Late hour sell-off drags Sensex down 703 pts, Nifty slips below 17,000 

BL Mumbai Bureau | Updated on: Apr 19, 2022
People having a look at the Sensex updates on a screen outside the Bombay Stock Exchange (BSE) building, as the market goes down 700 points in the closing session, on Tuesday, in Mumbai, April 19, 2022.

People having a look at the Sensex updates on a screen outside the Bombay Stock Exchange (BSE) building, as the market goes down 700 points in the closing session, on Tuesday, in Mumbai, April 19, 2022. | Photo Credit: SHASHANK PARADE

IT, FMCG, Realty, Financial Services under pressure; Oil & Gas gains focus

Benchmark indices closed lower for the fifth consecutive session on Tuesday amid late hour selling.

Market opened on a positive note amid mixed global cues. Indices remained volatile through the day and closed lower, witnessing selling pressure across multiple counters during closing hours.

The BSE Sensex closed at 56,463.15, down 703.59 points or 1.23 per cent. It recorded an intraday high of 57,464.08 and a low of 56,009.07. The Nifty 50 slipped below 17,000 to close at 16,958.65, down 215.00 points or 1.25 per cent. It recorded an intraday high of 17,275.65 and a low of 16,824.70. The rupee depreciated 25 paise to close at 76.505 to a Dollar. The price of the 2nd highly traded liquid paper (6.67 per cent GS 2035) moved up 26 paise, with its yield declining 3 basis points.

Over 2100 stocks decline

The market breadth remained in favour of the decliners  with 2,179 stocks declining on the BSE as against 1,234 that advanced while 123 remained unchanged. Furthermore, 18 stocks hit the upper circuit as compared to the three stocks that were locked in the lower circuit. Besides, 216 stocks touched a 52-week high level and 20 touched a 52-week low.

Rahul Sharma, Research Head,  Equity 99 said, “We witnessed mayhem in markets in last 30 minutes. Benchmark indices corrected almost 1.5 per cent today due to weak global clues. Things seems to worsen between Russia and Ukraine in current war. Investors are advised to remain invested in quality stocks in coming days and avoid weak fundamental stocks.”

Parth Nyati, Founder, Tradingo said, “Bears attacked the market, especially in the last hour. The market remained resilient throughout the day but then there was a sudden sell-off in the last hour.

According to Nyati, there could be large FIIs selling post 2:30 PM.

“Apart from FIIs selling, rising energy prices, geopolitical concerns, and rising US bond yields are key concerns for the market,” said Nyati.

Apollo Hospitals, Coal India, Reliance, BPCL and ICICI Bank were the top gainers on the Nifty 50 while HDFC, HDFC Life, SBI Life, HDFC Bank and Tata Consumer were the top losers. 

Vinod Nair, Head of Research at Geojit Financial Services said, “Intensification of geo-political tension and hyperinflation as crude & metal price rises worried the market. The Indian IT sector continued to lead the downtrend following sectoral headwinds highlighted in weak Q4 results. Quick sell-off was witnessed during the closing hours led by banking stocks due to FII selling as global market weakened.”

Oil & Gas in focus

On the sectoral front, all indices except Nifty Oil & Gas closed in the red.

Nifty IT and Nifty FMCG faced increased pressure, down nearly 3 per cent each at closing. Nifty Realty was down over 2 per cent. Nifty Financial Services closed nearly 2 per cent lower. Nifty Bank, Nifty Private Bank, Nifty Auto, Nifty Metal and Nifty Pharma were down over 1 per cent each.

Meanwhile, Nifty Oil & Gas closed 0.75 per cent higher.

Broader indices

Broader market also faced pressure with broader indices closing in the red.

Nifty Midcap 50 was down 1.18 per cent while Nifty Smallcap 50 was down 1.66 per cent. The S&P BSE Midcap was down 1.20 per cent while the S&P BSE Smallcap was down 1.21 per cent.

The volatility index rose 2.27 per cent to 19.78.

Published on April 19, 2022
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