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Mumbai, October 6
Unable to sustain the recent rally, the benchmark indices ended nearly one per cent lower on Wednesday amid profit-booking.
The indices opened on a flat note despite weak global cues and swung in a narrow range with alternate bouts of gains and losses in the first half. However, the benchmark indices turned negative in the second half due to across-the-board selling led by metals. The volatility index jumped 5.70 per cent to 17.33, signalling nervousness among investors, as the valuations looked stretched.
The BSE Sensex closed at 59,189.73, down 555.15 points or 0.93 per cent. It hit an intra-day high of 59,963.57 and a low of 59,079.86. The Nifty 50 closed at 17,646, down 176.30 points or 0.99 per cent. It hit an intra-day high of 17,884.60 and a low of 17,613.15.
Breadth favours decliners
The market breadth turned in favour of the decliners with 1,847 stocks declining on the BSE, 1,443 advancing and 156 remaining unchanged. Further, 422 stocks hit the upper circuit as compared to 180 stocks that were locked in the lower circuit. Besides, 300 stocks touched a 52-week high level and 13 touched a 52-week low.
Investors are now looking forward to the RBI monetary policy meeting outcome and Q2 FY22 corporate earnings.
Vinod Nair, Head of Research at Geojit Financial Services, said, “Spike in crude prices is spooking the Indian market, while inflation is affecting US bond yields. RBI has commenced its three-day MPC meeting in which the central bank is expected to keep rates unchanged. However, it is likely to announce measures to gradually pump out liquidity from the economy,” added Nair.
Broad-based selling
On the sectoral front, all indices closed in the red, with metals recording the highest losses. Nifty Metal was down 2.98 per cent at closing. IT, pharma, realty, auto, financials and consumer durables also witnessed increased pressure.
Nifty Realty was down 1.62 per cent, while Nifty IT was down 1.32 per cent. The Nifty Pharma and Nifty Healthcare Index ended 1.87 per cent and 1.82 per cent lower, respectively.
Nifty Bank was down 0.58 per cent, while Nifty Financial Services was down 0.32 per cent. Nifty Private Bank and Nifty PSU Bank were down 0.64 per cent and 1.94 per cent, respectively at closing. Nifty Consumer Durables was down 1.32 per cent, while Nifty Auto was down 1.16 per cent.
Broader indices decline
The broader market also witnessed selling pressure.
Nifty Midcap 50 was down 1.33 per cent at closing, while Nifty Smallcap 50 was down 0.80 per cent. The S&P BSE Midcap was down 1.22 per cent, while the S&P BSE Smallcap ended 0.55 per cent lower.
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