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Benchmark indices were trading over 1 per cent lower during the afternoon on Tuesday amid volatility.
Market opened on a negative note, tracking weak global cues and slipped further as multiple counters witnessed selling pressure, with IT and realty witnessing a major sell-off. Only oil & gas and PSU bank stocks managed gains. The volatility index rose 2.67 per cent to 18.54 at 1 pm.
The Nifty Call: Nifty 50 September Futures (17,805)
The BSE was trading near the day’s low of 59,305.65 at 59,325.43, down 752.45 points or 1.25 per cent. It hit an intraday high of 60,288.44. The Nifty 50 was trading at 17659.45, down 195.65 points or 1.1 per cent. It hit an intraday high of 17,912.8 and a low of 17,654.05.
‘Conflicting signals’
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “There are conflicting signals that might influence the markets in the short term. Rise in US 10-year bond yield is a negative for emerging markets like India, particularly if this trend sustains and gathers momentum, going forward. Rise in Brent crude to $80 is a negative for India’s macros.”
Sensex drops over 100 points in early trade; IT stocks drag
“We are witnessing sectoral rotation in Indian markets now. Buying in banks and autos is a reflection of increasing confidence in the domestic economy theme. There is profit booking in IT since the segment has given excellent returns of 82 per cent one-year return. Markets might consolidate for a while before making a decisive move,” said Dr Vijayakumar.
Powergrid, NTPC, Coal India, IOC and ONGC were the top gainers on the Nifty 50 while Bharti Airtel, Divi’s Lab, Bajaj Finance, Tech Mahindra and HCL Tech were the top losers.
Shares of oil marketing companies surged after petrol price was hiked by 20 paise per litre and diesel by 25 paise as international oil prices neared $80 per barrel mark for the first time in three years.
Sectoral front
On the sectoral front, a majority of indices were in the red with IT and Realty witnessing increased pressure while oil & gas and PSU bank stocks gained focus.
Nifty IT was down 2.58 per cent while Nifty Realty was down 4.12 per cent. Nifty Bank, Nifty Financial Services, Nifty Private Bank, Nifty Pharma and Nifty Healthcare Index were trading over 1 per cent lower.
Meanwhile, Nifty Oil & Gas was up 0.91 per cent while Nifty PSU Bank was up 0.80 per cent.
Broader indices
Broader indices were also in the red.
Nifty Midcap 50 was down 0.76 per cent while Nifty Smallcap 50 was down 1.21 per cent. The S&P BSE Midcap was down 0.88 per cent while the S&P BSE Smallcap was down 0.91.
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