Markets

Sensex down 617 points at close, Nifty ends below 17,000 amid weak global cues

BL Mumbai Bureau | Updated on: Apr 25, 2022

Negative start likely | Photo Credit: Bloomberg

Broader market under pressure; Volatility index rises above 21

Bears kept a grip on the market as the benchmark indices closed over one per cent lower on Monday.

The market witnessed a gap down opening amid weak global cues. The indices extended losses through the day, witnessing broad-based selling. 

The BSE Sensex closed at 56,579.89, down 617.26 points or 1.08 per cent. It recorded an intraday high of 56,875.65 and a low of 56,356.87. The Nifty 50 closed at 16,953.95, down 218.00 points or 1.27 per cent. It recorded an intraday high of 17,054.30 and a low of 16,888.70.

Nearly 2,500 stocks decline

The market breadth favoured decliners, with 2,494 stocks declining on the BSE as against 1,037 that advanced, while 143 remained unchanged. Further, eight stocks hit the upper circuit as compared to four stocks that were locked in the lower circuit. Besides, 177 stocks touched a 52-week high l and 23 touched a 52-week low.

The volatility index rose 15.82 per cent to 21.26.

Bajaj Auto, HDFC Bank, ICICI Bank, Axis Bank and HDFC were the top gainers on the Nifty 50, while Coal India, BPCL, Tata Steel, SBI Life and Hindalco were the top losers.

Global markets turned weak as the US markets suffered losses following increasingly hawkish messages from the Fed as the US Federal Reserve Chairman Jerome Powell is not giving up on his stance of aggressive rate hikes this year. 

On the domestic front, analysts expect volatility to remain this week ahead of the scheduled expiry of April month derivatives contracts. 

Vinod Nair, Head of Research at Geojit Financial Services said, “Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties and supply issues. Oil prices tumbled on fears of waning demand due to a prolonged Covid lockdown in China. Continued FII selling in India along with other global uncertainties favoured a bear trend in the short-term.”

Narendra Solanki, Head-Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said, “Indian equity benchmarks opened in the red following weak trade in Asian market peers amid a global sell-off triggered by aggressive US Fed tightening and China Covid fears.”

“During the afternoon session, the markets failed to erase losses and traded at the day’s low as sentiments were fragile as India’s crude oil import bill nearly doubled to $119 billion in the fiscal year that ended on March 31, as energy prices soared globally following the return of demand and the war in Ukraine. Additional pressure came in as a private report cut India’s 2022-23 economic growth forecast by 70 basis points to 7 per cent, citing slowing global growth due to high commodity prices, and weak local demand because of energy price hikes, inflationary pressures and a struggling labour market,” added Solanki.

Sectoral indices

On the sectoral front, all the indices except Nifty Bank and Nifty Private Bank closed in the red. 

Nifty Bank and Nifty Private Bank each closed 0.10 per cent higher. Meanwhile, Nifty Realty was down nearly 4 per cent. Nifty Metal was down nearly 3 per cent at closing. Nifty Oil & Gas, Nifty IT, Nifty Pharma and Nifty Healthcare Index were each down over 2 per cent.

Broader market under pressure

The broader indices closed in the red under pressure.

The Nifty Midcap 50 was down 2.15 per cent, while the Nifty Smallcap 50 was down 2.18 per cert. The S&P BSE Midcap was down 1.86 per cent, while the S&P BSE Smallcap was down 1.88 per cent.

Published on April 25, 2022
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