Benchmark indices ended over half a per cent lower on Wednesday, dragged by pharma and oil and gas stocks.

Market opened on a weak note on weak global cues. It extended losses further during closing hours, with multiple counters witnessing selling pressure. Continued selling in heavyweights such as Reliance further dragged the benchmarks.

The BSE Sensex closed at 60,008.33, down 314.04 points or 0.52 per cent. It recorded an intraday high of 60,426.61 and a low of 59,944.77. The Nifty 50 closed at 17,898.65, down 100.55 points or 0.56 per cent, near the day’s low of 17,879.25. It recorded an intraday high of 18,022.65.

Notably, the volatility index slipped below 15. At closing, the volatility index fell 1.41 per cent to close at 14.98.

Decliners in focus

The market breadth continued to favour the decliners, with 1,852 stocks declining on the BSE against the 1,496 that advanced, while 116 remained unchanged. Furthermore, 374 stocks hit the upper circuit as compared to the 216 stocks that were locked in the lower circuit. Besides, 212 stocks touched a 52-week high and 25 touched a 52-week low.

Valuation and inflation worries have been weighing on investor sentiments.

Vinod Nair, Head of Research at Geojit Financial Services, said, “Robust US retail sales data failed to inspire global markets as domestic indices were seen trading with a negative bias to close deep in the red. The UK’s rising annual inflation rate, reported at 4.2 per cent in October from 3.1 per cent a month ago, has begun to sour investor mood, adding to the existing inflationary worries.”

“US October Retail Sales data rose 1.7 per cent month-on-month, beating estimates. The surge in fresh Covid cases is keeping global investors on the edge, fanning fears of an economic slowdown. On the domestic front, the auto sector was in focus as reports suggested relief in chip and semi-conductor shortages,” added Nair.

Asian Paints, Maruti, SBI Life, Tata Motors and NTPC were the top gainers on the Nifty 50 while UPL, Reliance, Cipla, Britannia and Axis Bank were the top losers.

Ajit Mishra, VP-Research, Religare Broking Ltd, said, “Markets traded volatile in a range and lost over half a per cent, in continuation with a prevailing consolidation phase. The first half was dull as the benchmark hovered in a narrow range; however, profit-taking in the final hours pushed the index in red.”

“Amongst the sectors, oil and gas, banking and realty were the top losers wherein auto continued to rally for the second straight day. A mixed trend was witnessed on the broader front wherein midcap ended lower and smallcap closed almost on a flat note. Feeble global cues are weighing on sentiment and there’s nothing much to cheer on the domestic front as well. Indications are in favour of further slide but the pace would be gradual,” added Mishra.

Auto in focus

Auto stocks continued to remain in focus. On the sectoral front, while auto and healthcare indices managed to retain gains, pharma, oil and gas, and financials, barring PSU Bank, and realty dragged.

Nifty Auto was up 0.71 per cent at closing while Nifty Healthcare Index was up 0.25 per cent.

Meanwhile, Nifty Pharma was down 1.28 per cent. Nifty Oil and Gas was down 1.46 per cent while Nifty Realty was down 1.64 per cent. Nifty Bank and Nifty Financial Services were down 0.69 per cent and 0.67 per cent, respectively, while Nifty Private Bank closed 0.82 per cent lower.

Broader indices

Broader indices also closed in the red.

Nifty Midcap 50 was down 0.63 per cent while Nifty Smallcap 50 was down 0.38 per cent. The S&P BSE Midcap was down 0.21 per cent while the S&P BSE Smallcap ended flat, up 0.05 per cent.

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