Sensex 813 points off record high: Key factors behind market crash


NEW DELHI: Weak world cues, and profit-booking in banking and monetary companies shares together with FMCG counters pulled benchmark indices decrease on Wednesday, extending the losses to a second straight day.

The market rally in February up to now has been fueled by the federal government’s capex plans and better-than-expected earnings, main to purchasing on each dip. The cool-off within the market could possibly be one other such alternative, say analysts.

The 30-share Sensex pack fell 400.34 points or 0.77 per cent to shut at 51,703.83. The index hit a low of 51,586.34 earlier than recovering barely. The Sensex has shed 812.93 from its all-time excessive of 52,516.76 registered on Tuesday.

Its broader peer NSE Nifty fell 1.04.55 points or 0.68 per cent to fifteen,208.90.

“The Indian market opened low replicating the weak world pattern as a result of rising bond yield and inflation. PSU banks which have been within the limelight on stories of privatisation continued to trip their uptrend. Mid and small-cap shares remained agency and outperformed the benchmark indices,” stated Vinod Nair, Head of Research at Geojit Financial Services.

Market at a look

  • BOI, CBI, IOB and Bank of Maharashtra rally 20% every on privatisation hopes
  • Nestle India drops 3% after Q3 present, emerges high Nifty loser
  • India VIX — the measure of volatility — falls 2% to 21.33
  • IPO watch: RailTel subscribed 5.68x up to now; Nureca 36.95x
  • HDFC twins largest drag on Sensex, Nifty; RIL gives assist

Among the bluechip shares, Hero MotoCorp was the highest gainer, rising 3.51 per cent. BPCL, SBI, Adani Ports, Power Grid, GAIL, HDFC Life Insurance, Coal India, NTPC and Reliance Industries have been different gainers.

Nestle India was the highest loser within the Nifty pack, falling 3 per cent. Asian Paints, Maruti Suzuki, Bajaj Finserv, HDFC Bank, Divi’s Labs, IndusInd Bank, Dr Reddy’s Labs and HDFC have been others that ended within the purple.

Broader market indices ended with positive factors outperforming their headline friends. Nifty Smallcap added 0.03 per cent and Nifty Midcap superior 0.31 per cent. Nifty 500 — the broadest index on NSE — fell 0.39 per cent.

Dr Lal Pathlabs, Aditya Birla Capital, Varun Beverages, Indian Bank, Linde India and IDBI have been high gainers from the mid- and small-cap indices, climbing within the vary of 4-10 per cent.

JB Chemicals and Pharmaceuticals, Indiamart Intermesh, Indiabulls Real Estate, Page Industries, Mphasis and RBL Bank have been main losers from broader market house, falling within the vary of 2-6 per cent.

The sectoral matrix on NSE was combined. Nifty Bank was the highest gainer, up 3.32 per cent, adopted by Nifty Private Bank and Nifty Financial Service. Nifty Metal was the highest loser, down 0.47 per cent. Nifty IT and Nifty Pharma have been different indices that ended within the purple.

“A sharp rise in US Treasury yields and a pickup in commodity prices would have negative implications for foreign flow into bonds, and some collateral impact on INR as well. In this context, one can expect more defensive sectors to remain well-bid in the near term.”

— S Hariharan, Emkay Global

Market breadth was in favour of gainers as 1,513 shares ended within the inexperienced whereas 1,448 counters settled with cuts. As many as 257 securities hit 52-week highs, principally from the smallcap house. Meanwhile, 37 scrips hit 52-week lows, principally from the microcap house. About 340 shares hit higher circuit limits and 235 decrease circuit limits.

European markets have been buying and selling with cuts on the final depend. London-based FTSE was down 0.28 per cent whereas Paris and Frankfurt fell 0.09 per cent and 0.66 per cent, respectively. In Asia, barring Hong Kong and Taiwan that registered positive factors, all markets ended within the purple.

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