 times
- Route Mobile sees steady demand; subscribed 0.8 times
- Nifty Realty falls for fifth consecutive day; Nifty PSU Bank down 3%
- Future Group stocks continue to fall; Future Retail down 40% in Sept
- 94 stocks at 52-week highs, mostly from smallcap space; Adani Green, Tata Elxsi top names
Analysts said Indian markets are expected to be in sync with the global markets and may also react to the on-going border tensions with China and there are currently no fresh triggers for the market. Nair said traders should expect volatility.
Among bluechip names, Tata Steel was the biggest gainer, up 3.57 per cent to Rs 419.55. Zee Entertainment, Cipla, Reliance Industries, Grasim Industries, JSW Steel and Dr Reddy’s Labs were among other major gainers, up 1-3 per cent.
On the other hand, SBI was the biggest loser, down 4.09 per cent to Rs 195.70. GAIL, Bajaj Finserv, Axis Bank, IndianOil, ONGC, ITC, ICICI Bank and Bajaj Finance were among other losers, down 2-4 per cent.
Broader market indices underperformed on Wednesday. Nifty Smallcap fell 1.51 per cent while Nifty Midcap dropped for the fourth day, down 0.54 per cent. Nifty 500, the broadest index on NSE, fell 0.42 per cent.
Escorts, Adani Gas, Emami, Lemon Tree Hotels, Lakshmi Machine Works and Ujjivan Small Finance Bank were among top gainers from broader market space, up in the range of 2-7 per cent.
Aditya Birla Fashion Retail, Edelweiss Financials, Future Retail, Sunteck Realty, ITI and NCC were among the top losers from mid and smallcap space, down in the range of 5-7 per cent.
“Since we are seeing a mixed trend on the sectoral front, we suggest preferring defensive viz. FMCG, pharma and IT for long trades during the corrective phase. On the flip side, we may see further deterioration in banking and select PSU stocks”
Among sectoral indices, Nifty Pharma was the biggest gainer, up 1.9 per cent followed by Nifty Media that added 1.18 per cent. Nifty Metal gained 0.86 per cent. Dragged by SBI, Nifty PSU Bank fell 2.97 per cent while Nifty Bank also fell more than 2 per cent.
Market breadth was in favour of losers with 879 stocks ending in the green while 1,804 names closed with cuts. As many as 94 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 51 names hit 52-week lows, mostly from the microcap space. About 218 stocks hit upper circuit limit and 281 lower circuit limit.
Globally, European markets were trading with gains. London-based FTSE added 0.76 per cent while France’s CAC and Germany’s DAX advanced 0.47 per cent and 0.86 per cent, respectively. In Asia, all markets closed with cuts. Shanghai Composite was the biggest loser, down 1.86 per cent.
Let’s prepare for tomorrow:
- Border tensions: Situation on the LAC is volatile and traders will keep an eye on the evolving situation.
- Global cues: Market will also track how tech stocks perform in the US.
- ECB meet: The meeting of European bankers will also be in investors mind as they sit to outline future policy.