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Market ended the last day of the FY21 on a negative note, dragged by the banking, IT and energy stocks. Benchmarks, after opening on a negative note, drifted further on profit-booking amidst weak global cues .
Concerns related to the increase in Covid-19 cases in addition to negative global cues impacted the market sentiment. Strengthening dollar index on the back of rising US treasury yield and the meltdown of hedge fund Archegos Capital Management further aggravated investor concerns.
The BSE Sensex closed below the psychological 50,000-mark again to close at 49,509.15, down 627.43 points or 1.25 per cent. It hit an intraday high of 50,050.32 and a low of 49,442.50. The Nifty 50 closed at 14,690.70, down 154.40 points or 1.04 per cent. It hit an intraday high of 14,813.75 and an intraday low of 14,670.25.
As many as 1,394 shares have advanced on the BSE, 1,486 declined and 199 remain unchanged while 244 securities hit the upper circuit and 287 the lower circuit. As many as 142 securities hit their 52-week high and 61 their 52-week low.
Binod Modi, Head Strategy at Reliance Securities, said: “Domestic equities traded lower today as concerns pertaining to spike in Covid-19 cases and resultant restrictions continued to weigh on investors’ sentiments. Further, rise in USA treasury yields and strengthening dollar index aggravated concerns.”
Market remained volatile through the day with pressure on heavyweights such as HDFC.
UPL, Tata Steel, Grasim, Bajaj Finserv and ITC were among the top gainers while HDFC Bank, HDFC, PowerGrid, Tech Mahindra and Coal India were the losers.
Dollar firms up
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 US President Joe Biden's infrastructure plan valued at over $2 trillion to be unveiled today.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities said, “A lot is happening on the global front - Steep rise in dollar index as well as the US bond yields, which have led to increased volatility in domestic markets.
Banking, financials lag
Among the sectoral indices, banking and financial services recorded the biggest losses. The Nifty Financial Services was down 2.01 per cent at closing and the Nifty Bank 1.69 per cent. The Nifty Private Bank was down 1.85 per cent.
The Nifty PSU Bank, however, remained resilient and was up 1.32 per cent at closing. The Nifty Realty also recovered from previous sessions’ losses and was up 1.72 per cent.
Mid & small-caps shine
Broader indices outperformed benchmark indices with midcap and smallcap stocks recording marginal gains at closing.
Nifty Midcap 50 was up 0.15 per cent while Nifty Smallcap 50 was up 0.29 per cent. The S&P BSE Midcap was up 0.07 per cent while the S&P BSE Smallcap was up 0.52 per cent.
The volatility index was up 0.78 per cent to 20.65.
“Financials especially private banks witnessed heavy profit-booking, which along with selling pressure in IT stocks dragged Nifty today. However, investors continue to lap-up FMCG, Metals and Pharma names. Notably, buying was seen in midcap and smallcap counters," said Modi.
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