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Market, after a negative opening, remained bearish till afternoon on Wednesday, dragged down by banking and financial services stocks.
It has been impacted by negative global cues. Asian markets were trading mixed with the rising US treasury yield and the meltdown of hedge fund Archegos Capital Management further impacting market sentiment along with concerns related to an increase in Covid-19 cases in the country.
At 1 pm, the BSE Sensex was at 49,690.44, down 446.14 points or 0.89 per cent. It had hit an intra-day high of 50,050.32 after opening at 50,049.12 but slipped to hit a low of 49,561.86.
Nifty 50, after hitting an intraday high of 14,813.75, slipped below 14,800 at 14,741.20, down 103.90 points or 0.70 per cent.
Likhita Chepa, Senior Research Analyst at CapitalVia Global Research said, “The market opened on a slightly negative note after yesterday’s rally and the correction continued in the first half following the global cues. US market ended negatively after the US treasury yields hit another high in the market. Asian markets were trading lower following negative cues overnight from Wall Street on bond yield concerns and sliding oil prices.”
Market likely to remain volatile
As the last day of the fiscal, the market is likely to remain volatile through the day, witnessing aggressive buying from DIIs as investors readjust their portfolio.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Today being the last day of FY 21, DIIs are likely to buy aggressively to push up the NAVs of their mutual fund schemes. Their focus is likely to be IT, private sector financials, cement, pharma and select FMCG stocks which are expected to report good Q4 results."
Heavyweights such as the HDFC twins faced pressure during the first half.
Tata Motors, UPL, Tata Steel, SBI Life and Shree Cements were among the top gainers while HDFC Bank, HDFC, PowerGrid, Hero Motocorp and Tech Mahindra were the laggards.
US Dollar has continued to firm up across the board amid rising US yields with Indian rupee falling to a one month low, further impacting the market. Global investors are also closely watching U.S. President Joe Biden's infrastructure plan to be announced on Wednesday.
Private banks, financial services drag
On the sectoral front, private banking stocks and financial stocks suffered losses. The Nifty Bank was down 1.55 per cent while Nifty Financial services was down 1.88 per cent. Nifty Private Bank was down 1.68 per cent.
However, the Nifty PSU Bank recorded significant gains and was up 2.62 per cent.
The Nifty Metal was able to recover from early losses and was trading slightly higher at 0.92 per cent.
Broader indices outperform
Major broader indices remained in the green. Broader indices outperformed the benchmark indices.
Nifty Midcap 50 was up 0.20 per cent while Nifty Smallcap 50 was up 0.54. The S&P BSE Midcap was up 0.19 per cent while the S&P BSE Smallcap was up 0.34 per cent.
Notability, the volatility index was in the green, up 0.48 per cent at 20.59.
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