Sensex down 149 points, Nifty closes below 17,300 amid volatility 

Benchmark indices closed in the red for the fourth consecutive session amid volatility on Monday.

Market opened on a weak note, tracking negative global cues as investors remained concerned regarding ongoing geopolitical tensions between Russia and Ukraine and remained volatile through the day. Indices closed lower, witnessing selling pressure across multiple counters.

The BSE Sensex closed at 57,683.59, down 149.38 points or 0.26 per cent. It recorded an intraday high of 58,141.96 and a low of 57,167.02. The Nifty 50 closed at 17,206.65, down 69.65 points or 0.4 per cent. It recorded an intraday high of 17,351.05 and a low of 17,070.70.

Over 2700 stocks decline

The market breadth remained in favour of the decliners with 2,778 stocks declining on the BSE as against 710 that advanced while 130 remained unchanged. Furthermore, 558 stocks hit the lower circuit as compared to the 227 stocks that were locked in the upper circuit. Besides, 127 stocks touched a 52-week high level and 119 touched a 52-week low.

The volatility index rose 3.32 per cent to 22.90.

Investors remained concerned regarding continued FII selling. Major headwinds including rate hike fears, firm commodity prices, especially crude oil, and rising bond yields have also been weighing on global investor sentiments.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said, “Indian markets opened in red tracking global cues as investors continue to monitor Ukraine crisis amid rising tensions of potential invasion keeping investors on the edge for second consecutive week.”

“During the afternoon session market pared some losses as buying in frontline stocks were aiding sentiment. Traders took some solace with Crisil Research’s statement that India’s industrial activity is expected to gather pace in the coming months owing to a gradual pick-up in consumption as well as investment demand. However, the relief rally couldn’t hold long and markets drifted lower in closing session as fresh news over Ukraine crisis dampened the fragile sentiments,” said Solanki. 

Mitul Shah, Head Of Research at Reliance Securities said, “Domestic equities closed lower after volatile session as geopolitical disturbances continue to throttle the markets. US equities extended declines on Friday to close a second straight week in negative territory with geopolitical tensions intensifying to contribute to a further risk-off tone.”

“The geopolitical pot is boiling. If that is no enough, the Fed’s aggressive tone on rate hike is keeping market participants on the edge. The LIC’s upcoming IPO – India’s biggest ever public listing--continues to make waves,” said Shah.

Wipro, Infosys, Shree Cement, Powergrid and HDFC Bank were the top gainers on the Nifty 50 while Hindalco, UPL, Divi’s Lab, Adani Ports and Sun Pharma were the top laggards. 

Bank stocks in focus

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

Nifty Metal was down over 2 per cent while Nifty Oil & Gas was down nearly 2 per cent. Nifty Realty, Nifty PSU Bank Nifty Healthcare Index and Nifty Pharma were each down over 1 per cent at closing. 

Meanwhile, Nifty Bank and Nifty Private Bank closed 0.23 per cent and 0.25 per cent higher, respectively. 

Broader market under pressure

Broader indices closed in the red. 

Nifty Midcap 50 was down 0.80 per cent while Nifty Smallcap 50 was down 2.85 per cent. The S&P BSE Midcap was down 0.80 per cent while the S&P BSE Smallcap was down 2.20 per cent.

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