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Bears maintain their grip on the market with benchmark indices trading lower during the afternoon on Thursday.
Market continued to fall for the third consecutive session, opening on a weak note amid mixed global cues as rising. While US markets closed lower overnight, a majority of equity indices across Asia are in the green. On the domestic front, indices were trading lower during the afternoon, witnessing selling pressure across multiple counters. Losses in heavyweights such as HDFC further dragged the market.
At 1 pm, the BSE Sensex was trading at 59,587.81, down 511.01 points or 0.85 per cent. It recorded an intraday high of 60,045.48 and a low of 59,476.94. The Nifty 50 was trading at 17,783.20, down 155.20 points or 0.87 per cent, near the day’s low of 17,768.40. It recorded an intraday high of 17,943.70.
Powergrid, Coal India, Bharti Airtel, Grasim and Hero Motocorp were the top gainers on the Nifty 50 while Bajaj Auto, Bajaj Finserv, Infosys, HDFC and Divi’s Lab were the top laggards.
According to experts, global inflation and the expected rate hikes will be major headwinds for markets in the near term. Rising crude oil prices has also been weighing on investor sentiments.
Prashant Tapse, Vice President (Research) at Mehta Equities Ltd said, “Volatility is likely to be the hallmark of today’s trade. Sentiments continue to remain depressed after yesterday’s huge losses and most importantly, the fall indicates that the Nifty bulls are vulnerable.”
“Investors are likely to remain risk-averse to equities until the 10-year US Treasury yield slips from its fresh two-year high of 1.856 per cent, and the yield on the 2-year bond stages corrective decline from 1.075 per cent,” said Tapse.
Metals shine
On the sectoral front, a majority of indices were in the red, while metals gained, IT, auto, FMCG, pharma, oil & gas and financials, barring PSU Bank dragged.
Nifty Metal was up 0.59 per cent.
Meanwhile, Nifty IT was down 1.48 per cent. Nifty FMCG was down 0.74 per cent while Nifty Oil & Has was down 0.77 per cent. Nifty Pharma and Nifty Healthcare Index were down 1.30 and 0.95 per cent, respectively. Nifty Financial Services was down 0.62 per cent. Nifty Bank and Nifty Private Bank were down 0.26 per cent and0.34 per cent respectively, while Nifty PSU Bank was up 0.34 per cent.
Broader indices
Broader market also faced pressure.
Nifty Midcap 50 was down 0.21 per cent while Nifty Smallcap 50 was down 0.31 per cent.
The volatility index softened 0.44 per cent to 17.74.
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