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Key stock market indices were trading lower amid volatility during the afternoon on Monday. Market opened on a negative note amid weak global cues and extended losses in the first half. Though off the day’s low, indices were trading lower during the afternoon, dragged by IT, auto and consumer durables.
The BSE Sensex was trading at 56,834.65, down 226.22 points or 0.40 per cent. It recorded an intraday high of 56,919.31 and a low of 56,412.62. The Nifty 50 was trading at 17,021.60, down 80.95 points or 0.47 per cent. It recorded an intraday high of 17,046.25 and a low of 16,917.25.
IndusInd Bank, Coal India, ITC, UPL and Powergrid were the top gainers on the Nifty 50 while SBI Life, Eicher Motor, Apollo Hospitals, Wipro and Bajaj Auto were the top laggards.
The volatility index rose 6.21 per cent to 20.62, signalling caution among investors.
According to Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “The excessive volatility in the market is likely to continue for some time. The sharp sell-off in the US markets on Friday is an indication of the nervousness and fear in the market caused by an increasingly hawkish Fed, rising dollar index and the prolonging war in Ukraine.”
“The positive side is that domestic cues are getting stronger: GST collections in April at ₹1.68 lakh crore, rising auto sales, improving business sentiments and good corporate results reflect an economy bouncing back smartly. This indicates that the economy facing stocks will do well in FY 23. DIIs and retail investors will be encouraged by the economic data while the FIIs are likely to press sales further since rates are likely to rise sharply in US and the dollar index is rising,” he added.
Sectoral indices
On the sectoral front, a majority of indices were in the red. While realty and FMCG managed to retain gains, auto, IT, consumer durables and PSU Bank faced increased pressure.
Nifty Realty was up 0.80 per cent while Nifty FMCG was up 0.30 per cent.
Meanwhile, Nifty IT and Nifty Consumer Durables were down nearly 2 per cent each, while Nifty Auto was down over 1 per cent. Nift PSU Bank was down nearly 1 per cent.
Broader market
Broader indices were trading in the red.
Nifty Midcap 50 was down 0.67 per cent, while Nifty Smallcap 50 was down 1.53 per cent. The S&P BSE Midcap was down 0.56 per cent, while the S&P BSE Smallcap was down 0.87 per cent.
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