Benchmark indices closed over 1.7 per cent lower amid volatility on Monday.

Market opened on a weak note amid weak global cues. Benchmark indices slipped further during the day, witnessing selling pressure across multiple counters.

The BSE Sensex closed at 57,621.19, down 1023.63 points or 1.75 per cent. It recorded an intraday high of 58,707.76 and a low of 57,299.05. The Nifty 50 closed at 17,213.60, down 302.70 points or 1.73 per cent. It recorded an intraday high of 17,536.75 and a low of 17,119.40.

Over 2,100 stocks decline

The market breadth turned in favour of the decliners with 2,101 stocks declining on the BSE as against 1,405 that advanced while 144 remained unchanged. Furthermore, 445 stocks hit the upper circuit as compared to the 304 stocks that were locked in the lower circuit. Besides, 249 stocks touched a 52-week high level and 18 touched a 52-week low.

The volatility index rose 8.14 per cent to 20.44. 

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said, “Indian markets opened in red following mixed Asian market cues as investors continued to monitor the situation around Ukraine crisis and digest U.S. jobs data and central bank moves in the region.”

“During the afternoon session markets added losses to continue their weak trade amid persistent foreign fund outflows. Traders were seen adding positions in Utilities, Metal and PSU stocks while selling was witnessed in Capital Goods, Healthcare and Telecom sector stocks,” said Solanki. 

According to Santosh Meena, Head of Research, Swastika Investmart Ltd, the weakness in the market can be attributed to heavy selling by FIIs amid rising US bond yields and crude oil prices. 

Markets may remain volatile ahead of State elections. FII selling has also been weighing on investor sentiments in the near term. 

Naveen Kulkarni, Chief Investment Officer, Axis Securities said, “We expect that the markets will continue to remain volatile on the back of the recent interest rate movements globally. Most emerging markets will continue to witness FPI outflows and currency depreciation in the short term. We believe that this volatility should be bought into through regular investments, as earning expectations for Indian corporates remain strong.”

Market is looking forward to the outcome of the RBI Monetary Policy committee meeting, which was scheduled to open today but got postponed to February 8 in view of Maharashtra declaring a public holiday on February 7 to mourn the death of Bharat Ratna legendary singer Lata Mangeshkar. The outcome would be announced on February 10. Analysts expect RBI to change its stance from an “accommodative” policy to “Inflation control,” embarking on a gradual normalisation of the reverse repo rate.

Powergrid, ONGC, Tata Steel, NTPC, and State Bank of India were the top gainers on the Nifty 50 while Tata Consumer, L&T, HDFC Bank, Britannia and HDFC Life were the top laggards. 

PSU Bank in focus

On the sectoral front, all indices except Nifty PSU Bank closed in the red. Financial Services, FMCG, private banks, pharma, IT and auto witnessed increased pressure. 

Nifty PSU Bank closed 0.92 per cent higher. 

Meanwhile, Nifty Financial Services closed 2.57 per cent lower. Nifty Bank and Nifty Private Bank were down over 2 per cent each. Nifty FMCG and Nifty Healthcare Index closed nearly 2 per cent lower each. Nifty Auto, Nifty IT, Nifty Pharma, Nifty Realty and Nifty Consumer Durables were each down over 1 per cent. 

Broader indices

Broader indices also closed in the red.

Nifty Midcap 50 was down 1.12 per cent while Nifty Smallcap 50 was down 1.93 per cent. The SP BSE Midcap was down 1.25 per cent while the S&P BSE Smallcap was down 0.75 per cent.

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